$340m and a new RHH

The Independent Member for Denison, Andrew Wilkie, has welcomed the release of the Commonwealth Grants Commission report that clearly demonstrates the $340m he secured for the Royal Hobart Hospital is a great deal for Tasmania.

The CGC report today shows that Tasmania’s GST revenue is set to rise by $94m from $1.7b to $1.8b. (p.4)

The impact of Health and Hospitals Fund payments to Tasmania – which includes funding for cancer centres as well as the $340m Mr Wilkie secured for the RHH – led to a correction of just $59m in GST payments to the state. (p.84)

“Given the choice of hundreds of millions of dollars to redevelop the RHH and improve cancer services in Tasmania or $59m in extra GST this year, I know what I would choose,’’ Mr Wilkie said.
Mr Wilkie said he had not heard anyone argue that the RHH did not require urgent redevelopment.

“It is one of the biggest infrastructure projects in Tasmania’s history and will provide a much-needed boost to the slowing state economy, providing jobs and confidence for the business community during hard times,’’ he said.

“This is money Tasmania would not have received if it wasn’t going ahead with the redevelopment.’’

It is on the public record that the State Government’s submission to the Commonwealth Grants Commission argued there was no argument for exceptional treatment of the RHH funding.

“Like all other federal infrastructure payments for projects including the Kingston Bypass, school halls and upgrades to the Launceston General Hospital, the RHH redevelopment money is taken into account when the Grants Commission carves up GST between the states to ensure fairness,’’ Mr Wilkie said.

He said the Grants Commission’s finding vindicates his previous statements that the $340m payment for the RHH redevelopment would have a minimal impact on GST payments to Tasmania.

“This financial year Tasmania will receive an estimated $1.08b in federal Special Purpose Payments,’’ he said. “This will result in a correction of $114m in GST payments to the state next year on account of the horizontal fiscal equalisation process, which is broadly consistent with recent years and not significantly different to the example I provided in my media release of 5 December.

“The Greens and AMA’s irresponsible, alarmist and politically-motivated claims that all but $7m to $12m of the money would be clawed back in GST payments were plain wrong.

“For the Greens and AMA to single out the $340m for the redevelopment of the RHH and not highlight the impact of other federal infrastructure funding for hospitals in Launceston and Burnie on Tasmania’s GST share proves they are simply engaged in political mud slinging.

“The $340m for the RHH has had NO negative impact on the state budget and has not caused the recent health cuts.’’