PETER TAKES POLL POSITION

Libs’ big health play

THE Hodgman Government knows the next State Election will be won or lost on health.

And yesterday’s $5.8 billion State Budget put the hot-button issue front and centre of the political debate, with an extra $658 million over the next four years, taking expenditure in the sector to more than $7 billion.

It was an emphatic response from a Government that has been under siege with almost daily claims of a crisis in the sector.

Premier Will Hodgman said: “We are determined to not only deal with the pressures that our health system is experiencing ... but to also, knowing that there will be increasing pressures on our health system, provide for a strong future.”

But critics said the money would do nothing to alleviate the immediate crisis and they raised doubts over GST projections.

TREASURER Peter Gutwein has delivered a pre-election budget blitz on health, focused on fixing longstanding problems in the state’s hospital system.

Under the slogan “Building Tasmania’s Future” the Government said it would deliver the largest boost to health expenditure in a single budget.

The Liberals have vowed an additional $658 million for health over the next four years — in addition to big spending for jobs, education and tourism.

At the same time, the Government promised a series of consecutive budget surpluses but no new or increased taxes, no hidden cuts and no asset sales.

In his Budget speech, Mr Gutwein pointed to rising business confidence, improved labour market conditions, a surging tourism industry and strong retail turnover.

“The Hodgman Liberal Government has balanced the Budget, and the results speak for themselves,” Mr Gutwein said.

“Spending is under control, we have positive net cash and investments and there is now a surplus in each and every year of the Budget and the forward estimates.”

Premier Will Hodgman described the Budget as a “sensible and responsible” blueprint which would deliver continued growth.

“The Budget continues our strong fiscal discipline, with a small surplus this year, and surpluses every year across the forward estimates,” he said.

“We’re absolutely committed to keeping the Budget in balance because it means we can continue to invest more in essential services and build Tasmania’s future.”

Foremost among the spending promises are 106 more hospital beds statewide — some already announced but only partially delivered — plus 350 more staff to run them, all to be delivered within a year. Ten of those beds will be shoehorned into the Royal Hobart Hospital’s overstretched Emergency Department.

The Government will establish a $6 million “Statewide Operation and Command Centre” for the health service, buy a second rescue helicopter for $9 million and spend an extra $16 million for mental health.

The health spending in- crease was welcomed by the state’s peak doctors’ body.

“With the significant emphasis put on health in the lead-up to this Budget, AMA Tasmania feels the State Government has listened to many of the concerns raised by the health sector,” said AMA Tasmania President Dr Stuart Day.

Better-than-expected GST revenues, an increased tax take from the property boom, plus rising dividends from the MAIB and TasNetworks, have delivered the Treasurer a timely war chest ahead of an election due by the first half of next year. He announced a bumper spending increase of nearly 6 per cent in the coming year, up $300 million to $5.81 billion thanks to revenues of $5.87 billion (up 5.4 per cent).

Mr Gutwein predicted a surplus of $54.3 million for 2017-18 followed by surpluses of around $50 million a year across the forward estimates — achieving six consecutive surplus budgets in a row by 2020-21.

Those surpluses, at about 1 per cent of the Budget, will be vulnerable to erosion by election promises and any change made to GST distributions, which Mr Hodgman yesterday vowed to defend.

“We’re certainly primed to have that fight again and we’ve successfully fought off those challenges [before],” he said.

“If anyone thinks that a change to the GST is going to be accepted by the state of Tasmania I’ll tell them they’re dreaming because we deserve our fair share.”

Mr Gutwein pointed to this Budget contributing to the Government’s dramatic turnaround in the state’s debt, which will leave $452

I welcome the Government’s announcement today of an extra $27.5 million dollars to better protect and care for Tasmania’s most vulnerable children and young people — CHILDREN’S COMMISSIONER MARK MORRISSEY The Budget is balanced over the forward estimates for the first time in 10 years. It is pleasing to see that the State Government has expenses under control ... the state now has capacity to do more as shown in the Budget — TCCI CHIEF MICHAEL BAILEY Of the 106 ‘new’ beds the Treasurer outlined, 70 have already been announced and the remainder ... will take up to 18 months to come online and 10 additional beds in the Royal Hobart Hospital emergency department will take months to become available — LABOR LEADER REBECCA WHITE An unsurprising preelection Budget. Having slashed funding to essential services in their first Budget, now the Liberals are trying to repair some of the damage caused in health and education — GREENS LEADER CASSY O’CONNOR

million in savings and investments tucked away.

But the figures also pointed to the likelihood of postelection austerity — with real cuts in both revenue and spending next year and only modest growth of 2 per cent and 1 per cent in each of the following two budgets.

The Budget papers painted an optimistic outlook for the state economy over the coming years, with growth predicted to exceed the longterm average, thanks in part to increased exports driven by a lower Australian dollar and a booming tourism in- dustry. The Budget included measures intended to create an additional 7600 jobs for young Tasmanians including $17.1 million in payroll tax cuts and $4000 grants for small businesses taking on apprentices.

State final demand is predicted to increase by 2.5 per cent next year, gross state product is forecast to increase by 2.5 per cent and the unemployment rate is predicted to hold steady at 6.25 per cent.

Opposition Leader Rebecca White accused the Government of being “sneaky”.

“Of the 106 ‘new’ beds the Treasurer outlined, 70 have already been announced and the remainder — including at the Launceston General Hospital and the Hobart Repat — will take up to 18 months to come online and 10 additional beds in the Royal Hobart Hospital emergency department will take months to become available because they will require reconfiguration work in the ward,” she said.

“There is nothing in this Budget for the long-term health of Tasmanians with no commitment to health promotion and preventive health.”

Green leader Cassy O’Connor accused the Government of lacking “the guts for meaningful change.”

“Regrettably, the Liberals have squandered the opportunities granted to them by a massive 5.4 per cent increase in revenue totalling $300 million,” she said.

“Instead of investing this windfall in state-building infrastructure like light rail and the SubPartners [telecommunications] cable, they are scattering the money around like confetti without any cohesive vision.”

With the biggest-ever boost to health in a single budget — $650 million and 106 hospital beds — it puts health front and centre Premier WILL HODGMAN