Big blue over funds for state hospitals

STATE BUDGET

THE Liberals have brushed off Budget figures showing the planned spend on hospitals in 2017-18 is less than the actual spend in the current year, as they continue to sell a “record spend” on health.

The Government has unveiled a health spend of more than $7 billion over four years, including the biggest ever boost to health funding.

This includes $658 million more over four years, of which $210.4 million will be in 2017-18.

The additional health spending has neutralised public outcry from the Australian Medical Association about a crisis in the state’s hospitals.

The AMA Tasmania said it felt the Government had listened to its concerns.

But questions have been raised about how much extra money hospitals will actually receive.

The budgeted spend on hospitals for 2016-17 was $1.368 billion, but a $106.7 million overrun will bring the spend to $1.475 billion.

In 2017-18 the Government has budgeted for $1.460 billion, or $15 million less than what will be spent this year.

Public policy analyst John Lawrence said the additional spend on hospitals claimed by the Government was based on what was intended to be spent in 2016-17, not what was actually spent.

A government spokesman said there was $20 million extra for hospitals next year on top of the budgeted spend, tak- ing next year’s spend to $1.480 billion. The extra $20 million cited is not shown in the hospital budget but contained under finance general in a line called “health funding provision”.

The extra $20 million means there will be $5 million more budgeted to be spent on hospitals next year, or an increase of 0.06 per cent, excluding budget blowouts.

Shadow Treasurer Scott Bacon said the hospital funding figures showed spending was actually projected to go backwards. “The record increase in spending the Government is boasting about ignores the real cost of delivering health services,” Mr Bacon said.

“The Government is comparing budget projections, not spending in real terms.”

Health Minister Michael Ferguson would not be drawn on the details of the extra hospital spending this year, and lashed Labor for being unable to interpret the health budget.

Mr Ferguson said Opposition Leader Rebecca White had made a “farcical error” by wrongly counting the extra $329 million for the Mersey Hospital as part of the extra $685 million to be spent this year.

“The numbers are very clear, we are increasing expenditure in health every year, and for Labor to continue to argue about the numbers is really strange and odd because we have now taken the health budget to $7 billion,” he said.

A spokeswoman for Mr Ferguson said there was no breakdown to explain exactly where the $658 million was being spent across the health portfolio.

The funds would go towards a raft of initiatives including the 106 extra hospital beds and 350 extra staff.

Royal Hobart Hospital medical staff association chairman Frank Nicklason said 10 short-stay beds and some patient chairs at the RHH would have “very limited” impact in the overstretched hospital. ernment has promised to pay in the event of a takeover.

Treasurer Peter Gutwein said the funds were included in the Budget to show the Government was serious about the takeover and its commitment to councils to replace dividends.

He said the funds would free up funds to help TasWater speed up infrastructure upgrades.

Owners Representatives Group chairman David Downie said the small incentive would do nothing to change councils’ opposition to the plan.

“It’s a pittance in the Budget in exchange for a $3 billion asset grab,” he said.

The Government is locked in a bitter dispute with councils over the takeover.

The takeover remains theoretical until it passes the Legislative Council and legislation is yet to be tabled.

David Downie