❓ WA Treasurer addresses concerns about potential federal budget cuts impacting WA, particularly in health, native title, and aged care. He calls for national health reform and criticises the Commonwealth's past actions.
AnsweredQoN 541Legislative Assembly
QuestionView source ↗
I refer to the recent speculation about fundamental structural weaknesses in the federal budget. Mr M.W. Trenorden: Are you sure that question is without notice? Mr D.A. TEMPLEMAN: Indeed. What are the implications for Western Australia? It is a very important question. Mr E.S. RIPPER
AnswerView source ↗
I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr M.W. Trenorden: Are you sure that question is without notice? Mr D.A. TEMPLEMAN: Indeed. What are the implications for Western Australia? It is a very important question. Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr D.A. TEMPLEMAN: Indeed. What are the implications for Western Australia? It is a very important question. Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr M.W. Trenorden: Are you sure that question is without notice? Mr D.A. TEMPLEMAN: Indeed. What are the implications for Western Australia? It is a very important question. Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr D.A. TEMPLEMAN: Indeed. What are the implications for Western Australia? It is a very important question. Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
Mr E.S. RIPPER replied: I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
I thank the member for his excellent question and his insight. Based on past form, it is a serious risk that in the forthcoming federal budget the Liberals in Canberra will cut grants to the States to manage its budget difficulties. I outlined yesterday what the Commonwealth is not doing for the native title system and how it is under-funding that very important system. We are also aware of what it is doing in health. It has run down the bulk-billing system and scaled down its support for aged care. That puts financial pressure on the state health system. As it happens, commonwealth, state and territory Treasurers will meet in Canberra next week. Members might recall what happened the night before the last Treasurer’s conference in March last year, when state and territory Treasurers were informed that the Commonwealth had unilaterally reinterpreted the intergovernmental agreement on the goods and services tax and slashed previously agreed funding levels to the States and Territories. That decision by the Liberals in Canberra cost this State $83 million over four years. Prior to the conference next week there will be a meeting of state and territory Treasurers. I have listed for discussion at that meeting one of the most important policy issues confronting the nation; that is, the need for national health reform. It might seem an unusual issue to raise at a Treasurer’s meeting; however, the growing financial pressures in health demand a coordinated strategy from all States and Territories and the Commonwealth Government. The Western Australian Government is doing all it can to deliver a high quality of health care. It has injected more than $1.3 billion of new money into the health system since it came to office. The Government has also set up its own reform team headed by former New South Wales Director General of Health Michael Reid to improve health services to the community and contain cost growth over the longer term. I will meet with Mr Reid this afternoon to discuss the size of the task before him. As I have previously advised the House, health spending in Western Australia has now reached $2.7 billion, or 24.2 per cent of the total state budget. If we do not match that investment with reform, health spending will account for nearly 35 per cent of the state budget within a decade. State health spending - which accounts for a quarter of the budget - is growing at a rate of six to seven per cent a year, while state revenue is growing at around three per cent a year. Members can work out for themselves that that is clearly unsustainable. All Governments in this country are facing the same dilemma. If we ignore it, it will not go away. We need a national plan, national leadership and the cooperation of all States and Territories and workers in the health system to address the issue. There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
There is an example of what can be done. There is a way forward. I draw members’ attention to recent developments in Canada. Last month in Ottawa, Prime Minister Chretién and the leaders of all Provincial Governments signed the Canadian Accord on Health Care Renewal. It is a model for cooperative approach to health reform. When he signed the accord on 5 February, the Canadian Prime Minister said - Canadians have told us that they want to see where their health care dollars are being spent and that their money is buying real change. My colleagues and I are committed to strengthening our health care and ensuring it is more accountable to the citizens who fund it, The federal Government in Canada backed the plan with a $17.3 billion increase in federal support for health over the next three years. That is refreshing leadership. It begs the question why our Prime Minister will not follow suit and join with the States in developing a long-term renewal plan for health in this country.
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