Hon Alison Xamon questions the Minister for Mental Health about reinvesting funds from the Graylands Hospital closure into the mental health sector. The Minister clarifies that land sale proceeds go into the Consolidated Fund but a business case will be submitted to secure upfront funding for replacement services, to be repaid upon the land sale.

AnsweredQoN 344Legislative Council
Asked
5 September 2017
Portfolio
Mental Health

QuestionView source ↗

I refer to the planned closure of Graylands Hospital, and I ask:
(a) will the Minister commit to reinvesting all money raised from the divestment of Graylands Hospital directly back into the mental health sector; and
(b) if no to (a), why not?

AnswerView source ↗

Answered
31 October 2017
Responded by
Parliamentary Secretary representing the Minister for Mental Health
Response time
9 days
(a) The Minister does not have the authority to reinvest proceeds from the sale of Crown Land. (b) Proceeds from land sales are placed in the Consolidated Fund under the Land Asset Sales Program as per Government policy. The Land Asset Sales Program policy states that the net proceeds from land asset sales are routinely credited to the Consolidated Account to reduce State debt. Agencies wishing to receive an appropriation for all or part of the proceeds are required to submit a business case to Cabinet through the Land Asset Management Advisory Group. As such, the Mental Health Commission and the Department of Health will submit a joint business case to seek the upfront funds required to establish new, replacement services across Western Australia, prior to the divestment of services from Graylands Hospital and Selby Older Adult Mental Health Unit, and prior to the sale of the land. The business case will suggest that these upfront funds will be returned to Government upon the sale of the land.
(b) Proceeds from land sales are placed in the Consolidated Fund under the Land Asset Sales Program as per Government policy. The Land Asset Sales Program policy states that the net proceeds from land asset sales are routinely credited to the Consolidated Account to reduce State debt. Agencies wishing to receive an appropriation for all or part of the proceeds are required to submit a business case to Cabinet through the Land Asset Management Advisory Group. As such, the Mental Health Commission and the Department of Health will submit a joint business case to seek the upfront funds required to establish new, replacement services across Western Australia, prior to the divestment of services from Graylands Hospital and Selby Older Adult Mental Health Unit, and prior to the sale of the land. The business case will suggest that these upfront funds will be returned to Government upon the sale of the land.
The Land Asset Sales Program policy states that the net proceeds from land asset sales are routinely credited to the Consolidated Account to reduce State debt. Agencies wishing to receive an appropriation for all or part of the proceeds are required to submit a business case to Cabinet through the Land Asset Management Advisory Group. As such, the Mental Health Commission and the Department of Health will submit a joint business case to seek the upfront funds required to establish new, replacement services across Western Australia, prior to the divestment of services from Graylands Hospital and Selby Older Adult Mental Health Unit, and prior to the sale of the land. The business case will suggest that these upfront funds will be returned to Government upon the sale of the land.
As such, the Mental Health Commission and the Department of Health will submit a joint business case to seek the upfront funds required to establish new, replacement services across Western Australia, prior to the divestment of services from Graylands Hospital and Selby Older Adult Mental Health Unit, and prior to the sale of the land. The business case will suggest that these upfront funds will be returned to Government upon the sale of the land.

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