COMMONWEALTH HEALTH PAYMENTS

In reply to Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (25 June 2009).

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): I have been provided with the following information:

The reduction of $64 million (6 per cent) in grants from the commonwealth for the health portfolio in 2009-10 primarily reflects the once-off receipt of $104.9 million in 2008-09 for Hospital and Health Reform, which will be spent over the forward estimates; and the cessation at 30 June 2009 for essential vaccines and highly specialised drugs agreements under the former Australian Health Care Agreement (ACHA).

Ongoing Commonwealth funding for essential vaccines and highly specialised drugs were not included in the 2009-10 State Budget as the state did not have the agreements with the Commonwealth for this revenue and associated expenditure. New National Partnership agreements for essential vaccines and highly specialised drugs are being negotiated and it is estimated that the State will receive $20.5 million for essential vaccines and $49.6 million for highly specialised drugs in 2009-10.