Health Funding

The Hon. T.R. KENYON (Newland) (14:38): My question is to the Minister for Health. What new information does the minister have about the federal budget cuts to the South Australian health system?

The Hon. J.J. SNELLING (Playford—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Arts, Minister for Health Industries) (14:38): In May I updated the house about the savage cuts to health announced in the federal budget. There was an urgent need for the state government to respond to the cuts as the federal government will take $655 million from our hospitals over the next four years, the equivalent of removing 600 beds, closing an entire hospital or 3,000 nurses.

Mr Knoll interjecting:

The SPEAKER: The member for Schubert is called to order.

The Hon. J.J. SNELLING: By 2024-25 the loss of payments will be $969 million per annum. That is not the total over the next 10 years; that is the loss for that particular year, 2024-25. By then the federal contribution to our hospitals will have dropped to below 25 per cent. Under the National Health Reform Agreement—

Mr Tarzia interjecting:

The SPEAKER: The member for Hartley is warned for the second and final time.

The Hon. J.J. SNELLING: —federal funding to our hospitals was to grow 40 per cent. Unfortunately, I have received new information that suggests that the size of these cuts may have been underestimated by the commonwealth and, as a result, they may be even more damaging to our ability to run a first-class health system.

Indexation estimates used by the commonwealth Treasury have been provided to the states and territories since the release of the federal budget. This information shows us that the commonwealth has based its funding calculations on an extremely low estimate of population growth. I understand that the states and territories—

Members interjecting:

The SPEAKER: The leader is warned for the second and final time and the member for MacKillop is called to order. Minister.

The Hon. J.J. SNELLING: I understand that the states and territories have not been able to verify these estimates with the level of information provided by the commonwealth, so we remain concerned that the inevitable result will be that the amount of future commonwealth funding will be even lower than what we were led to believe when the federal budget was handed down. Population estimates are one of the most important factors when making calculations for the future. While there is no doubt that it can be extremely difficult to get them right, with the commonwealth using these extremely low growth estimates, the risk that future funding cuts will be even harsher than those that were announced is particularly high.

Through SA Health I will continue to work with the commonwealth to seek greater clarity about these calculations and the information that they are based on. I am also continuing to engage with doctors, nurses, paramedics and other health professionals, people who have helped create our world-class health system, to help me respond to these savage cuts. Nevertheless, it is now even more important that we continue our campaign to tell Tony Abbott and Joe Hockey that their federal cuts hurt.