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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-22 Daily Xml
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BUDGET ALLOCATIONS

The Hon. I.F. EVANS (Davenport) (14:46): My question is to the Treasurer. Since the 20 March state election, has the government approved extra appropriations to cover significant overspends in the Department of Health and the Department for Families and Communities and, if so, what is the extra appropriation for each of those two departments? A document leaked to the opposition shows that cabinet was asked to approve about $400 million to cover the balance of the 2009-10 year and in the forward estimate periods out to 2013-14. That $400 million was for health and it was more than $150 million over the same period for the Department for Families and Communities.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (14:47): I have made no secret—you did not need a leaked document or something to ask me about this.

Ms Chapman interjecting:

The Hon. K.O. FOLEY: 'The minister must have been asleep,' says the wizard from Bragg over there. I have said repeatedly, and I am sure the minister has said repeatedly, that the single biggest challenge confronting state governments, confronting national governments and confronting the Western world is the rapid increase in health costs. Health inflation is running at between 9 per cent and 11 per cent. It is a factor of technology, a factor of living longer, a factor of new drugs and the fact that we are providing health services to people much later in their lives. It is a massive cost.

We, like the previous Liberal government, have not been able to sufficiently restrain the demand on our system to meet the budget allocations that we have provided for. There is a distinct difference between the way we manage our budget and the way that sloppy mob over there used to manage health. What the opposition would do is that if they were to have a cost overrun, which they did, they would fund it at the end of that financial year and make no provision for it in the out years, almost hoping that a miracle would occur and that the 9 per cent inflation, or whatever it was, would evaporate and they could keep within the budget the next year. But it did not: the bubble just kept rolling through, and the next year there was the overrun plus the previous year's overrun to fund. When we came into office we had to reverse that practice. So, in recent budgets—

Mr Marshall: Didn't you just have an overrun last year?

The Hon. K.O. FOLEY: Yes.

Mr Marshall interjecting:

The SPEAKER: Order! There is one question already on the board. The Treasurer will continue.

Mr Marshall interjecting:

The SPEAKER: Member for Norwood, be quiet! The minister will finish his question.

The Hon. K.O. FOLEY: You think you are impressing your colleagues. I think they think you are a goose, interjecting all the time. Just try to pick the moment.

Mr Marshall: I reckon I'd have more friends on my side than you have on yours.

The SPEAKER: Member for Norwood, I warn you!

Members interjecting:

The Hon. K.O. FOLEY: I tell you what: if you think you have got friends over that side, you are annoying the hell out of them.

Mr Marshall interjecting:

The Hon. K.O. FOLEY: Listen to it!

The SPEAKER: Order!

The Hon. K.O. FOLEY: Madam Speaker, what we have done when we have had an overrun in health is project that overrun in terms of demand for services into the forward estimates. That is prudent budget management. But if members opposite are saying that we should slash our health budget to the level at which that overrun has occurred, that would mean turning people away at the emergency—

Mr WILLIAMS: I have a point of order, Madam Speaker. The minister is now debating the answer. He has given us the answer and now he is entering into a debate.

The SPEAKER: The member for Bragg.

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