Nicola Roxon (Gellibrand, Australian Labor Party, Minister for Health and Ageing) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This very important bill proposes to amend the Health Care (Appropriation) Act 1998. That act was made to permit the Minister for Health and Ageing to determine grants of financial assistance to a state, or to a hospital or other person, for the purpose of providing or paying for health and emergency services of a kind or kinds that are currently, or were historically, provided by hospitals. As such, the act provides the legislative basis for the Commonwealth to pay financial assistance under the Australian health care agreements, including health care grants to the states and territories and Commonwealth own purpose outlays for mental health, palliative care and the Hospital Information and Performance Information Program.

The 2003-08 Australian health care agreements expire on 30 June 2008. At the Council of Australian Governments meeting of 26 March 2008 it was agreed that new health care agreements would be signed in December 2008 and commence on 1 July 2009. This means, in effect, that 2008-09 will be a transitional year in which the new agreements will be developed and implemented.

At that COAG meeting the Commonwealth also agreed to commit an immediate allocation of $1 billion to relieve pressure for 2008-09 on public hospitals. This $1 billion is made up of the indexation of the previous Commonwealth allocation for 2007-08 plus a further $500 million in additional money.

This $1 billion to our public hospitals is a very significant investment by the Commonwealth. It is significant because it is the first step in the long road towards rebuilding our health system after 11 years of neglect and funding cuts. It begins to reverse the trend of decline started under the Liberal government.

It is significant because it is a major part of this year’s health and ageing budget—which for the first time ever will be above $50 billion.

And it is significant because it signals a change in the times—an end of the blame game, an end of an era of using political fights as a smokescreen for neglecting the health system and the beginning of an era of cooperation, allowing us to deliver better health services across Australia in concert with the states and territories.

These proposed amendments are a key step in enabling the Commonwealth to deliver on our commitments to families across the country.

The act currently provides that total grants of financial assistance must not exceed $42.01 billion over the five-year life of the 2003-08 Australian health care agreements.

The bill proposes amendments that will increase the appropriation amount stated in the act by $10.25 billion to $52.26 billion and change the appropriation period stated in the act from five years from 1 July 2003 to six years from 1 July 2003. These amendments will ensure continuity of public hospital and related funding for the 2008-09 financial year, during which the new agreements will be developed and put in place. The terms and conditions of the current Australian health care agreements will be extended for that year to provide a framework for the administration of the payments.

Of the $10.25 billion, $500 million is to be paid to the states and territories before the end of this financial year. Around $9.75 billion, which includes indexation, will be paid to the states and territories during the 2008-09 financial year. The $9.75 billion includes an additional year’s funding for mental health, palliative care and the Hospital Information and Performance Information Program established under these agreements.

By rolling over the terms and conditions of the current agreements for another year, the Commonwealth can start delivering on our commitment to improve health care for all Australians.

There is much work to be done in health. When you are rebuilding a system after 11 years of neglect, that is an inevitable fact. But we have made a very strong start, and we intend to continue as we have begun. This bill and the funding attached to it are a very important part of that long journey.

I commend the bill to the House.

Debate (on motion by Mrs Bronwyn Bishop) adjourned.