Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I fully support this government intervention in order to ensure that the people of Devonport and north-west Tasmania retain adequate hospital services. The Prime Minister’s statement of 1 August 2007 reflects the government’s position as to the funding arrangements. The Prime Minister made it clear that until final negotiations have been completed with the community—and this is going to be a community hospital—it is not possible to determine the exact cost of the proposal. However, comparable operating costs for similarly sized hospitals indicate that this should cost in the order of $40 million to $45 million a year.

As I noted on Meet the Press, it is the case that there will need to be, in addition to that, arrangements put in place—as per the Prime Minister’s statement of 1 August; there is nothing hidden about this—so that the Commonwealth will be underwriting the trust’s recurrent and capital funding of the hospital, including the arrangements to lease buildings, infrastructure and medical equipment from the Tasmanian government. Obviously, my department and other relevant Commonwealth departments will be involved in those negotiations to determine the final cost to the Commonwealth of ensuring that we do provide the people of Devonport with full services, which the Tasmanian government is withdrawing.

As I said then, and as I said on Sunday, I would prefer that we did not have to make these interventions, but the fact is that the states around Australia, including the state Labor government of Tasmania, are failing their people by withdrawing services from their communities and leaving these communities in this position so that the only recourse is to come to the Commonwealth for assistance. We are glad that our financial position, after 11 years of outstanding management of the Commonwealth budget, is such that we are able to provide assistance in this case.