Page 851 - Week 03 - Wednesday, 13 March 1991

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First of all, of course, the ACT hospital budget faced a $7m blow-out at that time, and the most important and pressing task facing me and this Government was to bring that budget back on track for the end of the financial year. That required a number of measures to be taken at that time, including a number of expansion and restraint measures to bring that budget in on target. That was the most important and pressing task facing me at the time.

It was obvious to the Government that financial information systems within the hospital budget processes were not up to standard and were not adequate to provide the Government with prompt information about the situation. As a result, it invested considerable sums of money in ensuring that the ACT hospital system got improved and updated systems of financial information accounting. The fact that those systems have been put in place, or are being put in place, does not necessarily reflect that there was anything improper or inappropriate in doing that, and the fact that there has now been a further budget problem does not indicate that that original decision of the Government was inappropriate. What it does indicate is that either these measures were not at the heart of the problem that we now face or, of course, they were inadequate to actually meet that problem. Either way, the inquiry which is presently being conducted by the Government should provide an answer in due course.

The Government also, of course, most importantly of all perhaps, moved quickly to put in place a structure of accountability in our hospital system which was essential for providing community responses to the issues that were being raised as a result of that problem and as a result of ongoing issues of concern in the hospital system. The board structure particularly provides that kind of accountability. It provides for a body of people whose job it is to monitor this process. I have said - yesterday, I believe - that, in my view, the previous Interim Board of Directors was not aware of the problems that have now come to light when it was in charge of those matters. I do not think anything should be said about that to indicate any displeasure or any lack of satisfaction with them doing their job during that period. But I do think that the processes - basically as outlined - are appropriate for keeping control of hospital budgets. I should not have to be sitting down every day with spreadsheets, looking at what money is flowing where.

Ms Follett: You should have.

MR HUMPHRIES: I do not think I should; I do not accept that that is my job. I do think, however, that a hospital board - a health board as we now have - is an appropriate mechanism for looking at those issues and monitoring them on a day-to-day basis. Those are three important things done by this Government to address this problem. Obviously, other things need to be done, and are needing to be done, and that is why this Government has taken the extra steps as announced in the last few days.


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