Page 2016 - Week 07 - Tuesday, 28 May 1991
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QUESTIONS WITHOUT NOTICE
Health Budget
MS FOLLETT: Mr Speaker, I direct a question to the Treasurer. Mr Kaine, can you tell the Assembly where the $17.3m that is required to balance the health budget will come from, or do you share the sentiments expressed by your Minister, Mr Humphries, on 2CN radio on 21 May when he said, "I have no idea"?
MR KAINE: The $17.3m which the Leader of the Opposition refers to is, of course, not yet a figure that I have agreed to. All that has happened is that, in consequence of the management deficiencies that have become obvious in the hospitals and health management system, the Government has had some reviews conducted. As a result of the Enfield report, in particular, a very comprehensive review of the financial management has taken place, and I have asked, through the Minister, that the matter of just how far out of control the health budget is be finally resolved. It is obvious that over a period of years there has been a lack of management systems and a lack of management in the hospital and health system. That has been accumulating. It has now come to a head and the matter has to be dealt with. I am not at all concerned about having to confront the issue and make whatever adjustments are needed.
The figure of $17m-odd, as has been announced, consists of two elements. There is a figure of about $11m which management is able to explain satisfactorily. When I say "satisfactorily", it is not that I accept that there has not been a lack of proper management there, but there have been events in the health and hospital system which can explain why the system has gone out of control to the tune of about $11m. That adjustment can be accommodated within the Treasurer's Advance, and I am currently seeking advice from the Treasury on what course of action I should take on that.
There is approximately $6m, however, where, in my view, there is not yet a full and satisfactory explanation, either of where the overexpenditure or the lack of revenue collection has occurred or of why those things have occurred. So I, as Treasurer, have not yet accepted that there is a need to make that extra $6m adjustment. That is still under investigation and, as I have said repeatedly, I will require a full explanation of how it has occurred and where it has occurred before I will make any further adjustment.
So, we are talking about approximately $11m which can be accommodated within the Treasurer's Advance and which I will, with advice from the Treasury, adjust. The remainder I have not yet acknowledged or accepted as being a matter that I should adjust. If and when that occurs, it will be further examined in the light of whether it can be adjusted from within the Treasurer's Advance and, if not, where else
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