Page 3710 - Week 14 - Wednesday, 9 December 1992

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health budget. It was always a difficult budget for them, and I think it is only reasonable, particularly given the huge investment in the ACT's health system, that they should be expected to reduce their expenditure and, in effect, to make some return for the large investment that has been made.

Treasury are working with Health officials to ensure that they do keep to their budget. I think it is true to say that containing the health cost is a very complex matter. It is a challenge for management, and there are some difficult issues that management has to address. I have referred previously to the circumstances beyond management's control for which they can reasonably expect supplementation, and one of those circumstances is the decline in the proportion of private patients compared to public patients. That is a matter which is subject to review and, of course, subject to supplementation within the budget rules.

I am advised that Health are presently examining the projections to the fullest possible extent to ensure that those expenditures which are controllable by Health do not exceed the budget. I regard that as the responsible course of action for managers to take. But there are changes in the pattern of expenditure, as I think I have said in this chamber previously. A particular change we can expect is something of a slowdown over the Christmas period. We will have to see whether that change, which we know will occur, alleviates the health budget situation. I repeat that they are under stress. They know that, and both Treasury and Health management are taking steps to ensure that they do live within their budget.

MR KAINE: I ask a supplementary question, Madam Speaker. Given Mr Berry's propensity for telling Mr Humphries that he failed to keep himself within budget in the one year that he was Minister, and bearing in mind that in each of the three years this Minister has been the Minister the budget has blown out, will you satisfy Mr Lamont's ambitions and replace Mr Berry with Mr Lamont in the portfolio?

MS FOLLETT: I believe that the question is out of order, Madam Speaker; but I am happy to answer it, nevertheless. The answer is no. I would like to contrast that attitude very sharply with Mr Kaine's attitude while he was Chief Minister and presiding over a $17m budget blow-out in Health under his colleague Mr Humphries - a blow-out of which Mr Kaine denied any knowledge right until the point where it was publicly announced. We can only assume that neither Mr Kaine nor Mr Humphries was aware of the financial situation in Health at the time.

I make a very strong contrast with what I believe is the responsible management of a difficult budget situation, plus the fact that the health budget is being constantly monitored. Members have the latest figures. If they want to make quite erroneous extrapolations, as they did last time this subject came up, that is up to them. I believe that the current management of the health budget is in marked contrast to the total lack of management which saw the budget blow-out under Mr Kaine, and particularly the considerable amount of expenditure which was not authorised.


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