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Legislative Assembly for the ACT: 1996 Week 4 Hansard (16 April) . . Page.. 956 ..

Debate resumed.

MRS CARNELL: The enterprise bargaining agreement signed by the former Follett Government prior to the 1995 election was based on the achievement of significant productivities to fund pay increases. Unfortunately, about $1.2m of these efficiencies still has not been achieved, and there is no agreement in place to allow these efficiencies to be realised.

The final factor in the cost overrun relates to the delay in the implementation of the budget decision to sell Upper Jindalee Nursing Home. The original budget appropriation allowed for its sale in December 1995. From that date, no Government expenditure was allocated. Due to the sale being delayed until March 1996, the department has been required to fund an additional three months of operation, at a cost of about $1m. These additional costs are largely met by the Commonwealth, which funds nursing home care, and by resident contributions; so this represents more of a technical adjustment. However, in order to pass this revenue on, the second appropriation provides for the additional expenses.

In addition, following sale of the home, there are 22 former staff members who have still not been permanently placed and who are undergoing retraining within Woden Valley Hospital. As a result, some $300,000 will be required this year to continue to pay these staff as well as to meet excessive casual staff costs which were incurred when a massive amount of sick leave was taken by some personnel at Jindalee prior to the sale.

Mr Speaker, the issues I have outlined above have combined to put the budget for the Department of Health and Community Care under enormous pressure. I want to make it clear, however, that while we are seeking a second appropriation today we are determined to put in place changes to tackle such budgetary problems in the future. So, in tabling this second Appropriation Bill, I believe it important to outline what strategies this Government is putting in place to rein in our unacceptably high health costs without compromising our high standards of care and quality. Again, the community, and this house, should expect nothing less.

This Government has embarked upon a total restructure of management in Health and Community Care the like of which has never been seen in the Territory before. Already, a new chief executive of the department has been appointed, as well as an experienced hospital manager at Woden. Already, under the guidance of David Butt and Allan Hughes, the department is under no misapprehension that it has to lift its game. In coming weeks, Mr Speaker, the majority of senior managerial positions across the organisation will be spilled and advertised. As with other portfolios, senior managers will be employed on performance-based contracts which will clearly spell out their accountabilities for budget management, quality and outcomes. This move to performance agreements is fundamental not only to Health and Community Care but to public sector management in the ACT overall.

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