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State leaders' emergency meeting in Sydney to discuss budget cuts State leaders' emergency meeting in Sydney to discuss budget cuts
(4 months later)
State premiers and territory chief ministers were holding an emergency meeting on Sunday to discuss their response to the federal budget that included, among other measures, a shock $80bn cut to health and education funding tied to agreements made under the previous Labor government. State premiers and territory chief ministers were holding an emergency meeting on Sunday to discuss their response to the federal budget that included, among other measures, a shock $80bn cut to health and education funding tied to agreements made under the previous Labor government.
Many states have already committed funding to programs, including preventive health measures, and now may have to axe them. Many states have already committed funding to programs, including preventive health measures, and now may have to axe them.
Leaders of all the states and territories, except the West Australian premier, Colin Barnett, attended the meeting to discuss their response to Tuesday’s budget cuts to health and education, and the proposed introduction of a $7 co-payment fee for a consultation with a general practitioner.Leaders of all the states and territories, except the West Australian premier, Colin Barnett, attended the meeting to discuss their response to Tuesday’s budget cuts to health and education, and the proposed introduction of a $7 co-payment fee for a consultation with a general practitioner.
There is speculation the federal government’s proposals will force states to ask for an increase in the goods and services tax.There is speculation the federal government’s proposals will force states to ask for an increase in the goods and services tax.
Before the meeting, the Queensland premier, Campbell Newman, said the cuts would lead to a loss of 1,700 hospital beds in his state. “What [the federal government] are doing essentially is putting $80bn of heavy lifting onto the states when they’re not prepared to do it themselves,” he said. Before the meeting, the Queensland premier, Campbell Newman, said the cuts would lead to a loss of 1,700 hospital beds in his state. “What [the federal government] are doing essentially is putting $80bn of heavy lifting onto the states when they’re not prepared to do it themselves,” he said.
“It’s no secret I’m a strong supporter of [the prime minister, Tony] Abbott, but on this issue I’m fair dinkum. I want a fair deal for the states and territories,” Newman said.“It’s no secret I’m a strong supporter of [the prime minister, Tony] Abbott, but on this issue I’m fair dinkum. I want a fair deal for the states and territories,” Newman said.
The Victorian premier, Denis Napthine, railed against immediate reductions in state funding, which he said would total $200m a year, from 1 July, for his state. “We also have concerns with the $7 GP co-payment and the impact it will have on our emergency departments,” he said.The Victorian premier, Denis Napthine, railed against immediate reductions in state funding, which he said would total $200m a year, from 1 July, for his state. “We also have concerns with the $7 GP co-payment and the impact it will have on our emergency departments,” he said.
“We also have grave concerns about the $80bn to be removed from health and education at the end of the forward estimates,” Napthine said. “We’re happy to accept the responsibility for education and public hospitals, but perhaps the government should transfer the collective funding with it,” he suggested. “We also have grave concerns about the $80bn to be removed from health and education at the end of the forward estimates,” Napthine said. “We’re happy to accept the responsibility for education and public hospitals, but perhaps the government should transfer the collective funding with it,” he suggested.
Napthine said his government was not interesting in increasing, or broadening, the GST but he suggested it might be applied to online purchases from overseas. Napthine said his government was not interesting in increasing, or broadening, the GST but he suggested it might be applied to online purchases from overseas.
“I believe there should be a GST rethink and it should be that Victoria gets its fair share. We only get 88 cents in the dollar back. If we got a dollar back we would be $1.5bn a year better off,” he said.“I believe there should be a GST rethink and it should be that Victoria gets its fair share. We only get 88 cents in the dollar back. If we got a dollar back we would be $1.5bn a year better off,” he said.
The Northern Territory chief minister, Adam Giles, said the budget cuts would result in fewer hospital beds and less funding for schools in the territory.The Northern Territory chief minister, Adam Giles, said the budget cuts would result in fewer hospital beds and less funding for schools in the territory.
“Fundamentally, from the Northern Territory’s point of view, we want to be responsible and accountable for health and education,” he said. However, the territory would not have the money to do so, with funding cuts having been revealed “at the last minute”, Giles said.“Fundamentally, from the Northern Territory’s point of view, we want to be responsible and accountable for health and education,” he said. However, the territory would not have the money to do so, with funding cuts having been revealed “at the last minute”, Giles said.
The federal opposition leader, Bill Shorten, said Abbott was forcing the states into a position whereby a rise in the GST was all but inevitable. “Abbott knows you can’t take $80bn from schools and hospitals without the states having to increase tax,” he told the Victorian ALP conference on Sunday morning. The federal opposition leader, Bill Shorten, said Abbott was forcing the states into a position whereby a rise in the GST was all but inevitable. “Abbott knows you can’t take $80bn from schools and hospitals without the states having to increase tax,” he told the Victorian ALP conference on Sunday morning.
Speaking on ABC TV, Abbott said voters should have expected the cuts, despite pre-election promises to the contrary. Asked about the cuts, Abbott said “money isn’t everything”. He dismissed suggestions that the government had broken its “unity ticket” promise on the Gonski education reforms.Speaking on ABC TV, Abbott said voters should have expected the cuts, despite pre-election promises to the contrary. Asked about the cuts, Abbott said “money isn’t everything”. He dismissed suggestions that the government had broken its “unity ticket” promise on the Gonski education reforms.
“We said we would honour the then government's commitments over the then [four-year] forward estimates,” he said on the Insiders program. “We said that we weren't bound by their pie-in-the-sky promises for the out years [beyond the forward estimates]. We've just been absolutely upfront with the states.”“We said we would honour the then government's commitments over the then [four-year] forward estimates,” he said on the Insiders program. “We said that we weren't bound by their pie-in-the-sky promises for the out years [beyond the forward estimates]. We've just been absolutely upfront with the states.”
On Friday, the NSW health minister, Jillian Skinner, suggested the state invite GPs to treat patients in public hospitals, which would shift the cost back on to the Commonwealth.On Friday, the NSW health minister, Jillian Skinner, suggested the state invite GPs to treat patients in public hospitals, which would shift the cost back on to the Commonwealth.