C'wlth pledges of funding for WA hospitals a band aid approach

8/2/96

Western Australian Health Minister Kevin Prince today dismissed Federal Labor election pledges of $17.9 million in extra funding for WA hospitals as a band aid approach to the symptom of a much larger problem.

Mr Prince described as predictable promises of big Federal funding to Queensland's Labor Government - a government which, according to the Commonwealth's own figures, had slashed some $127 million from its public hospital system in recent times.

"The same rubbery figures the Commonwealth uses to criticise States such as South Australia, Victoria and Western Australia also show that the Queensland Government has taken $127 million out of its hospitals," Mr Prince said.

"What this continuing criticism and manipulation of a variety of figures by Federal Health Minister Carmen Lawrence actually shows is a growing list of States battling to provide the best health systems they can without significant help from the Commonwealth.

"Dr Lawrence accuses WA of taking $98 million out of public hospitals when it was the Federal Labor Government which, in 1993-94 played semantics with the figures and cut $70 million from Federal Assistance Grants to WA, redirecting it to hospitals where it was to be spent anyway."

Mr Prince said the extra $17.9 million announced by Dr Lawrence as part of a new hospital deal with the States was part of an expected review under the Medicare Agreement which all States had expected.

"While any extra money is a positive move it must be remembered that there are some very basic underlying problems within the health system that need addressing in a major way - not just at election time," he said.

"If the Federal Government really wants to help the States provide better health services then it needs to start stemming the flow of people opting out of private health insurance.

"That exodus is costing WA's public hospitals $30 million a year with some 27,000 people dropping private health insurance in WA in the past year.

"This State welcomes any extra funding to its health system but the reality is that band aids will not cure a growing disease."

Media contact:  Stacey Molloy 366 0300 or 222 9595