Department of the Legislative Assembly, Northern Territory Government

Mr REED - 2003-05-27

In his budget speech today, the Treasurer said that he does not use optimistic revenue assumptions in his budget papers. I ask him, in that context, to explain to members why he has not used the minimum amount of $80m that would flow to the Territory under the Australian Health Care Agreement in compiling the Department of Health and Community Services budget but, rather, has chosen to use the maximum amount of $92m, which the health minister said is unlikely to be achieved because she does not agree with the draft agreement. Is not the reason for using the maximum amount of $92m that, if he had used the $80m, the budget for Health and Community Services would have been $12m under last year’s budget. He has fudged the figures by using the optimistic amount of $92m, in contravention of his own policy?

ANSWER

I thank the former Treasurer for his question. It shows his failure as a Treasurer of the Northern Territory. He is not really any more on top of the game as shadow Treasurer than ever he was while he was Treasurer. How this $12m could be manufactured to produce an increase, when we have already put in $15m in 2002-03, with the $14m increase in the budget before us.

There is a long way to go in discussion and negotiation on the Australian Health Care Agreement. I can say, and he would know, that no state or territory is satisfied with the offer on the table from the Commonwealth minister at this stage. These agreements do take time to work through. I am sure that at some stage in the next three to four months there will be an agreement. It may not be either the $80m or the $92m. You take your chances with these figures, and we do try …

Members interjecting.

Mr STIRLING: I tell you why: because you have volatility in your GST revenue grants in pools to the Northern Territory that these turkeys never had to put up with. They never had to put up with the volatility in the grants from the Commonwealth, particularly the GST revenue grants. They had certainty going forward, certainty that led to a $1.5m surplus you were going to produce in 2000-01. What did you finish with? A $275m deficit, and that was with certainty from the Commonwealth government.

We deal with uncertainty and that is why we are a bit careful about the figures. That is why we will watch closely the outcome of the Health Care Agreement. The other point about being careful is that we will have something up our sleeve if the need comes and we do not get the agreement and the outcome that we need into the future.
Last updated: 09 Aug 2016