Department of the Legislative Assembly, Northern Territory Government

Ms CARTER - 2003-02-18

Minister, last week you said that an additional $15m will be injected into your budget; plus there would be savings worth $5m to overcome the shortfall discovered by the review into your department. Could you explain why then the Treasurer’s Quarterly Financial Report, released yesterday, shows that, in the first six months you have not overspent but are, in fact, under budget, having used less than 50% of the money given to you in August. Who is right: the review that predicts a blow-out of $27.6m; the Treasurer’s figures that say that you are under budget; or you, when you say you need an extra $15m?

ANSWER

Madam Speaker, it is very interesting to have this first question from the new opposition spokesperson on Health. I must say, over the last few weeks I have been a bit confused over who actually is the opposition spokesperson on Health. Sometimes, it appears to be the member for Drysdale, sometimes the member for Port Darwin. It is really not very clear. In fact, it is a bit like B1 and B2, Bananas in Pyjamas coming down the stairs, each popping up. However, I digress.

What we have is a very, very serious situation with financial matters to do with my department, which the review - which I received and I announced last week - outlines very, very clearly. What we are looking at is historic under-funding in the portfolio of Health and Community Services. This government came to power saying that health was a significant priority. We have put a very significant amount of money into this portfolio.

The review indicates that the structures of the department, the levels of accountability, are so inadequate that we have to make sure that there is a line in the sand. I have taken responsibility for this; I have said it stops. That is why we called the review. At the moment, we are looking at a notional deficit of $20m. It is around $10m at the moment. What we have done is provide the department with a further $15m to ensure that core services in health delivery will be maintained. What we have also done is ask the department to look at savings. What we need to make sure is that every single cent that goes into health in the Northern Territory is properly spent. We cannot just assume that it is being spent properly.

The department has been straddled with the most appalling administrative system. The CLP must have known it did not work. I can only tell you of the number of people who have complained to me about the structures of the department that we have inherited, and how pleased they are now that we have actually listened to what they have had to say.

One of the key issues in the department has been, literally, the structure but, particularly, the funder/purchaser/provider model, which was a very inappropriate model for the Northern Territory. The Northern Territory is far too small for this kind of competition model. We are abandoning that model. We are making sure that more money goes into service delivery and policy development.

My final comment here is that this is something which this government inherited, but it is something that we are absolutely determined to fix.
Last updated: 09 Aug 2016