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Health to fall $8m short

06 Dec, 2011 07:20 AM
TREASURY secretary Martin Wallace says it is too early to know what will happen if the health department fails to meet its tight budget.

Treasury bosses yesterday fronted a parliamentary committee investigating the impact of $100 million worth of cuts to the health system's budget, increasing to $150 million by 2014-15.

The department is on track to deliver $92 million worth of savings this financial year, with the remaining $8 million of cuts required ``at risk''.

Mr Wallace said some savings measures may not have been implemented as quickly as necessary or may take longer to flow through to the bottom line, but ``it's not the end of the world''.

``We would hope that this is a timing issue of very short duration,'' Mr Wallace said. ``It could be $10 million short on June 30 but in a couple of weeks you have caught up.''

Mr Wallace said the harsh cuts were unavoidable to avoid the increasing costs sending the state into a ``debt spiral''.

The health and human services department was forced to bear the brunt of the savings task as it accounts for 40 per cent of the state's spending and had previously failed to rein in spending.

The department's business control team, set up in May to advise on how to make the cuts, has met 13 times and will meet another three times before Christmas.

Deputy secretary Tony Ferrall, a member of the advisory group, said the committee had no power to make decisions but provided advice to the health department secretary and health minister.

Mr Ferrall said he had stressed the importance of having ``proper plans'' and ``having individuals being held accountable for those strategies''.

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Date: Newest first | Oldest first
The proposed new tax on financial transactions(F.T.T.) in addition to reimposed land tax and higher water, power, Council Rates, sewereage charges etc. etc. should get them out of this cash flow crisis, that is if anyone remains in this State.

Our children mostly have all left this state to get work.

Posted by Taxmania, 6/12/2011 11:49:30 AM, on The Examiner

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