Jan McLucas (Queensland, Australian Labor Party, Shadow Minister for Ageing, Disabilities and Carers) Share this | Link to this | Hansard source

My question is to Senator Minchin, the Minister for Finance and Administration. Does the minister recall his statement after the Prime Minister announced the takeover of Mersey hospital:

... obviously my Department will be involved ultimately in the costing exercise.

Does this mean that the finance department did not cost the Mersey hospital takeover before it was announced? Can the minister now indicate when he was first informed of the Prime Minister’s decision to take over the Mersey hospital? Has the minister’s department now prepared a full costing of the Mersey hospital takeover? Was it the minister’s department that estimated the cost of the hospital takeover to be $45 million a year, and does the minister stand by that figure?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

I thank Senator McLucas for that question. I am interested, indeed intrigued, that a Queensland senator has asked a question about a Tasmanian hospital, and I wonder why it is that the Labor Party cannot find a Tasmanian senator to ask about a Tasmanian hospital. It is quite a remarkable turn of events, and it does reflect the fact that the Labor Party is all over the place on this issue. It says, ‘Oh well, it’s a bit tricky.’ When Mr Rudd is asked, ‘What’s your position?’ he says, ‘Oh well, I don’t have a position; I’m just going to have a look at this, see this and see that.’ It is absolutely typical of Mr Rudd. We know he has only two policies: one is to wreck our industrial relations system and the other is his 60 per cent cut in carbon emissions. We cannot find any other policies. When we make a significant intervention to ensure the retention of health services in Tasmania, Mr Rudd is nowhere to be seen, and nor are any of his Tasmanian senators, which is fascinating.

As to the position of the finance department, I am happy to answer the question. This is a government decision which, as I said on Channel 10, I fully support.

Opposition Senators:

Opposition senators interjecting—

Paul Calvert (President) Share this | Link to this | Hansard source

Order! Those on my left will come to order!

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

I fully support this government intervention in order to ensure that the people of Devonport and north-west Tasmania retain adequate hospital services. The Prime Minister’s statement of 1 August 2007 reflects the government’s position as to the funding arrangements. The Prime Minister made it clear that until final negotiations have been completed with the community—and this is going to be a community hospital—it is not possible to determine the exact cost of the proposal. However, comparable operating costs for similarly sized hospitals indicate that this should cost in the order of $40 million to $45 million a year.

As I noted on Meet the Press, it is the case that there will need to be, in addition to that, arrangements put in place—as per the Prime Minister’s statement of 1 August; there is nothing hidden about this—so that the Commonwealth will be underwriting the trust’s recurrent and capital funding of the hospital, including the arrangements to lease buildings, infrastructure and medical equipment from the Tasmanian government. Obviously, my department and other relevant Commonwealth departments will be involved in those negotiations to determine the final cost to the Commonwealth of ensuring that we do provide the people of Devonport with full services, which the Tasmanian government is withdrawing.

As I said then, and as I said on Sunday, I would prefer that we did not have to make these interventions, but the fact is that the states around Australia, including the state Labor government of Tasmania, are failing their people by withdrawing services from their communities and leaving these communities in this position so that the only recourse is to come to the Commonwealth for assistance. We are glad that our financial position, after 11 years of outstanding management of the Commonwealth budget, is such that we are able to provide assistance in this case.

Jan McLucas (Queensland, Australian Labor Party, Shadow Minister for Ageing, Disabilities and Carers) Share this | Link to this | Hansard source

Mr President, I asked the question in my capacity as representing the shadow minister for health, and I now ask a supplementary question. Is the minister aware that government members like Senator Parry are describing the hospital intervention as a disaster and claiming that Mersey should have been closed? Isn’t this episode another clear indication that the Prime Minister is in a ‘do anything, say anything and promise anything’ mode in his desperation to cling to power?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

Let me take from that particular question that the Labor Party is opposed to this intervention. If that is the case, the shadow minister should go down to Devonport and tell the people of Devonport that she opposes federal assistance to this hospital. You go down there and say that.

George Campbell (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Senator George Campbell interjecting—

Paul Calvert (President) Share this | Link to this | Hansard source

Senator George Campbell, come to order!

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

We are supporting them; we are going to make sure they keep their hospital.