Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Abetz. I refer to the Prime Minister's pre-election promise that there would be no cuts to health and the minister's claim in the chamber yesterday that:

Last year's budget did not breach that promise in any way, shape or form. What we did do, quite rightly, was reallocate funding within the Health portfolio to deliver better services to where they were needed.

Given that Treasury has confirmed a cut of $57 million from health over the next 10 years, will the minister now correct the record?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The honourable senator, as a former finance minister, ought to have a better understanding of budget documentation. But, of course, clearly she does not, and that is why the country is in the financial mess that we find ourselves in today. But we are getting the country out of that mess and morass. In last year's budget, hospital funding increased by nine per cent in the first year, nine per cent in the second year, nine per cent in the third year and six per cent in the final year. In anybody's language, in the low-inflation environment that we currently have, that could not be considered to be a cut. This was an increase in hospital funding of around $5.3 billion, or 40 per cent, over four years. And, unlike some of the funny, rubbery figures that the Labor Party sought to promise 10 or 15 years hence, we actually have budgeted figures that are supported of, I repeat, nine per cent, nine per cent, nine per cent and six per cent, totalling around $5.3 billion worth of increases. I commend the budget papers to Senator Wong.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I seek leave to table an answer by Treasury to a question on notice confirming the $57 billion cut.

Leave granted.

Mr President, I ask a supplementary question. Isn't the Medical Association right to say that the Abbott government's cuts to health funding mean 'public hospitals will never meet the targets set by governments and patients will have to wait longer for treatment'. Isn't the AMA right?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The AMA is one of the most powerful unions in the country and it will continue to advocate in relation to its particular area of interest. That is understandable and I think everyone in this place accepts that. But this government is faced with ensuring that we have a secure and responsible budgetary future. What the Australian Labor Party did in their last year or two of government was simply promise the world without any funding base, without any basis for making those promises. And then when we pointed out the fact that there was no funding base, that this was funny money, that there was simply no basis to make those promises—and therefore that some of those Labor promises need to be looked at in that context—all of a sudden it was alleged that we had somehow broken promises by being responsible and honest to the Australian people. (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will tonight's budget confirm the Prime Minister's breach of his own commitment that there would be no cuts to health under the coalition?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

What tonight's budget will confirm is that we are on a path to regaining the sort of responsible budgeting that this country enjoyed for many decades until the Rudd-Gillard-Rudd government—and the Whitlam government—destroyed that general record. Tonight's budget will be one that sets us on a path to ensuring future security, especially for the next generation. I do not know how those on the other side can sleep or somehow say to the next generation that we are not responsible economic managers. Indeed, we are putting in place the building blocks to ensure the future of our country.