Page 115 - Week 01 - Wednesday, 8 April 1992

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Health Business Rules

MRS CARNELL: My question is addressed to the Minister for Health, Mr Berry. Over the last two days, the Minister has waxed lyrical on a number of occasions about his business rules which seem to turn budget blow-outs into agreed supplementation. Can the Minister outline how these business rules governing Treasury supplementation to ACT Health differ from the principles allowing supplementation to other areas of ACT government and why these differences were deemed necessary?

MR BERRY: Thank you, Mrs Carnell. I appreciate that question. There is a requirement for a short history lesson because there is a - - -

Mr Kaine: Here we go. I would draw your attention to the Audit Act, amongst other things, and the Appropriation Bill, too.

MR BERRY: A short history lesson is always necessary because the Liberals have selective memory loss on this question. The business rules became necessary because of the mismanagement of Health finances by the Liberals and it was necessary again for the Labor Party to put a shoulder to the wheel and clean up the mess. We, of course, set out to ensure that there was a set of business rules which suited the needs of Health. I am satisfied that those business rules that were adopted and agreed to between Treasury and Health are consistent with those needs. It is a matter for other Ministers to determine what business rules they might have between their various departments and Treasury.

What I am interested in is providing a set of business rules which suit the needs of Health. I think they admirably suit because, through those rules, we have been able to ensure that there has been proper management of finances within Health, and we have been able to track the progress of the health budget from day one. That has been possible only because I have directed that information be provided to me in a form which is easy to understand - something that the Liberals have not been able to manage yet, but most other people understand it, I assure you.

Mr Kaine: And you can obscure a blow-out when it occurs.

MR BERRY: Mr Kaine complains about a blow-out and how it might be obscured. There has been no obscuration of blow-outs in the Health budget. We have made it very clear from day one that the Minister was fully aware of what was going on in Health at all times. That is something that is in stark contrast to what occurred when you were the Treasurer. I remember well the time in another part of the history lesson when we asked the questions in here about what was going on in Health. Mr Kaine said that he was not sure but he was sure that he would have been told if something was wrong. This was about the time when we were well into the $17m blow-out.

Mr Humphries said that he would not even put energy into checking it because it was only a Labor stunt. Then all of a sudden we were informed of $17m out of control. That is because they were unable to manage the Health finances. Labor has done it well. I am sorry if you are uncomfortable with it, but you had better get used to it because we are going to continue to do it well.

In relation to the business rules, you need to understand that they are a set of rules which were developed between Health and Treasury. They suit Health's needs and Treasury's needs, and they are consistent with good management of


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