State health ministers raise concerns with Tanya Plibersek

A $1.2-BILLION hole in payments promised to the states and territories to deliver health services has reignited tensions between conservative state governments and the Gillard government.

Queensland Health Minister Lawrence Springborg and his New South Wales' counterpart Jillian Skinner raised their concerns about the payments during a health ministers' meeting with Federal Minister Tanya Plibersek in Perth on Friday.

While the federal May budget projected more than $67.883 billion would be given to the states for health services, that figure fell $1.2 billion to $66.5 billion in the government's October mid-year budget update.

In Queensland, where the state budget was based on the May figures, the $387 million shortfall will leave the State's health system with about $13.5 billion over the next four years, down from $13.9 billion in May.

South of the border in NSW, the more populated state will see a cut of $601 million to the Commonwealth payments, down to $20.965 billion from the May estimate of $21.566 billion.

Despite the fall in the estimates, the total amount the Commonwealth will give the states for health will still grow by 21% over the forward estimates.

But the shortfall has infuriated state health ministers, some of whom attacked the Federal Government in statements sent out before the Perth meeting.

Mr Springborg said despite agreeing on a formula with the Federal Government, the Commonwealth was applying the formula inappropriately.

The formula was based on Australian Bureau of Statistics Census figures on population growth, which were released between the May budget and the mid-year update in October.

The ABS estimates showed that while the population was still expected to grow, the rate of growth across the country would be slower than first thought.

Mr Springborg said the he understood the shortfall was not Ms Plibersek's fault, but a "strategy" of Treasurer Wayne Swan to bump up the budget surplus.

"The reality is that population growth is still growing in Queensland, and while all states and territories are working with tighter budgets, this is going to mean $347 million of services won't be delivered," he said.

"That comes on top of a cut to another payment of $40 million to special purpose payments to Queensland - much of which has already been spent.

"So now it's going to be the people on our local hospital and health boards that are going to have to find a way to find that saving across the board."

But Ms Plibersek said the Queensland and NSW governments had cut their own state health budgets by $1.6 billion and $3 billion respectively this year.

"I understand why those health ministers are defensive about it, but it's not fair to look for someone else to blame," she said.

"That formula has three elements to it. It has an element that's based on population, it has an element that's based on health price inflation and it's got a technology element as well."

Asked whether Queensland was wrong to use the Federal Government's May Budget to help calculate the state budget, a minister's spokesman said "No".

Ms Plibersek said all state and territory government had signed up to using that formula to calculate the funding levels, during an October meeting before the change of government in Queensland.

Topics:  health jillian skinner lawrence springborg tanya plibersek

Get set for a wet weekend

Wet weather is on the way for the region this weekend.

RAINFALL is predicted for the Rockhampton region over the weekend.

Youths given the power to choose

Trevor Gurney ,Teariki Haro and Isaiah Jacobson at PROJECT BOOYAH a Queensland Police Service initiative.

Project Booyah teaches teens practical skills for the work force

Rider taken to hospital after motorbike vs car crash

Helmet on motorbike in Brisbane.

No one has been seriously injured in the accident

Local Partners

Youths given the power to choose

It can be hard for disengaged youths to choose the right path when they come to a fork in the road, but Project Booyah is sending them in the right direction.

Your chance to win

Learn More

Former Split Enz front man Tim Finn finds new niche

Singer Tim Finn has written the music for theatre production Ladies in Black.

Musician finds his way to theatre

WHAT'S ON: Your guide to entertainment and events this weekend

AWARD WINNING SHOW: Tequila Mockingbird can be seen at St Brednan's College, Yeppoon on Saturday.

LOOKING for something to do this weekend?

Garage Sale Trail finds treasure in trash

Richard Morvell from Trendy Trash Rockhampton, Cr Neil Fisher, and Craig Dunglison, Manager of Rockhampton Regional Waste and Recycling gear up for Garage Sale Trail.

Bargains galore on offer at garage sales this weekend

Azealia Banks won't take legal action against Russell Crowe

Rapper Azealia Banks

Rapper drops legal action against Russell Crowe

Brad Pitt meets with his kids amid divorce proceedings

Actor Brad Pitt

Brad Pitt has met up with his oldest son Maddox

Pictures of Taylor Swift allegedly being groped are sealed

They could "complicate jury selection".

Bruce Springsteen finds therapy useful

Singer Bruce Springsteen

Singer encourages others to seek help

Kerry Washington wants one more child

Kerry Washington recently gave birth to her second child

Kerry has only just become a new mum again

TRAVEL: Musicals light up Sydney

David Campbell performs in Dream Lover.

We take a trip through one of Sydney's finer scenes

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.

Dusit Thani finance crisis 'just a small hiccup'

ON TRACK: Springfield Land Chairman, Maha Sinnathamby, Ipswich Mayor Paul Pisasale, Developer Richard Turner and Springfield Land Deputy Chairman, Bob Sharpless, at the recent resort sod turning ceremony.

Property developer says project remains firmly on track