E&OE...............................................
Well, this morning the Premiers and Chief Ministers walked out of
the Premiers' Conference when I made it clear, on behalf of the
Federal Government, that the very generous increase of 15 per cent,
in real terms, in health funding to the States over the next five
years would not be increased. It was a kindergarten stunt. But let
me assure the patients of Australia that they will not suffer as a
result of the kindergarten stunt of their Premiers and Chief Ministers.
The reality is that the Commonwealth will honour in full, to the last
dollar, on time, the offer in regard to health funding that was made
to the States. It's an offer that embraces a 15 per cent increase,
in real terms, over five years. It includes new components to cover
any further slippage of private health insurance to the tune of $80
million a year additional for every one per cent reduction in the
number of people covered by private health insurance. It also contains
other new guarantees.
So it's a very fair offer. It was obvious that some of the Health
Ministers from the States didn't understand the offer. And, indeed,
Mr Refshauge indicated very clearly that he had not understood the
generosity of the offer relating to veterans' affairs. Because
what we have done is to put an additional $750 million, over five
years, on the table for veterans' affairs. But in calculating
the per capita entitlement in relation to hospital funding generally,
we have not taken the veterans out of the calculation of the total.
So, therefore, in effect, there is a double payment from the Commonwealth
in relation to veterans. And it was very clear from his reaction and
his body language that Dr Refshauge had not appreciated that point.
But let me say to the patients of Australia, you will not suffer as
a result of the kindergarten stunt of the Premiers and the Chief Ministers
at this conference. Let me also tell the Australian public that when
the Premiers indicated their intention to walk-out, I asked them to
stay to discuss the issue of gun control reform. They refused to stay
to talk about gun control reforms. They refused, therefore, to discuss
in any way observance of the agreement that was made in 1996. I indicated
to them, before they left the room, that because of that the Commonwealth
reserve the right to use all of the power and authority at its disposal
to ensure compliance with the uniform gun control legislation. And
in that context I am giving consideration to the use of powers available
to us in relation to both sales tax and customs to ensure compliance
in full with that gun control legislation.
I believe it is an issue that transcends the divide between Labor
and Liberal. It's an issue that transcends the divide between
the Commonwealth and the States. And the kindergarten performance
of the Premiers this morning in refusing to even talk about it is
something that I think the Australian people will reject. We can have
our differences on other issues. But to refuse to even talk about
this issue and to have the opportunity, as I wanted them to do, to
reaffirm the agreement that was made in 1996, to have a committee
of, if necessary, Ministers and Chief Ministers to scrutinise the
degree of compliance or non-compliance and then to report back to
COAG on the understanding there would be no further changes to legislation
until that report was received, that was what I intended to put to
them. And that is a proposal that I think the Australian public would
endorse. But they refused point-blank despite my request to even talk
about gun control. I think that is a far more important issue than
posturing in Canberra by Premiers, one or two in particular.
Can I also just say, ladies and gentlemen, that the offer that we
made was a generous one, not only in relation to health but we offered
to increase general revenue assistance by five per cent in an era
of zero inflation. We gave undertakings that there would be no reduction
- I repeat, no reduction - in specific purpose payments. And that
is on top of the proposals that we made in relation to health.
Now, in a climate of zero inflation and given the background of our
own budgetary goals, which are to receive a surplus in the next budget,
that was an extraordinarily generous offer. The Commonwealth was not
prepared to increase our offer on health because what we'd already
offered was very significant and very generous. So I regard their
behaviour this morning as behaviour that would have disappointed their
own constituencies. The Australian public expects its State and Federal
leaders to discuss issues, not take their bat and ball home because
they don't get, within the first hour and a half, what they want.
We were prepared to stay. The meeting was not adjourned. There was
a walk-out by the Premiers and the Chief Ministers.
JOURNALIST:
This is another nursing home scandal in the making, Mr Howard.
PRIME MINISTER:
Well, the only person who's likening this to nursing homes is
Mr Kennett. That is a cheap political shot with no substance. I reject
it entirely. And the fact that he made it before the Premiers'
Conference indicates that he brought, perhaps, an absence of total
good faith to the meeting.
JOURNALIST:
[Inaudible] on the nature of the action you might have to take on
the guns...
PRIME MINISTER:
Well, one of the remedies that is available to the Commonwealth, so
I have been advised, is that it could have a prohibitive sales tax
on weapons that are not bought in conformity with the National Police
Ministers' Agreement.
JOURNALIST:
Prime Minister, where to now?
PRIME MINISTER:
Well, as far as gun control is concerned, I've spelt that out.
In relation to what?
JOURNALIST:
In relation to health.
PRIME MINISTER:
Well, we'll continue to honour the agreement - the offer we made
to them. I repeat, no patient will suffer. And, indeed, the only patients
that are going to suffer as a result of the walk-out today are those
people on hospital waiting lists in all of the States and territories,
except the ACT which has signed the agreement. Because every week
that the Premiers refuse to sign the agreement or to agree to it in
principle, they lose access to a pool of $4 million a week which is
available to reduce hospital waiting lists. So I say to all of those
people on hospital waiting lists, get your Premiers to sign up to
the agreement and the lists will come down.
JOURNALIST:
...The issue now, Prime Minister, seems to be though that from the
stance you are taking, the Premiers after their walkout are now going
to have to come back with their tails between their legs. It gives
them no option.
PRIME MINISTER:
We gave them a fair offer. They chose to walk out. I didn't want
them to go.
JOURNALIST:
Is that from your position going to be the end result?
PRIME MINISTER:
Look, our position is that we have a fair offer on the table. In the
absence of agreement by the Premiers, we will unilaterally honour
in full, on time, to the very last dollar, the offer we made in good
faith.
JOURNALIST:
Why do you think the states are playing for more then?
PRIME MINISTER:
I don't know. I think they are political blame-shifting. It's
the sort of 300 kilometre, flick pass to Canberra if you're the
Premier of New South Wales. It's a bit longer if you're
in Perth or in Melbourne.
JOURNALIST:
Do you also honour the 5 per cent in general...
PRIME MINISTER:
Yes, yes. We will honour what we put on the table. We came in good
faith to this meeting. There was nothing up the sleeve. There were
no cards in the shirt or in the pocket or behind the ear, and we put
it on the table and we said, here it is fellas. It's a good offer.
Kate Carnell thought it was a terrific offer. She's on our side.
She signed up to the hospital agreement. I think she was a reluctant
walker-out.
JOURNALIST:
.. was there any room for movement in your offer?
PRIME MINISTER:
There was no room for movement. I made that clear last night. I had
a very amiable dinner with the Premiers last night and after we'd
finished talking about the American Civil War, the history of Australian
politics and a whole lot of other things and we talked about the football
and the cricket and the Grand Prix, we then got on to health and I
said very politely and very calmly that I thought it was a fair offer
and we couldn't change our position.
JOURNALIST:
Prime Minister, if you had $120 million available for the waiting
list (inaudible), why not just make it available now so it can get
to the people that need it?
PRIME MINISTER:
It will get to the people who need it if the Premiers will sign up.
I mean, it is in their hands. Every week that is lost in relation
to the waiting list is now their fault because they refused to access
that incentive pool.
JOURNALIST:
Do you think some Premiers were prepared to walk out to avoid a confrontation
on the gun control?
PRIME MINISTER:
I don't know. You've got to ask them that but my position
is clear. I have always passionately supported that uniform agreement
and I will move heaven and earth to see that that uniform agreement
is honoured.
JOURNALIST:
Was Premier Borbidge wrong when he says that the base funding for
Medicare for his state, and other Premiers backed this up, is in fact
less than what they had last time?
PRIME MINISTER:
What happened in 1993 was that Paul Keating did a very, very generous
deal for New South Wales and Victoria and if Queensland has any problem
about its base, it ought to talk to New South Wales and Victoria.
TREASURER:
Let me just say, in relation to Queensland, the general revenue assistance
and the specific purpose payments including health care agreements
is up 3.4% over the course of 1998 on 1997 and in addition to that,
there are also agreements in relation to the cutting of hospital waiting
lists and veterans' services. The truth of the matter is in relation
to this all of the States get increases, all of the states get increases,
increases running in excess of inflation.
JOURNALIST:
But not necessarily on the Medicare base rate?
TREASURER:
In relation to the overall position, because the Medicare base affects
the general revenue assistance, you have to look at them together
and in relation to them together, for Queensland, they actually increased
the amount which they will receive to $5.852 billion, a 3.4 per cent
increase.
PRIME MINISTER:
I mean, it's a bit like accessing an automatic teller, you know,
an ATM. You get $500, you get it in different denominations but it
still adds up to $500 and it's the amount that comes out that
matters.
JOURNALIST:
... last resort, Mr Howard, to take a responsibility for health and
thus stop the constant States' cost shifting and blame shifting?
PRIME MINISTER:
Well, I can't imagine that the States would ever agree to hand
over responsibility for health, that's not an issue that was
discussed. We are prepared to play our part. We are playing our part.
We have great responsibilities, so do the States, and we should talk
about them in a mature adult fashion and not take our bat and ball
home.
JOURNALIST:
How will that work? If you make the money available, they say no,
Surely patients are poorly advised?
PRIME MINISTER:
If they say no to the money they are directly punishing their own
patients and I can't believe that a Premier would allow his or
her ego to get in the way of looking after their patients.
JOURNALIST:
Mr Howard is a debacle on health like this a possible liability for
you if it is a possible election year?
PRIME MINISTER:
No, I don't believe so because the Australian public will see
that we were prepared to go on talking. The Australian public will
see that we were prepared to increase the offer. The Australian public
will see that we haven't behaved in a petulant kindergarten fashion
by walking out of a meeting. I mean it is ridiculous. It is now only
12.40 pm. I mean there is plenty of lunch left and incidentally we
were ready to feed them. I know there was a view being put around
that we weren't willing to feed them but we were.
JOURNALIST:
So you are not keen to try an wind it up so you can get on to an election
footing?
PRIME MINISTER:
Wind it up? Well, I mean, we have made an offer and that offer, let
me repeat, despite their petulant performance this morning, that offer
will be honoured in full and time, to the last dollar.
JOURNALIST:
Were you offering any offsets in relation to tax reform?
PRIME MINISTER:
They'd gone. Our guests had gone before we even got to the issue.
JOURNALIST:
Were there any options on the table as far as that was concerned?
PRIME MINISTER:
Well it's not, we don't negotiate tax reform with the States.
What we do is we carefully listen to what they have to say and we
continue to be willing to talk to them but at the end of the day,
it is our responsibility after consulting the States and after listening
to other people in the community, to decide how the taxation system
of Australia will be remade.
Let me say to the States that I will continue to listen to what they
have to say, I will continue to consult the Premiers, always. But
at the end of the day it is not something we negotiate with the States
or indeed with anybody, it is something that we ultimately, after
listening to the community, decide what to do.
JOURNALIST
Prime Minister, on another matter, do you still require your Ministers
to divest themselves of shares in their portfolio area?
PRIME MINISTER:
I think that is about Senator Parer, isn't it? I think you know
my position on that.
JOURNALIST
In dollar terms, how much was the five per cent increase in general
assistance worth to the States?
PRIME MINISTER:
Well the Treasurer...
TREASURER:
About a billion.
PRIME MINISTER:
Thanks a lot.
[Ends]