PM Transcripts

CABINET
F 78/ 3
PRIME MINISTER~
FOR PRESS 17 JANUARY 1978
AGREEMENT ON VICTORIAN PUBLIC HOSPITAL COSTS
Commonwealth and State Government officials have agreed that
Victorian Public Hospitals are disadvantaged as a result of
the tentative budget previously proposed to meet the operating
costs of the hospitals.
In order to bring Victoria broadly into line with other States,
the Commonwealth Government has adopted a recommendation that:
the approved nett operating costs budget for Victorian public
hospitals for 1977/ 78 be increased by $ 9.6 million to $ 458.6
million. In accordance with the normal arrangements, half
will come from the Commonwealth and half from the State.
The revised budget has been accepted by the Victorian Government.
The Prime Minister, Mr. Fraser, said today that he met With.
the Victorian Premier, Mr. Hamer, on December 16th to discus!;
the financial difficulties facing Victorian public hospitals.
Mr. Fraser said: " We agreed that there should be an urgent
meeting of Commonweal-th. and State officers to prepare a report
to Governments on this matter on the basis that there were to
be no forced reductions of staff or closure of wards as a
result of budgetary cuts if this affected patient care.
" Officers reported th ' at despite the cost containment measures
taken by Victoria, the tentative budget previously proposed
was insufficient-to permit the proper functioning of
Victorian hospitals at an acceptable level of patient care.
" The revised allocation will briing Victoria's 1977/ 78 hospital
budget increase over last ya's spending to a level broadly
consistent with that of the other States."