Fed: Victoria and WA still holding out on agreement with feds

AAP General News (Australia)
04-20-2010
Fed: Victoria and WA still holding out on agreement with feds

CANBERRA, April 20 AAP - Victoria and Western Australia remain the only states holding
out on a deal with the federal government over its hospitals and health reforms.

The premiers of both states have not been swayed by a deal their NSW counterpart Kristina
Keneally garnered during one-on-one discussions with Prime Minister Kevin Rudd on Tuesday.

"There's more to go in these negotiations," Victorian Premier John Brumby told reporters
ahead of a second day of negotiations in Canberra.

"It's hard to tell exactly how today will turn out."

The planned clawback of GST revenue, which the federal government intends using to
become the dominant funder of public hospitals, remains the biggest obstacle for Victoria
and WA.

Earlier Ms Keneally announced her state had agreed to allow the commonwealth to retain
almost a third of NSW's GST revenue to directly fund the state's public hospitals system.

As part of the deal, NSW would put 30 per cent of its GST revenues into a federal-state
funding pool instead of giving the funds directly to Canberra.

The deal is subject to safeguards and "appropriate" governance arrangements that included
state participation in the pool.

"We are in a position to be able to have the commonwealth retain a third of our GST
for direct funding of hospitals in NSW," Ms Keneally told reporters.

She said NSW thought "we were there" in reaching an agreement with the federal government.

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KEYWORD: HOSPITALS 2ND UPDATE

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