HEALTH FUNDING NOW TOPS $6 BILLION

Health spending in the Budget will increase by 6 percent and is another step towards giving people stability and certainty about the delivery of health services, Health Minister Bill English said today.

"Spending on health is now $6.2 billion a year. The Government spends $1,631 on health for every person in this country. Last year for the first time the Government showed how much it expected to spend on health over the next three years. This gives certainty to health spending.

"This year's package is the second instalment in the three-year programme announced last year and continues the trend of growth in health spending. The Coalition Government is committed to giving people better access to health and disability services and certainty about what services they can expect," said Mr English.

Key features of this year's health package are:

- total spending of $6.2 billion this year, up 6 percent on last year
- elective surgery boost of $253 million over three years
- a top-up of $14.1 million this year in addition to money announced in last year's Budget to fund changes to income and asset testing regime from 1 October 1998 (this programme has a full-year cost of $62.6 million)
- $6.7 million for the Health Sponsorship Council's Smokefree programmes over three years
- health bureaucracy savings of $32.9 million over the next three years

"Last year's Budget included expected funding for the following two years. Not only have we have been able to meet the additional funding indicated last year, we have also included a further $253 million over three years for elective surgery.

"This additional elective surgery money is a big step towards a much fairer and more equitable system. I have listened to the concerns of doctors who have said there must be a credible level of funding if the Booking System is to work well.

"Funding is also confirmed in this year's Budget for changes to the income and asset testing rules for older people in long-term hospital care. This was signalled in the Coalition Agreement and will come into effect on 1 October this year.

"Smokefree initiatives also get a boost with an extra $6.7 million over the next three years for the Health Sponsorship Council.

"Cuts of more than $30 million over three years will be made to what is spent on health bureaucracy. Instead, this money will be spent on health services.

"The Health Funding Authority will be funded for all the initiatives announced last year, such as the free under-sixes policy and extra mental health funding, along with these new initiatives.

"The increases in health spending take account of population growth and ageing, new technology and medicines, and people's increasing expectations of health services," said Mr English.