NSW: Keneally strikes a deal with Rudd on health plans

AAP General News (Australia)
04-20-2010
NSW: Keneally strikes a deal with Rudd on health plans

SYDNEY, April 20 AAP - NSW Premier Kristina Keneally says she has reached a basis for
agreement with the federal government on hospital reforms, but says she won't sign up
to the deal unless it gets the backing of other states and territories.

Ms Keneally has agreed to allow the federal government to retain a third of its GST
revenue to directly fund the state's public hospitals system, after holding one-on-one
discussions with Prime Minister Kevin Rudd on Tuesday morning.

As part of the deal, the commonwealth has also agreed to a funding pool, with disbursement
controlled by the states, Ms Keneally says.

Mr Rudd has also given assurances against any further "clawbacks" of NSW's GST revenues
in future.

"What we have negotiated with the commonwealth is a basis for agreement from NSW ...

which would have a fund arrangement, and would have the right governance arrangements,
the right safeguards in place for the GST," Ms Keneally told Fairfax Radio.

"We are willing to have that third retained by the commonwealth with appropriate safeguards
that make it fundamentally clear that money is going to NSW hospitals, and that our GST
is protected from future clawbacks for other commonwealth proposals, in other areas."

However, Ms Keneally said NSW support was still contingent on negotiations between
the prime minister and other state and territory leaders, which are continuing throughout
Tuesday.

"What we now have is a day of negotiations with the other states and territories," she said.

"What we're hopeful of is those other states and territories will come on board.

"If that does not happen, the whole deal is off. And if the deal gets modified through
the day to disadvantage NSW taxpayers, I won't be signing up."

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KEYWORD: HOSPITALS KENEALLY

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