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THE HON NICOLA ROXON MP

Former Minister for Health and Ageing

Transcript, Press Conference - Melbourne

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17 May 2011

Topics: Health Reform Projects for Victoria, Plain Packaging of Tobacco

Nicola Roxon: Thank you very much for coming today, my name's Nicola Roxon, and I'm the Federal Minister for Health, and I'm delighted to be here with my Victorian counterpart, Dave Davis, the Victorian Minister for Health.

This is the first opportunity for us to make some very significant announcements about health reform in Victoria, and I'm delighted that we could do it here at the Alfred Hospital, and I want to say thank you to the hospital for letting us come and do this here today, and particularly to acknowledge the CEO and chair of Alfred Health, who are here.

I'm delighted as well that Michael Danby, the local member, is here. He's been a long-time friend of the Alfred, and as you'll see from some of the announcements that are being made today there are impacts across his electorate, as there are across almost all of Victoria.

So I'm here today to announce that the Commonwealth has approved $440 million worth of investments in Victorian hospitals as a part of the National Health Reform deal.

This is part of the $20 billion of extra funding that's going to flow to public hospitals over this decade.

Health reform for Victorians equals more hospital beds, upgraded hospitals, more elective surgery, and more sub-acute beds.

These projects that are being announced today, include over 350 new beds, 250-odd of those are sub-acute beds, in 21 hospital sites, and I'm pleased that Victoria is going to deliver even more, 326 beds across the state, 106 new hospital beds for emergency care, and surgery.

I won't go through the whole list, although it is being provided today, but just to give you some sample of the sorts of projects that are being funded, emergency department facilities are being expanded, upgraded or constructed at hospitals such as the Austin, St Vincent's, Sandringham District Memorial Hospital, West Gippsland Healthcare, and Albury Wodonga Health Campus.

New operating theatres will be built, or existing equipment and facilities improved at seven hospitals, including the Alfred, Heidelberg Repat Hospital, Northern Williamstown Hospital, and North East Health Wangaratta.

I'm not going to go through all of these, because I'm sure that Dave will want to take you through some of these particular projects.

But as well as investing in capital, we're investing hundreds of millions of dollars to treat more patients in elective surgery, and through emergency department care, and sub-acute care.

Here at Alfred Health, of particular interest to those who are hosting us today, there are $63 million worth of investments, including $18 million this financial year for extra emergency department and elective surgery, aimed at improving treatment times, and I would like to thank our hosts for showing us how successfully they're achieving targets, both the four-hour times in emergency care, and the eight-hour times for - sorry, the elective surgery guidelines for weekly, monthly, three-monthly, 12-monthly care.

That's actually very exciting, to see how changing your systems can help deliver those targets, and I'm sure your expertise will be looked at for other hospitals, which are going to implement these targets.

I know Michael is particularly interested that $27 million is being invested in a 30-bed acquired brain injury rehabilitation service, and two independent living units at Caulfield Hospital. There's also, as I mentioned, investments in Sandringham and others.

This builds, of course, on other investments that have benefited Alfred Health through our previous agreements, and I'm delighted that the new Victorian Government took the time to assess the package, has been able to negotiate and work constructively with us, Premier Baillieu signed on to the agreement at COAG in February, and the work now has been done to itemise the implementation plan.

There is some additional money that will be announced in the coming months, but I'm very pleased that Dave and I have been here to announce this today.

I think Dave wants to make some comments himself, then we're both happy to answer questions that you might have on this, or other issues.

Thank you for coming.

David Davis: If I can join the Federal Minister in welcoming people here today, and acknowledge her first and foremost as the Commonwealth Minister, also my Parliamentary colleagues, Clem Newton-Brown, and Michael Danby, and Andrew Way, the CEO of Alfred, and the Minister made mention of the chairs. Well, we're in the historic boardroom of the Alfred here, which I think points to many of the long term strengths of the Victorian healthcare system, a focus on research, the benevolent support of hospitals over a long period, and the Alfred typifies many of those great strengths, and is I think leading the way in many respects, and we've seen some very good examples of the performance of the Alfred today, and I compliment the emergency department on its achievements.

But I do want to say that I am pleased to announce jointly with the Commonwealth Minister today the additional $440 million worth of funding for Victorian public hospitals, we laid out a week or so ago a metropolitan health plan, the first part of a state health plan, that will look to set some directions towards 2022.

The funding that's part of this money to Victoria, as part of the National Partnerships Agreement on improving hospital services, will support increased access to elective surgery, treatment in emergency departments and sub-acute care. The funding will deliver for over 28,000 Victorians this year. The additional funding will also go to capital projects.

Now as the Federal minister has outlined, we did come into government on December 2, we assessed parts of the package, and worked through that in a steady, incremental way, looking at feedback from a range of groups.

The Heads of Agreement was signed at the COAG meeting, and there does remain some work on implementation, I think it's true to say, and finalisation of that agreement, and I think it is true to say that there are challenges that remain, and Victoria does have a number of concerns that we're certainly communicating to the Commonwealth.

Premier Baillieu and Prime Minister Gillard I know have had correspondence and discussion on a number of those points.

But in terms of this part of the national architecture, if I can give it a phrase, this will see 106 new hospital beds, including acute, in-patient beds, 60 short-stay beds, six intensive care and additional high dependency beds, improved emergency department flow through 20 emergency department cubicles, plus additional recovery bays, theatres, and procedure rooms.

At the Alfred here, the six beds for the new expansion to the short-stay unit will make some significant difference, the eight recovery bays are important, and seven new emergency department cubicles at Sandringham and District Hospital I think are also important, it's an important hospital, that provides support for that south-east corner of the catchment of Alfred Health.

Additionally there'll be a range of projects to support a more equitable approach to elective surgery, the Victorian Government's ongoing investment in emergency department reform, models of care and redesign, to deal with access blockages, is a significant part of what needs to be done in Victoria, and we're working on many of those points.

This funding will also support a significant investment in new sub-acute services. Victoria's sub-acute reform is based on building and expanding service and system capacity, improving access to sub-acute care, and improving the patient's journey as well as enhancing quality, and we're certainly very focused on that at a state level.

Demand for sub-acute services is growing because of overall population growth, significant increase in ageing of the population, and associated prevalence of a number of chronic conditions.

The older people are staying in hospital for shorter periods due to advances in medical technology and treatment and increased opportunities for community care. And those community care options are very important.

The sub-acute system aims to maximise older people's independence and achieve the best possible health outcomes, minimise long-term care needs, provide care in appropriate locations, improve overall system response and patient flow.

The funding - this funding will strengthen our capacity across the hospital system to ensure a focus on the needs of older people, regardless where they are in hospital. The national partnership will provide sub-acute capital investments of $115.3 million in metropolitan Melbourne and $61.6 million in rural and regional Victoria.

The reforms will deliver services to approximately 3600 additional patients each - this year coming. The sub-acute reform will provide 326 new beds being made available over four years; $27 million to build 30 acquired brain injury rehabilitation service beds and two independent living units at Caulfield, which the minister has already referred to, which will enable innovative services for people with acquired brain injuries; $25 million for 30 new sub-acute beds to support in-patient services and a community rehabilitation centre at Mornington; $13.5 [million] to build 24 sub-acute beds to support in-patient services at Echuca.

These are important initiatives that were agreed. As I say, there are a number of outstanding matters that we will no doubt debate fully. The State has laid out its concerns, for example, about GST funding, and we've also still got a number of points to be worked through in terms of the agreement. And I won't go through the long details of the intricacies of those debates, but there is more work to do.

I also note - and in the context of the success of the Alfred in particular - the expert panel that has been put out to look at achievement of targets nationally is an important group, an important group that's got a very significant role to ensure that targets are imposed in a way, or put in place in a way that does not compromise clinical outcomes for patients. Patients need the best clinical outcomes, and I have no doubt that the expert group will focus directly on getting the best clinical results for patients.

Nicola Roxon: Okay, thanks very much for that, Dave. Any questions that people might want to ask?

Journalist: [Inaudible] …that there are still issues to be sorted with the Federal Government over the National Health Reform. Are they any of them potentially game-breaking?

David Davis: Well, I'm not going to, other than indicate the need to collaborate and work these things through. But there are outstanding issues. I think it's no secret that there are some differences on the way the National Performance Authority would operate. I could go through a long list, but I won't on this occasion.

Journalist: [Inaudible] …$440 million [inaudible], so I'm asking…

David Davis: Or on one part of it, yes.

Journalist: One part of it. So is that money in contention of getting - if all these other issues are sorted out?

Nicola Roxon: Well yes, it obviously is. We're here announcing that this package has got deliverables, some of which are already delivering to patients right now. What I think Dave is - I'm not going to put words into his mouth - there are not insignificant issues still to be worked through in the detail.

But Victorians obviously need to be clear that either Victoria is in the deal or not. The Premier and the Minister have said that they are. This is an implantation plan that's been worked on and submitted. I think it shows that our governments can work well together, but there are issues that neither of us are trying to pretend are fully resolved…

David Davis: That's right.

Nicola Roxon: …and they will need to be resolved in the lead-up to COAG, or of course it won't be possible for all of these very beneficial commitments to be able to be delivered across Victoria.

Okay, other questions?

Question: What's the biggest issue? I know you were concerned…

David Davis: Well, there is a number of issues that the State has put on the record. They both relate to the deal and also other matters. And I've mentioned one of those, which is the GST. We're obviously very concerned about Victoria's share with the GST. We're concerned - even some aspects out of the Commonwealth budget, there are some concerns that Victoria may not be getting its fair share. And then there are what I would call details around the negotiation itself and the implementation of parts of it.

Question: Explain the nexus with the GST. I don't understand the negotiation over the GST and the CGC process [inaudible] entirely separate…

David Davis: That's the point I've just made is that there are broader points and there are points about the health arrangements themselves.

Nicola Roxon: And I guess - sorry.

David Davis: But clearly, clearly the impact of Commonwealth funding through the GST is significant across all portfolio areas at a state level, so it's of great significance to Victoria, as is the general share that Victoria gets out of matters through the Commonwealth budget. That's not in any way to diminish the points of debate about the deal.

Nicola Roxon: So obviously I can just add to that. You're perfectly right. The GST is not part of the health deal that was agreed to in February this year. It's probably not a surprise to you that state governments occasionally are unhappy about how money is distributed by the Commonwealth. That doesn't detract, I think, from the work that can be done on implementation plans and the more technical issues that do need to be worked through, one of which has been worked through very cooperatively, which is the establishment of the clinical group that's going to advise on the way we can properly implement our access targets.

And as I said, doing here at the Alfred where they have had some significant success at being able to make those sorts of changes even ahead of the formal agreements coming in place, I think is a good sign that together, not just with the Victorian Government but other state governments across the country, we're going to be able to improve access to health services for patients. And ultimately, that's what all these investments are about.

Journalist: You said there's no significant differences for Victorians. Does that also stand with the governments in New South Wales and particularly New South Wales?

Nicola Roxon: Look, we've had very constructive work with New South Wales. I've just been at several events with Minister Skinner over the last couple of weeks, including the announcements of co-investments in hospitals, implementation plans that are delivering beds already in New South Wales. Similarly there are some technical issues that need to be worked through.

I'm very confident they can. Some of them are out of Dave or mine or Jillian's remits. Some of them are Treasury issues that are done within the, you know, confines of special Treasury people. But I am very confident that these issues can be worked through, and it's a serious matter but everyone has been very clear about their determination to get this right, and I am confident we all can.

Journalist: Can I just ask your reaction to - made by the tobacco companies that they'll have to drop their prices to compete with illegal tobacco products?

Nicola Roxon: Well, these are pretty extraordinary claims. I mean, we're in a fight with big tobacco where we have indicated that we think introducing plain packaging will help stop people pick up a deadly habit. They've told us firstly that it wouldn't be effective. Now it's so effective that it will damage their profits so much that they're going to slash their own profits themselves to prove this point.

It really just doesn't make sense. The tobacco companies are trying to protect their profits. That's their business. We're trying to protect people's lives, and I am absolutely determined that this measure will provide significant benefit to the community.

And being asked the question here, standing in a hospital that spends a lot of its time picking up the pieces as a result of tobacco-related illnesses and disease, I am really confident that we can spend that money better. If we can just reduce the smoking rate even a little bit in this country, we will save millions of lives and millions of dollars.

Journalist: [Inaudible] …will go ahead?

Nicola Roxon: beg your pardon, I didn't…

Journalist: Do you think the industry will go ahead with the threat?

Nicola Roxon: Which particular threat?

Journalist: Of cutting cigarette prices?

Nicola Roxon: Obviously the tobacco companies have made clear they're going to fight this tooth and nail. We've prepared for that. We expected the tobacco companies to fight us.

What we didn't expect is that Mr Abbott would also be fighting us. We thought that he would be on the side of protecting the community's health, not on the side of big tobacco companies.

They have continued to take donations from big tobacco for a long time. We now have the West Australian Premier saying that should no longer be the case. We now have the New South Wales Health Minister saying that they support - their government supports plain packaging.

So we believe that this is something that will have community support where we are on the side of doing the right thing to protect patients. And big tobacco might try all sorts of tricks and we'll obviously have to deal with those.

Journalist: Can I just ask Mr Davis [inaudible]…the Government's position on the plain packaging issue, and also whether the Liberal Party intends to accept donations from the tobacco companies?

David Davis: Well, in the first instance, you'll have to direct questions about donations to the Liberal Party.

But on the second point - on the major point about plain paper packaging for cigarettes, look, we have the view that we're prepared to go with any sensible proposal that will help reduce smoking. And in the sense that the Coalition has been a leader in Victoria on point of sale and other matters for reducing smoking, that obviously has close synergies with some of these points. We're certainly prepared to look at any reasonable measure that will achieve that.

Journalist: So do you support plain packaging?

David Davis: Yes.

Nicola Roxon: OK, thanks very much.

Ends.

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