
State Treasurer Tom Koutsantonis has all but confirmed that the state budget will include widespread hospital bed closures.
Koutsantonis responded this morning to an Australian Financial Review report that the State Government was planning to close “hundreds of hospital beds” immediately following the June 19 state budget.
He said that the Federal Government’s cuts to the state’s health and education funds were “real …. and we’re going to pass on those cuts in full”.
He said it was for the Liberal Party to explain the cuts.
“They have to explain why we’re making them – not us,” Koutsantonis said.
“I don’t want to make these cuts. I don’t want to close hospital beds, I don’t want to make tax increases – they are the ones who are doing this.”
He argued that the Federal Government’s cuts to state budgets were the biggest in Australian history.
When asked specifically whether “hundreds” of hospital beds would be closed, he issued this warning:
“You’ll have to wait until the state budget, but I will say this – the full consequences of Mr Abbott’s cuts to health care and education will be passed on in full.”
The horror federal budget slashed state governments’ health and education budgets by $80 billion over the next 10 years.
Koutsantonis this week released state Treasury data which showed the federal budget would cut $898 million from state coffers over four years, the bulk of which would hit the health portfolio.
The Federal Government was quick to point out that actual federal money flowing to SA was due to increase.
Koutsantonis conceded this increase in GST receipts, but also pointed out that the rise was almost completely wiped out by a write-down in state-based revenue measures including payroll, property and gambling taxes.
The State Government has previously said that the federal cut was the equivalent of a loss of 600 beds – or a hospital the size of Flinders Medical Centre.
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