The State Budget is due in September. Already announced is the demand on the Dept Health to shave $450million off its expenditure. Just where they will find the "fat" to trim? If there is that much fat in the system, then what have the senior people been doing over the last 3 years?
In 2007 when the Rann/Foley/Hill junta stopped the redevelopment project at RAH some of us wondered then if they had simply run out of money and wouldn't admit it. Then this "Marj" project was the pearl strewn before us swine, after all who could resist the appeal of a new hospital named after a much loved Governor? and one whose cost could be pushed off to the Commonwealth - PPP the money comes from the private sector then the State contracts to lease (ie formal rental agreement) it for an agreed term , in this case 35 years. Recurrent expenditure a opposed to Capital is paid by the Commonwealth. And stilll they want to shave $450million off the health bottom line.
Lets consider for a minute the published price is $1.7bn and the Developers will want to get their money back. For ease of calculation presume interest at 10% pa, The interest bill per year is $1700 million
By the end of the 35 years (as announced by Minister Hill around the March State election) the debt should be paid off, ie $485714285 per year, so the amount due in the first year alone is $2.1bn + I suppose it will be a reducing loan, but goodness knows what that pattern of repayment will be. If the Commonwealth tells the State to finance it out of its annual allocation as opposed to a special grant each year , then the health services in SA will have to be reduced even further. And what if the price escalates like the Adelaide Oval?
In Canberra the daily drama of minority Government is playing claim and counter claim - "I am more fiscally reposnible than you are" so can this State confidece trick be sustained?
Every now and then the claim by Premier Rann that after his near miss in March he and his Government will be listening to the people bubbles up and equally frequently is ignored. Over 8000 voters in March departed from voter support on wider issues to specifically support "Save the RAH" candidates. Just how much louder do the people have to shout to get this mesage through?
Completion of the redevelopment of the RAH in a timely manner woud have had all the facilities promised at the Railyards actually in use right now.
The question is just what or who is driving this pig headedness in Health?
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