Mr BEAZLEY —My question is to the Minister for Family Services. Minister, are you aware that in your budget papers you have recorded an intention to remove from residential aged care, over four years, minus $10 million, minus $78 million, minus $102 million and minus $117 million, and that it is justified thus:

This will essentially replace the existing ad hoc capital grants program.

Minister, in the circumstances you convey of your so-called tidal wave of the elderly and the collapse of capital spending in nursing homes, how can you possibly justify that $500 million cut?

Mr Lee —You took money out! Don't you understand that yet?

Mr SPEAKER —The member for Dobell.

Mr WARWICK SMITH —What I said in answer to your previous question still stands: if we are going to deal with the 75 per cent reduction in the capital that has been provided to nursing homes in a long-term sustainable policy and seek people to make a fair contribution to that capital requirement then the policy that we have enunciated, as supported by the Democrats, is a national necessity. The reductions in the budget, as I previously told you, in the vast majority related to changes in the means test, which I am sure you as finance minister also looked at. So the basis to your question is again inappropriate.