Ms O’NEILL (2:35 PM) —My question is to the Treasurer. Will the Treasurer update the House on the government’s health reforms and how they will ensure value for money from our health dollars? How has this approach been received and what is the government’s response?

Mr SWAN (Treasurer) —I thank the member for Robertson for that very important question, because three weeks ago I introduced into the House the most significant reforms of federal-state relations relating to health in decades. These health reforms and the changes to federal-state financial relations are not just about delivering better value for every health dollar—

Mr Robb interjecting—

The SPEAKER —The member for Goldstein is warned!

Mr SWAN —they are also about improving the quality of health care into the future. This is particularly important given the challenges of an ageing population. These reforms are absolutely essential so that future generations can have access to affordable health care. As the Prime Minister indicated before, without substantial action, without substantial reform, healthcare costs will consume the entirety of state government budgets when it comes to their own source revenue in 2045-46.

This is an enormous challenge for Australia. It is not one where we can stick our head in the sand and say it will go away, like those opposite. It is a challenge that this government intend to meet. We have a passion and we have a commitment to deal with the long-term challenges facing this country, and in the area of health care they are great. But of course those opposite have decided that they want to wreck this package. They would rather see the government fail than the country succeed. They would rather wreck any reform in the name of short-term political advantage, because they are not interested in the long-term national interest. That is why they are currently misleading the Australian people about the nature of this package. The Prime Minister went through all of those misleads before.

They are claiming that nobody knew there would be different amounts of GST. That has been there in all of the statements. They are out there actively misleading the Australian people and they are doing it because they are embarrassed by their opposition to this essential reform. The states signed up to this package at COAG. Western Australia said they would not sign but they were prepared to cooperate. Premier Barnett is on the record as having said that because even he understands that there needs to be very substantial reform.

At the same time as they are threatening this package in the Senate they are also opposing vital savings that we are putting in place, vital savings that are necessary to get value for money. The opposition, the Liberals, are now opposing $3.9 billion worth of savings in the Senate—more wrecking; this time trying to wreck the budget.

They come into this House and say they are very concerned about the budget deficit. They go up into the Senate and say, ‘How can we make it bigger?’ They are up there opposing essential savings—$3.9 billion more—and for that they should be condemned. This government is absolutely determined to put in place the long-term reforms which will deliver quality health care and do it in a way that is sustainable and affordable for all Australians.