Senator FERRIS (2:50 PM) —My question is to the Minister representing the Minister for Ageing, Senator Ian Campbell. Will the minister advise the Senate of measures the Howard government is taking to secure the future of aged care for older Australians? Is the minister aware of any alternative proposals?

Senator IAN CAMPBELL (Minister for Local Government, Territories and Roads) —I thank Senator Ferris for the question. It is one of the great and important issues facing Australia. We have an ageing population. We have strong demand for aged care accommodation. Senator Ferris would know that the government commissioned Professor Hogan to review arrangements in aged care, particularly the pricing of aged care. I know all senators have taken a close interest in the progress of that review and of course the government's response. I am pleased to report to the Senate on behalf of the Minister for Ageing that the Treasurer announced last night a $2.2 billion package—a historically large figure—for the funding of aged care in Australia. It addresses the issues raised by Professor Hogan's report. I think in some ways it is fair to say, from the reading that I have done on the package and the review which I have had a chance to look at overnight and today, that in some respects it has gone further and come up with some even better ideas than the Hogan review itself.

The core of the package seeks to address the operating revenue for aged care facilities. It provides for an initial up-front payment of $3,500 per aged care place across Australia prior to 30 June. It therefore assists with not only operating grants but also capital structure, with about a billion dollars going into the capital requirements of aged care facilities across Australia. Very importantly, it provides something like 27,875 new aged care places, which include aged care facilities but, very importantly for many older Australians, a doubling of the number of places outside aged care facilities. It has measures to ensure more older Australians can get care outside aged care facilities to stay with their families and stay in their homes for longer. A doubling of that will be welcomed by many Australians.

Senator Ferris will be particularly pleased to know that, as part of the 13,030 places that will be available in the next 12 months across Australia, there will be 650 places in her state of South Australia. Over the next three years, this will build up to a total of 1,675 new places in South Australia. I have the figures. If any other senators from other states need details I am sure the minister, Julie Bishop, or I would be happy to provide them. For example, in my home state of Western Australia, 770 new places will be available in this first year, building up to 1,890. In the big population centres, such as New South Wales, there will be another 8,575 places. In Victoria, there will be 6,555. I know many Tasmanians are interested, and you would have a particular interest, Mr President. There will be 635 places in Tasmania.

The funding package is a very important measure. It is addressing not only the capital needs but also, very importantly, the governance of aged care facilities. There are conditional payments for aged care facilities that improve their governance. More money is being put into scholarships for nurses. Opportunities to ensure aged care workers receive better remuneration and better training, and improvements across the board, will see that the quality of aged care continues to improve. I have been asked about alternative policies. We know what wreckage Labor left in the aged care sector when they were in power. We have not seen any alternatives to date. (Time expired)

Senator FERRIS —Mr President, I ask a supplementary question. Could the minister further expand on the issue that he had just begun to comment on in relation to alternative policies?

Senator IAN CAMPBELL (Minister for Local Government, Territories and Roads) —I do want to make a couple of points about alternative policies but I also want to comment on the fact that we are able to invest $2.2 billion in aged care because of the quality economic management of this government. We have reduced the debt repayment burden by delivering budgets with surpluses. We have reduced the amount of money paid on debt interest servicing by $5.57 billion a year. That is $5.57 billion that the alternative government—the Labor Party—when in power used to pay back in interest on their massive debt. They used to spend more on paying off debt than they did on education. By strong economic management year after year, running surplus budgets, we have been able to reduce interest payments, which has allowed us to provide better care for older Australians and to fund this very important community and social infrastructure.