Tony Abbott said during the 2013 election campaign that ‘we are not shutting any Medicare Locals’. Photo: Andrew Meares
The Abbott government will spend up to $112 million to close the 61 Medicare Locals established by the former Labor government.
Despite Tony Abbott declaring during the 2013 election campaign that “we are not shutting any Medicare Locals,” the 61 Medicare Locals, which were set up by Labor to plan and coordinate local health services, will cease operation at the end of the month.
They will be replaced by 31 “Primary Health Networks” which will perform a similar role.
Health department First Assistant Secretary Mark Booth told a Senate hearing on Monday that the cost of wrapping up the Medicare Locals, including expenses such as staff redundancies and penalties for breaking leases, could be up to $112 million.
Officials told the same hearing that $8.2 million had been cut from substance misuse programs as part of a $197 million cut to “flexible funds” announced in last year’s budget.
Greens Senator Richard Di Natale said the cut was at odds with the government’s commitment to tackle the scourge of ice, to which it allocated $20 million in last month’s budget.
“How on earth do you establish an ice task force and rip out $8 million of government funding from programs that aim to treat those people?” Senator Di Natale said.
“You can’t keep making these grand gestures and not back them up with action.
“If you are worried about the issue of ice, then you will immediately reverse the funding cuts you’ve made to drug programs.”
In last month’s budget, the government announced a further $596 million would be cut over four years from the 16 health flexible funds, which pay for programs in a range of areas including communicable diseases and chronic disease prevention.
Health department secretary Martin Bowles told the hearing he accepted responsibility for a budget night briefing at which health groups were not given the details of $2 billion in cuts to the health budget.
“I’ll be upfront and say we didn’t manage it as well as we possibly could on the night”
“I could have probably provided a little bit more information at the time,” Mr Bowles said.