State health ministers raise concerns with Tanya Plibersek

A $1.2-BILLION hole in payments promised to the states and territories to deliver health services has reignited tensions between conservative state governments and the Gillard government.

Queensland Health Minister Lawrence Springborg and his New South Wales' counterpart Jillian Skinner raised their concerns about the payments during a health ministers' meeting with Federal Minister Tanya Plibersek in Perth on Friday.

While the federal May budget projected more than $67.883 billion would be given to the states for health services, that figure fell $1.2 billion to $66.5 billion in the government's October mid-year budget update.

In Queensland, where the state budget was based on the May figures, the $387 million shortfall will leave the State's health system with about $13.5 billion over the next four years, down from $13.9 billion in May.

South of the border in NSW, the more populated state will see a cut of $601 million to the Commonwealth payments, down to $20.965 billion from the May estimate of $21.566 billion.

Despite the fall in the estimates, the total amount the Commonwealth will give the states for health will still grow by 21% over the forward estimates.

But the shortfall has infuriated state health ministers, some of whom attacked the Federal Government in statements sent out before the Perth meeting.

Mr Springborg said despite agreeing on a formula with the Federal Government, the Commonwealth was applying the formula inappropriately.

The formula was based on Australian Bureau of Statistics Census figures on population growth, which were released between the May budget and the mid-year update in October.

The ABS estimates showed that while the population was still expected to grow, the rate of growth across the country would be slower than first thought.

Mr Springborg said the he understood the shortfall was not Ms Plibersek's fault, but a "strategy" of Treasurer Wayne Swan to bump up the budget surplus.

"The reality is that population growth is still growing in Queensland, and while all states and territories are working with tighter budgets, this is going to mean $347 million of services won't be delivered," he said.

"That comes on top of a cut to another payment of $40 million to special purpose payments to Queensland - much of which has already been spent.

"So now it's going to be the people on our local hospital and health boards that are going to have to find a way to find that saving across the board."

But Ms Plibersek said the Queensland and NSW governments had cut their own state health budgets by $1.6 billion and $3 billion respectively this year.

"I understand why those health ministers are defensive about it, but it's not fair to look for someone else to blame," she said.

"That formula has three elements to it. It has an element that's based on population, it has an element that's based on health price inflation and it's got a technology element as well."

Asked whether Queensland was wrong to use the Federal Government's May Budget to help calculate the state budget, a minister's spokesman said "No".

Ms Plibersek said all state and territory government had signed up to using that formula to calculate the funding levels, during an October meeting before the change of government in Queensland.

Topics:  health jillian skinner lawrence springborg tanya plibersek

Businesses threatened in bomb calls

Police generic.  Photo: John McCutcheon / Sunshine Coast Daily

Detectives called in to find source of multiple bomb threats

Top team wins gong

WINNER WINNER: A team of about 50 health workers from Ipswich won the National Stroke Foundation award for their awareness campaign.

National Stroke Week awareness campaign big success

Unemployment rising in Ipswich

LNP claim 100 jobs have been lost from the region in the past month

Local Partners

Workmates honour crash victim with tribute

UPDATE: Tanya Lyell is being remembered as a young mother dedicated to her family and work as the town she called home mourns its loss.

Things to do this weekend

ON STAGE: Dragon play the Ipswich Civic Centre tonight.

See an Oz rock icon, take in a play, or visit a musuem

WATCH: NASA space station is live, see the view from above

In this picture taken from NASA's International Space Station from April 2015, the SpaceX Dragon is captured with the 57.7-foot-long Canadarm2 robotic arm before its installation to the Harmony module.

See the world from a new perspective as space station passes Rocky

Artist feeds us pop straight from heart

FEED THE BEAST: Singer-songwriter Emma Dean is this week's featured artist.

Emerge's Calen Le Couteur recently caught up with Emma Dean

Orlando Bloom 'buried' Katy Perry in birthday flowers

Orlando Bloom "buried" Katy Perry in flowers for her birthday

MacBook fires up: New "touchbar" will include emojis

COULD emojis help the MacBook again deliver a laptop revolution?

Angus T. Jones got miserable on Two and a Half Men

Child star's misery while shooting 'Two and a Half Men'

Bachelorette shock: "This isn't how it's supposed to go!"

Georgia Love pictured in a scene from The Bachelorette finale.

GEORGIA chooses Lee and leaves Matty J heartbroken.

Radio presenter's shocking joke about Dreamworld victims

Images from the scene after four people died on a ride at Dreamworld at the Gold Coast

Radio host taken off air after tactless Dreamworld joke

Things to do this weekend

ON STAGE: Dragon play the Ipswich Civic Centre tonight.

See an Oz rock icon, take in a play, or visit a musuem

Want to own one of Australia's best restaurants?

TOP GONG: Mooloolaba Spice Bar has been named in TripAdvisor's Top 10 Australian restaurants for 2016.

Here's your chance to pick up one of the Coast's favourite eateries

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Is Woolworths departure good news for Ipswich CBD?

Artist impression of the Ipswich Mall for the rejuvenation project to be undertaken by Ipswich City Properties

Council is on track to release a detailed plan before December

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available