NSW: Howard wants response from premiers to Rudd's plan

AAP General News (Australia)
08-27-2007
NSW: Howard wants response from premiers to Rudd's plan

SYDNEY, Aug 27 AAP - Prime Minister John Howard says all state premiers should make
clear whether they agree with Labor's plan to cut GST revenue and potentially take over
financing of public hospitals.

Mr Howard was responding to Opposition Leader Kevin Rudd's announcement that a Labor
federal government would consider clawing back billions of dollars of GST revenue given
to the states to run public hospitals.

Mr Rudd last week announced Labor's national health plan, which includes $2 billion
of additional money to the states along with a requirement that they implement plans to
improve public health care by 2009.

If the states fail, Mr Rudd has indicated a Labor government would take over the financing
of all public hospitals in Australia.

Mr Rudd today confirmed media reports that if elected, a federal Labor government could
seek to cut GST revenue payments to the states if they failed to improve public hospitals.

The reports said a Rudd government could withhold 40 per cent of the commonwealth GST
revenue given to the states once the takeover plan took effect.

Mr Howard today said the premiers should come clean on whether they supported Mr Rudd's plan.

"It's important that all of the premiers tell the Australian public whether they are
agreeable for a future Labor government taking back 40 per cent of the GST revenue that
they now receive," Mr Howard told reporters in Sydney.

"Because that is the amount that would be required to fund the states' current contribution
to the running of the public hospital system."

AAP vpm/pc/was/jl/cdh

KEYWORD: GST HOWARD

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