Updated June 9, 2010 10:38:00

Doctors and nurses are sceptical a boost in health spending in this year’s state budget will be the answer to Queensland Health’s ‘sick’ payroll system.

The state’s budget for 2010-11 predicts much smaller deficits and lower debt than last year’s budget expected to see.

Unemployment is also now tipped to be lower and economic growth much better than previously forecast.

The budget provides for 1,200 more health professionals, 316 more teachers and 203 more police.

Australian Medical Association of Queensland (AMAQ) spokesman Dr Mason Stevenson says paying for more positions will not work if the payroll system is still sick.

Dr Stevenson says there is more money but the State Government is still playing catch-up.

“Why are people going to be attracted to Queensland Health employment when we have a pay debacle three months’ long,” he said.

Queensland Nurses Union (QNU) spokeswoman Gay Hawksworth says the funds set aside to fix the problems are minimal.

“$4 million as a fix seems to be a very low estimate,” she said.

However, Treasurer Andrew Fraser says yesterday’s budget figures are dependable, despite volatility in the market and he trusts his treasury department officials.

“Of course it is the case that economic forecasting is a fraught exercise,” he said.

The budget is centred on a $17 billion building program and some smaller measures such as a $24 cut in compulsory third party (CTP) insurance.

Opposition Leader John-Paul Langbroek is unimpressed.

“It’s certainly miserly – this Government needs to rein in their spending,” he said.

Mr Langbroek also says there is no clear plan to tackle high levels of debt in the budget.

But Mr Fraser says Queensland can regain its AAA credit rating in a few year’s time.

He says the ratings agencies do see a strategy.

“No-one’s ever said that’s going to happen in the next five minutes,” he said.

“The ratings agencies have been clear that we need to complete the reform program, undertake all the transactions that we’ve said, and then they will look at the ratings.

“But what they’re saying very clearly this morning is ‘stick to the plan, the plan shows you can get there, and if you stick to the plan, you can get there’.”

The Rural Doctors Association of Queensland (RDAQ) says a 10 per cent increase in health spending in yesterday’s budget will do little to make rural medicine more attractive to new doctors.

Health Minister Paul Lucas says staff recruitment is a major priority for his department.

But RDAQ president Dr Shelaigh Cronin says it is essential staff already in rural areas are given the back-up they need to stay in the bush.

“What they really need to do is look after the ones they’ve got,” she said.

“Sometimes that doesn’t mean spending more money, that means being flexible and having good management systems in place to ensure that people do feel that they’re being looked after properly.”

She says the RDAQ is also disappointed with the lack of funding for dental services in regional areas.

The Queensland Government has allocated $25 million in the state budget to improve dental teaching at James Cook University in Townsville and Cairns in the state’s north.

But Dr Cronin says university places are not enough and more needs to be done to encourage dentists to move west.

“Dental services are a huge, huge problem in western Queensland and all rural areas,” she said.

“I believe there should be much more collaboration with the private sector and there should be more targeted incentives to dentists.”

The chairman of the National Advisory Council on Mental Health, John Mendoza, says a State Government allocation for mental health education is not enough to make a difference.

The Government will spend $8.5 million over four years to break down the stigma attached to mental illness.

He says while the recognition is welcome, the funding falls short of what is needed.

“It has to be first of all a sustained campaign – somewhere between five and 10 years and in the order of about $10 million per year for a state the size and diversity of Queensland,” he said.

“We’re not just talking about a simple message like quit smoking – it’s a much more complex range of messages that have to be communicated to the community.”

Meanwhile, Mr Langbroek says the proposed new federal mining tax throws yesterday’s budget into doubt.

More than $40 billion in revenue is predicted for the year ahead, including more than $3 billion in royalties.

The Government is planning for $42 billion in expenditure, leaving a deficit next year of $1.7 billion.

Mr Langbroek says the numbers are shaky because of the resources profit tax.

“This tax – whilst it’s still under preparation – therefore it has not been factored into the budget figures,” he said.

“Very obviously then the budget doesn’t stack up at all and everything the Government is telling us may well be wrong.”

But Mr Fraser says the budget figures are solid.

“I know the Opposition is trying to mount this line but it’s a furphy,” he said.

“There is not a computer in the world that can model the outcome of a theoretical tax that hasn’t been legislated.

“What the budget papers quite properly do is point at three separate occasions about the importance of getting that tax right.

“We’re confident that the tax will be right for investment and jobs into the future.”

The Queensland Resources Council (QRC) says the budget shows mining royalties will rise to $3 billion next year.

QRC chief executive officer Michael Roche says it shows the sector is already paying its way and should not be slugged with a super profits tax.

“I think the sector is pulling its weight right now in terms of job creation and in generation of tax revenue,” he said.

Let’s just hope that the Federal Government sees reason and we don’t kill the goose laying the golden eggs.”

The Local Government Association of Queensland (LGAQ) has given the state’s budget the thumbs up.

LGAQ president Greg Hallam says the state government’s decision to maintain record levels of capital spending will have a positive impact.

“We welcome the $17 billion in capital spending – that is certainly going to be a boost to the economy and to our long-run productivity,” he said.

“There’s an extra $30 million in there for road funding – it’s a positive overall, but taking the pressures of growth in south-east Queensland by attracting people to the regions is still to be addressed.”

Meanwhile, business groups have welcomed the State Government’s allocation for infrastructure spending in the budget.

Property Council of Australia (PCA) spokesman Steve Greenwood says the industry is positive about the budget.

He says the sector will benefit from major infrastructure spending and stable property taxes.

“That’s a very good thing for property owners and property investors,” he said.

Master Builders Association (MBA) spokesman Paul Bidwell says the spending will help struggling commercial builders.

“Every little bit helps,” he said.

Australian Industry Group spokesman Chris Rodwell says the budget provides a strong platform for economic growth.

“It’s very significant indeed that we continue to have strong spending in infrastructure,” he said.

However, United Retail Federation (URF) spokesman Scott Driscoll says small businesses have missed out.

“This is a bit of ‘ho-hum’ budget,” he said.

“At the end of the day there is nothing in there that is going to provide any stimulus to small business.

“It is not something that is on the tips of everyone’s tongues saying this is great budget for small business, because frankly it is not.”

The Queensland Council of Social Services (QCOSS) has welcomed the $25 increase in the electricity rebate for some taxpayers.

QCOSS president Karyn Walsh says the rebate will make a difference to low-income households.

“There are other things that could be looked at in terms of a concession framework, but in terms of a budget this is an increase that would be welcome by many people and it’s certainly better than not doing anything at all,” she said.

The RACQ says the budget’s $24 reduction for compulsory third party (CTP) insurance is a backhander to motorists.

RACQ spokeswoman Linda Schekoske says it is not enough to balance recent increases in charges and fees.

“Over the past 12 months we’ve seen the average motorist paying an extra $220 a year to offset increases in registration and of course, the withdrawn of the fuel subsidy,” she said.

Meanwhile, Queensland Teachers Union spokesman Steve Ryan says education spending has been cut and the new curriculum could suffer.

“The national curriculum is certainly in jeopardy in terms of implementation,” he said.

He says that is not fair on teachers.

Wildlife campaigners want the Federal Government to match a $56 million Queensland Government commitment to expand national parks in the state.

The World Wildlife Fund (WWF) wanted up to $20 million a year over the next decade but says it is happy with the result.

WWF spokesman Dr Martin Taylor expects the funds will save some of Queensland’s endangered species.

“We expect that this amount of money – $56 milllion for national parks – will attract as much as $60 million in matching funds from the Commonwealth for the purchase of new protected areas for our endangered wildlife,” he said.

- Reporting by Chris O’Brien, Stephanie Smail, Francis Tapim, Sam Burgess, Nikole Jacobi and Murray Cornish

First posted June 9, 2010 07:16:00

Health budget welcomed but ‘sick’ payroll system deters staff

Tags: amaq, volatility