Several key health groups in South Australia are disappointed with the State Budget’s spend on health services, criticising the government for a lack of investment in mental health and saying the new funds will not address fundamental problems in the state’s hospitals.
Treasurer Rob Lucas handed down the 2021-22 State Budget on Tuesday with health – particularly mental health services – identified as spending priorities.
A total of $7.4 billion has been allocated for the health portfolio in the next financial year, including a $163.5 million package over four years to address the state’s mental health services crisis.
Among the new measures are a 16-bed crisis stabilisation centre in the northern suburbs as an alternative to emergency departments for people in crisis, and a further $12 million spent next year to create an extra eight psychiatric intensive care beds.
The Royal Australian and New Zealand College of Psychiatrists welcomed the eight extra psychiatric intensive care beds, funds for housing for people with mental health disabilities and funding to help address workforce shortages – but said the investment in mental health didn’t go far enough.
“There are only eight extra (mental health) beds across the entire system,” said the college’s SA branch chairperson, Dr Paul Furst.
“South Australia is about 130 beds short of the national average.
“There hasn’t been any investment in rehabilitation beds, which is what the state is massively short on.”
Furst also said it appeared the government still hadn’t grasped the ramping problem and how to address it.
Those comments were echoed by South Australian Salaried Medical Officers Association Chief Industrial Officer Bernadette Mulholland who described the mental health package as “manifestly inadequate”.
“We can find over $600 million for a new stadium no-one wants but only $160 million over four years for mental health. The priorities are all wrong,” she said.
The South Australian Mental Health Coalition were circumspect in their assessment of the budget, welcoming investments in emergency department alternatives but noting the need for “follow up support” for mental health patients so “they can deal with the underlying issues and stay well in the community”.
“We are glad to see this budget is taking the first steps in realising the (SA Mental Health Services) Plan, however we still have a long way to go,” the coalition’s Executive Director Geoff Harris said.
“We need more services that address why people are becoming unwell and look at the underlying issues more comprehensively.”
On general health matters, the budget revealed a $1.95 million cost for the new Women’s and Children’s Hospital which the Government says will house 500 new treatment bays.
The Opposition criticised the government for delays on the project, with the hospital not set to open until 2027 compared to an initial promise of 2024.
The budget also shows a $110 million spend to create 140 new treatment spaces in emergency departments at Flinders Medical Centre, Lyell McEwin Hospital, Queen Elizabeth Hospital, Modbury Hospital and some regional hospitals.
The paramedics’ union welcomed the increased capacity in emergency departments but said it wouldn’t solve ramping without more beds throughout hospitals.
“All it means is more patients will get caught in the ED,” said Ambulance Employees Association state secretary Phil Palmer.
“The answer is whole of system capacity.”
Business groups have given mixed reviews to the 2021-22 State Budget, welcoming investment in infrastructure and continued payroll tax exemptions but lamenting a lack of support programs in the event of another COVID lockdown.
The budget forecasts tip the South Australian economy to grow by 3.5 per cent in 2021-22 and then by 2.25 per cent each year across the forward estimates.
The deficit for 2020-21 is expected to be about $1.8b – down from $2.6b forecast last year – while total net debt is expected to rise from $22b to $33.6b by 2024-25.
Credit ratings agency Moody’s said the budget will allow South Australia to keep its AA1 credit rating and stable outlook forecast.
“South Australia’s revenue recovery has exceeded our initial expectations, reflecting its strong revenue ties to the Commonwealth, despite severe economic and revenue disruptions from pandemic and border closures,” said John Manning, Vice President of Moody’s Investors Service.
Business SA similarly welcomed the budget’s economic growth and revenue forecasts but was disappointed by the lack of COVID support measures in place for businesses.
The chamber of commerce had called for a funding scheme to protect small and medium businesses from future lockdowns and a “de-risk” fund for event organisers to insure them against COVID contingencies.
“The 2021/22 State Budget underwrites South Australia as an attractive and cost competitive place to do business, although not providing any real peace of mind for businesses should South Australia find itself in another COVID lockdown,” Business SA CEO Martin Haese said.
“Unfortunately, the Budget lacks tailored support programs for hard working business owners that have borne the brunt of seismic uncertainty over the last 15 months.”
Haese welcomed the extension of a payroll tax waiver for businesses who take on apprentices but called on the government to extent this to support an estimated 19,000 businesses who are unable to access the scheme.
The South Australian Property Council were more upbeat about the priorities of the budget, and welcomed the State Government’s spend on infrastructure and an $800,000 fund to reactivate the Adelaide CBD.
“The message coming out of this Budget is very clear – it’s about record infrastructure spending with a strong focus on health, education and economic recovery,” said Property Council SA Executive Director Daniel Gannon.
“This is evidenced by the $17.9B invested into infrastructure over the next four years, critically focused on health, education, sporting, cultural and recreational facilities.”
Among the infrastructure measures outlined in the budget are $202 million over three years to build a Sturt Highway bypass around the town of Truro and $180 million over four years to complete the next stage of the duplication of the Augusta Highway from Nantawarra and Lochiel.
A $60 million upgrade of the Heysen Tunnels on the South Eastern Freeway over two years has also been included under the shared funding model as has a $40 million project to upgrade Key Kangaroo Island road corridors over three years.
But the budget also revealed a $1 billion cost blowout for the north-south corridor, which will now cost $9.9 billion due to the addition of an extra lane and new safety features.
RAA Senior Manager of Safety and Infrastructure Charles Mountain said it was “logical to meet the modelling of the traffic volumes expected to use the tunnels, as it will future proof this massive infrastructure project”.
Residents in the suburb of Hove are rejoicing after the State Government announced plans to scrap its controversial level crossing removal project, with the Transport Department now investigating other ways to reduce traffic congestion in the area.
The project to remove the Brighton Road crossing was announced in April 2019 at an initial cost of $171 million, but raising the rail line over Brighton Rd to reduce traffic congestion was costed at $295 million and prompted resident protests over a proposed 1.5km concrete bridge and the number of compulsory acquisitions.
The community’s preferred option, a rail under line, was costed at $450 million and the Treasurer Rob Lucas said the Commonwealth was not prepared to fund the project.
City of Holdfast Bay Mayor Amanda Wilson said the decision has come as a relief to her constituents.
“The residents that are in the affected area are obviously very very happy that a 1.5 kilometre, 13-metre-high train bridge is not going to go through their historic suburb,” Wilson said.
“But it also means now that hopefully we can look at long term management of Brighton Road’s congestion and work out modifications that we can make along the corridor that can actually improve the traffic flow for everybody.”
Wilson said the volume of traffic on Brighton Road needs to be reduced long-term, and pointed to a pedestrian overpass and a feasibility study into diverting local traffic onto the north-south corridor as potential solutions.
“The congestion is only at peak hour – the rest of the time it flows really well,” she said.
Transport and Infrastructure Minister Corey Wingard said he has now asked his department to investigate alternative solutions and “identify broader options to reduce travel times and improve safety along Brighton Road” to develop a better “whole of corridor” solution to the problem.
The State Government says the $171 million earmarked for the Hove project will now be available for other priority infrastructure projects.
Wingard also on Tuesday announced a 10-year-plan to “identify and triage” train level crossings across the state for removal, describing them as “archaic” infrastructure.
“Once identified, my department will develop the top five crossing projects to shovel-ready status so we can fast-track their funding and delivery,” he said.
Mandatory mask rules have been extended by a week in Sydney and at least seven new COVID cases will be added to the state’s tally today as the trans-Tasman bubble with NSW is paused after a health alert was issued for two flights to New Zealand earlier this week.
When asked whether a lockdown was likely for Sydney, NSW Premier Gladys Berejiklian said she had a “degree of confidence” in the situation despite the number of cases linked to the Bondi cluster reaching 21 on Tuesday.
“If we suddenly have a number of unlinked cases and if we suddenly have them outside the geographic region they are concentrated in, that will obviously adjust the health advice and we will respond to that,” the premier said.
Other Australian states, including South Australia, have imposed border restrictions for people from Sydney’s hotspot areas and the infection numbers have prompted New Zealand to close the trans-Tasman travel bubble with NSW.
The decision on Tuesday night came as NSW Health added two flights to its list of close contacts, urging passengers on a Qantas plane from Sydney to Wellington on June 18 and an Air New Zealand flight from Wellington to Sydney on June 21 to get tested and isolate for 14 days.
Seven of the 10 new locally acquired Sydney cases of COVID-19 flagged on Tuesday had missed the 8pm reporting deadline on Monday and will be counted for the following 24-hour period.
They included six household contacts of previous cases who have been in isolation and a child in Sydney’s east.
Berejiklian said she had expected household contacts who were already in isolation to test positive.
All of the new cases except for two were already in isolation when tested and all of the cases except for one, a student at St Charles Catholic Primary School in Waverley, were linked to existing cases.
Compensation for farmers and other rural industries will be crucial to a potential deal between the Nationals and Liberals on contentious climate targets.
Deputy Prime Minister Barnaby Joyce is expected to continue negotiations with Scott Morrison with a long-term move towards a net zero carbon emissions target a sticking point.
Deputy leader and Agriculture Minister David Littleproud said the party wouldn’t enter a deal until what was on offer was clearer.
“That’s just good business principles. You don’t give away your end price straight up,” he told Sky News.
“We’re going to look at it, we’re going to see what we can get and make sure that no one’s hurting, but we also start to square that ledger.
“We copped it in the neck in regional Australia for everyone to sleep soundly in metropolitan Australia and it’s time that our mob got repaid for it.”
Labor leader Anthony Albanese accused Mr Joyce of being a climate change sceptic that would further damage Australia’s reputation when other countries were behind the 2050 target.
“What we have is a rump in the coalition, in the National Party and in the Liberal Party, but it’s a rump that’s holding back Australia,” he said.
Joyce is also weighing up the Nationals’ ministerial roles with Bridget McKenzie expected to return to cabinet at the expense of fellow Victorian Darren Chester.
The deputy prime minister took over his predecessor’s roles in infrastructure, transport and regional development on Tuesday when he was sworn in on Tuesday.
-With AAP and Reuters
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Place of originWhat we know today, Wednesday June 23