Promises and scalpels out in health funding arms race

Both sides of politics are engaged in a health spending arms race in the lead-up to the November 26 state election, with the Coalition flagging about five times as much money as Labor, including a new $600 million hospital and training facility at Wantirna announced on Sunday.

Opposition Leader Matthew Guy is insisting his massive health agenda would be delivered “without new taxes” or “more debt” but paid for instead by shelving the first stage of Labor’s Suburban Rail Loop project, which is expected to cost up to $35 billion.

Opposition Leader Matthew Guy is promising to fix Victoria’s beleaguered health system, including the triple-zero emergency call-out services.Credit: Luis Ascui

“By shelving Daniel Andrews’ $35 billion rail line, only the Liberals and Nationals can rebuild our crumbling health system without new taxes or more debt,” Guy said.

The Coalition has so far promised 15 new or upgraded hospitals in pre-election pledges worth about $12.4 billion. It is also banking on getting hundreds of millions of dollars of federal funding to pay for its promises if it wins, even though it has not yet discussed this with the Albanese government.

In recent weeks, the Coalition has promised a massive $8 billion hospital and healthcare package for regional Victoria, including new hospitals in Mildura, West Gippsland and Wodonga, and extensively redeveloped hospitals in Daylesford, Mansfield and St Arnaud, plus a new cancer centre and health school in Shepparton.

It has also announced $900 million for a new hospital for Melbourne’s booming west in Melton, $900 million for a new 275-bed Werribee Royal Children’s Hospital, $550 million to rebuild the Caulfield Hospital, $400 million for a new infectious disease hospital and $400 million to upgrade the Maroondah Hospital.

The latest announcement came on Sunday, as the Coalition promised a new $600 million tertiary hospital with 250 beds and a training facility in Wantirna in Melbourne’s east. The facilities would be on the site of the former Knox Drive-in and include an emergency department, operating theatres, and maternity, oncology, geriatric and radiology services. The promise is contingent on a $300 million contribution from the federal government.

But Labor is challenging suggestions the Coalition has $35 billion from the Suburban Rail Loop at its disposal to throw at the health system.

According to the budget, $11.8 billion has so far been set aside for the Suburban Rail Loop over 13 years, although the total cost will be more than $30 billion. Guy has already indicated he would not rip up early works contracts. According to the budget, those early works are expected to cost $2.36 billion.

The extent to which this amount is locked into contracts is unclear. But that would suggest the Coalition has about $9.3 billion on the books from the Suburban Rail Loop to reallocate to health.

The Victorian government’s planned Suburban Rail Loop.Credit: The Age

On Sunday, Guy said Labor’s accusation of unfunded Coalition health commitments was “just absolutely not true”.

“On the government’s own forward estimates, we are not even halfway on committing the amount that the government is committing for the Suburban Rail Loop,” he said.

Labor has also ramped up health announcements, with election promises worth between $2.14 billion and $2.52 billion.

That includes up to $290 million for stage two of Wonthaggi Hospital, up to $1.05 billion to redevelop and expand the Maroondah Hospital (to be renamed the Queen Elizabeth II Hospital) in East Ringwood to accommodate an extra 9,000 inpatients a year, up to $300 million to redevelop the Austin Hospital and up to $855 million for a new Northern Hospital emergency department.

On Sunday, Health Minister Mary-Anne Thomas said the government would spend $39 million to expand Labor’s pathways-to-home program to help people with disability leave hospital when they are ready.

The Age has previously reported that more than 200 Victorians with a disability were stuck in hospital for an average of 160 days after they were well enough to be discharged.

“Concerningly, we’ve seen people spend more than 600 days in hospital,” Thomas said on Sunday. “The impact on a person’s health and well-being is really significant.”

Thomas also attacked the Coalition’s credibility over health spending, claiming Guy had failed to fund his promises.

“This series of partially funded promises is just taking Victorians for a ride,” Thomas said. “They’ve already announced more promises than they themselves believe they can fund. They are counting money from the federal government despite not having had a conversation with the federal government.”

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