NSW Health 'to cut costs not services'

(AAP) NSW Premier Nathan Rees says the state's health department must become more efficient but its budget won't be slashed in an attempt to solve the state's financial woes.

Amid reports NSW Health had been asked to find $500 million worth of savings in time
for next Tuesday's mini-budget, Premier Nathan Rees insisted he would not be
"shrinking" the department's funding.
But, he said, it would still be asked to find savings, as it already absorbed a
third of the state's budget and demand would only increase as the population aged.
Last year's health budget had a $300 million blowout.
Mr Rees said none of the savings would come through cuts to numbers of doctors,
nurses or support staff.
"We haven't asked them to cut $500 million, that's the straightforward answer to
that," he told reporters while visiting the Illawarra.
"But what we have asked them to do ... is (to) look at efficiencies that don't
impact on front-line services."
Mr Rees said he was looking at backroom jobs, highlighting that an area health
service had recently advertised for 11 communications positions. Five of the
positions had since been slashed.
But, the premier indicated the current $680 million a year capital works programs
for hospitals may be reduced but won't be abandoned completely.
"We've rebuilt or refurbished over the last decade nearly every hospital in NSW," Mr
Rees said.
"Having said that, there are always increases in demand for our hospital services
and we're going to have to continue to build and refurbish hospitals."
Opposition health spokeswoman Jillian Skinner warned that the health system was
already at breaking point and could not survive further budget cuts.
"If health services across NSW can't cope now, how will local communities and local
hospitals cope with less money in a future environment of greater demand," Ms
Skinner said.
Meanwhile, the NSW Business Chamber has warned the NSW government to exercise
caution in the mini-budget, with new figures showing the state's unemployment rate
has broken through the five per cent mark.
Data from the Australian Bureau of Statistics (ABS) shows a decline in full-time
employment in NSW of more than 13,000 jobs in October, pushing the jobless rate to
5.2 per cent.
NSW Business Chamber chief executive officer Kevin MacDonald said the data confirmed
what he had been hearing from businesses throughout the state - that times were
tough.
"Now is not the time to be hiking taxes to fill the budget shortfall," Mr MacDonald
said.
Opposition finance spokesman Mike Baird said NSW's unemployment rate was above the
national average because the government had failed to make the state attractive for
business investment.