Media Release

The Prime Minister, Kevin Rudd, and Parliamentary Secretary for Water, Dr Mike Kelly, today congratulated Inghams Enterprises on winning the inaugural Prime Minister's Water Wise Award.

Announced by Dr Kelly at the Australian Water Association Awards Dinner in Brisbane, the award was developed to recognise and reward businesses that excel in water use efficiency and management.

Through their innovative water saving initiatives, Inghams Enterprises has saved 545 million litres of water since March 2009 and reduced their reliance on mains water by 70 per cent

"Inghams Advanced Water Treatment Plant project is one of many impressive water saving initiatives that entered the award," Mr Rudd said.

"It is very encouraging to see that large water users are striving to achieve best practice in water efficiency and demonstrating their commitment to continual improvement."

Dr Kelly said the Australian Government recognises the immense challenge we face as a nation in preparing for a future with less water and the role government, industry, and individuals play in response to these challenges.

"I applaud Inghams Enterprises and the finalists for their leadership and excellence in water savings," Dr Kelly said.

Delivering on a 2007 Australian Government election commitment, the Prime Minister's Water Wise Award complements the Australian Government's Water for the Future key priorities which include: taking action on climate change, using water wisely and securing water supplies.

The winner and four finalists were selected on the basis of their significant water savings; innovation; excellence in project delivery; and high capacity for their approaches to be replicated at other facilities.

The four finalists for the Prime Minister's Water Wise Award were Amcor Australasia; Coca-Cola Amatil; Diageo Australia and Rossdale Golf Club.

For more information visit: www.environment.gov.au/water/policy-programs/weo/pm-awards/index.html
 

The Australian Government congratulates Indonesia's President, His Excellency Dr Susilo Bambang Yudhoyono, on his appointment as an Honorary Companion of the Order of Australia (AC).

The citation for the appointment was: "For strengthening Australia-Indonesia relations, and promoting democracy and development in Indonesia".

President Yudhoyono is a true friend of Australia. Under his leadership, the relationship between our two nations has grown stronger.

President Yudhoyono has also been a champion of democracy and of economic development for the people of Indonesia.

The Governor-General, Her Excellency Ms Quentin Bryce AC, presented the award to the President in a ceremony at Government House.
 

The relationship between Indonesia and Australia has never been stronger. We have built an enduring partnership for the 21st Century, based on shared interests and common values. Though neighbours by circumstance, we are close friends and partners by choice.

We have a mutual stake in each other's progress and prosperity. We share a commitment to maintaining peace and advancing security and prosperity in our region. As pluralist democracies and open societies, we seek to promote the values of freedom, good governance, tolerance, human rights and the rule of law. We value regional and multilateral institutions and are committed to making them work more effectively.

From the foundation of our strengthened bilateral ties, Indonesia and Australia are working together to address regional and global challenges. Our partnership is a strategic asset, and we are committed to increasing our cooperation in regional and global forums to advance common interests.

We have agreed to upgrade our comprehensive partnership. We have resolved, as leaders, to meet annually in either Australia or Indonesia. We have also agreed that our respective foreign and defence ministers should meet jointly each year. We will continue to build on the contribution of the Australia Indonesia Ministerial Forum towards strengthening our relationship.

Between our two peoples, ties are growing. A record number of Australians travelled to Indonesia in 2009 and Australia is one of the most popular destinations for Indonesians studying abroad. We are committed to further strengthening these links in areas such as education, culture, media, business and sport. To this end, we will support the establishment of an Australia Indonesia Leadership Dialogue to bring together public figures, business people, academics, opinion-leaders and others for wide-ranging exchanges. We will consult regularly to promote increased and meaningful people-to-people exchanges. We are committed to strengthening our understanding of each others' cultures through increased cooperation on education (including through student and staff exchanges), joint research, dual and joint degrees, and professional development for teachers.

We are committed to realising the potential of the economic relationship between our economies. We have concluded the Australia-Indonesia Free Trade Agreement Joint Feasibility Study and are now considering next steps. We share the goal of increasing the volume of bilateral trade and investment.

Security cooperation under the framework of the Lombok Treaty is progressing, to our mutual benefit. Our defence forces worked closely together in responding to the Sumatra earthquake in September 2009. Our law enforcement agencies are cooperating to tackle the threat of terrorism. Indonesian successes in disrupting and dismantling terrorist networks and in the arrest of terrorist leaders have dealt a significant blow to the threat of terrorism in the region.

Australia and Indonesia are working with shared purpose to address the complex challenge of people smuggling, trafficking in persons and irregular migration. We are pursuing comprehensive regional responses, including through our co-chairing of the Bali Process. Complementing these regional efforts, we are working to enhance our bilateral cooperation, consistent with our Lombok Treaty and its Plan of Action. Our agreement on a new Implementation Framework for Cooperation to Combat People Smuggling and Trafficking in Persons will provide for enhanced cooperation on prevention and disruption of people smuggling ventures, border and immigration management, and legal processes. Australia welcomes Indonesia's plan to introduce a law to criminalise people smuggling this year.

We are committed, as mandated by the Lombok Treaty and its Plan of Action, to reinvigorate our joint efforts to prevent and combat transnational crimes, including through extradition and mutual legal assistance.

We have concluded a bilateral Arrangement on Consular Notification and Assistance to provide a framework for the provision of consular access and assistance to our nationals. We will conduct further consultations on issues involved in the transfer of sentenced prisoners between our two countries, including legal instruments and practical implementation.

We are working hand-in-hand to meet Indonesia's development priorities in a way that furthers both our interests. Australia will provide a further A$215 million over four years to support Indonesia's National Community Empowerment Program (PNPM). Building on the success of the Australia Indonesia Facility for Disaster Reduction, Australia will provide assistance towards the establishment of Indonesia's Disaster Management Rapid Response Force.

We welcome the G20's emergence as the premier forum for international economic cooperation and value our membership of the G20. Australia and Indonesia are committed to working together, and with other G20 countries, to drive an ambitious reform agenda to lay the foundations of a sustainable, stable and balanced global economic framework. We recognise the importance of our representation in the G20 and acknowledge our responsibilities accordingly.

Australia and Indonesia agree it is in our interests to examine the implications for regional architecture as economic and strategic weight shifts to the Asia-Pacific. We support the continued strengthening of the East Asia Summit (EAS) and remain committed to APEC as the pre-eminent forum for regional economic cooperation. We welcome ASEAN's contribution towards regional stability and acknowledge ASEAN's centrality in regional arrangements. We see value in continuing discussions on the institutional architecture of our region, with ASEAN at its foundation. Those discussions include Australia's Asia Pacific community initiative.

We will continue to work closely, through forums such as the Regional Interfaith Dialogue and the Bali Democracy Forum, to promote positive norms and values throughout the region, including good governance, democracy, tolerance and mutual respect amongst faiths.

Side-by-side, we are working to address climate change. We support the Copenhagen Accord and are committed to its implementation. We welcome the good progress made on reducing emissions from deforestation and forest degradation in developing countries (REDD) at Copenhagen. We are continuing to take practical action through the Indonesia - Australia Forest Carbon Partnership to support this outcome. We have established an A$30 million Sumatra Forest Carbon Partnership as the second joint practical activity on REDD, bringing the total contribution to our Partnership to A$70 million.

Indonesia welcomes Australia's further commitment to support the Coral Triangle Initiative as a partnership to safeguard the region's extraordinary marine and coastal biological resources.

The partnership between Indonesia and Australia is alive with opportunities. As leaders, we are committed to strengthening this vital relationship, expanding it into new areas, and promoting an enhanced comprehensive partnership that will benefit both countries and contribute to regional stability and prosperity.
 

Prime Minister Kevin Rudd and Premier Anna Bligh today announced joint Commonwealth-State funded grants to help small businesses and primary producers affected by recent flooding in Queensland.

Today's announcement will see small businesses and primary producers receive grants for clean up and recovery. Tier 1 grants will be available for up to $5,000 and Tier 2 grants will be up to $20,000.

The Prime Minister said his thoughts were with the people of Queensland's south- west who were going through a very tough time.

"The Australian Government stands ready to assist the people of Queensland to recover from this very serious natural disaster," Mr Rudd said.

"This announcement today comes on top of the range of funding and assistance measures the Australian Government has already provided over the last week.

"This additional assistance is designed to minimise the economic impact on severely affected communities by providing short term targeted assistance, so businesses can continue trading as soon as possible."

Premier Bligh said small business owners and farmers would struggle to recover from this severe flooding event.

"Significant damage has occurred to small businesses in the majority of the communities in flood affected south west Queensland," Ms Bligh said.

"There will be extensive livestock and crop losses and damage to fencing, watering points, irrigation and other infrastructure on many rural properties.

"This grant funding is available to all eligible primary producers and small business owners who have suffered damage to their business."

The grants are being provided for the local government areas where the greatest impact has occurred. To date these areas include Balonne, Barcoo, Blackall-Tambo, Bulloo, Diamantina, Maranoa, Murweh, Paroo, Quilpie and Western Downs

The last time this grants program was activated in Queensland was during the 2009 monsoonal flooding and Tropical Cyclones Charlotte and Ellie.

These grants are in addition to concessional loans and freight subsidies for small businesses and primary producers which have already been activated for these local government areas.

The Australian and Queensland Governments are providing prompt and targeted assistance to help local communities recover from Queensland's biggest flooding event on record.

Last week the Premier announced the Premiers Flood Appeal and pledged $500,000 from the Queensland Government.

Joint State and Commonwealth Natural Disaster Relief and Recovery Arrangements (NDRRA) have been activated for 59 local government areas.

Under the NDRRA, councils will be able to access funding from the Australian and Queensland Governments to assist with the cost of restoring essential public assets as well as the cost of counter disaster operations.

Disaster relief funding arrangements have also been activated for people experiencing personal hardship in a number of local government areas.

These funding arrangements consist of:

• Emergent Assistance Payment - up to $170 per person and $780 per family.
• Means tested - Essential Household Contents Grant - up to $1,660 for individuals and $4,980 for couples or families.
• Means tested - Repairs to Dwellings / Structural Assistance Grant - up to $10,250 for individuals and $13,800 for couples or families.

The Minister for Families, Housing, Community Services and Indigenous Affairs has also activated the Australian Government Disaster Recovery Payment in a number of local government areas in south-west Queensland where individuals and households where significantly impacted.
 

International Women's Day celebrates progress towards gender equality and allows us to focus on the work still to be done to fully value the contribution of women to all areas of Australian life.

The Australian Government is determined to make real progress in advancing the status of women and providing supports so women can make the choices that are right for them.

Since being elected, the Government has taken practical action to help women juggle competing pressures on their time, particularly work and family.

This includes returning fairness and flexibility to Australian workplaces including for the first time a right for parents to request flexible and part time work. The Government has made it easier for women to afford to return to work by increasing the Child Care Rebate to 50 per cent of out of pocket expenses and making payments quarterly.

For the first time a Paid Parental Leave Scheme will commence in 2011 that will allow women to remain connected to the workforce while easing financial burdens so they can choose to spend more time with their new baby. The Government's scheme is a fully funded Scheme that particularly supports the financial security of low income women.

The Government is working with business to improve women's opportunities in employment. Today, the Treasurer and the Minister for the Status of Women awarded Employer of Choice citations to 95 businesses able to demonstrate that they have gone over and above minimum requirements to support women's career achievement.

The Government has taken a zero tolerance approach to violence against women, committing funds for urgent actions to prevent violence and support victims. The Government is also on track to releasing our National Plan to Reduce Violence against Women this year.

While Australians should be proud of our nation's record in advancing gender equity, there is further work to be done.

The Prime Minister and the Minister for the Status of Women marked International Women's Day by attending the UNIFEM annual International Women's Day breakfast in Sydney last Friday.

Local Hospital Networks will be established across the country and paid directly by the Australian Government for each public hospital service they provide.

Local Hospital Networks will be made up of a small group of hospitals that will work together to provide a range of hospital services and manage their own budgets.

Local Hospital Networks will be:

- Run locally;
- Funded nationally;
- Accountable for their performance against strong national standards.

The way in which public hospitals are operated and controlled today varies substantially across the country - some States devolve control to the local level, other States have highly centralised models managed by large area health services.

As part of the Government's reforms, Local Hospital Networks - comprised of between one and four hospitals, with regional networks potentially including more small hospitals - will be responsible for the running of public hospital services.

In capital cities, Local Hospital Networks will be built around large tertiary or specialist hospitals. In regional and remote areas, networks will be built around large regional hospitals.

Local Hospital Networks will avoid the fragmentation and duplication that comes from individual hospitals operating independently, as they will work together to coordinate and plan services - rather than compete for resources.

Paying for what you get

The Government will pay Local Hospital Networks directly for each public hospital service they provide, rather than just hand over block funding grants to the states.

An independent umpire will set the "efficient national price" for different hospital services - in other words, the amount a service should cost if it is being delivered efficiently, taking into account factors such as remoteness and the complexity of patients' needs.

This reform will provide an incentive for hospitals to minimise waste and deliver services as efficiently as possible.

Empowering local clinicians and local communities

Doctors and nurses will also have more of a say in hospital decision making through the establishment of clinical senates and representation in the Local Hospital Networks' management structures.

A key theme throughout the Government's health reform consultations was that many hospital staff and communities felt that they did not have the opportunity to drive change.

The Australian Government will work with States and Territories to determine the network structure that best meets the needs of communities and the challenges of managing multiple small hospitals.

There will be no net increase in bureaucracy under this reform - because as a condition of the funding any increase in the number of local staff working at Local Hospital Networks must be matched by a reduction in head office staff numbers in health departments and regional bureaucracies.

Changing the way hospitals are funded and run will make Australia's public hospital services more responsive to local communities, reduce waste and duplication, and ensure taxpayer health dollars are being used to deliver health services as effectively and efficiently as possible.

The Australian Government will for the first time become the majority funder of the public hospital system.

To deliver these changes, the Commonwealth will fund:

- 60 per cent of the efficient price of every public hospital service;
- 60 per cent of public hospitals' recurrent expenditure on research and training functions;
- 60 per cent of the cost of maintaining and improving public hospitals infrastructure; and
- Up to 100 per cent of the efficient price of 'primary health care equivalent' outpatient services provided to public hospital patients over time.

These changes will end the blame game, eliminate waste, and shoulder the burden of funding to meet rapidly rising health costs.

This amounts to a $30.9 billion takeover of funding responsibility for hospitals from the states and territories over the upcoming forward estimates.

This action will permanently reverse the decline in Commonwealth funding for public hospitals.

The Commonwealth will also leverage its increased financial stake in the public hospital system to better integrate health and hospital services across the country through strong national standards and improved transparency and accountability.

The Government will also change the way it pays for hospital services by funding Local Hospital Networks directly on the basis of an efficient price for each service they provide, rather than through block grants to the states and territories.

An independent umpire, at arm's length from governments, will set the efficient national price - taking into account factors such as remoteness and complexity of patients' needs.

These sweeping changes will ensure that that there is minimum waste in our hospital system and that our scarce health dollars are being freed up to deliver services as effectively and efficiently as possible.

These reforms come on top of the significant investments in public hospitals the Rudd Government has made since coming to office including:

- $64 billion over 5 years in health and hospital funding - a 50% increase on funding provided by the previous Government;
- $750 million to take pressure off Emergency Departments; and
- $600 million for elective surgery waiting lists.

The Government will announce further complementary investments to take pressure off hospitals and increase the availability of hospital beds over the coming weeks and months.
 

The Rudd Government's new National Health and Hospital Network will help ensure the long-term sustainability of Australia's finances and underpin high-quality health services into the future.

The Australian Government will take majority control of the hospital system - funding 60 per cent of all public hospital services - and take full financial and policy responsibility for GP and primary care services.

This plan is fully funded over the forward estimates and wholly consistent with the Government's fiscal strategy.

To fund this change, the Commonwealth will dedicate around one-third of GST revenue directly to health spending. This amounts to a $50 billion takeover of funding responsibility from the states and territories over the upcoming forward estimates.

Because the expected growth in health care costs outpaces the growth in GST revenues, the Australian Government will shoulder the burden of funding the rapidly rising health costs of the future.

This is a fundamental change to federal financial relations which will end the blame game and ensure the future funding of our national health and hospital system is sustainable.

The 2010 Intergenerational Report, Australia to 2050, warned of ballooning health costs hitting the Australian economy and underscored the need for financial reform of the health system to prevent it collapsing under its own weight.

If current trends continue, by 2045-46 spending on health and hospitals would consume the entire revenue raised by state governments. This means that states would not be able to fund their health and hospital system, let alone meet their other responsibilities.

The Rudd Government is responding now to this important national challenge - and in doing so, is also boosting the long-term productivity of the Australian economy.

These reforms mean the level of government in Australia with the most stable and efficient means of raising revenue will now be the majority funder of the fastest growing area of public expenditure.

To help meet rising health care costs, the Government's reforms are designed to deliver greater efficiencies in health and hospitals - particularly through activity based funding.

Under these reforms, no state or territory will be worse off over the forward estimates and all will be better off in the medium term.

These reforms are also wholly consistent with the Government's strict fiscal strategy. They will:
- be fully costed and funded over the forward estimates;
- be consistent with the Government's commitment to keep taxation as a share of the economy on average below the level inherited from the previous government; and
-not delay the return to surplus or increase peak net debt.

The Government will seek the advice of the Commonwealth Grants Commission in determining the technical details of dedicating a proportion of the GST to health and hospital funding.

The Rudd Government has already demonstrated its commitment to building a fairer and more sustainable health system through proposed changes to the Private Health Insurance Rebate.

The fundamental national reforms announced today will build a stronger health and hospital system for Australians while helping to ensure the long-term sustainability of Australia's finances.

The Australian Government will take full policy and funding responsibility for GP and primary health care services in Australia.

This major structural change will break down the barriers in Australia's health system, deliver better integrated care to patients, and take pressure off hospitals.

This change amounts to a $18.7 billion takeover of funding responsibility for primary health care and GP services from the states and territories over the upcoming forward estimates.

Australia has a significantly higher rate of hospitalisation than comparable countries - double that of Canada and significantly higher than the United States, the UK and New Zealand.

In addition, too many Australians find themselves being referred from one health service to another, without receiving effective, integrated care - and end up visiting a hospital.

It is estimated that last year, some 441,000 hospital admissions could have been avoided through providing better care in the community - nearly one in ten hospital admissions.

Making a single level of Government responsible for both the majority of the cost of a visit to the hospital, and all GP and primary care, will permanently entrench a financial incentive to take pressure off hospitals.

With its majority funding responsibility, the Commonwealth will now have a strong financial incentive to ensure that people are treated through less expensive primary care services, rather than being shunted into expensive hospital services.

This will reduce cost shifting and provide more convenient care for patients.

Moving all GP and related services under the umbrella of one government is also a critical part of making these services better coordinated and more responsive to the needs of patients.

For example, in practice this will mean being able to bring together State Government community services such as community health clinics with allied health services such as dietiians and psychologists, together with Commonwealth services such as GP services in the one setting.

The Australian Government taking full responsibility for primary care will also lay the foundation for further reforms to further improve the coordination of GP and primary care for people with chronic illness in the future.

These reforms build upon the Government's existing investments in strengthening primary care, including:

- Delivering 36 GP Super Clinics around the country
- Increasing the number of GP training places by 35 per cent.
 

The Rudd Government today announced major structural reforms to Australia's health and hospital system.

The Government will deliver better health services and better hospitals by establishing a National Health and Hospitals Network.

This new national network will be funded nationally and run locally.

These reforms represent the biggest changes to Australia's health and hospital system since the introduction of Medicare, and one of the most significant reforms to the federation in its history.

- A National Network: to bring together eight disparate State run systems with one set of tough national standards to drive and deliver better hospital services.
- Funded nationally: by taking the dominant funding role in the entire public hospital system the Australian Government will end the blame game, eliminate waste and shoulder the burden of funding to meet rapidly rising health costs.
- Run locally: through Local Hospital Networks bringing together small groups of hospitals, where local professionals with local knowledge are given the necessary powers to deliver hospital services to their community.

The Commonwealth will achieve these changes through the following actions:
- Taking 60 per cent of funding responsibility for public hospitals by investing one third of GST revenue - currently paid to the states and territories - directly in health and hospitals;
- Taking over responsibility for all GP and primary health care services;
- Establishing Local Hospital Networks run by health and financial professionals to be responsible for running their local hospitals, rather than central bureaucracies;
- Paying Local Hospital Networks directly for each hospital service they deliver, rather than just handing over block funding grants to the states; and
- Bringing fragmented health and hospital services together under a single National Health and Hospitals Network, through strong transparent national reporting.

These reforms will be put to the states and territories at the COAG meeting to be held in Canberra on 11 April.

If the states and territories will not agree to these reforms, we will take this reform plan to the people at the next election - along with a referendum by or at that same election to give the Australian Government all the power it needs to reform the health system.

The new National Health and Hospitals Network will end blame shifting and cost shifting, and provide national leadership on health and hospitals with increased local control.

Sweeping changes to the way hospitals are funded and run will also lead to less waste and duplication and a health system which is sustainable into the future.

On the basis of these reforms, over the coming weeks and months, the Government will announce critical additional investments to:
- train more doctors and nurses;
- increase the availability of hospital beds;
- improve GP services; and
- introduce personally-controlled electronic health records.

The establishment of the National Health and Hospitals Network builds on record investments in health and hospitals made by the Rudd Government over the last two years.