Fed: Rudd govt backs away from health infrastructure fund

AAP General News (Australia)
04-21-2009
Fed: Rudd govt backs away from health infrastructure fund

By Melissa Jenkins

CANBERRA, April 21 AAP - The Rudd government is backing away from its promised $10
billion health infrastructure fund, amid confirmation from the central bank that Australia
is in recession.

The Health and Hospitals Fund, which has yet to finance a single project, was the big
ticket health announcement in last year's budget.

It was designed to provide investment in hospital infrastructure, medical equipment
and major research facilities.

Operational since January 1 this year, it was allocated $5 billion in the 2008-09 budget.

But on Tuesday, a spokeswoman for Health Minister Nicola Roxon would not guarantee
the remaining $5 billion, supposed to come out of next month's budget, would be added
to the fund.

"The budget projections have clearly changed since last May," she told AAP.

"We have already committed $5 billion to the fund from the 2007-08 surplus, and we
will be making future allocations as budget circumstances permit."

The spokeswoman said the government was considering proposals that could be supported
by the fund.

On Tuesday, Reserve Bank of Australia governor Glenn Stevens told a corporate function
in Adelaide that Australia was in recession.

Prime Minister Kevin Rudd used the "R" word for the first time in the context of the
Australian economy on Monday.

AAP mj/kms/it

KEYWORD: BUDGET09 HEALTH

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