Western Australia was recently visited by Federal Treasurer Wayne Swan to meet Premier Colin Barnett and Treasurer Troy Buswell to assess the way Canberra is struggling to change the funding procedure of the country’s hospitals.

Mr. Swan said, "I think the Prime Minister's made it very clear that we want a national system that is locally controlled. We certainly share that objective”.

Mr. Barnett commented that the health costs are continuing to rise by up to 12% per annum, exceeding the budget allocated to the States. It has been reported that the Federal Government is recommending taking control of the health funding by decreasing the GST allotments to the States by one third. The discussion aims to improve the condition of the public health systems and to utilize the funds more efficiently.

The Federal Government has also proposed to establish a network of local hospitals under the direct control of prominent doctors and health professionals. The decision of the Government authorities to discuss the Canberra issue in the middle of the Parliamentary week despite the presence of the Indonesian President in the Federal Parliament depicts how important is this issue to the WA government. The budget deficits cannot be compensated by the mining operations as well.

From the next financial year onwards, Western Australia will be allotted with only 7.1% of more than $45 billion in Good and Service tax.