Julia Gillard secured a tentative win for the federal government on the weekend at the Council of Australian Governments (COAG) meeting yesterday, progressing Kevin Rudd’s problematic plight for healthcare reform by securing in-principle support for a revamped health deal.
It has long been touted as the biggest proposed reform of Australia’s health system since the introduction of Medicare. Gillard however made some major changes to Rudd’s original deal.
After an epic meeting that lasted between 6 – 12 hours (depending on which news report you read, and whether it counts an extended lunch period), Gillard confirmed there will be no clawback of the GST, a $16.4 billion sweeter in federal money for hospitals over the next decade and a guarantee that no state will be a single stethoscope worse off.
The deal hasn’t been signed, sealed or delivered. The finer details will be ironed out in the next COAG meeting in mid 2011. Said Gillard on ABC’s AM program this morning:
“Sure, the fine details have to be nutted out.
“Take for example the national body, the national pool that will guarantee transparency.
“Yesterday we agreed to put that into law. The details of that legislation have to be typed up and worked through. You’d expect that.”
What she can also expect is further complications down the track. Most obviously there is the issue of the NSW state election in March, which everybody and their dog predict will result in a change to a Coalition government, which means Gillard will need to get a new premier on side.
Here’s a snapshot of how the press are reporting yesterday’s meeting.
The Australian
James Massola: Gillard resets health parameters
The Prime Minister’s health deal is a big win – but it comes as she slumps again in the polls.
ABC
Gillard hails COAG health deal
After more than seven hours of talks at the Council of Australian Governments (COAG) meeting at Parliament House in Canberra on Sunday, the leaders finally put pen to paper on a heads of agreement for a health reform plan that Ms Gillard described as a “huge step forward”.’
Samantha Hawley: Health reform deal signed but not sealed
The agreement might sound familiar, but former prime minister Kevin Rudd’s health and hospitals deal, struck less than 12 months ago, is gone for good.
Sydney Morning Herald
Lenore Taylor: Deal leaves PM’s reforms a picture of good health
Julia Gillard said 2011 would be her year of ”delivery”. She is learning how hard it will be to ”deliver” on all the mouldering old political problems that are clogging up her in-tray.
Herald Sun
Malcolm Farr: Julia Gillard, state leaders seal deal over health funding at COAG meeting
It was a breakthrough for the Prime Minister who is badly trailing Opposition Leader Tony Abbott despite a series of Liberal controversies.

Inoculate yourself against the spin
Get Crikey for just $1 a week and support our journalists’ important work of uncovering the hypocrisies that infest our corridors of power.
If you haven’t joined us yet, subscribe today to get your first 12 weeks for $12 and get the journalism you need to navigate the spin.
Peter Fray
Editor-in-chief of Crikey
Leave a comment
The best thing that can be said for the deal is that the GST gun Kevin Rudd drew and pointed at the states has been replaced in its holster.
State sources scoff at the suggestion the threat to pull GST funding would or could have been used, with some suggesting Julia Gillard has lost respect within her party over such a damaging threat.
Nevertheless, like a gun drawn in a bank robbery but never fired, the threat had its desired effect, causing even Colin Barnett to breathe a sigh of relief even as he signed over state autonomy on hospitals.
The best thing that can be said about the deal is that Kevin Rudd is reported to have protested and then flounced off in a huff during cabinet meetings about it. If Australia’s former elected dictator–our very own warm and cuddly version of Robert Mugabe–is upset about it, then it probably has some redeeming qualities. These will be in the details, which remain yet to be seen.
With the GST-withdrawal gun back in its holster, the latest fiscal war between Canberra and the state democracies draws to a mutually damaging truce. Until the next time Canberra wishes to throw its weight around.
Tony Abbott: “The Prime Minister said this was going to be the year of decision and delivery. Instead it’s going to be the year of backflips and broken promises.”
True to form. The man has a tiresome addiction to reducing every complex issue and every political situation to an alliterative sound bite. His negativity and shallowness know no bounds.
Sadly I believe he has correctly assessed that this will resonate well with a substantial portion of the populace, who are too self centred and thoughtless to see through it. Witness the federal election of 2010.