Budget 2005: Health spending to rise 11pc to $9.6b

Health spending will rise 11 per cent to $9.68 billion next year - about a fifth of all Government expenditure.

This year it is estimated to reach $8.72 billion, about $130 million less than planned because of delays to the meningococcal B immunisation programme and some hospital redevelopment.

Most of the $956 million increase in 2005-06 has already been announced in recent weeks or previous year's Budgets.

Some of the increases are:

* Residential care subsidies for the elderly, $164 million, including $93 million for the progressive removal of asset testing.
* Cancer control, $35.5 million.
* Mental health, $22 million.
* Cataract operations, $2.67 million.
* Primary health care for those aged 18 to 24, $17.2 million, mainly to allow GPs to extend low or reduced fees to all in this age group who are enrolled in Primary Health Organisations. GP groups are resisting fees-disclosure rules that are a prerequisite to receiving the extra money.

Hospital upgrades will consume about $500 million.

Opposition health spokespeople Paul Hutchison (National) and Heather Roy (Act) - using hospital discharge figures which the Health Ministry maintains tell only part of the story - say that productivity is poor despite huge increases in the health budget and the waiting times to see a specialist in the public system are increasing.

"Labour has failed to recognise that it has created an inefficient and bureaucratic health system," said Dr Hutchison.

He said the increase of only $12.4 million in care for the elderly in their own homes would produce only small pay rises in the low-paid industry. "There will be huge distress in the sector."