Nats give few clues on where cuts will be made

Press, 15 July 1987, Page 6

Nats give few clues on where cuts will be made

By

PETER LUKE,

political reporter The National Party’s health and social welfare policies give few clues as to where its promised expenditure cuts will be made. The Opposition’s spokesman on Government spending, Mr Michael Cox, has said that within a month of taking office he could give details of spending cuts of $1 billion. Social welfare and health are two likely candidates for cuts, given the National Party’s philosophy and the size of the two portfolios.

Of total Government expenditure of $28.4 billion in 1987-88, some $6.9 billion (29 per cent) will go

on social welfare and $3.4 billion on health.

Mr Bolger initially hinted at spending cuts, or at least curbs, yesterday when he attacked the 110 per cent increase in social welfare expenditure in the last three years. The two policy announcements, however, contained few clues of significant cuts. The Opposition’s spokesman on social welfare, Mr Venn Young, said that changes to the domestic purposes benefit would result in a net saving. The D.P.B. now costs $7BO million a year, of which $5O million is recovered from liable parents. National would recover more from liable parents, and also save money by

removing the automatic entitlement, he said. Mr Young could give no figures on estimated savings for the D.P.B. Mr Bolger said that a change to the unemployment benefit would cut expenditure, particularly as a National Government would enhance employment prospects. Against any cuts here, however, must be balanced the effects of removing the national superannuation surcharge. The Government has estimated this would cost $lO5 million in the first year, and $321 million over the first three years. For the health vote, the Opposition’s spokesman, Mr Paul East, suggested that there would be no substantial increase under

a National Government. The health system would be made more efficient and savings could follow a review of the pharmaceutical bill, he said. Pharmaceutical savings could be achieved by restricting the use of more expensive drugs in the hospital system, by using generic drugs rather than name brands, and by more competitive buying.

Mr East said that National’s policies, such as its immunisation programme, would result in only minor spending increases.

The Minister of Health, Dr Bassett, asserted that National’s policy would actually increase health spending about $5O million.