Broken Promise backs Dubious Dealing

Do these people ever see the bleeding obvious? wonders Agamedes.

Do you need new -- lateral -- thinking for your own problems? email nick leth at gmail dot com. Need solutions? No worries. Now.

Today's West has an article headed, "Health cash on collision course" (30 Jun 10). There's a supporting article, "Pollies playing stupid games" and an Editorial on the same topic.

The topic? The federal government offers to fund state health. In exchange, the federal government will take a portion of the state's GST income. Take with one hand, give with the other. The idea is, that the federal government can... somehow... better manage a health system. The West's Editorial is vaguely supportive of the idea.

Now let me point out the bleeding obvious: Money given to the federal government is spent by the federal government. It is spent as the federal government decides.

Is there something wrong with that? Not if you believe that the federal government will keep its promises, to provide a "better" health system for each state.

Let's ignore -- for now, various questions associated with better: Why do we expect one government to run health "better" than another? If the same money is to be spent, how will the system become "better"? What funding will the federal government provide, once the initial agreement is complete and health is firmly committed to federal control? How long will the initial agreement last?

Let's look at what has actually happened so far:

The state premier played hardball. Actually, he refused to hand more state money to the federal government. So federal agreed to hand over money anyway -- federal agreed to give $350 million to help run the state health system. Now, from the article in The West, "[federal] Health Minister Nicola Roxon yesterday reneged on a promise to pay $350 million directly to State hospitals."

Federal health minister Nicola Roxon reneged on a promise.

All we have so far is a promise. And that promise is already broken.

Would you give money to that politician -- to any politician -- in the hope that the politician would hand it all back? Would you risk millions of dollars on a politician's promise?

I would not even buy a used car from a politician. Federal or state.

And the further the money is passed -- the less chance there is, that any of it will get back again.

Independent thinking & independent analysis of your problems by Agamedes Consulting. Support for your thought: email nick leth at gmail dot com