Major expense variations in Department of Treasury and Finance Revised Estimates Report 2014-15

Mrs Armitage (Launceston) to ask the Honourable the Leader of the Government -

With reference to the Department of Treasury and Finance Revised Estimates Report 2014-2015 (including December Quarterly Report) page 22 - Major Expense Variations -

Whereby it states “The increase in Employee Expenses primarily reflects:

additional Health and Human Services expenditure relating to employee separation costs ($10.0 million);

a $12.1 million increase in THO-South’s expenditure reflecting the Employee Expenses portion of an additional $22.0 million above Budget expenditure;

a $3.5 million increase in THO-North West’s expenditure reflecting the Employee Expenses portion of an additional $8.0 million above Budget expenditure;

Can the Government indicate how this has been allowed to occur, given this has not occurred in THO North?

Answer from the Leader of Government, Dr Vanessa Goodwin:

The revised Estimates report contains additional funding of $30 million to cover operational cost overruns in Tasmanian Health Organisation - THO South and THO North-West in 201415. This funding is split across staffing costs and medical supplies - a component of Supplies and Consumables. THO North has not experienced the same funding pressures as THO South and THO North-West since its establishment. The One Health System reforms are seeking to address the sustainability of the health system through more efficient service delivery and reduced duplication within the resources available.

(Answer supplied June 25, 2015)