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Rudd must compromise on health plan

Comments on Paul Kelly “Brumby dare Rudd's biggest challenge”, http://www.theaustralian.com.au/news/opinion/brumby-dare-rudds-biggest-challenge/story-e6frg6zo-1225853370269

Paul's analysis seems all reasonable.

However, there is one point that is missing. What if the States at least some of them the big ones don't agree to hand over the 30% GST to Rudd? What will be Rudd's options then?

Rudd can't simply take back the GST from the States given that there is an intergovernmental agreement. It will need all States to agree to change that agreement.

I think the best chance is the Brumby 50-50 option, maybe 51-49 to give Rudd the symbolic majority funding, with no or little change to the GST arrangement. That will save faces for everyone.

More importantly, Rudd's plan for local hospital networks should be changed to local health networks to include all healthcare, primary and hospital, as well as agged care. The number of local networks should be reduced to be more effective and more efficient.

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