PRIME Minister Kevin Rudd will offer NSW a staggering $5 billion in extra health funding this morning as a final offer to convince the state's Premier, Kristina Keneally, to sign up to his national reforms.

NSW will be handed the lion's share of an unprecedented national funding package, worth an extra $15.6 billion, under which the Commonwealth will lock in cast-iron health funding increases of 8.3 per cent a year.

Victoria, where political resistance is strongest to the reforms, is to be offered an extra $3.8 billion, Queensland an extra $3.4 billion and South Australia $1.1 billion. The remaining billions are to be shared out between the ACT, Western Australia, Tasmania and the Northern Territories.

Its a good feeling I get when I see where Kevin RUdd places Western Australia in the mix of things. Of course we have a smaller population compared to New South Wales, Victoria and Queensland. But you do the maths!

For my fellow Western Australian's - rest assured, the con to change the way G.S.T. is distributed, leading to legislation being rewritten and opening the door for further future claw-backs, will have a far greater detrimental impact on our state.

Consider this. To date, we have seen utility costs to WA residents rise, in some case by 50% within 12-18 months. Housing costs have skyrocketed with the return of the demand for our resources (mind you a large proportion of the royalties end up in federal coffers!). Population is growing, second to QLD recently, and this is only likely to grow.

And yet, look where KRudd and co. put our state!

The latest Nielsen poll shows almost two-thirds of voters want the states to sign up to Kevin Rudd's health plan.

The survey, published in Fairfax newspapers today, shows 62 per cent of voters believe the premiers and chief ministers should agree to the health plan.

In New South Wales, there's 63 per cent support, while in South Australia and Queensland support stands at 66 per cent.

In Victoria, there's 58 per cent support, while in Western Australia it's just 51 per cent.

I guess that explains why we get put at the end of the rankings!

Western Australians, be prepared for much higher increases in the cost of electricity, gas, licensing, stamp duties, the list will go on. And no, its not Buswell or Barnett that are at the root of much of this.

Look where KRudd and co. put our state!

Wait until the 30% of G.S.T. claw-back goes higher, since it could once the legislation has changed. Wait until KRudd and co. take a further 10-15 or 20% of State G.S.T. revenues.

Like so many of the current Federal Governments programs of work, it seems this is just another vote-buying-exercise. If the latest round sees a sudden need to rewrite the May Federal budget, it seems that KRudd and co. are not following the set-play! And will this, like the previous vote-buying-exercises, ETS, Solar Power, Health Rebate fiasco, Ceiling insulation bungles, School infrastructure shambles, NBN cash-black-hole, will this one follow in their footsteps?

Where will that put our State then?

Its a sham, and its not about health. Its about budgets, taxes and more bureaucracy. Good luck with that sick people!

Sylvestor

By Alan Kohler

News Ltd splashed on Conroy skiing with Kerry Stokes, part-owner of the Seven Network, in Colorado. (Barrie Cassidy)

The $235 million tax cut for commercial TV networks announced three weeks ago was indeed a bribe, as alleged by Opposition Leader Tony Abbott, but not for what he thinks.

It's also a perfect demonstration of why legislators and regulators should never hobnob with those whom they regulate.

Reducing it this year and next and then having another look at whole fee regime was a sensible decision - in fact, in my view it was the only possible decision in the light of the Government's need for the networks' cooperation in the digital switchover and the freeing up spectrum.

The Government desperately needs the networks to drive digital take-up and to help with a number of complex technical issues involved in the digital switchover - due to take place in 2013.

But what should have been a sensible recognition of reality was turned into a "grubby bribe" by Senator Conroy hobnobbing with billionaires on the slopes.

Alan Kohler is Publisher of Business spectator and Eureka Report, as well as finance presenter on ABC News and presenter of Inside Business.

Greens propose interim carbon tax
 - ABC News (Australian Broadcasting Corporation)

By Alexandra Kirk for AM

Posted Thu Jan 21, 2010 9:03am AEDT
Updated Thu Jan 21, 2010 9:17am AEDT

Interim scheme: The Greens want carbon to be priced at $20 a tonne for two years (freefoto.uk)

• Audio: Greens push interim carbon scheme to break ETS deadlock (AM)

The Greens are attempting to break the political deadlock over emissions trading by suggesting an interim two-year scheme with a fixed price on carbon.

Greens Senator Christine Milne is writing to the Government and the Opposition proposing a carbon price of $20 a tonne.

Opposition Leader Tony Abbott will soon unveil his plan to cut greenhouse gases without a trading scheme or carbon tax and there is little, if any, prospect of the Government getting its legislation through the Senate.

Senator Milne says a temporary scheme would cut emissions by about 2 per cent and give political parties time to negotiate long-term targets.

"The Greens are proposing as an interim, two-year measure, starting in July this year, that we introduce a $20 carbon price. Now that is what Professor Garnaut argued when he released his report, saying that you could do this for an interim period.

"It would give us the breathing space to be able to negotiate a rigorous target, to negotiate some of the aspects of the emissions trading scheme that we don't agree with the Government on."

There is no global climate deal and the Federal Government's legislation appears doomed. Just before it is put to the Senate again, Mr Abbott will reveal how he would cut emissions without putting a price on carbon.

That would set the election battleground, but that is about all.

Senator Milne says someone has to get things moving.

"We are living currently in a political environment where nothing is happening in Australia in terms of a carbon price and our domestic emissions are rising," she said.

"Based on the modelling done to date, the Greens believe that [the carbon price] would halt the growth in emissions, turn it around and reduce emissions by a small amount, probably in the vicinity of 2 per cent."

The Greens say their plan would generate $5 billion to compensate households, with the same amount for renewable energy and energy efficiency.

Unlike Kevin Rudd's scheme, it would be in surplus from the start and there would be no compensation for the coal and electricity sectors and less assistance for high-emitting industries.

Senator Milne says she hopes Ross Garnaut, who was the Government's key climate change advisor, will endorse the strategy.

The Australian Government will not back-away from the fiasco that is 'climate-change'. Certainly it won't happen in the near future. So why, in the last ten years, has this topic become the issue of contention for ours and many other first-world-nations political agendas? Its all about money of course, it always is!

Whether or not you believe in said 'climate change', the whole shamozzle of the last three years, which has seen a laughable amount of money, tax-payer and not, a massive hypocrisy established (yes, fly 114 Aussies to Copenhagen for a farcical get-together), and the threat of world destruction unless we pay more money...umm..that one still stumps me!

Its business folks. Politics, business and money. Its always about politics, business and money. Wong may have the best interests of the climate and the planet in mind, but she doesn't have mine. Milne and Brown may feel that, as a 'Green' political party they must be seen to do something - and as the governing party wants taxation, of course they will follow suit - least path of resistance.

Well I resist.

Pricing carbon, even for the big-polluters, or taxing industry, simply shifts money around the economy. I end up paying more so that they can happily burn more Coal. And I promise you this, if you are like me...in a relationship, no children, relatively good income, no state-level financial support; you and I will be hit hard. We already are. Middle Australia will pay, and pay through the nose.

If our Government truly wanted to make a difference to GLOBAL warming - then why is our country embracing the multi-tens-of-billions of dollars in new contracts to supply the rest of the world with Coal and Natural Gas? Milne is disappointed, so where is your legislation to block this behaviour? Yep, you wouldn't dare!

Environmentally-friendly-politicians? I wouldn't want you to be my friend!

Don't accept responsibility unless you are responsible when next you offer your opinion on this whole farce. I am going out now to plant a few more trees...when did you last plant a tree Wong? Milne? Brown? Rudd? Abbott? Turnbull? Yeh right, give me a break!

Sylvestor