Government News Index
Howard axes doctors' deal
By SID MARRIS and DUNCAN MACFARLANE
The Australian
18mar02
JOHN Howard has effectively terminated former health minister Michael Wooldridge's controversial $5million grant to a health lobby group to build a Canberra headquarters.
In his bid to end the furore caused by Dr Wooldridge's grant, funded from unspent money from asthma and rural programs, the Prime Minister announced suspension of the payment to the Royal Australian College of General Practitioners, pending legal advice.
"I am yet to receive legal advice regarding withdrawal of the contribution originally committed to GP House," Mr Howard said.
"In the meantime, I have given instructions that no further action is to be taken to process that contribution."
Dr Wooldridge, who retired from politics at the November election and has been working as a consultant to the RACGP since January, yesterday refused to comment until he had read two government reports sent to him and former finance minister John Fahey. The RACGP said it had yet to make a request for government money under a contract that requires the college to have two other medical groups sharing the new Canberra office.
"At this stage (Mr Howard's suspension) does not impact upon the college," an RACGP spokesman said.
Labor demanded the Prime Minister release publicly the internal reports into the original grant decisions by the health and finance departments and send them to the Auditor-General.
"If he has legal advice which prevents this he must arrange for the reports to be tabled when the parliament resumes (tomorrow)," Labor health spokesman Stephen Smith said. The Government has indicated that Auditor-General Pat Barrett will only get the reports if he decides to start an investigation and asks for them.
The furore over GP House follows the revelation that Dr Wooldridge approved a $5million grant to the doctors' group on September 23, only a week before Mr Howard called the election.
Dr Wooldridge diverted $1million from the $7.5million given to the asthma 3+ Visit Plan this financial year and $4million from the $14.5million medical specialist outreach assistance program that helps boost scarce specialist resources in the country.
Dr Wooldridge, who resigned at the election, then accepted a lucrative consultancy with the college.
The deal has angered the Australian Medical Association. During his time as health minister, Dr Wooldridge fought a long feud with the AMA and tried to promote the RACGP as an alternative to it.
Details of Dr Wooldridge's grant to the RACGP were revealed by health department officials at a Senate estimates hearing.