JULIA GILLARD has warned state governments she will "rearrange" their budgets if they agitate for the return of $1.6bn in health funding in dispute with the commonwealth.
Speaking at a southern Adelaide school this morning, Ms Gillard said she would not allow states and territories to use health care as a bargaining chip to get more money from the commonwealth.
"The federal government is not going to tolerate the continued playing of politics with health," Ms Gillard said.
"So if we see any other premier playing this kind of politics, the way that (Victorian) Premier (Ted) Baillieu has, then there is a very clear message to those premiers.
"If we see this conduct from another state we will go round them, we will deal direct with hospitals and we will cut them back in another area."
''We are not going to allow state governments to play politics with health.''
Ms Gillard's comments follow demands today by Queensland and NSW for the Commonwealth to return hospitals funding after Canberra restored $107 million cut from Victoria's health budget.
So even the PM says there are no cuts but if they agitate for the return of the cuts she will rearrange their budgets????
And to clarify what Gillard is saying... she is saying that if you dare stand up to us like the Baillieu government did we will strip funding from one part of you grants, give it too you as health funding and make us look generous while snatching it back with the other...
