The report highlighted the need for further investment
in energy efficiency initiatives to address the predicted, continuing rise in
energy costs. The report states:
‘Without
additional funding or further energy efficiency initiatives, health services may
need to allocate more of their budget to energy supply costs, or reduce other
healthcare services.'
ANF is concerned that the Baillieu
Government may use the report as a reason to further cut health services rather
than support hospitals in their initiatives to become more energy efficient and
sustainable.
The Baillieu Government and the Department
of Health have the incentive and opportunity to develop energy efficiency
initiatives such as investing in hospital buildings or funding the implementation
of hospital energy efficiency initiatives across the broader health system.
At the recent Greening
the Health Sector Policy Think Tank hosted by the AHHA and CAHA, Glen Hadfield , Manager, Asset Systems &
Sustainability Western Sydney Local Health District discussed the need for State Government
funding to support the impressive energy efficiency initiatives currently being
implemented across health systems in Victoria and other States and Territories.
Over the past decade in Victoria there have been significant increases
in energy costs. In fact, the Australian Energy Market Commission (AEMC) which reports
on trends in residential electricity price movements, found that between 2009
and 2012 Victorian residential electricity prices were forecast to increase by
27 per cent and that 21 per cent was due to infrastructure costs.
A recent health
policy brief from the Australian Healthcare and Hospitals
Association (AHHA) includes the Commonwealth Government's response to the
Baillieu Government's claims of increased energy costs relating to carbon pollution
pricing:
‘However, the Commonwealth
argues that, even if there are increased costs in the order of magnitude
predicted by the Victorian and NSW Governments, both current and future
hospital financing arrangements effectively have in-built compensatory arrangements
which should negate any marginal impact:
-
Current funding for public hospital services
provided by the Commonwealth to the states and territories is indexed using the
Australian Institute of Health and Welfare's (AIHW's) total health price index
- which measures changes in health prices (incorporating operating costs) year
on year;
-
From 2014-15, the Commonwealth will begin to
increase its funding contribution to 50 per cent of the efficient growth in
hospital costs, which will also incorporate increases in hospitals' operating
costs.'
The Auditor General's report states that Victorian public
sector facilities account for around 1.5 per cent of Victoria's total
electricity and gas consumption and the Low Carbon Australia website reports that the health sector is responsible for seven per cent
of total carbon emissions. This means hospitals have capacity to reduce the
impact of rising energy costs by developing energy efficiencies.
To their credit, many health facilities are already in the process of
developing or introducing improvements to waste management systems, purchasing,
energy and water saving policies.
ANF believes
reducing carbon emissions and using greener energy is ‘win-win' because it will
reduce energy costs and reduce the pollution's adverse health impact on the
community.
Western Hospital in Melbourne is cutting energy usage and reducing costs
through new approaches to recycling and procurement. Western Health have been
motivated by the increased costs associated with rising energy costs - which
have been occurring prior to carbon pricing - and the opportunity to find
savings through energy efficiency initiatives.
The Baillieu Government is not funding these
initiatives and its apparent agenda is of concern. It would be disappointing if
the Baillieu Government used this report as another excuse to cut Victorian's
health services rather than leaving a legacy of initiatives that reduce our
hospitals' carbon footprint.
Healthcare facilities and nurses and midwives have an important
contribution to make in these and other workplace initiatives and the
opportunity to be at the forefront of shifting attitudes on our environmental
responsibility.
