Rudd wins more support for health plan

CANBERRA - Prime Minister Kevin Rudd has reached agreement with Labor state and territory leaders over his planned health reforms.

But Western Australia won't be a party to the deal hammered out during intense negotiations in Canberra.

Rudd won over Kristina Keneally earlier yesterday following one-on-one discussions with the New South Wales Premier.

Later discussions with John Brumby convinced the Victoria Premier to sign up to a plan under which the commonwealth will retain about a third of the states' and territories' GST revenues.

The federal Government will use that money to help it finance its role as the dominant funder of the nation's public hospitals.

Sources say Rudd has had a victory on his GST clawback, but the funds will be directed into a pool, which will distribute funding to local hospital networks.

Tasmanian Premier David Bartlett put his signature to a new intergovernmental health agreement before rushing off to catch a plane home.

The commonwealth had offered more money for mental health and non-acute hospital beds during yesterday's negotiations, he said.

Victoria reportedly has been offered another A$800 million ($1.005 billion) for more hospital beds.

Western Australia has not agreed to the deal, Premier Colin Barnett said.

He said he was disappointed the Labor premiers and chief ministers had agreed to allow the commonwealth to retain about a third of their GST revenues.

- AAP