The Hon. GREG PEARCE: I direct my question to the Treasurer and refer him to the Rudd Government's resource super profits tax that includes a proposal to reimburse mining companies for the amount of royalties at current rates that are paid to State governments. Does that lock in the New South Wales Government to current royalty rates for existing mines and new projects and reduce the ability of the New South Wales Government to impact upon mining investment in the State? Given that the Treasurer already has acceded to a Commonwealth Government proposal to deduct upwards of 35 per cent or more of New South Wales GST to fund the Rudd Government's health proposals, has he significantly reduced flexibility within the New South Wales Government's budget with these two Rudd Government agreements?

The Hon. ERIC ROOZENDAAL: I thank the member for his question, to which I will respond in reverse order. I will begin with the issue of health reforms. Guess who opposed them? Whatever New South Wales gives to the Federal Government and whenever the Federal Government reduces its GST allocation—that will come back to New South Wales. Indeed, during negotiations on health reforms at the Council of Australian Governments [COAG] meeting, Premier Keneally was able to obtain an additional $1.2 billion for the New South Wales health system plus an additional $500 million for health services in New South Wales that the Commonwealth Government looks after. That represents a $1.7 billion gain that Premier Keneally was able to achieve at the Council of Australian Governments discussions in relation to health. She led the nation on health reform discussions and delivered for all the States as head of the Council for the Australian Federation.

We need to think carefully about the question that has been asked about royalties because it gives away the strategy of the Liberals and The Nationals for the future. They are already plotting to increase royalties paid by the mining sector. Why else would they ask this question? I know that the Hon. Greg Pearce is a responsible hardworking member of the House. I am positive that he would not have asked this question unless it was to gain further information for his secret plan to fund all those unfunded promises his reckless Leader of the Opposition, Barry O'Farrell, continues to make—a wheelbarrow of promises that Barry O'Farrell keeps filling up with more and more promises. The Hon. Greg Pearce, as a responsible shadow Minister, knows that when promises are made, they must be paid for. He is not like phoney Tony in the Federal Parliament, who makes up stories. The Hon. Greg Pearce knows that he will have to find the money for all those unfunded promises that he keeps hearing from Barry O'Farrell—promises that Barry O'Farrell keeps making, but cannot fund.

The Hon. Greg Pearce: Point of order: I am pleased that the Treasurer has conceded the next election and is pointing to the fact that subsequently I, as Minister for Finance, will have to find some funds.

The PRESIDENT: Order! Does the member have a point of order?

The Hon. Greg Pearce: I want the Minister to be relevant.

The PRESIDENT: Order! The Minister may continue to be generally relevant.

The Hon. ERIC ROOZENDAAL: The Commonwealth Government has made it very clear that it will reimburse the mining sector for State royalties. That was negotiated with the States at the announcement of the response to the Henry tax review. We welcome that. We have no plans to increase royalties. However, it is clear that this is in the front of the minds of members opposite. They want to increase royalties paid by the mining sector to help to pay for some of the unfunded promises. They know that they will be exposed when they cannot pay for all the unfunded promises.