Another misconception being peddled is that the 6% increase in health spending next year will not match an alleged 10% health service inflation rate. This is a fundamentally flawed view and the conclusion drawn is incorrect. I will not bore Senators with the details, but the 10% rate of inflation being cited refers to part of the consumer price index. A simplistic comparison of this CPI based data with the rate of increase in the Vote for the Department of Health and Children is both inappropriate and misleading. Some 70% of health spending is pay or pay related. It is not driven by the CPI measurement of health inflation. The 2003 abridged Estimates include adequate provision for the carryover costs from 2002 of the PPF pay terms. As I indicated, I will be dealing with the pay implications of any further increases on budget day. The remaining 30% or so of health spending covers a myriad of different elements ranging from food, light and heat to high technology, drugs and equipment. The increased abridged Estimates volume provision is intended to ensure the existing level of health services is broadly maintained in 2003 and allows for some limited expansion of high priority areas such as cancer treatment.