Kevin Rudd now appears to have a fairly stark choice when it comes to his hospitals funding plan; either alter it before the COAG meeting on Monday or accept that he will not get the states on board.
New South Wales has dealt the latest and biggest blow to the Prime Minister's hospitals dream.
Premier Kristina Keneally is refusing to give up control of a third of the state's GST revenue to the Commonwealth.
New South Wales is demanding instead that state and federal funds be pooled and controlled by the states.
Ms Keneally is also demanding a lot more money immediately.
http://www.abc.net.au/news/stories/2010/04/16/2875285.htm
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