Senator WONG (South Australia—Minister for Finance and Deregulation) (14:13): There are a number of areas that the senator has mentioned. First, in relation to schools, as the senator would know, the Commonwealth government's contribution to schools funding is indexed, so as costs rise funding to schools is increased. This indexation is changed annually, after consideration of movements in data that underpin what is known as the AGSRC. I am sure Senator Evans could explain that to you: it is the average government school— Senator Abetz: Because you can't. Senator WONG: Wow, that was brilliant! Senator Abetz: Thank you. It put you off! Senator WONG: You really have an intellect of the highest order, Senator Abetz! Senator Carr: Yes, a towering genius! Senator WONG: A towering genius! The PRESIDENT: Order! Return to the question and stop the— Opposition senators interjecting— The PRESIDENT: Senator Wong, please resume your seat. Honourable senators interjecting— The PRESIDENT: When we have silence on both sides, we will proceed. Senator Wong, please continue. Senator WONG: As I was saying, that gives you the average government school's recurrent costs. This means that cost impacts resulting from the introduction of the carbon price will be captured in this indexation and schools will automatically receive increased funding over time. In relation to health services, the Treasury modelling estimates the average price impact on health services to be around 0.3 per cent. This group in the modelling would include hospital and medical services, optical and dental services and pharmaceuticals. To the extent there is any increase in costs due to the carbon price, current and future funding arrangements will automatically ensure that public hospitals continue to be properly funded. Public hospital funding in the National Healthcare Agreement is indexed at over 7 per cent in each year of the forward estimates. In addition, when we move to the new healthcare agreements the government has struck with the states and territories, the Commonwealth has committed to pay 50 per cent of the growth in hospital costs. I trust this assists the senator.