DEED OF VARIATION between the COMMONWEALTH OF AUSTRALIA as represented by the DEPARTMENT OF HEALTH and the STATE OF TASMANIA as represented by the DEPARTMENT OF HEALTH AND HUMAN SERVICES DEED OF VARIATION Between the COMMONWEALTH OF AUSTRALIA as represented by the Department of Health, ABN 83 605 426 759 and the STATE OF TASMANIA, as represented by the Department of Health and Human Services, ABN 11 255 872 006 RECITALS: A. On 23 June 2011 the Parties entered into the Heads of Agreement for the continued management, operation and funding of the Mersey Community Hospital (‘the Heads of Agreement’). B. The Parties now wish to vary the Heads of Agreement. OPERATIVE PART: 1. The Parties vary the Heads of Agreement as follows: (a) In clause 1.2, delete “Expiry Date means 30 June 2014 or any other date the Parties agree in writing.” and replace with the following: Expiry Date means 30 June 2015 or any other date the Parties agree in writing. (b) In Item A of the Schedule, delete “The Project comprises: (a) the management and operation (including the repair and maintenance) of the Hospital; and (b) carrying on the business and operations of the Hospital (which includes managing, administering, delivering and performing, at a minimum, the Core Clinical Activities), for which Tasmania is to be solely and exclusively responsible; and (c) such other activities in connection with the Hospital as the Parties may from time to time agree in writing,” and replace with the following: The Project comprises: (a) (b) the management and operation (including the repair and maintenance) of the Hospital; carrying on the business and operations of the Hospital (which includes managing, administering, delivering and performing, at a minimum, the Core Clinical Activities); for which Tasmania is to be solely and exclusively responsible and (c) carrying out the Specified Capital Works identified in this Schedule, Page 2 of 5 ; and (d) such other activities in connection with the Hospital as the Parties may from time to time agree in writing, (c) In Item A of the Schedule, after “Tasmania must comply with any governance framework that applies to the Tasmanian Health and Hospital Network.” insert the following as a new paragraph: The Specified Capital Works are: (a) (b) works to ensure full compliance of fire safety systems, covering: i. rectification of fire and smoke wall and floor slab penetrations; ii. rectification of services shafts penetrations, and implementation of smoke management systems; iii. development of solution to stairwell smoke lobby and pressurisation issues; iv. fire hydrant system upgrade to include all fire stairs and provision of sprinklers to all lobbies; and v. development of basement egress; and reconfiguration of the pharmacy department to meet professional standards for storage and work areas. (d) Delete the table in Item B of the Schedule and replace with the following: Funding Period 2011-12 2012-13 2013-14 2014-15 TOTAL Funding Received (GST exclusive) $63.60 million $65.83 million $68.13 million $73.60 million $271.16 million (e) Insert as Item C5 the following: Milestone Reports Tasmania will report to the Commonwealth promptly after 30 September 2014 and 31 March 2015 (in respect of the periods ending on those dates) on the progress of the Specified Capital Works. (f) Delete Item D1 of the Schedule and replace with the following: D1 Amount of Funding Subject to section D2, the Commonwealth will pay to Tasmania: (a) $63.60 million (GST exclusive) for the financial year 2011-12; (b) $65.83 million (GST exclusive) for the financial year 2012-13; (c) $68.13 million (GST exclusive) for the financial year 2013-14; and Page 3 of 5 (d) $73.6 million (GST exclusive) for the financial year 2014-15. The Funds must be separately accounted for, and recorded in, Tasmania’s Records. (g) In Item D2 of the Schedule, delete “The Commonwealth will pay the Funds to Tasmania:” and replace with the following: With the exception of $3.1 million (GST exclusive) which is to be: (a) used only for the Specified Capital Works; and (b) paid in two equal payments of $1.55 million (GST exclusive) on acceptance by the Commonwealth of Milestone Reports as set out at Item C5 of this Schedule, and is to be paid from the amount referred to in paragraph (d) in item D1 above, the Commonwealth will pay the Funds to Tasmania: 2. This Deed of Variation takes effect on and from the date it is signed by the last party to do so. 3. The Heads of Agreement, as amended by this Deed of Variation, constitutes the entire agreement between the parties. Page 4 of 5 This Deed of Variation is EXECUTED as a Deed SIGNED, SEALED AND DELIVERED for and on behalf of the COMMONWEALTH OF AUSTRALIA as represented by the Department of Health, ABN 83 605 426 759, by: _____________________________ The Hon Peter Dutton MP Minister for Health May 2014 in the presence of: ____________________________ _____________________________ Printed name of witness Signature of witness SIGNED, SEALED AND DELIVERED for and on behalf of the STATE OF TASMANIA as represented by the Department of Health and Human Services, ABN 11 255 872 006, on: _____________________________ The Hon Michael Ferguson MHA Minister for Health May 2014 in the presence of: ____________________________ _____________________________ Printed name of witness Signature of witness Page 5 of 5