March 22, 2006 - 5:54AM
The Age

Prime Minister John Howard has warned the states to pull their weight on mental health as the government puts the finishing touches on a reported $1.5 billion package.

Under the federal plan, to be considered by cabinet next week, Medicare funding could be expanded to allow more mentally ill people to see a psychologist or mental health nurse on referral from the family doctor.

Mr Howard was reluctant to reveal any more details, only saying money was on its way.

But he warned the states must also play a significant part.

"We expect the states to carry their share of it, and the states have got plenty of money," Mr Howard told ABC radio.

"The states have got direct responsibility and any idea that the states can just flick pass this to the commonwealth is wrong.

"But we will put money into it - it is a problem."

Mr Howard admitted Australia was "paying a very heavy price" for past mistakes in mental health policy, including the trend towards de institutionalisation.

Health Minister Tony Abbott said mental health problems had to be tackled in the early stages before they reach crisis point.

Some GPs lacked experience or simply did not have enough time to deal with the issue, he said.

"What we'd like to do is look at getting more psychologists, more mental health nurses, more appropriately trained counsellors into general practice," Mr Abbott told Southern Cross Broadcasting.

"What it will probably mean is that if you go to your doctor and the doctor decides that it's mostly a mental health problem ... then you may very well be able to get a Medicare rebate for that service.

"By bringing psychologists ... into the Medicare system, we think we will be able to provide better and more holistic treatment and earlier treatment of people with serious mental health problems."

But Labor health spokeswoman Julia Gillard doubted the government would deliver.

"There is not one concrete plan that they were prepared to talk about today," Ms Gillard told reporters in Sydney.

"Australians with mental illness and their families have waited far too long to be toyed with."

She agreed that states and territories should also lift their game but said it was impossible for them to do so without federal government directive.

"The states can't come to the party unless they know what Minister Abbott is talking about (with the new proposal)," she said.

The Mental Health Council of Australia said extra federal funding would make a difference to the thousands of mentally ill Australians.

"It's probably in many peoples' minds well overdue," chief executive John Mendoza said.

The Australian Medical Association said the states must also be willing to fork out more money.

At last month's Council of Australian Governments meeting, leaders agreed to develop an action plan on how to address the nation's mental health crisis, including a crackdown on cannabis and amphetamines.

It followed the release of a major report last year which found that people seeking mental health services ran a serious risk of having their basic needs trivialised or neglected.