Tony Abbott (Warringah, Liberal Party, Leader of the House) Share this | Hansard source

I appreciate that I do not often do good things, but I am pleased to have been able to accommodate the member for Blaxland, particularly as it is the 10th anniversary of his election to this House. I think he is doing a much better job than his predecessor did as the member for Blaxland.

I wish to thank everyone who has contributed to the Health Legislation Amendment (Private Health Insurance) Bill 2006. This bill should have the united support of the House because, while all of us have various issues with government policies and while all of us have various issues with aspects of the health system, the fact is that it is about enhancing protection for consumers, it is about trying to ensure that private health insurance policyholders get a better deal and it is about extending the powers of the Private Health Insurance Ombudsman to the whole sector. I think this is very good news for everyone, and I am pleased that speakers on all sides of the House have indicated that they support the bill, whatever other issues they might have.

The member for Lalor made some general criticisms of the state of private health insurance. In effect, she said that it was unattractive, expensive and complex. I would simply say to the honourable member that it is a lot more attractive, it is a lot less expensive and it will be a lot less complex thanks to the policies of this government. The percentage of the population with private health insurance has increased dramatically thanks to the government’s policies, particularly Lifetime Health Cover and the rebate, which Labor have never been comfortable with. While from time to time in muted tones they suggest that they do not really want to abolish it, we have many on-the-record statements by members opposite, including the Leader of the Opposition, that they regard the private health insurance rebate as very poor public policy. The fact is the rebate makes private health insurance much less expensive than would otherwise be the case. I point out for the benefit of members opposite that, while no-one likes premium increases and while premium increases have certainly been significant under this government, averaging about 5½ per cent a year, that is just half of the average premium increase that took place between 1983 and 1995.

The member for Lalor remains highly critical of the government’s decision to sell Medibank Private. For her benefit, let me point out that the best guarantee of good services is competition, not government ownership. Certainly, existing players in the sector believe that the privatisation of Medibank Private will increase competition, not decrease competition. I think that we will find that a privatised Medibank Private will be a much fiercer competitor for the other organisations in private health insurance.

In response to the second reading amendment of the member for Lalor, the general public is always sceptical about privatisation, but the task of government is not to slavishly follow opinion polls.

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