Patrick Secker (Barker, Liberal Party) Share this | Hansard source

I find it very interesting that the member for Parramatta complains about price rises of 40 per cent over the last five years, when Medibank Private is a government owned body. Surely, if we were worried about the price increases over the last five years we would say, ‘Let’s try to do it differently.’ That is the weakest argument I have ever heard, coming from someone opposite, suggesting that what has happened in the past is a valid reason for changing the situation. (Quorum formed) Isn’t it interesting that, barely 30 seconds into my speech, Labor decides to deprive me and this chamber of free speech in what I think is a very important debate. Obviously the Labor Party thinks it is an important debate, given the number of people who have decided to put their name on the speakers list.

I think Labor have got Medibank Private confused with the original Medibank that was introduced by Bill Hayden on 1 July 1975. Things have changed a fair bit since then. Why would we want to keep a business in government hands when we already have 38 different companies out there competing on the open market?

The member for Parramatta and the member for Lalor suggested—and I think it is a very obvious red herring—that the government would have to compensate the policyholders. The government have had legal arguments. Labor have suggested that the Parliamentary Library has a different argument. I would always suggest that professional legal expertise is far more important than legal expertise obtained from a library. The member for Parramatta also suggested that market forces will drive customers away. That has nothing to do with this debate. This debate is about whether we think a business—one that is obviously run quite competitively, with 38 other competitors—needs to be government owned. I do not think so.

Certainly, the Labor Party did not think we needed the Commonwealth Bank to be in government hands when they were in government. They did not think Qantas needed to be in government hands when they were in government. They have pretty good form on this. When they were in government they would privatise anything that was standing if they thought it would bring them some extra money for their coffers. The problem with the way that Labor handled privatisation was that they used most of the proceeds as general revenue rather than the way we have used it: to reduce Labor’s debt.

I remind people in this chamber of Labor’s record on debt. Over the period of 90 years from Federation, there were two world wars and a depression and we built a new capital city. After 90 years of Federation, up until 1991, we had accumulated $16 billion in debt. However, every year for the next five years Labor repeated that $16 billion debt—an amount which the country had taken 90 years to record—and took our debt from $16 billion to $96 billion. We have taken the responsible attitude of not selling the family silver, and we have said that we will use that money to retire debt. (Quorum formed)

It is a record for me to have two quorums called when I have been making a speech. I wonder whether I can create another record and get a third. The whip’s position is quite fascinating. This must be her greatest contribution to the parliament since she has been here.

There are very clear reasons why we should sell Medibank Private. Firstly, we must note that in the competitive private health insurance sector there are 38 competing funds. What viable policy reason does a government have to continue to own a health fund? Qantas is one of the most competitive and financially strong airlines in the world, and we can therefore clearly see the benefits of a company being run privately by the best people available—not by the government but by the best people available—and in the interests of the shareholders.

Let us be honest here. Businesses are best run by people who know what they are doing—not necessarily by bureaucrats. Qantas was privatised by the Labor government. From a business point of view, it is clear that competition in the market gives consumers options. And isn’t that what we are all about—giving choices, options for people to decide which fund is best for them and how their money is best spent? By making Medibank Private a fully commercial and privately owned company, that will allow the business to be more efficient through lower management expenses. It will give scope for expansion into new business areas, for example other forms of insurance and other medical or financial products. Through a more efficient operation, this will enable the health fund to further restrain premium growth.

Many people question whether the sale will lead to a rise in premiums. Obviously health insurance premiums will rise in the future because of the increased costs of medical technology and the cost of professional medical staff, and this is relevant to all health insurance providers. However, Medibank Private’s premiums will not rise as a result of the sale of the fund; it will be just like other funds. It is all about giving Australians a choice of private health cover for themselves and their families—and we all know that Labor hates private health.

In 1976 the government set up Medibank Private and provided the initial capital. Medibank was the precursor to Medicare, which I think Labor is confused about. The government injected an additional $85 million in 2004, and it has taken the risk of owning this business for the past 30 years. It is therefore entirely appropriate for the benefits of the sale of Medibank Private to be passed on to Australian taxpayers. They are the ones who have taken the risk, and they should get the benefit.

The sale will allow the government to provide an additional $500 million in medical research grants to the National Health and Medical Research Council and $170 million for the establishment of a research fellowship scheme. This probably would not have been possible without the privatisation of Medibank Private. It will be very interesting to see the benefits used in this way. We were all visited in the gallery today by young children suffering from juvenile diabetes. Part of this $500 million could be used to find a cure. Instead of using taxpayers’ funds to run a health insurance business, it makes more sense to use those funds for medical research.

With all these facts, Labor in their usual stance are opposed to the sale. They continue to talk about how this sale will affect Medibank Private customers, but all along Labor do not give two hoots about the customers, because they really hate private health insurance. Labor’s policy over the past few years has been to oppose the health rebate. They have no plan at all for making private health insurance stronger. Labor’s plan is to oppose everything for the sake of it; it is another of their scare campaigns.

This government has a long-term plan for giving Australians a choice in health insurance. We are strengthening private health insurance generally, including through the proposed sale of Medibank Private. Through this sale the Howard government is actioning a broader strategy for making the Australian economy stronger and is underpinning the prosperity of all Australians. We retain our process to regulate price increases, so why is it necessary to hold on to Medibank Private? We control prices by regulation. Medibank Private will become a private corporation, as are the other 38 competitors, and will compete on a level playing field. I believe that it is very important to support this sale and to support the bill before the House.

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