Michael Keenan (Stirling, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

That was an interesting interjection from the member for Maribyrnong. He is saying, ‘It does not matter what we did to achieve it; it does not matter how we did it; it does not matter that we misled the Australian people: we won it, and that’s all that matters.’ He is taking from the Graham Richardson school of politics, I see.

This is the reason why we believe the Prime Minister misled the Australian people in the lead up to the election: he wrote to the Private Health Insurance Association of Australia to assure them that he would not be making changes to the current arrangements applying to private health insurance. Just five months later, he pulls a trick on the association and all Australians. He is conning Australians, and particularly those Australians who need private health insurance and those who need hospital care. Some in the industry are saying that these measures will lead to 400,000 people dropping out of private health insurance. How can increasing the load on an already stretched public health system help improve health services? This government’s decision can only lead to increasing demands on the public hospital sector and on overworked nurses and doctors. The government’s decision is contrary to the coalition’s principles of encouraging people to take responsibility for what they do and encouraging self-reliance and independence.

This is a decision that will have a cost to revenue of $660 million over the forward estimates period. But it will save the government over $950 million because there will be fewer people claiming the private health insurance rebate. So the government will profit from people dropping their private health cover. When these people get injured, fall sick and need public hospital treatment, they will be joining already long public hospital queues. It is a very misguided decision.

We on this side of the House support choice—whether it is in relation to superannuation, financial products or union membership. This is the centre of our philosophy and we support those who choose to purchase private health insurance. Labor retain their blinkered, ideological objection to private health insurance, thereby posing a threat to a strong and balanced health system. The coalition remain committed to a balanced public and private system and strongly encourages those who want to take out private health insurance. By doing so we are taking the pressure off the public hospital system and improving the health system for everyone. I cannot support this bill.

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