Angus Taylor (Hume, Liberal Party) Share this | Hansard source

As we pay our respects to Gough the legend, we look mournfully at those opposite. If only there were something—anything—of 'legend' about the current Labor offering and if only there were a glimmer of hope, we might be content. But, no. The former Labor government had absolutely no comprehension of how to manage money or how to provide services on a sustainable basis. Indeed, I do not think many of them on that side can even add up, excluding the member for Fraser, who has done some excellent work on the health system. They rack up debt every time they get into government and then it is our job to come in and clean up the mess.

This government will not stand by and watch Medicare collapse under its own weight. So let us look at some facts. Unfortunately in the speeches from the last couple of speakers from that side we did not see many of these facts. Let us look at the sustainability of the healthcare system under Labor. When we came into government, as they have already pointed out, the Commission of Audit pointed out the areas where we are spending most of our money. They turn out to be welfare and health. The two biggest numbers, which constitute about 40 per cent of our budget, are for welfare and health.

Here is where it gets hard. They are growing at a much faster rate than the economy. They are growing at about eight or nine per cent a year—almost 10 per cent per year—but the economy is growing at 4.5 per cent or five per cent in a good year. So if you keep going and wait long enough, the whole economy will be health and welfare. It is simple mathematics. There will be nothing else left. That happens surprisingly quickly. Indeed, on these growth rates, out of control health spending will reach almost a quarter of the economy within 20 years. The member for Fraser is looking over here saying: 'Yes, I have done those numbers. They are right.' That means that almost one out of every four dollars would be spent on health. Who is going to pay for that?

The biggest numbers for the government are in Medicare. So let us put this in perspective. The total cost of the health system, federal and state, is about $140 billion. The Medicare levy we pay in our taxes is about $10 billion out of that $140 billion. Very little is paid for by the Medicare levy. We know that and we heard that from previous speakers. People know that over the last five or six years the Medicare expense in this country has gone up by 42 per cent.

The biggest increases are coming from chronic disease funding. If you take the MBS item numbers that cover chronic disease, they are rising at 25 per cent a year. In 2007, the beginning of the Labor government, those costs were $200 million. In 2014, those costs will be just over $1 billion—five times greater in only seven years. It does not matter how you look at it; that is not sustainable. It will not be a universal health system for the next generation if we do not deal with this now.

Of course, those opposite mistake 'universal' for 'free'. 'Universal' does not equal 'free'. So let's look at how free the healthcare system was under the previous Labor government. It turns out that during the time that Labor was in power, health care required large direct payments from individuals throughout the system. And I will give you some numbers here. Under the PBS, 17 per cent of the costs were paid for by individuals; other health practitioners, 55 per cent. These numbers are from the Australian Institute of Health and Welfare. Dental was 67 per cent; aids and other appliances, 74 per cent; and non-PBS medications, 97 per cent. So in total almost 40 per cent of the costs across all of those various items were paid for by the individual. The health system is not free, and those opposite know it, they just want to pretend otherwise.

We know that the co-payment is reasonable. We are asking for a $7 contribution. We know that in New Zealand it is $17.50. And New Zealand has a much lauded health system—in fact, those opposite have often praised the New Zealand health system. We are not saying that it should be $16, as it is in some parts of Europe. We are saying that $7 is a reasonable payment for Australians to make.

Our country is paying $1 billion a year in interest. We are on our way to $3 billion. One group in this place says: 'If we've got a spending problem, just up the taxes.' We say: we want a sustainable health system, and the way to do that is to ensure that those who can pay do so.

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