Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

There is constant intervention; constant interference. How can I answer their questions? The scoping study indicated in some detail the extent to which the efficiency dividend that would be derived from private ownership of Medibank Private would lessen the upward pressure on health insurance premiums. We believe that the government should not own one of the 38 private health insurance companies in this country. Indeed, the onus is on those who continue to believe that there should be government ownership of a private health insurance business. There is absolutely no basis or logic in the government owning a private health insurance business.

This is entirely analogous to the Labor government’s decisions to sell CSL, Qantas and the Commonwealth Bank, where they sensibly and with our support agreed that the government should not be a participant in those industries. We do not believe the government should own one of the players in this industry. It is a cost to taxpayers. You will recall that just two years ago taxpayers had to make an $85 million capital injection into Medibank Private to ensure its capital adequacy. These are not the responsibilities of taxpayers or governments. The government’s role is to regulate this industry without fear or favour and on a level playing field for all the 38 companies and funds that operate in this business and not to have the government own one of those funds. We are very confident that, within the general regime of the government retaining the price setting capacity, which we announced we would, there will be less upward pressure on premiums with a private Medibank Private than is currently the case.