CURRENT AFFAIR JUNE 8, 1976
QN. Prime Minister are you worried about union threats over
your medibank plans?
P. M. I don't believe that union threats are going to be put
into effect. The medibank plans are clear and they provide
the widest possible area of choice. I indicated about two
weeks ago that we were also looking at the prospect of allowing
medibank under exactly the same terms and conditions to offer
intermediate and private ward cover and in this area compete
with * the private funds. That decision was made today by the
Government on a submission from the Minister for Health and
on this basis I don't believe that the unions have any case
at all. They certainly have no case for their claim that
the Government is trying to force people out of medibank.
* That is sheer and absolute nonsense.
QN. The A. C. T. U. President, Bob Hawke still says it is a two
class system.
He did'-t know about this recent decision and our system is
certainly not a two class system. What the previous administration
had introduced might well have been because you had basic
standard ward cover for everyone under medibank and then
people and a number of people have would still go out to
private insurers, to private funds to cover themselves for
intermediate or private ward treatment. Now under the
system that we are introducing, it is going to be much more
possible for anyone to cover themselves for intermediate
or private ward treatment Q= ' 2bder the decision-made today
somebody will be able to do this -under medibank itself which
would not have been possible under the arrangements of the
previous administration.
N. But basically what you are introducing is still just the same
as a private health fund but another one isn't it?
P. M. If somebody is paying a levy or a part levy and they want to
take out additional cover they will have the choice of doing
that through medibank or the choice of doing it through a
private fund.
But you are still not offering a free system which is basically
P. M. * Oh-free. Nothing is free in this community and that is what
needs to be understood and if people are objecting to the fact
that medical services are going to have to be paid for and be
seen to be paid for that is a different matter again.
2.
QN. But we are still not getting one system for everybody....
P. M. I think there ought to be an area of choice why shouldn't
there-be an area of choice because we are also establishing
the circumstances where the people on the lowest income will
get a fully subsidised service. Ql Other people will pay in
accordance with their income up to a certain ceiling where
people will be paying pretty near the full cost of what
medibank provides. Now that I think is pretty fair and even
the previous administration at one stage had thought of.
introducing a special levy to pay for medibank. High quality
health care is expensive and it is nonsense to suggest it is
free it's not.
Q. N. Prime Minister if the unions don't accept this will you listen
to them?
We will always listen to people but what we are putting forward
is fair. zm it is quite essential that medibank is seen to be
paid for and these measures will proceed. I think the main
trade union complaint was one that had suggested that we
were seeking to force people out of medibank. Now that claim
is so patently false especially in view of todays decision that
I don't believe that it can be sustainedeauv if people want to
go around the community and say that nobody should have to pay
for health care well. that then just means a permanent increase
in taxation to pay for it.
QN. If the threat of continuing strikes as so forth stays will you
rethink?
P. M. I don't believe it will.
Q. N. The threat won't occur
P. M. I don't believe so, no.
Q. N. If it should
P. M. Oh if therea-r. e-many ifs in the world lets meet ifs when we
come to them.
Q. N. Prime Minister you have another head on confrontation coming
possibly this week with the Premiers. Do you expect that to be
a confrontation?
P. M. Oh there might be something the Premiers won't particularlylike.
I think the federalism proposals will be basically well received,
when they are announced in the final detail, because most of
the major decisions in these areas have already been taken at the two
previous conferences
Q. N. They a. re asking for more money. Will you be giving them more?
P. M. Under the actual tax reimbursment arrangements the new
federalism proposals will work, they will operate and the
principles of that have already been agreed to. When you come
to other areaswhere there are funds provided by the Commonwealth
and the States/ I have no doubt the states will be asking for more
money
3.
Q. N. They say they will need more money and possibly introduce their
own taxes unless you help them.
P. M. A number of states have made additional promises over recent
times or example one state has promised to abolish all
probate duty at a cost of about 37 million dollars. off dther
states made other promises which would cost quite substantially.
If they are making those promises under certain sets of
circumstances, they should be able or expected to pay for those
things-for their own promises-from their own resources. But
I would like to emphasize that state governments havejas
much as OtCommonwealth, over the last year or two in . part, been
responsible for the view that people only have to ask for things
of government and government can provide. We have to get
the view across that when politicians promise anything they are
not promising anything of their own, they are promising something
to be taken from taxpayers. ( hey are promising something
that basically has to be taken from every citizen in the
community.
Q. N. Will you encourage them to introduce their own taxes
P. M. If I could get at this another way. I would like to encourage
them to be more efficient. I would like to encourage the
states to go about their business in a way i which will be
. economical and which will free resources to private individuals
as we have sought to do. It is worth noting that over the
three years to December, while Commonwealth Public Service
employees rose by 43 thousand, state and local government
public service employees rose by 83 thousand. Now I have not
seen any attempts so far by any of the statestequivalent to
the efforts we have made. over recent months/ to bring economy
into their administration. And I think they ought to do so.
ON-Do you think as a result of your meeting that the state taxes
that we will be in for state taxes
P. M. I would hope the states would try and use their resources
as economically as possible and I would not want to see state
taxes go u. aIthough that obviously is a matter for states,
But if they believe that their own services to their own
people can be expanded in real terms, year after year after
yearlthat can only happen if they put up taxes.
In 1974/ 75. state budget outlays increased
by a mere fraction under 40%. Now the Commonwealth increased
by about the same amount. And we always said it was very wrong
for the Commonwealth expenditures to increase by that amount.
It is just as wrong for the state expenditures to increase by
in one year. This sort of expansion of government
expenditure cannot continue.
Q. N. Prime Minister are you concerned about Australia's economic
recovery?
P. M. I believe that there is much greater confidence in the
community. I think the Arbitration : Commission made a
highly responsible decision a short while ago.. d 4t is
quite essential that people understand that a withdrawal
in the public sector is essential for a return to vigour
and vitality in the private sector, because we had, got
to-the circumstances where taxes were so high and profits
so low that there were no funds to create jobsa-' 1here
was a great cost in the result in* high inflation and
high and prolonged unemployment.
Q. N. We-will be talking to Mr Hawke in this programme shortly
so I must just in the meantime come back to that if you
don't get the cooperation that you need from the unions
will you give in or do you think you might be fighting a
losing battle against unemployment and inflation
P. M. The unions certainly have a great capacity to influence
what happens in Australia. a a Qe have done I believe as
: muchand maybe more, than many people expected of us in
setting the climate where unions I believe ought to be
prepared to cooperate with the government in encouraging
economic recovery. Tax indexation, the new system of
family allowances which is the most advanced single
social reform introduced in the last 50 years, these
things set the climate of reasonableness and of concern
for all Australians.. W I believe that there are many
people in the trade union movement who will understand
this.
Q. N. One last question any chance that you might give a little
on the medibank question.
P. M. Give a little. The proposals are fair. The only other way
of doing these things is to not have the medibank levy, and
just have a general increase in taxation to cover it. Now
that is not going to be as effective,-as reasonable as the
proposals that we have introduced.
Q. N. Would you consider doing it if you had to.
P. M. What we have introduced is a better proposal, so we stick with
what we have introduced., x Aon't forget that once the decision
was*: taken, as it was today, to enable medibank to offer
intermediate and private ward coverage in competition with
private funds, then I believe that will establish in total
the best solution to our problems and one which is a
particularly Australian solution which will avoid the problems
that have occurred in Britain and Canada.