PRIME MINISTER:
Well ladies and gentlemen, the Health Minister and I have come here this morning, and would like to thank the St George Private Hospital for making the venue available to announce an important new Government initiative to strengthen Australia's health system.
I'm announcing today that, subject to the passage of the necessary legislation through parliament and with effect from April of next year, the Government will increase the private health insurance rebate by 5% to 35% for people aged between 65 and 70, and by 10% to 40% for people aged over 70. There are 1.09 million Australians who are over the age of 65 who have private health insurance, and this particular initiative will reward older Australians for whom private health insurance is extremely valuable. It will reward them to the tune of one to two hundred dollars a year in further reduction of their premiums, according to whether they have the benefit of either the 5% increase or the 10% increase.
As you will be aware, the maintenance of a strong private hospital system is a necessary complement to the maintenance of the public hospital system. The Government is very strongly committed to a dual system of health provision in this country. We have taken a number of measures to strengthen Medicare, particularly through the introduction of the Medicare safety net, which is now benefiting hundreds of thousands of Australians, and also the introduction of additional payments to doctors who bulk bill concession cardholders and children under the age of 16. By providing further assistance to people in this particular age cohort who have private health insurance, we will reinforce their choice and their decision and further and better reward their choice and decision to take out private health insurance, and as a result contribute to the further strengthening of the Medicare system.
We remain very strongly committed to Medicare, and as a component of that commitment, we remain very strongly committed to the maintenance of affordable private health insurance. Some eight to nine million Australians have private health insurance, and this particular measure will of course reinforce the decisions of a particular age cohort. It will cost in the order of $450 million over a four year period. The cost in the current financial year, because of the introduction of it from April of next year, will be modest, but it will grow over the remaining three years of the forward estimates period, and the precise details of the costing and an explanation of the measure, although it is in it's terms a very simple, straightforward, clear proposition. It's an additional reward for older Australians who really value their private health insurance to keep that health insurance, and it will be a valuable additional incentive for them to do so. I see it as a further element of the Government's systematic policy of continuing, as opportunity arises, to strengthen the Medicare system. Now are there any questions?
JOURNALIST:
Why should people who can't afford private health (inaudible) pay tax?
PRIME MINISTER:
Well everybody pays tax and we have the public hospital system available for people who can't afford or choose not to take out private health insurance. That is the whole idea of choice in health cover. The whole idea is to have the Medicare system which provides access to a doctor in return for the payment of the Medicare rebate and provides free treatment in a public hospital, and of course the Pharmaceutical Benefits Scheme. I mean that is the basic Medicare system which we of course have greatly strengthened through the introduction of the Medicare safety net. And then over and above that, if people choose to take out private health insurance, they can do so. That choice should be supported by the taxpayer because every time a person is treated in a public... in a private hospital, a load is taken off the public hospital system. It has been estimated by Professor Ian Harper of the Melbourne Business School that every dollar spent on the private health insurance rebate saves two dollars in health costs that would otherwise be met by taxpayers. I might point out to you that during the seven years to 2002-2003, the number of new private hospital beds increased by 12.4%, while the number of beds in public hospitals fell by 6.7%. More than half a million people are now treated in the emergency departments of private hospitals, and more than 50% of surgery is now carried out in private hospitals. In other words, private hospitals are not an optional add on. They are an integral part of the health system, and part of maintaining the health system in its present state and maintaining the effectiveness of the Medicare system is to strengthen private health insurance and to strengthen private hospitals, and that is what we are doing by this measure.
JOURNALIST:
Labor has flagged Medicare as (inaudible)
PRIME MINISTER:
Well we are doing this because we believe in the dual system. We believe in Medicare. Labor is the only party in the game at the moment that is actually promising to weaken Medicare by taking away the safety net. The safety net system, which we introduced with Mr Abbott's reforms earlier this year, is the greatest reform to Medicare in 20 years because what it does is to guarantee to people that once you go above a certain limit - $300 for most families and all cardholders, $700 for the rest - once you go above that with your out of pocket, out of hospital expenses, you get 80 per cent back from Medicare. Now that is a remarkable safety net for average Australians and Labor is going to abolish it. What we are doing is keeping the safety net obviously, and with today's announcement we are adding a further reward for older people for whom private health insurance is valuable. There is a very high number of people on very low incomes over the age of 65 who take out private health insurance. There are many pensioners who have private health insurance. So we're not rewarding the wealthy with this. We are rewarding a broad cross-section of the elderly community to whom private health insurance delivers peace of mind and reassurance at a time of their lives when they really value having that private health insurance.
JOURNALIST:
(inaudible)
PRIME MINISTER:
Well we have been constantly thinking of ways of further strengthening the Medicare system, and people should understand that this is a further earnest of our commitment to the health system. There's a lot of criticism of the Australian health system and I'm sure it's got faults, but it's infinitely better than the health systems of any other country, and I think many of the people who habitually criticise the health system, be it public hospitals or private hospitals or doctors, miss the point that if you're going to get ill, it's better to get ill in this country than just about any comparable country around the world, and with all its flaws, it is a very strong system.
JOURNALIST:
(inaudible)
PRIME MINISTER:
Well my reaction is that you need both, and of course the public health system around Australia is operated by the State Governments. We provide almost half the money to the States, but they run the hospital system. I'm not here today to attack the public health system. I think it does a remarkable job. It really does. And I think the public hospital system has become too much of a political football around Australia. I think doctors and nurses in the public hospital system do an outstanding job, and I've got a lot of admiration for them. So you're not going to hear me attacking the public hospital system, but I'm a very strong believer in having both. And if you have a... the stronger the private system, you're taking the strain off the public system. If the private hospitals collapsed tomorrow, the public hospital system would not be able to cope. And it is in the interests of the public hospital system that we have a strong private system, and we therefore have always encouraged people to take out private health insurance. We believe in private health insurance, and so do millions of Australians - particularly older Australians.
JOURNALIST:
Prime Minister, just on another matter today. Kim Beazley has (inaudible)...
PRIME MINISTER:
I think I've heard that before. That's nothing particularly new. But I don't think it's necessary.
JOURNALIST:
Why is that?
PRIME MINISTER:
Because there have been multiple inquiries already. Okay? Thank you.
JOURNALIST:
Labor has also released a (inaudible) manifesto of...
PRIME MINISTER:
Oh yes, I heard about that. Yes, well I'll be replying. I'll be giving 27 answers which will demonstrate that they... those allegations are themselves 27 lies. Thank you.
JOURNALIST:
Have you had a chance to have your pancreas checked while you're in hospital today?
PRIME MINISTER:
No. No comment. Look, I make it very, very clear. I wish the man a full and speedy recovery. All I'm interested in is having a fair and square political fight with a fit and healthy opponent.
JOURNALIST:
(inaudible) do you think?
PRIME MINISTER:
I beg your pardon?
JOURNALIST:
Could it affect...
PRIME MINISTER:
Look I'm not going to comment on... I really am avoiding any comment. I think it is tasteless of me to be drawn into any comment about his health, and I have not done so and I don't intend to do so. I wish him a speedy and full recovery.
JOURNALIST:
Mr Howard, are you concerned by a new poll showing that Ross Cameron would lose his seat of Parramatta?
PRIME MINISTER:
I'm not going to comment any further on Mr Cameron.
JOURNALIST:
But are you disappointed...
PRIME MINISTER:
I'm not going to comment any further on Mr Cameron. Thank you.
JOURNALIST:
On the issue of the drought, a few ideas to shift water into New South Wales and...
PRIME MINISTER:
Shift water into New South Wales?
JOURNALIST:
Reallocate water.
PRIME MINISTER:
From where?
JOURNALIST:
From Queensland.
PRIME MINISTER:
From Queensland. Well whose idea is this?
JOURNALIST:
(inaudible)
PRIME MINISTER:
No well look, I think I'll give that one a... I mean what I can tell you is that, as a result of John Anderson's leadership, we now have for the first time a national water initiative which means that we're going to have a national approach to handling this issue, which is a very important issue, and at long last we've got all the Premiers, but one - the Western Australian Premier - to agree to this. And I look at these things from a national perspective, I'm not the Prime Minister of New South Wales, and I want to see an outcome that is fair to all Australians and I won't be picking and choosing between the states. I'll be trying to deliver an outcome that is fair to all Australians. But it is a very big issue, this, and certainly it is something that we have begun to address in a very systematic way. Thank you.
JOURNALIST:
(inaudible)
PRIME MINISTER:
I beg your pardon?
JOURNALIST:
(inaudible)
PRIME MINISTER:
Oh come on. By definition, yes, each day you are. Okay?
JOURNALIST:
Prime Minister, David Hicks...
PRIME MINISTER:
David who?
JOURNALIST:
David Hicks.
PRIME MINISTER:
Oh David Hicks, sorry, yes.
JOURNALIST:
There's going to be a preliminary hearing for him this week. Are you hopeful this will lead to a trial and no further delays?
PRIME MINISTER:
Well I hope the matter is dealt with in an expeditious fashion, but I'm not going give a daily commentary on everything that happens. We are satisfied that the rules that have been established for the military commission will deliver a process which is consistent with the criminal justice system of our country, but I'm not going to give a daily commentary, and I hope it is dealt with in a very expeditious fashion.
JOURNALIST:
Will the Government have a representative at the hearing?
PRIME MINISTER:
We will be appropriately represented.
JOURNALIST:
Mr Howard, should Bob Carr appear before ICAC?
PRIME MINISTER:
That is a matter for the New South Wales Government and the New South Wales Opposition. I'm not going to comment on that. Now any other questions while I'm here?
JOURNALIST:
In relation to the 27 alleged lies...
PRIME MINISTER:
Yes.
JOURNALIST:
Do you believe Australian politicians must lie...
PRIME MINISTER:
No, I don't.
JOURNALIST:
Just back on the announcement today, is this another wedge issue against Labor (inaudible) issue for Labor, the private rebate?
PRIME MINISTER:
This is a policy measure designed to help a million mature aged Australians. It's got nothing to do with wedging Labor. It's got everything to do with helping older Australians and rewarding them for their frugality and care and providence in taking out private health insurance. I mean this is about rewarding people who provided for themselves and scrimped and saved, and many pensioners have, to have private health insurance so they can have the peace of mind when they get ill. And this has got nothing to do with wedging Labor. It's got everything to do with helping a million Australians who are over the age of 65 years and have private health insurance, and I think they will very warmly welcome it because it is a recognition that we understand the commitment they make, the importance of private health insurance, and we don't intend to slacken in any way in our commitment to their private health insurance needs.
JOURNALIST:
I was just wondering if Mr Abbott...
ABBOTT:
Well simply to echo what the Prime Minister said, I think this is a very important initiative. There's no doubt that this is a Government which supports Medicare, and we also support the private system because the private system, as the PM says, complements the public system. You can't have an effective public system in Australia without a strong private system, and it will be interesting to see just when the ALP does finally say what their policy in respect to the private health insurance rebate is.
JOURNALIST:
I guess the rebate (inaudible) private health insurance...
ABBOTT:
Well certainly all the studies suggest that without the rebate, private health insurance would collapse in Australia, and if private health insurance collapsed and the private health system collapsed, that would put enormous pressure on the public system.
JOURNALIST:
(inaudible) or is it long-term?
ABBOTT:
Oh this is an important part of the Government's ongoing commitment to private health insurance and to private health generally. As the PM said, we believe very strongly in a dual health system. You can't have a good public hospital, public health system without a good private health, private hospital system, and that means an effective system of private health insurance.
JOURNALIST:
Mr Howard, a quick word on the Olympics. The women's relay...
PRIME MINISTER:
Oh fantastic, great. And congratulations to the four girls and to Grant Hackett, and so it goes on. It's turning out to be an absolutely fantastic Olympic Games. You know, the only sort of adverse sporting news overnight came out of Durban, and not Athens.
[ends]