PRIME MINISTER
CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
OPENING OF THE HEALTH INSURANCE COMMISSION'S
NEW NATIONAL HEADQUARTERS
CANBERRA 21 OCTOBER 1988
One of the great sources of satisfaction I have had as Prime
Minister for the past five and a half years is the capacity
to oversee a project such as this the creation of these
new national headquarters right through from planning to
bricks and mortar.
on this occasion, that sense of satisfaction and pride is
heightened because this building represents an enduring and
central element of the policies my Government promised to
implement on our election to office in 1983.
I want at the outset to pay tribute to the skill, dedication
and vision of my colleague the Minister for Community
Services and Health, Neal Blewett, who has overseen the
health portfolio for the entire duration of this Government
and indeed who formulated the Labor Party's health policy
when we were in Opposition.
Very few people in the history of the Australian Parliament
can claim the expertise and insight into a major policy area
that Neal Blewett can claim in health policy.
Today's opening ceremony is something in which he would have
enjoyed participating; I know you will sympathise with him,
as I do, in understanding the reasons he is unable to be
here. It's appropriate that our ministerial colleague, Ros Kelly,
is here representing Neal. As the Member for Canberra, Ros
has played a major role in the development of the
Tuggeranong Town Centre a development to which this
building represents a substantial new commitment.
With the re-introduction of Medicare after its short-sighted
termination by the previous Government, we put into place an
absolutely critical part of our social justice strategy.
That strategy is making Australia a fairer society a
society in which the economic resources of the community are
taxed fairly and distributed fairly, and where access to
essential community services is available on equal terms to
all Australians. 2851
I
Just as our economic strategy has been about laying the
groundwork for new prosperity in the community, our social
justice strategy has been about distributing that prosperity
fairly throughout the community.
And just as our economic strategy during this tine of acute
challenge has required us to tighten our belts and make the
sacrifice of restraint, so our social justice strategy has
meant ensuring that those necessary sacrifices have been
shared, fairly, by all sections of the community.
The fruits of this complenentary policy approach have been
abundant including the creation of more than 1.1 million
new jobs; a massive and continuing expansion in child care
places; a steady and continuing improvement in the education
and training opportunities for young people; real increases
in age pensions; the Family Allowance Supplement for low
income families; a massive extension of superannuation
coverage.
Among these many achievements the restoration of Medicare
stands tall. Fairness and universality are the hallmarks of
our social justice strategy; they are unquestionably the
hallmarks of Medicare.
With the re-introduction of Medicare, we brought back under
the health care umbrella some two million Australians who
under the system adopted by our predecessors had no health
insurance. We were able to do this because we were determined Medicare
would be funded fairly by funding it on the basis of a
person's capacity to pay.
In 1983 a family earning just above the Health Care Card
limit had to pay more than seven per cent of its income on
basic health cover, while a family on $ 50,000 a year paid
only 1.4% of its income.
By funding Medicare through an income-related levy, people
contribute to health care in accordance with their capacity
to pay.
Furthermore, low income earners are excluded from paying the
Medicare levy. For example, a married couple with two
children on an income of $ 390 a week is exempt from the
Medicare levy.
Medicare also assists chronically ill people through paying
heavy " gap" expenses which can be incurred by those who are
in frequent need of medical services.
All this of course amounts to a substantial contribution to
the social wage Without Medicare an average family would
need basic private health insurance costing, at 1987-88
prices, $ 21.50 per week more than the $ 5.50 they now
contribute to Medicare.
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At the same time, we have backed ou.' C'ommitme~ nt*. to Medicare
with new support for Australia's hospi-tal* system. in the
August Budget the Commonwealth embarkedo6n-anew five year
program of hospital funding. Totalling $ 3 billion this year
and to be increased by some $ 1.1 billion over-the next five
years, this', program will be devoted*, to providing a more
modern efficient hospital system:
In addition, a new three year $ 175m Hospital. Enhancement
Program starts in conjunction with the States this financial
year. These funds will assist public hospitals to acquire
new equipment so as to provide better services to those who
need them.
11l these initiatives represent the central thrust of the
Government's approach to health policy.
However, there is another side of health policy which is
becoming increasingly important, as pressure builds on the
use of resources within the health system. I refer to the
area of preventative health measures.
Prevention is better than cure yet for too long, too many
Australiansliave undergone the cost and the suffering of
preventable diseases.
In the last Budget we commenced a National Better Health
Program, to be cost-shared with the States and Territories,
which is aimed at demonstrating that good health can be
enhanced by adopting a commonsense attitude to the way we
lead aur lives and especially through attention to
nutrition, preventable cancers and injuries.
It would not be appropriate to conclude even this cursory
survey of health policy without acknowledging the efficiency
and effectiveness of Medicare, Medibank Private and the
Health Insurance Commission.
By continually striving to improve its efficiency the
Commission makes a vital contribution to ensuring all
Australians have access to the best possible health
insurance at the lowest possible cost.
Despite its size, the HIC operates Medicare at a high Level
of efficiency measured both in terms of short turnaround
times in handling Medicare claims and in low administrative
costs. This efficiency is reflected in consumer
satisfaction people know and trust Medicare for its
service and reliability.
Medibank Private, too, can boast a proud record of
efficiency and effectiveness, Starting from nothing on I
October 1976 Medibank Private is now the largest and
arguably the strongest health insurer in the community. it
has achieved remarkable growth rates in membership and has
developed substantial reserves. By March of this year, its
market share for hospital membership was over 26 per cent
and total reserves stood near $ 250m equivalent to more
than five months of contribution income. 2853
As befits a government business enterprise those reserves
have been devoted to the public good. This has been
achieved, in part, by placing pressure on health insurance
premiums so as to ensure the lowest cost to the public
and, in part, with the construction of these new
headquarters. I would now like to declare the new headquarters for the
Health Insurance Commission open and wish all who will use
it continued success in their operations.
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