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Fielding won’t back private health shake-up

News Clippings February 03 2010

But the Nationals leader in the Senate says that won’t happen - at least not yet.

The opposition has vowed to sink the reforms in the Senate a second time.

Senator Joyce last month urged the coalition to retain an “open mind”, prompting Health Minister Nicola Roxon and Finance Minister Lindsay Tanner to write to him this week.

In their letter they argue the reforms will save $2 billion over the next four years and $9 billion over the next decade.

But any hope Labor had of swaying Senator Joyce was quashed on Tuesday, with the Queenslander declaring he’d toe the party line.

Senator Joyce said Prime Minister Kevin Rudd’s suggestion the reforms could save $100 billion by 2050 was “plucked out of thin air because it sounds big”.

He said ultimately if Labor’s debt kept ballooning “you’ve got to consider everything”.

“You can never rule things out forever,” Senator Joyce told AAP.

But he was emphatic the situation wasn’t so bad right now that he’d vote with the government.

“No, I won’t, not in the next few months,” he said.

Under the government’s plan, the 30 per cent private health insurance rebate will be means tested and reduced for individuals earning more than $75,000 a year and couples earning more than $150,000 a year.

In a double whammy, the wealthy will also be hit with a higher Medicare levy surcharge if they opt out of private cover.

The Senate voted down the reforms in September. Labor then reintroduced the legislation late last year.

The government will bring on debate in the lower house on Wednesday.

The proposed laws are expected to be debated in the Senate later this month.

Opposition Leader Tony Abbott insists the coalition will use its numbers to sink the legislation a second time because it’s “class war” and “the politics of envy”.

Labor is also breaking a 2007 election promise, Mr Abbott said.

But Ms Roxon, backing her boss, insisted the opposition would cost future generations $100 billion by 2050 if it blocked the bills.

“We’ve been saying ... since the budget last year that it will be nearly $2 billion of expenditure in the next four years, $10 billion in the next 10 years, and this ($100 billion figure) is just a further projection,” the health minister told ABC Radio on Tuesday.

“What it shows is the cost of providing assistance to very high income earners grows significantly over time.”

Without the coalition, Labor needs the support of the entire cross-bench to get its legislation through the Senate. That’s not going to happen.

Independent Nick Xenophon believes Labor should be held to its election promise not to cut the rebate.

Family First’s Steve Fielding still wants the government to take account of the number of children a family has when means-testing the rebate.

A spokesman said there had been no negotiations since last year.

And the Greens want the bills split so they can support reducing the rebate but vote against raising the surcharge.

A spokesman said that position “still stands” until a party room meeting in the next few days “to make a final, up to date decision”.