2CC Breakfast

Subjects: Health insurance rebates, PM's Four Corners interview.

Transcript, E&OE

15 February 2012

MARK PARTON: Not long before the bells go in Federal Parliament. We are joined, as happens regularly on a Wednesday morning, by the Federal Trade Minister Dr Craig Emerson. Hello Craig.

CRAIG EMERSON: G'day Parto.

PARTON: There's been a lot of discussion about private health cover on this program this morning, and suggestions this morning that 44 per cent of health fund members slugged by this new means test on their rebate will downgrade or drop the cover if the government subsidy is cut in July. You'll be hoping that that's not the case, won't you?

EMERSON: Treasury's done a fair bit of work on this and their modelling suggests that 99.7 per cent of policy holders will keep their cover.

PARTON: Really?

EMERSON: Yeah, 99.7 per cent. Remember that this applies to individuals earning $83,000 or more — $166,000 for couples — so it really is directed at the higher income end. So that's the modelling and it's estimated to save $100 billion over 40 years, and that's important in terms of managing the challenges of an ageing population. We want people to get older in Australia but it does present its challenges and this is an important measure.

PARTON: 'Radaust' listening this morning, he sent us a message on Twitter. He said 'my family grossed $166,000. I pay high tax and I fund my own private health cover. I will leave the health fund and use the taxpayer public system.' He says 'it's fine for people to criticise those on $166,000 plus, but remember we got here by hard work and study, not whingeing and welfare.'

EMERSON: And no-one is criticising people for earning $166,000 plus. Any private health cover that is taken out by that particular fellow actually has a 30 per cent subsidy, so yes he funds it and that's great, but taxpayers fund 30 per cent of it. And that includes taxpayers who are doing waitering around the shops of Canberra, who do cleaning, who do lots of low income work: they are subsidising, to the tune of 30 per cent, the private health insurance premiums paid by that particular bloke.

PARTON: See, the crazy thing here is that I actually agree with what you say Craig, if those stats are true. If this doesn't have a marked effect on the number of people in private health insurance, well then I would be willing to say 'ok, this is the right way to go.' But I don't believe this suggestion that 97 per cent are going to stay where they are. I just think there's going to be a huge shift.

EMERSON: In fact, the modelling says 99.7 per cent…

PARTON: Yes…

EMERSON: …and remember…

PARTON: Craig, that's rubbish. They're….

EMERSON: Well, with respect, you haven't seen any of the analysis and I would hope that you'd recognise that the overwhelming majority of Australians aren't affected by this. It is a means test and therefore doesn't apply to all Australians, it doesn't apply to low income earners, it doesn't apply to the majority of Australians. So to suggest that 44 per cent of Australians would drop out of private health insurance — if in fact, that was the suggestion, and I may have misheard it — would be wrong, because it won't affect the majority of Australians. It won't affect the majority of Australians with private health insurance.

PARTON: Craig, I know those bells are going to go shortly. Have you been fascinated in the last couple of days with the number of Australians that have been so intrigued with the inner workings of your Party that they sat there for half an hour and watched that Four Corners program on Monday night?

EMERSON: I don't know what the audience was actually. But for me, Mark — you're probably aware from our previous discussions — I came into parliament for policy, policies for a better Australia, a stronger Australia, a fairer Australia. We're doing great things in the education area, for example, to make sure that disadvantaged kids get a good education. And there's been a lift — I think 220,000 university places have been offered this year - which is a record. These are the good sorts of things that Labor is doing. The other stuff is a distraction, that's true. But I am absolutely determined not to be diverted from what I am doing and that's true of the whole Cabinet. We're just working away on the policies that we need to strengthen the economy and make sure, Mark, that those benefits of the mining boom are fairly shared.

PARTON: And no challenge?

EMERSON: Well, I'm just — no, there's no challenge. And I'm frankly not interested in all the drama and intrigue. If people want to watch Four Corners about that sort of stuff, they're entitled to, but I think what the Australian people want, what they expect, and what they are getting is policies for a better country, policies for a fairer country. You know, we do actually have the strongest economy in the developed world, but we can share the benefits of that growth more fairly and that's what we're determined to do.

PARTON: Here come the bells. Thanks for your time this morning, appreciate it.

EMERSON: Okay, Mark. Thanks for having me on the show.

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