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THE HON TONY ABBOTT MP

Former Minister for Health and Ageing

Interview with Catherine McGrath, AM Program

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Minister for Health and Ageing, Tony Abbott, is interviewed by Catherine McGrath, AM Program, about the private health insurance rebate.

23 August 2004

Interview with Catherine McGrath, AM Program

E&OE

Presenter:
For the second week in a row the government has announced that health policies are likely to boost its electoral chances. The latest announcements are aimed at garnering support amongst older Australians who got nothing in the last budget. The announcement is from April next year that private health insurance rebate will increase from 30 to 35 per cent for people aged over 65 and for anyone over 70 it'll go up to 40 per cent. Already it's been criticised for not keeping pace with the rising costs of health insurance and Labor says it does nothing to help older Australians who don't have any health insurance. Health Minister Tony Abbott denies it's an election bribe and says it is all about improving health services. He's speaking here with chief political correspondent Catherine McGrath.

Tony Abbott:
Depending upon whether you're going to get the 35 per cent rebate or the 40 per cent rebate, it will be between $100 and $200 a year and about a million people, that's to say, people who are over 65 and who currently hold private health insurance will get the immediate benefit.

Catherine McGrath:
But that's hardly going to keep pace is it with the 7 per cent increase per year in the rate of private health insurance?

Tony Abbott:
Well, it's a good advantage and of course it demonstrates the government's commitment to private health insurance, a commitment which the Labor Party certainly doesn't share.

Catherine McGrath:
Does the electorate have a right to feel cynical though when just a week ago you announced an increase in the bulkbilling rebate for doctors in outer metropolitan and regional centres and now this week you're announcing suddenly new rebate for private health insurance for those over 65?

Tony Abbott:
Look, the government has done an enormous amount in health over the last nine or ten months and the thing about health is that it's a work in progress. Now we have an excellent system, an excellent Medicare system, an excellent private system, the systems complement each other but it's always a good time to put in place even better policy.

Catherine McGrath:
It sounds very election driven though doesn't it?

Tony Abbott:
Well, as I said, it's always a good time to do good things, it's always a good time to improve Medicare and it's always a good time to improve the private health insurance system.

Catherine McGrath:
Labor's arguing that this plan you've announced does nothing to help older Australian who can't afford private health insurance?

Tony Abbott:
Well, if it makes private health insurance a couple of hundred dollars a year less expensive then it's going to help people, obviously.

Catherine McGrath:
What about plans for those you can't afford them - have you considered that idea put forward by Catholic Health Care that the government take over the cost to provide beds effectively for those over the age 70?

Tony Abbott:
What we've done is what we've done and reducing the cost of private health insurance for older people by a couple of hundred dollars a year obviously is going to make it significantly more affordable.

Catherine McGrath:
Is there going to be something there for older people who don't have the private health insurance, though?

Tony Abbott:
Let's get this straight, Catherine. A lot of older people do have private health insurance. A lot of people on modest incomes have private health insurance. In fact, something like one million Australian with incomes of less than $20,000 a year have private health insurance and the measures that the government has put in place to make private health insurance more affordable have obviously facilitated that.

Catherine McGrath:
Now you're one of Ross Cameron's closest friends. You were out in his electorate last week. A poll in a Sydney newspaper on Sunday indicated a 4 per cent swing against him - what do you think the chances are for the Liberal to hold Parramatta?

Tony Abbott:
Catherine, I sense that the government's going well. I think that we're doing much better at our marginal seats then quickie polls suggest and I think that all our marginal seat Members have been written off by all sorts of polls over the years and it's amazing how they come back.

Catherine McGrath:
But for Ross Cameron himself - what hope has he really got of holding his seat when his whole credibility now is in question?

Tony Abbott:
Look, I mean obviously I'm a supporter of Ross, but I think there's been more than enough (inaudible) and speculation about Ross and I'm not just not going to add to it.

Catherine McGrath:
Did you encourage him to stay on, to stand at the next election?

Tony Abbott:
There is absolutely no question about Ross being the candidate and there has never been any question about that.

Presenter:
The Federal Opposition says contrary to the government's promise, the problem of welfare debt is not on the decline with more than 600,000 families to be hit with debts totally half a billion dollars. And Labor predicts another 150,000 families are likely to be saddled with debts because of childcare payments. And Labor claims the government will delay sending debt notices out to those families until after the federal election. Alexandra Kirk reports from Canberra.

ENDS