Television interview with Minister Butler and Emma Rebellato, ABC News Breakfast – 5 December 2024

EMMA REBELLATO, HOST: Okay, let's get more on our top story now, the grim economic outlook, and bring in government frontbencher and Health Minister Mark Butler, who joins us now from Canberra. Minister good morning. Thanks for joining us this morning.

MINISTER FOR HEALTH AND AGED CARE, MARK BUTLER: Good morning, Emma.

REBELLATO: So these figures are pretty grim to say the least. Australia's economy is now at its slowest pace since the 1990s recession outside the pandemic. Is the government in trouble here? Do you expect to be Health Minister next year after the election?

BUTLER: I think yesterday's figures do reflect what the Treasurer and others in government have been saying for some time now. While our primary focus has obviously been on fighting inflation as all countries have been over the last couple of years, we've also been concerned about growth in the economy. Three quarters of developed economies have suffered negative growth at some point over the past 18 months, Australia hasn't. In part because of our very strong focus on getting that balance right between the fight on inflation delivering targeted cost of living relief to Australian households, while also keeping an eye on the risks to economic growth.

REBELLATO: But does the government have the balance right? We're hearing that government spending is really the reason why these figures are in positive, just positive territory. Is government spending just prolonging inflation?

BUTLER: This has been very targeted government spending. I would say the majority of it is state and local, but at a federal level, the bigger share of it is in defence spending. There's a whole range of different programmes that are essentially demand driven, like aged care and NDIS and the like, which are supporting families in a really important way. But we have got the balance right, I think. Our targeted cost of living relief is providing some relief to households, while not further putting pressure on inflation. The tax cuts that we delivered to every single taxpayer earlier this year have had a very positive impact on household incomes, as has the wages growth that we've been very focused on as well. Wages are growing for the first time in a decade.

Households are still doing it tough, there's no question, but just think about the counterfactual that was being argued for by the Coalition and some commentators as well earlier this year. They said we should have a slash and burn budget. We know now that had that happened, we would have been in negative growth and potentially at risk of recession.

REBELLATO: When it comes to household budgets one thing that a lot of households are looking at are health insurance. Now we're hearing that health insurers are going to be asking for quite a decent increase from the government next year. What can you tell Australians about what they might be facing?

BUTLER: We'll go through a very deliberate process of analysing the claims of health insurers. That will happen over the coming period. It happened 12 months ago when insurers sought increases of about 6 per cent and after a process that we went through, which was a bit of back and forth with me asking them to sharpen their pencils, we ended up at a position about half of that, which was a 3 per cent increase on average, which was less than inflation at the time. We'll go through that period over the coming couple of months again. I get advice not just from my department, but also from regulatory authorities who analyse the capital positions of insurers, how much of their income they're paying out in claims as a percentage. Your viewers can be very confident, I'm always looking at the interests of patients and insurance members first and foremost, while obviously recognising the need to maintain a viable private hospital and private health insurance system.

REBELLATO: I want to go back to health in just a moment, but while I have you, I want to ask you about the Australian grandmother, Donna Nelson, who's been jailed in Japan for six years. She maintains she's innocent and was the victim of a love scam. Can you tell me about the government involvement in this case and the continued involvement going forward? We heard from the family saying they'll continue to fight this one. 

BUTLER: This will obviously be a really distressing result for Ms Nelson and for her family and friends. Our government, through the usual consular pathways, has been providing support to Ms Nelson and the usual sort of consular assistance that you'd expect in a case like this. As Ms Nelson and her family decide upon next steps we’ll continue to provide that support, as I think all of your viewers would expect us to.

REBELLATO: Another issue overseas yesterday, the change in Australia's vote at the UN. Australia abstained for more than 20 years, but yesterday voted in favour of that UN resolution demanding Israel end its occupation of Palestinian territories. Why the change? Why now?

BUTLER: These are decisions that particularly Foreign Minister Wong takes very seriously and considers very seriously before we take them. We did so in pretty broad company, I might say, not just 156 other countries, but countries like Canada, the UK, New Zealand with whom we're maintaining a very close dialogue as we step through this dreadful conflict in the Middle East. Minister Wong did that carefully and in a way that she thought would contribute in the best way as a middle power, quite remote from the actual conflict to creating a climate for a two-state solution and that's what I think everyone wants here.

REBELLATO: Minister, let's go back to your portfolio of health and look at the Medicare Urgent Care Clinics. I know they continue to be rolled out across the country. What stage are you at with that and how many more to open?

BUTLER: We're up to about 84 open right now. We'll have 87 open before the end of this year. Some of them have only really been scaling up over recent weeks. But sometime this week we expect the millionth patient to go through an Urgent Care Clinic, every single one of whom has been bulk billed. We know they're delivering terrific urgent care to people. About 1 in 3 of them are kids under the age of 15 who have fallen off their skateboards and had a fracture or got injured at sport on Saturday afternoon, and who would otherwise be spending hours and hours with their mum and dad in a hospital emergency department. This is a program working terrifically well. It also has strong support from doctors. I noticed a poll earlier this week that said 70 per cent of GPs support this scheme, 80 per cent of them think it's providing really good relief for hospital emergency departments. We'll be opening another one in Tasmania later today. But they're delivering terrific results for patients and importantly, taking real pressure off hospital emergency departments that are under enormous pressure right now.

REBELLATO: If they're working so well, do you think you'd consider opening more?

BUTLER: My job as Health Minister is to continue to look at ways in which we can strengthen Medicare and deliver cheaper medicines. Things that we've done over the last couple of years are making a real, meaningful difference but it's still tough to find bulk billing doctors. It's still a health system under real pressure. After a decade of cuts and neglect and a once in a century pandemic, I'm always looking for ways in which we can do better.

REBELLATO: Health Minister Mark Butler, thanks for joining us on News Breakfast this morning.

BUTLER: Thanks Emma.