No further scrutiny of Medibank sale

The Senate committee report into the sale of the Commonwealth's equity in Medibank was tabled on Monday. That means there’s just one step left – a vote of the Senate later this week (on November 30 National Day of Community Protest).

Liberal and National Party Senators have put their full support behind the privatisation, the ALP is opposed to privatisation, but the Government will use its numbers to push the sale Bill through.

Government rubber stamp: The Howard Government is committed to the sale of Medibank if it wins the next Federal election, even though it has not thoroughly investigated the impact of the sale on the community. There will be no avenues for parliamentary scrutiny or review of the sale Bill beyond this week.

Dept Finance & Administration dilemma: The Opposition Senators remarked at the lack of cooperation and response received to questions taken on notice from DoFA.

The Report states:

"... this apparent delaying strategy has merely compounded our concerns that the Government is withholding information relevant to Medibank's sale".

Fair treatment of Medibank employees? The Government is unable to give any assurance that current Medibank employees will not lose their jobs and fails to make a logical connection between job security and so-called 'Australianness' provisions which cap foreign ownership for five years. There is no restriction on permanent foreign ownership.

Fair treatment of Medibank members? Opposition Senators are concerned at the cloud which hangs over the legalities of the sale and the existence of credible evidence of members' rights to compensation.
Even though the Government committed to include some 'sweetener' for existing fund members in the sale plan, it did not put any detail into the sale Bill, making any promise unenforceable.

Profits at the expense of service and quality? The Senate Inquiry heard arguments that a 'for profit' Medibank would put shareholder interest ahead of Medibank member interests. Specifically that cost-cutting would lead to a reduction in member benefits, the number of services and quality.

A 'for-profit' Medibank would also lose its 'tax-exempt' status, which Prof John Deeble argued "has held premiums down". The AMA also saw increased tax payable as creating a "financial black hole which would require filling... through increased premiums or reduced members benefits."
Will health consumers be worse off? CPSU Assistant National Secretary and Save Medibank Alliance spokesperson Margaret Gillespie is quoted in the Opposition Senators' Report as saying private health insurers will act with less regard to consumers' interests:

"We do not believe that Medibank Private is just another asset for a government to sell. We believe it is a living part of our own health system... it helps keep the whole system balanced and afloat."

View the list of politicians who signed the Save Medibank pledge to vote against the sale Bill:

View the list of politicians who signed the Save Medibank pledge to vote against the sale Bill:

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Last Modified: Wednesday, 29-Nov-2006 16:22:56 EST