Turnbull vows to block health rebate changes

14 May 2009, 7:31 pm   -   Source: AAP/SBS
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Opposition leader Malcolm Turnbull has delivered his response to the federal government's budget for 2009/20010. (AAP)

Opposition leader Malcolm Turnbull has delivered his response to the federal government's budget for 2009/20010. (AAP)

Opposition leader Malcolm Turnbull says the coalition will oppose the government's bid to slash private health insurance rebates.

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The federal opposition will vote against the government's bid to slash private health insurance rebates, Opposition Leader Malcolm Turnbull says.

Responding to Treasurer Wayne Swan's budget speech, Mr Turnbull said instead of means-testing the rebate, the government could raise $1.9 billion by lifting tobacco tax by 12.5 per cent, or three cents per cigarette.

"The changes to the private health insurance rebate are just the latest phase in Labor's unrelenting war against private health insurance," he told parliament on Thursday".

"Labor hates private health insurance," Mr Turnbull said. 

Prime Minister Kevin Rudd promised before the 2007 election that he would not change the rebate.

"So there's a tough choice for a weak prime minister," he said.

"Raise $1.9 billion by making health more expensive and putting more pressure on the public hospital system or by adding about three cents more to the price of a cigarette and taking pressure of the public health system."

Mr Turnbull said Labor had increased debt levels by $124 billion since its election in November 2007, leaving every man, woman and child each owing $9,000.

 Budget 'offers no way out of economic gloom'

 He dismissed Tuesday night's budget with its $57.6 billion deficit and forecast of a return to growth in two years and to surplus in six years as unbelievable.

"There will come a time when Australians will look wistfully at $188 billion of debt and ask not when our debt will rise to that peak, but when it will descend to it," Mr Turnbull told parliament.

He said that within two or three years debt levels would increase to $250 billion or even $300 billion.

If elected, Mr Turnbull said the coalition would increase scrutiny of government finances and the budget process by setting up a Commission for Sustainable Finances to review commonwealth spending.

"The alarming expansion of spending under Labor makes this vitally important," Mr Turnbull said. "Annual spending is projected to rise from $272 billion in 2007/08 to $342 billion in 2010/11 - the largest three-year increase since the mid-1970s."

The coalition would also set up a Parliamentary Budget Office which would provide independent analysis of the budget on behalf of the parliament.

"Governments never welcome greater scrutiny, and so I'm under no illusion that this proposal will be greeted with any great enthusiasm by the prime minister and the treasurer," Mr Turnbull said.

He said only a coalition government could take the tough decisions needed to return the budget to surplus.

"We have a prime minister yet to make a tough decision, who wants always to be Santa Claus and we, and our children and perhaps their children after them, will be paying the bill for that for many years to come," Mr Turnbull said.

He said Labor's budget measure to means test access to the private health insurance rebate for singles earning more than $74,000 and families with combined incomes of $150,000 would put public hospitals under increased pressure and make health more expensive.

"The government could comfortably afford to retain the current private health insurance rebate without any cost to the published budget outcome," Mr Turnbull said.

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