Medibank PR a waste of money: Labor

The government's decision to hire spin doctors for the possible sale of Medibank Private proves it has decided on the privatisation, says Labor.

Federal Labor has accused the coalition government of wasting taxpayers money by paying spin doctors thousands of dollars to spruik the sale of Medibank Private.

Newgate Communications has been hired to devise a communications strategy for the sell-off of the government-owned health insurer, with Fairfax Media reporting they are being paid $2000 a day.

The government has appointed investment bank Lazard to do a scoping study into the possible privatisation of Medibank.

Finance Minister Mathias Cormann insists no decision has been made about the sale.

But Labor's health spokeswoman Catherine King said the appointment of Newgate Communications showed the government had already made up its mind to privatise the health insurer.

Spending $2000 a day to sell the privatisation was simply the most "extraordinary" government waste.

"They'll pay $2000 a day for a spin doctor, but they won't support Toyota jobs," Ms King said in a statement.

"This shows how warped this government's priorities are."

The Australian Greens say the sale proceeds should be returned to the health system.

The government cared much more about spin doctors than about giving ordinary Australians access to their family doctor, health spokesman Richard Di Natale said.

"Tony Abbott needs to commit ... every cent of that revenue is re-invested in the health system so it is easier for people to see a doctor ... get access to a hospital bed," he told reporters in Canberra.

Labor's Amanda Rishworth said the sale of Medibank "doesn't seem like it is up for debate".

"The government hasn't made the case of why they need to sell Medibank Private," she told reporters in Canberra.


2 min read

Published

Updated

Source: AAP


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