Medibank to rake in up to $5.5bn: Cormann

Agriculture Minister Barnaby Joyce has defended Mathias Cormann bringing some colourful language into the budget debate.

Minister for Agriculture, Barnaby Joyce

Agriculture Minister Barnaby Joyce (Pic) has defended Mathias Cormann in the budget debate. (AAP)

The politics of economic and budgetary matters can be as dry as toast.

So Agriculture Minister Barnaby Joyce for one was pleased to see his government colleague Mathias Cormann bring some colourful language to the debate.

The finance minister last week described Opposition Leader Bill Shorten as an "economic girly man" for opposing the budget, a term Labor said was an insult to young women.

Opposition employment spokesman Brendan O'Connor went further, saying Senator Cormann doesn't have to sound like a "dickhead" if he wants to make a point.

But Mr Joyce, renowned for his own colourful barbs, believes you can over-analyse such things.

"You're either boring as bat-poo ... but as soon as someone is themselves, they say `shock, horror, you can't have that - go back to being boring'," he told reporters in Canberra on Monday.

Senator Cormann was dealing with the more serious business of the coalition's long time commitment of selling health insurer Medibank Private on Monday.

The sale is now estimated to raise $5.5 billion, which will be used to fund its asset recycling initiative.

That provides states and territories an incentive to sell off assets and use those monies to re-invest in productivity enhancing infrastructure, like roads.

Australian retail investors will be able to apply for shares from October 28 at an indicative price range of $1.55 to $2.00 per share.

"A price cap for retail investors means that Australian residents who choose to apply for shares will not pay any more than $2.00 per share, even if the final price is set above the indicative range," Senator Cormann said in a statement.

This budget initiative aside, at least $18 billion in government savings otherwise remain unlegislated.

The independent Parliamentary Budget Officer Phil Bowen has also warned there was a "reasonably uncertain international outlook" which would affect revenues.

"That is not helped by international conflicts and of course concerns about the Ebola epidemic," Mr Bowen told a Senate estimates hearing in Canberra.

He said there is a risk that commodity prices could fall faster that predicted and have a negative impact in the short-term on the budget.

"I'm not crying wolf or trying to inject a flavour of panic - I am simply talking about the need for sensible budget management which does include building a sensible buffer against such shocks," he said.


Share

3 min read

Published

Updated


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world