No good reason to keep Medibank: Cormann

Federal Labor believes the government's proposed sale of Medibank is a foregone conclusion but the finance minister says it still depends on a scoping study.

Sign on a Medibank building in Sydney

(AAP)

Finance Minister Mathias Cormann says the coalition has consistently supported the idea of selling health insurer Medibank Private, but it won't go ahead "no matter what".

Labor has attacked the government for hiring corporate spin doctors to draw up plans to promote the potential $4 billion-plus sale to the public, before receiving a scoping study on its viability.

Opposition health spokeswoman Catherine King said the appointment of Newgate Communications showed the government had already made up its mind to go ahead and privatise the government-owned business.

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

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

Senator Cormann said there was no good reason for the government to own a health insurer, noting its sale had been proposed as far back as the Howard coalition government.

"Obviously, we are not going to sell Medibank Private no matter what," the senator ABC radio on Wednesday.

Senator Cormann said the government was seeking advice on the sale through the scoping study, which is on track to report back by the end of February.

The study will cover a range of issues, such as market conditions, sale method, costs and regulatory factors.

"We'll then be able to consider that report in the context of preparations for the next budget," he said.

Australian Greens health spokesman Richard Di Natale said the government should commit any sale proceeds to the health sector.

"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.

Senator Cormann said the coalition doesn't have a policy to sell any other commonwealth assets.

But it has asked the commission of audit, which is reviewing public sector spending and efficiency, to assess whether there are other "sensible opportunities" for privatisation.


2 min read

Published

Updated

Source: AAP


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.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Watch now

Watch the latest news videos from Australia and across the world