Mr STEPHEN SMITH (2:00 PM) —My question is to the Treasurer. Is the Treasurer aware that the government's own calculations show that, if the Pharmaceutical Benefits Scheme copayment is increased from $3.60 to $4.60, pensioners and concession cardholders will be forced to go without almost five million scripts for essential medicines? Treasurer, doesn't this show that the government's proposed 30 per cent increase in the cost of essential medicines will mean that many Australians under financial pressure will have no choice but to skip their medicines and, as a consequence, need far more expensive medical care down the track?

Mr COSTELLO (Treasurer) —I thank the honourable member for his question. The answer is no, of course.

Mr Stephen Smith —No? You don't know what the answer is.

The SPEAKER —The member for Perth has asked his question. The Treasurer has the call.

Mr COSTELLO —The copayment for the Pharmaceutical Benefits Scheme was introduced by the Labor Party. It was introduced on the grounds that the Labor Party said then—and it was right—that it was important to have a copayment to make this a sustainable scheme. It was supported by the coalition. That good policy could never have occurred had it not been for the support of the coalition. The cost of medicines, obviously, is much greater than $3.60 or $4.60. If the cost of medicine is $100, $200 or $1,000, a pensioner will still be entitled to buy it for $4.60. What is more, after 52 scripts—that is one a week—it is free. So the $1 increase can amount to no more than a cost of $52 per annum. From memory—I will check this later on—the average number of scripts in a year is something like 19. So for the average person the cost will be something like $19.

This government has indexed pensions to the male total average weekly earnings, so that pensions are rising faster than the consumer price index. They are rising in line with wages, which are outpacing the consumer price index. Pensioners are protected against prices and the value is actually increasing. This is a fair proposal. It is a proposal which, when the Labor Party had some leadership, it used to support. It is a proposal which the Labor Party now seeks to oppose out of cheapjack opportunism. The government is putting in place the changes which will make this a sustainable system, and those that care about having a sustainable Pharmaceutical Benefits Scheme will be voting for that budget proposal.

Mr Stephen Smith —I seek leave to table advice from the Department of Health and Ageing which shows almost five million concession scripts going unfilled as a result of the government's proposed 30 per cent increase in the cost of essential medicines.

Leave not granted.