Mr HOCKEY (2:45 PM) —My question is addressed to the Treasurer. Will the Treasurer confirm Treasury estimates that nearly half a million Australian adults will leave private health insurance as a result of the government’s proposed changes to the Medicare levy surcharge? Will the Treasurer also confirm that there is no compensation to the states in the budget for the massive additional pressure this will place on the public hospital system?

Mr SWAN (Treasurer) —No, I cannot confirm any of the numbers used by the member who asked the question, but I can certainly confirm that, by the actions of the opposition in the Senate, you are going to hit two income earners in a household on average earnings something like $1,200 in total by denying them this tax relief, Mr Speaker, and you are going to do that precisely at the time that they have finally got a bit of relief in terms of the Reserve Bank decision to cut interest rates. They are getting the money in one pocket and you are taking it out of the other, Mr Speaker—

Mr Tuckey —Mr Speaker, I’ve got to protect you. He’s accusing you of all sorts of things.

The SPEAKER —The member for O’Connor will resume his seat.

Mr SWAN —When it comes to discussions with the states and these matters are discussed—

The SPEAKER —Treasurer, I was going to say to the member for O’Connor that I understood what his point of order was. The Treasurer should address his remarks through the chair.

Mr SWAN —These matters are discussed with the states via the COAG process, but we do not for a minute accept some of the estimates that are floating around about the impact on the public hospital system that are suggested by the member who asked the question.

But I have got a suggestion for those opposite: the former Prime Minister Mr Howard will be in the House tonight and I know they will be lining up to suck up to the former Prime Minister—

Opposition members interjecting—

The SPEAKER —Order! The Treasurer will resume his seat.

Mr Robert —You’re a grubby little man, Swan!

The SPEAKER —Order! The member for Fadden.

Mr Robert interjecting—

The SPEAKER —The member for Fadden is warned! The Treasurer will be heard in silence.

Mr Abbott —Mr Speaker, I rise on a point of order. If under the circumstances of the parliament it is unparliamentary to talk about the ‘dud Rudd government’, surely it is unparliamentary to talk about sucking up to people in this chamber.

The SPEAKER —Order! The member for Warringah will resume his seat. The Treasurer has the call.

Mr Abbott —Mr Speaker, I rise on a point of order. I know most members on this side have thick skins, but I do not and I find it offensive and I would like it withdrawn.

The SPEAKER —The Treasurer, on behalf of the member for Warringah, will withdraw on behalf of the member for Warringah.

Mr SWAN —I withdraw. Perhaps tonight when they are attending this function—

A government member—Kowtowing!

Mr SWAN —bowing—

A government member—Scraping!

Mr SWAN —scraping—

The SPEAKER —Order! The Treasurer will get to responding to the question.

Mr SWAN —Perhaps they would like to ask the former Prime Minister why he left the Medicare surcharge levy at such a low level for so long, because it was never designed to apply to income earners on average incomes. For 12 long years the former Prime Minister and the former Treasurer punished all those average income earners with the surcharge. Now that relief is in sight, what are they going to do? They are going to take it away. They have not got a clue what life is like for people who are living out there under price pressures—not a clue, because if they did they would not be taking this action in the Senate. We stand for providing relief to those on average incomes. We have delivered the tax cuts. There is now some interest rate relief and there was further relief on the way, and they are going to block it. They will pay a very high price for that.