Senator ELLISON (Parliamentary Secretary to the Minister for Health and Family Services and Parliamentary Secretary to the Attorney-General)(9.07 p.m.) —At the outset I would like to thank the senators from the opposition for their contribution and Senator Allison from the Democrats for her contribution. I can confirm that the government will be moving the amendment mentioned previously, which will reinstate hearing services in the 18- to 21-year-old group. I can also confirm that the government will be opposing the amendment which, I understand, will be moved by Senator Forshaw. I will advance the reasons for that during the committee stage.

The government is not being mean-spirited, as Senator Neal has stated. Senator Neal fails to mention that, in this recent budget, the government announced extra funding of $2 million for cochlear implants for profoundly deaf children. That was not something we went to the election with; that was something we saw a need for in the community. There are just under 400 young Australians who could lead a normal life with such an implant and funding was provided for that. Senator Neal also does not mention the mess that we found the finances of this country in when we took power or that we had to take steps to make sure that the deficit, which had blown out to $10 billion, was addressed.

Let me deal specifically with the matters that were raised by the opposition. Senator Forshaw made the statement that the government was not supporting AHS as being cost effective. The government believes that AHS has done a good job in improving standards throughout the hearing services industry. But that does not mean that things should just stay forever there. There are better ways and the government is pursuing this.

The government will retain the same level of monitoring in standards as in the present system. It will remove the conflict of interest between the AHS providing a regulatory service whilst also being a service provider itself. What the government proposes is that there will be an office of hearing services, which will oversee the voucher system. The AHS will be free to compete with the private sector on an equal footing in relation to the provision of health services. This competition will improve the system and will allow consumers that all important free choice between service providers. That can only mean a benefit for the people of Australia. There will be no diminution at all in the provision of hearing services. There will not be the harsh consequences for those people under 21 that were mentioned because, as I said, the government will be moving that amendment.

It is not just the opposition who can say that they thought this amendment was important because I notice that the Democrats alluded to that very amendment themselves, as did the chair of the committee, Senator Knowles, from the government. It was recognised universally by the members of the committee, by people who gave evidence and also as a result of consultation carried out by the government that the amendment was necessary.

I acknowledge the frankness with which Senator Forshaw admitted that the previous government was no stranger to corporatisation or privatisation in any way. I refer to the federal airports, Australian Defence Industries, the Commonwealth Bank, Qantas and Telstra. There was a definite corporatisation spirit in the opposition when it was in government. Therefore, I fail to see how it can say that corporatisation here is such an evil thing, especially when it will provide consumers with a choice. That entirely destroys the argument of the opposition.

The two bills that we have before us deal not only with the Australian Hearing Service but also with the Australian Government Health Service. Senator Allison mentioned that the AGHS had been given the job of screening for asbestosis in marine seamen who were involved in the last war. The AGHS won that on a full cost recovery, competitive basis and there is no reason at all to assume that, under the new system, the AGHS will not be able to fulfil that function in the future. It will, of course, continue with that screening.

These measures are innovative. They will provide competition in both the health and hearing services. They will give the people of Australia a choice of provider. The AHS will retain its charter to service children, those people who fall into special categories and, in particular, those people living in rural and remote areas such as Aboriginal and Torres Strait Islander communities. So there will be a safety net there.

Perhaps the other aspects which are more detailed can be dealt with during the committee stage. I would commend this bill to the Senate.

Question resolved in the affirmative.

Bill read a second time.