Senator CRANE —My question is to the Minister representing the Minister for Health and Family Services, Senator Herron. The minister will be aware of media reports recommending an increase in the Medicare levy. I ask: how does this compare with the government's existing policy and what impact would this increase have?

Senator HERRON (Aboriginal and Torres Strait Islander Affairs) —I thank Senator Crane for the question, because it is a good question, unlike the questions that we have received this afternoon from the other side. The Howard government is committed to action to restore a sense of balance between public hospital care and the private health care sector—something that the Labor Party tried to destroy when it was in office.

I see Senator Crowley is looking at me. I have to admit that I have been going through the Crowley files. On 1 June 1994 I asked a question of Senator Crowley when we were in opposition. I asked her about private health insurance, just as Senator Crane has asked me today, and Senator Crowley said:

I think this is important to say at this stage there is no evidence of a crisis at all—none. . . For a start, a number of the people dropping out of the private health insurance system are people who are young and healthy. . . Secondly, in any event Medicare grants have been increased substantially since 1 July 1993. They are indexed for population growth and there is a commitment to review if there is a significant shift in demand from the private to the public health sector.

We have slowed the dramatic drop in private health insurance produced by the Labor Party. It was Labor that allowed private health insurance membership to collapse. When they came into office in 1983, about 70 per cent of Australians carried private health insurance and when they left office it had halved; it was around 34 per cent. That is why there is so much pressure on the public health system.

When Senator Crowley said that it was young people who were dropping out of the private health insurance system, the only categories are those under 65 and those over 65, and that has not changed. I gave Senator Crowley that evidence three years ago and she still believes it is young people getting out. I can tell Senator Crowley that nothing has changed. They are still 65 and under and 65 and over.

At least 1.2 million people are now benefiting from the incentives that we put in. We have slowed the decline by offering a $450 incentive to families to take out or maintain private health insurance. What the people of Australia need to contemplate is what would happen if Labor were to get back into government. Labor wants to abolish the $450 rebate. They have a policy; they are going to dismantle ours, just as they abolished the rebates when they first came into office in 1983. Madam President, you will recall me talking about the abolition of private hospital rebates. They did that in 1983 and look what happened.

In fact, Kim Beazley actually wants to jack up Medicare fees to fix the problem if he is elected. This is what Labor's health spokesman, Michael Lee, told the Nine Network last week:

I think that right now ordinary people will be prepared to pay a slightly higher level of taxation if someone could guarantee that their extra federal tax or their extra state tax could be directed into the public hospital system.

At least this is not blatant, but it is a little sly admission that under Mr Beazley Labor will increase the Medicare levy for every taxpaying Australian—the high tax, high expenditure, old Labor party policies again. You would think they would take notice of the new guru, Mr Mark Latham, or Lindsay Tanner, who said in May last year:

. . . we must avoid becoming economically irrational, lapsing into mindless populism, recycling the policies of the 1950s and defining ourselves by what we don't like.

I hope Senator Schacht reads Mark Latham's book because I have no doubt that he is reflecting those views, too. It is about time something like that occurred and that, instead of recycling the old policies and negatives that have been going on in the Labor Party, they get a few new ideas and come up with some policy that will benefit the Australian public, rather than trying to pull down the Australian public by raising taxes and cutting rebates. (Time expired)

Senator Alston —Madam President, I ask that further questions be placed on the Notice Paper .