Senator PAYNE —My question is to the Leader of the Government in the Senate, Senator Hill. A key commitment of the government during the recent election campaign was to give all Australians a 30 per cent rebate if they took out private health insurance—the equivalent of around $750 for an average Australian family. Will the minister outline the benefits of this measure to Australia's health system in addressing the serious decline of private health insurance which the Labor Party comprehensively failed to address in its 13 years of government?

Senator HILL (Environment and Heritage) —Yes, the Labor Party continues its ideological prejudice against private health care—in stark contrast with the position of the government. The government is committed to a strong public health sector, and it demonstrates that by its record $31.3 billion of funding for public hospitals over the next five years. It is also committed to a strong and healthy private sector in relation to health. A key plank in ensuring that we can maintain that health in the sector is the 30 per cent rebate which was promised at the last election.

We need to reflect upon what the situation was when we came to government. Because of Labor's prejudice against private health and its policies inaction, the situation was very poor. In fact, in 1983 when Labor came to government, 70 per cent of Australians had private health insurance. Thirteen years later, it had been reduced to 35 per cent. The cost of premiums under Labor increased by an average 12 per cent. Between 1986 and 1988 they went up by a staggering 40 per cent. They left 100,000 people on waiting lists. This was the lamentable state of private health care in this country when the coalition came to government.

We implemented initiatives to remedy the situation. I am pleased that it is now said that if we had not taken those initiatives in the last term of government a further 200,000 Australians would have left private health care. So the steps we took certainly did not achieve everything we would have wished of them, but if we had not taken them—and they were opposed by Labor—the situation would be in dire straits today.

We have said that we need to build on those initiatives by the promise we made, and that is to give a 30 per cent rebate—something that Australians have constantly said that they need more than anything else to encourage them to take out private health care or to remain in private health care. By their doing so, by their remaining in private health care, pressure is taken off the public health system and all Australians are enabled not only to have the benefits of choice but to be better assured of having the highest quality health care that Australia can afford. That is why we are committed to this initiative. We regret Labor's attitude to it. I would only say to Labor that perhaps they should again listen to their former health minister, former Senator Richardson. He said the other day:

I wish Labor would stop this silly notion that it doesn't matter if private health care collapses.

Most Australians would like to see Labor stop this silly notion that it does not matter if private health care collapses. They would like to see Labor finally stop being so negative and come out and say, `This is a reform that is well worth while and well deserving of support; a reform that you took to the Australian people at the last election and a reform that we will therefore let you implement during the course of this session.' This is the opportunity for Labor. Stop being so negative; stop the carping. Take the opportunity to come onto the positive side and support this government by providing an initiative that will enable so many Australians who want to remain in private care to be able to afford to do so.