Senator Brown asked the Minister representing the Treasurer upon notice, on 7 June 1999:

(1) When the Assistant Treasurer approved Sun Healthcare's entry into Australia in August 1997 was the Assistant Treasurer advised of the incongruity between the claims of inadequate staffing and substandard quality of care in Sun Healthcare's American facilities on the one hand, while Sun Healthcare's chairman claimed there was plenty of money in the system.

(2) What steps were taken by the department and the Assistant Treasurer to satisfy themselves about the quality of care issues prior to approving the entry of Sun Healthcare into Australia in August 1997.

(3) What steps does the Government plan to take to protect Australians from the business practices of this company now that the serious problems consequent to Sun Healthcare's business practices have been exposed by a United States Senate hearing, concerned citizens and the press in the United State of America.

(4) Does the Government plan to modify the process for approving the entry of multinational heath care corporations into Australia in the light of experiences with National Medical Enterprises (now called Tenet Healthcare), Generale de Sante Internationale, Columbia/HCA and Sun Healthcare.

Senator Kemp (Assistant Treasurer) —The answer to the honourable senator's question is as follows:

(1) No.

(2) Extensive consultations were undertaken by the Department on behalf of the Government.

(3) A proposal by Sun Healthcare to acquire additional businesses or shares in Australia would be subject to an examination process with the relevant State/Territory Governments and Commonwealth agencies being consulted.

(4) Under the present arrangements the State/Territory health authorities have sole responsibility for the licensing of private hospitals. This includes the responsibility to assess an applicant's suitability to hold such a licence. The issue of a Commonwealth provider number for private health insurance purposes is contingent on the facility possessing such a licence.

In examining proposals for foreign interests to invest in Australian health care the Foreign Investment Review Board will continue to consult with State/Territory Governments and other relevant authorities.