Senator GIBSON (2:31 PM) —My question without notice is to Senator Herron, the Minister representing the Minister for Health and Aged Care. The Senate is well aware of the destruction Labor caused to the Australian health care system. Will the minister outline how the Howard government has strengthened Medicare, especially in rural areas? Is the minister aware of any alternative views which would undermine the right of every Australian to access Medicare, especially those living in rural areas?

Senator HERRON (Minister for Aboriginal and Torres Strait Islander Affairs) —I thank Senator Gibson for the question because I know of his vital interest in the financial stability and viability of Australia's health care system. Those on the other side are probably tired of hearing the great success that the Howard government has had with the revival of the Medicare system. As I have said previously, this government is the best friend Medicare ever had. On Monday we saw a great result with private health insurance, with the number of Australians covered now reaching above 40 per cent. Thanks to the Howard government's 30 per cent rebate and Lifetime Health Cover, the level of private health insurance is back to levels which existed in June 1992 just before Brian Howe's policies to dismantle private health insurance began to bite. This means that there are now 7.9 million Australians with private health cover, an increase of 9.1 per cent, or more than 1,700,000 Australians, in the past quarter. That is an unbelievably good and outstanding result. I have no doubt that each and every one of them would be incensed at Labor's plans to means test the 30 per cent rebate. At last we have had an inkling of a policy from the other side. Previously they were a policy free zone; now we have the implementation of a means test. The Australian Health Insurance Association's Chief Executive Officer, Russell Schneider, on Tuesday said of the increasing private health insurance—

Senator Cook —A well-known Lib.

Senator HERRON —As Senator Cook said, a well-done activity from private health insurance. He said:

That bears repetition. Russell Schneider said:

This gives me particular pleasure because when I first spoke in this chamber on 17 September 1990 I said the answer to our dilemma was to retain a publicly funded system for those who need help while providing incentive to individuals to care for themselves by having insurance. Russell Schneider is right: restoring the balance between public and private health insurance is but one part of fixing the mess—

Opposition senators interjecting—

The PRESIDENT —Order! The level of participation is unacceptably high.

Senator HERRON —We inherited a mess from the Labor Party when we came into government and we are making great gains. That is why they on the other side are so agitated. We have pulled the rug out from under their feet in relation to private health insurance because we have strengthened Medicare and our public hospital system. The health department estimates that the surge in private cover will mean an extra 400,000 treatments a year for people who are privately insured, a majority of them in the private system, thus taking pressure off our public hospital system. Our public hospitals are also benefiting from a 25 per cent increase in funding because of the Australian health care agreement signed by my colleague Dr Wooldridge and the states and territories in 1997. Since coming to office in 1996, we have implemented a number of initiatives to improve access to Medicare, including more than 800 national claiming facilities in addition to telephone claiming facilities. I am sure if Senator Gibson has a supplementary question, I could elaborate on the previous answer I have given him.

Senator GIBSON —Madam President, I ask a supplementary question. Would the minister further elaborate on the effect changes to the health system are having on people, particularly those in rural areas?

Senator HERRON (Minister for Aboriginal and Torres Strait Islander Affairs) —I thank Senator Gibson for his supplementary question because I wanted to talk about the effect changes have had on our rural hospitals and the ability of people to access Medicare through the 800 national claiming facilities in addition to telephone claiming facilities. Labor is totally unaware of the effect that private health insurance has on bush nursing hospitals, the lifeblood of so many rural communities, as my colleague Senator Macdonald knows.

Opposition senators interjecting—

The PRESIDENT —Order! There is too much noise in the chamber.

Senator HERRON —Madam President, I thank you for your intervention. It is quite simple: private patients make a significant contribution to bush nursing hospitals and in return the hospitals perform a largely charitable role in treating patients not privately insured. In other words, as the number of people with private health insurance grows not only does it relieve pressure on public hospitals and Medicare but also it enhances the contribution bush nursing hospitals are able to make to the communities they serve.