FED: States want an excuse to do nothing on health PM

AAP General News (Australia)
08-06-1999
FED: States want an excuse to do nothing on health PM

By Rod McGuirk

CANBERRA, Aug 6 AAP - A Productivity Commission inquiry into Medicare would be an excuse
for governments to do nothing about public health problems for the next 18 months, Prime
Minister John Howard said today.

Mr Howard repeated his refusal to hold such an inquiry into the health system despite an
unanimous request last month from the states and territories.

"It will be an excuse for all governments around Australia to say: 'Oh we can't respond to
that idea because we're waiting on the results of an inquiry," Mr Howard told Melbourne radio
3AW.

"The Australian public gets very cynical of governments who have another inquiry into
something - I think that is just an excuse for putting off doing anything about some of these
issues."

New South Wales Premier Bob Carr and South Australian Premier John Olsen are canvassing
support for a state and territory-driven inquiry if the prime minister refused to relent on a
Productivity Commission investigation.

Tasmanian Premier Jim Bacon said he would seriously consider the premiers' proposal, but
would have preferred to have acted with the commonwealth.

Opposition Leader Kim Beazley blamed Mr Howard and the Liberal premiers for the health
funding shortfall.

He said the premiers had dramaticly reduced public health spending while the federal
government channeled $1.6 billion into subsiding private health insurance premiums.

"The prime minister has effectively undermined the universal system by putting all the
resources that might have resolved the problems of the states ... into a failed policy on
private health contributions," Mr Beazley told journalists.

"Less than half the money would have dealt with the public hospital issue in this country."

Labor health ministers and opposition health spokespeople today called for a Senate inquiry
into public health including the health insurance rebate.

Federal health spokeswoman Jenny Macklin said she had asked Australian Democrats leader Meg
Lees for support.

Mr Howard said everyone seemed to hope a national inquiry would produce some easy solution
to the problems.

The solution that states and territories' wanted was the federal government handing over
more money for public hospitals, he said.

"I get worried there is a constant denigration of the health system," he said.

"There is not a crisis in Australia's national health system. There are problems."

Mr Howard said the states and territories were welcome to hold their own inquiry but
Medicare and private health insurance remained the responsibility of the federal government.

Mr Carr discounted suggestions that a review would hold no weight without federal backing.

"It would lead to recommendations that a federal government would have to take into
account," Mr Carr told reporters.

Meanwhile, the Australian Medical Association (AMA) today called on Australia's largest
health insurer MBF to cancel plans for an American-style managed care insurance scheme in
Queensland and New South Wales.

AMA president David Brand said the no-gaps scheme, which involves two-year contracts for
doctors, would almost certainly send 30 per cent of private hospitals to the wall and limit
treatment to patients.

AAP rmg/sc/arb

KEYWORD: MEDICARE NIGHTLEAD

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