Abbott to sell Medibank

[i-need-a-martini]

There goes the benchmark that keeps our insurance premiums at a decent level.

I don't even understand why this is even necessary given that Medibank makes a profit? It's as if decisions are being made without any thought goig into it other than they promised to do it in 2007 so this is their way of punishing voters for not voting for them in at that time.

What other reason could there be?

http://www.smh.com.au/federal-politics/political-news/abbott-moves-towards-medibank-private-selloff-...

[spotweldersfriend]

I remember when banks used to give you interest on YOUR money.Now you get squat.

[crystal-gems]

gewens wrote:

Sorry, we can't. You might want to message people interested in the off-topic discussion to join the new topic. Remember that off-topic discussion will be locked.

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seriously........why does it matter?

Grizz, it matters to those posters who have to wade through pages of unrelated posts  to find a comment on the subject.of the thread.

[icyfroth]

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@tall_bearded wrote:

I think we need to take a step backwards and explore why statutory corporations were brought into existence in the first place.

In the dim dark but not too distant past is was accepted that it was in the national interest that the provision of some products or services was so fundamental to the wellbeing of society so that , (1) their cost to the consumer should never be determined by market forces (supply and demand and what the customer was prepared to pay); and/or, though the bulk of the product/service was to be provided by the private sector, public sector involvement was deemed necessary so as to create a leveller in the market.

The first category used to be known as essential services and included products such as, the provision of a postal service so that even the poorest in the community could keep in contact by sending and receiving letters, the generation and supply of electricity so that all could access it at a reasonable cost, the supply of potable water etc.  The second group comprised corporations which were Government owned and whose function it was to actively compete with like businesses in the private sector thus keeping prices within reasonable limits.  Corporations which fell within these category included the Commonwealth Bank, Telecom, Medibank etc.

Now the one thing all politicians, irrespective of political persuasion, won’t abide is being held accountable.  Therefore, that which holds them accountable must go and this, and not debt reduction, was the main reason why these corporation were sold off.  For instance, when the generation and supply of electricity was a public sector function, every time the government wanted to increase prices there was a voter backlash. 

So here is where we are now at.

Before privatisation, not only did we have some of the lowest electricity prices on the planet but as it also generated a profit that profit was to the benefit of the community as a whole.  Today, we pay the highest prices in the world with all profits going to a select few.  The same every essential service which has been sold off.

As for the levellers, in every case, once sold, there has been an increase in prices coupled with a reduction in service.  As an example, when the Commonwealth Bank was government owned, not only did it operate at a profit, profits which were returned to the community vide general revenue, but also fees banks fees and charges were kept within reasonable limits.  Then post sale, the banks went into a fee feeding frenzy so that now we pay some of the highest bank charges in the world.  The same goes for telecommunications.  We now pay some the highest phone and data charges in the world for what, in regional Australia is little more than a 3rd world service.

And it’s now medical insurance’s turn.  Once Medibank has been sold off you will see a rapid increase in fees coupled with a similarly rapid decrease in services covered, thus forcing more and more people into the public sector funded medical services, services which can’t cope now.  The end result, within 10 years we’ll have an American style system.  That is if you can afford insurance, you get treated.  If you can’t afford insurance, and you have a life threating condition - you die.

That is it has never been, nor will it ever be in the national interest that these corporations be sold off.  However it has always been and will always be in political self-interest that they be sold and this is the driving force behind them being sold.

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Excellent post, Tall-B.

We should call on the government to legislate a separation of savings banks and investment banks.

Governments should be able to use profits from national banks to fund national infrastructure and services. Issue low-cost loans and tax benefits for national manufacture and agriculture, and businesses generating employment.

Banks should not be allowed to use depositors funds to speculate in foreign investments and gamble in hedge funds, then expect governments to bail them out. As in the 2008 GFC. Which has every likelihood of repeating itself in the not-so-distant future.

Of course if any Australian government tried that, it would very quickly bring down the wrath of the IMF on it's head and find itself very swiftly sidelined and replaced with one willing to continue toeing the line, methinks.

[amber-eyed-girl]

Tall-B said:

"If you can’t afford insurance, and you have a life threating condition - you die." As a future outcome.

In this country, unless a drug has been subsidised and put on the PBS, there are conditions where unless you have the money to travel and get treatment elsewhere, you die.

There are surgeries which are not covered by the major health funds already.

Medibank private has excluded eyes and hearts.

[lyndal1838]

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@amber-eyed-girl wrote:

There are surgeries which are not covered by the major health funds already.

Medibank private has excluded eyes and hearts.

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Since when?   We have not been told that?

[amber-eyed-girl]

I received a letter at least 18 months ago from Medibank Private which outlined new exclusions.

The major ones were cardiac and certain eye conditions. It may not be everything, but definitely they were mentioned.

We have the basic cover.


I remember it as I was quite shocked at the time. Which reminds me to check other major funds.

[amber-eyed-girl]

If you are concerned, check with your fund.

There are different types of surgical procedures for both eyes and hearts, there were significant ones that were newly excluded.

[boris1gary]

from The Guardian CPA #1626

The Business Council of Australia has advocated privatisation of Australia Post in a submission to the Abbott government’s Commission of Audit. It’s also arguing that ASC Pty Ltd (formerly the Australian Submarine Corporation), the Australian Government Solicitor, the Australian Rail Track Corporation, Defence Housing Australia, Medibank Private, and NBN Co (the National Broadband Network Company) should all be privatised.

Moreover, they want the government’s holdings in Snowy Hydro and other corporations, as well as valuable real estate owned by government bodies, to be sold.

Who gets rich quick?

Business lobbies and the Abbott government argue that selling government organisations makes sense because commercial firms would run them more efficiently. But firms achieve “efficiency” by raising the fees for services which were previously cheap or even free – or by eliminating unprofitable services altogether. The firm benefits, the taxpayer loses.

Speaking of tax, the Tax Office intends to shed 900 jobs over the next six months, and is now seriously considering implementing a scheme known as the “External Compliance Assurance Process”, under which the accountants of companies with annual turnovers of between $100 million and $5 billion, rather than the Tax Office, would determine the amount of tax the companies paid,.A spokesman for the Tax Institute declared proudly, and with a perfectly straight face: “With the high levels of professional ethics in the profession, companies are not going to get a free ride”

The accountancy firms these corporations have hired to help them minimise their tax liabilities are the very ones that will be expected to ensure the corporations do the right thing by the taxpayer under the new scheme. And they will still be paid by the corporations, not the government.

The scheme is clearly a case of “putting the fox in charge of the chookhouse”.

Economists have recently stated that the government should not sell off its remaining businesses, because the former sale of Telstra, Qantas and Sydney Airport was not a good deal for the Australian public. John Quiggin from Queensland University commented: “In general, the price received for assets has been less than their value in continued public ownership. And conversely, in cases where privatisation was proposed but did not go ahead, the actual earnings received have been more than the return from the estimated sale price”.

The proposal to sell off government businesses and properties must be seen as part of the government’s overriding strategy of facilitating private sector profitability. That involves minimising government restraints, selling off valuable government-owned real estate, privatising as many government operations as possible, helping to minimise the tax liabilities of corporations – and suppressing organisations such as the ABC, which might offer criticism of its actions.

[*crikey*mate*]

boris, I think you have a lot to teach me, but is there anyway you could summarize?

Maybe just hit the high points?

[freakiness]

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@crikey*mate wrote:

boris, I think you have a lot to teach me, but is there anyway you could summarize?

Maybe just hit the high points?

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Medicare brings in about $400million a year.  If Joe and tone sell it that's $400million a year we won't get.

That's $400mil that can be used for NDIS every year for starters.

Once it's been sold it does not generate anymore income for Australia.

Before you start talking about insurance companies and NDIS it's for all those people with uninsurable causes like genetics, birth defects and accidents not covered by insurance.