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Labor talks tough on insurance but Senate stands firm

By Julian Drape
Mon Sep 14 22:34:16 EST 2009
Mon Sep 14 12:34:16 UTC 2009

CANBERRA, Sept 14 AAP - The federal government insists it's serious about recalling parliament before Christmas to reconsider its private health insurance changes, but key crossbench senators say it's not going to happen.

The coalition joined forces with the Greens and senators Nick Xenophon and Steve Fielding to defeat Labor's plan to means test the private health insurance rebate last week.

On Monday, they declared they weren't interested in revisiting the issue by year's end - despite Kevin Rudd's declaration that would definitely happen.

Parliament is due to rise for the summer break on November 26 but if the issue's to become a double-dissolution trigger the changes need to be reintroduced on or after December 10.

Labor needs the support of the entire crossbench to recall the upper house in December as the coalition will block the move.

Independent senator Nick Xenophon says recalling parliament would be "silly".

"The fact is this legislation isn't due to commence until July 1, 2010," he told reporters in Canberra.

"There is no reason to bring back parliament in December at a cost of $1 million plus in taxpayers' money."

Australian Greens leader Bob Brown agrees, saying a December sitting is "completely unnecessary".

Senator Fielding won't budge unless the government first agrees to radically overhaul its plans.

"There's no point in coming back in December otherwise because you'll get the same result," a spokesman for the Family First leader told AAP.

Senator Fielding wants Labor to take into account the number of children a family has when means-testing the 30 per cent rebate.

Labor's legislation introduces a means test for the rebate, kicking in at $75,000 for singles and $150,000 for couples, and increases the Medicare levy for wealthier people without private health insurance.

While the changes - which break a Labor election pledge - look doomed to fail, Health Minister Nicola Roxon is still talking tough.

"We are determined to pursue the changes announced in the May budget," she told parliament on Monday.

"These changes to private health insurance are one of the most important structural saves in this year's budget.

"We believe that it's vital for these changes to be implemented and we're not going to stand by idly and allow the opposition to wipe out those savings."

Ms Roxon said if it took a special sitting of the Senate to get the opposition to pass the legislation, the government was prepared to consider going down the route.

But it may not be an option that's open to Labor.

If that proves to be the case, the earliest the government could reintroduce the changes to give itself another potential double-dissolution trigger would be February.