Joint Media Release The Hon Peter Dutton MP, Shadow Minister for Health and Ageing and Senator Mathias Cormann, Shadow Assistant Treasurer Shadow Minister for Financial Services and Superannuation
16 October 2012 Minister Penny Wong intends to rob Medibank of another $300 million 'special dividend' to pay for Wayne Swan's fictional surplus.
Shadow Assistant Treasurer Mathias Cormann is concerned that so called special dividends are becoming the norm for this Government.
"Minister Wong needs to rob Medibank Private of another $300 million to help pay for Labor’s wasteful spending," Senator Cormann said.
“Unlike the Gillard government, at least Medibank Private was able to achieve a surplus in 2011/12, though it was not big enough to fund the $300 million special dividend they are expected to pay,” he said.
“The truth is Medibank’s capital reserves were developed on the back of health insurance premiums paid for by Medibank Private members.”
“Labor is now milking Medibank Private members – to the tune of more than $1 billion over three years - to help pay for their wasteful spending and help them plug their $120 billion budget black hole.”
Shadow Minister for Health and Ageing, the Hon Peter Dutton MP is concerned that this is another attack on the half of the population with private health insurance.
"The Medibank Board knows this Government is eyeing its capital reserves they are duty bound to protect. The Government's continued use of special dividends could be another blow to those with private health insurance. It will put pressure on premiums because the Government will be happy to rubber stamp premium rises, to allow for future special dividends," Mr Dutton said.
Senator Cormann knows Labor is resisting privatisation of Medibank because this untrustworthy Government prefers taxation by stealth.
"The reason the Government won't privatise Medibank is because Ms Wong knows it's a great way to hide Labor cash grabs,” Senator Cormann said.
“The Coalition knows that competition and individual choice will always leave more in the family budget than Gillard Government cash grabs," Senator Cormann said.
Mr Dutton knows that Labor can't even execute its tax grabs without unintended consequences.
"Labor can't even get a tax grab right. When they slashed private health insurance rebates it was high income earners who could afford to pre-pay, whilst those on average pay packets funded the Governments reduced savings," Mr Dutton said.