The Abbott government intends to sell off the juicy plumb ‘Medibank’ private health fund. Medibank paid a $450 million dividend to the federal government in the past financial year. The funds profits are seen as very healthy indeed, not so some of its members. Medibank generated $5.3 billion from private health insurance premiums for the financial year, and this is expected to grow by half a billion next year. A very healthy business by any stretch of the imagination. The government will claim a mandate for this sell off. Next on the agenda for what may be a fire sale of juicy plumbs is ‘Australia Post’, well at least the most profitable parts, I’m sure the losses on the “letter” business, about $160m, will be well and truly left in the hands of the taxpayer. In 2012 Australia Post, delivered a very healthy dividend to the Federal Government of $213.7m. By World standards Australia Post is seen as one of, if not the best performing postal service.
Now Abbott is eyeing what may be the juiciest plumb of them all, to throw into his one off fire sale, the $23 billion worth of HECS university student debt. Now that would be a real winner for the coalitions “mates”, a business that is expected to grow to $42.1 billion by 2016/17. Abbott has no mandate to sell HECS or Australia Post. The private sector isn’t lobbying for this change to HECS out of the goodness of their hearts. They’ve looked at the United States, where private student debt is over $1 trillion and are keen to replicate that very profitable model here. The incentive for capitalists to “take over” student debt in Australia is the Coalition’s plan to slash Start Up Scholarships, adding thousands of dollars to the already crippling debts of low income students.

I am just as horrified by these planned 'sell-offs' by this Government ,Paul.
Especially as I am a member of Medibank Private!

If it is sold, I will immediately get out of it, as I am sure the premiums are bound to increase more rapidly than if it was left with the Government.

Australia Post may also be sold. What worries me is what will be left to sell after all the Government Assets/businesses are sold off?

Stop worrying Suse, if it's sold off, just like Telecom/Telstra, they will get rid of the 65% over manning, make a fortune, & the prices won't have to go up.

The only one we should not have got rid of was the Commonwealth Bank. Not only did it make a profit, it controlled the others by it's presence.

Of course we all know ho sold that, now don't we?

Paul1405

Why should you care about Medibank?

The Greens oppose private health cover.

Actually, that's quite funny, Suseonline.

>>If it is sold, I will immediately get out of it, as I am sure the premiums are bound to increase more rapidly than if it was left with the Government.<<

Medibank already has the highest cost policies in the market. And because they buy their hospital services at the same price as all the other health funds, they make the biggest profits from your patronage, and the millions of unaware consumers like you. Where did you think this came from...

>>Medibank paid a $450 million dividend to the federal government in the past financial year.<<

Out of your pocket, that's where.

Just another form of taxation.

Just an aside...

http://www.abc.net.au/news/2013-10-17/koukoulas-budget-emergency-fiction/5028770

"Tony Abbott has wisely left Australia's fiscal settings exactly as they were under Labor, putting the lie to his hysterical pre-election economic rhetoric.....

...Almost two months after a thumping election victory, there is not one hint of any economic policy change from the Abbott Government that will deal with the budget bottom line. Yet until the day before the election, this was painted by the Coalition as an "emergency" or "crisis".

The reason is obvious. The budget is in triple-A shape and in the complete opposite of an emergency.

If there were a budget emergency, Treasurer Joe Hockey and the Government would have acted with the same speed on spending and revenue measures as they have shown over abolishing the carbon price and implementing their boats policy."

So the budget emergency was a "Clayton's" emergency - the emergency you have when you don't have and emergency - (although you do have an election to win and gullible voters to suck in)

So all the intended sell-offs are merely a product of ideology, not necessity.

Ok Pericles, if myself and the other many thousands of Medibank Private customers are so blind to this conspiracy of ripping us all off, then which private health fund are you with?
I have always had good service from them , so I say good luck to them if they made a profit.

I wouldn't be without Private Health cover, and I believe it should be mandatory to belong to one if you are working.
The days of 'free' health care at public hospitals for those who could afford private health cover should be over.
This country can't afford it anymore...

Well according to the leftists, the State represents society, so they have no ground to criticise anything the government does.

What's the government doing running shops that sell toys, and greeting cards, and nick-nacks? Or TV and radio services for gossake?

There is no justification for the use of force or threats to supply any of these services. All government businesses should be sold, starting immediately with the ABC. Those who want to listen to nauseating propaganda can pay for it themselves.

It has alway been Liberal policy.
Socialism for the rich
Capitalism/sink or swim for the poor.
Expressed openly in Abbott,s parental leave.
$75.000 for a rich working woman to have a child.
For the stay at home mum nothing.
May well be Abbott wants more upper middle class kids not ordarary Aussies.

Now is the time to sell off Abbott. He will never again be worth as much as he is now.

JKJ, who do you want the ABC sold to? Murdock, so you can be feed more of the right wing propaganda that you thrive on, from the criminals at News Corp.
Sell Australia Post. naturally you would want the government to retain the $160 million loosing letter business, would you not. How about privatizing the army? What, no juicy profits in that one.
Hasbeen your a genius, an expert on Medibank Private, 65% over manned no less, do you dream up that number or did space aliens telepathically pass it onto you. Could you give us the same figure for Australia Post.
The conservative ideological mantra; have government establish vital services at taxpayer cost, because capital is unwilling or unable to do so, then when these loosing services becomes profitable businesses sell them of to your "mates" at a bargain basement price. Then when the new owners find the business is "overstaffed" they can sack them or move the jobs offshore, and again the taxpayer can pick up the cost in the form of social security payments.In that way the conservatives can prove their ideology that "governments can't run profitable businesses, best left to private enterprise." of course they can't if all you leave them with is the crap, but even then you can have your "mates" feeding off that crap, by being contractors or service providers at super inflated prices. Good for "mates" bad for taxpayer.

Don't be so silly david f.

In 2023, with a full 10 years successful prime ministership behind him, we will be able to clear what ever is left of Labors national debt, & cover our out goings for half a decade, selling Abbott to the Poms.

Of course if the Poms have had another Labor government by then, they wont be able to afford to buy him. Neither will the yanks, after Obama has finished with their economy, We will probably have to loan him to each in turn, as a kind of extension of the Colombo Plan, our contribution to saving the western world sort of thing.

Hasbeen,

"....In 2023, with a full 10 years successful prime ministership behind him, we will be able to clear what ever is left of Labors national debt...."

Arf, arf, arf...I hear Hockey's raising the debt ceiling.

http://www.businessspectator.com.au/article/2013/10/18/australian-news/hockeys-lenience-lies-his-debt-ceiling

"While the US has at least temporarily increased its ceiling on the amount of debt the government can accumulate, one of the first things the Abbott government will do when parliament resumes next month, after introducing legislation to repeal the carbon tax, will be to increase the Australian government’s debt ceiling.

The current ceiling in Australia is $300 billion, which is less than 20 per cent of GDP. By way of comparison, the US debt ceiling is around 105 per cent of GDP. People with knowledge on this issue realise that Australia’s gross government debt is tiny, and in fact is so small that Australia has had to get special dispensation from several of the post-global crisis new international banking regulations. These include the Basel III requirements for bank assets and capitalisation because there simply aren’t enough Australian government bonds on issue for the banks and others to hold."

I hear also that Hockey has left Labor's settings exactly as they were.

Have you seen the "budget emergency"...(it seems to be missing)

Tones is a clod of quite impressive proportions.

I thought the "Budget Emergency" was a labour confection of Rudds? That was the reason the interest rates were dropped.
Of course punishing savers and helping spenders is surely the basis, the bedrock and the foundation of Socialism.
Also the SEC went from 13,500 workers to around 3,500, now if that isn't overmanning?
Margaret Thatcher famously said Socialism was OK until you ran out of other peoples money.

I did not mean to offend, Suseonline.

>>Ok Pericles, if myself and the other many thousands of Medibank Private customers are so blind to this conspiracy of ripping us all off...<<

The reality is that the actual services you would use if you had to go into hospital are provided at precisely the same price to all the Funds. That's not to say that all hospitals charge the same - Ramsay Health hospitals have a different tariff to Primary Health Care or Resmed - but they all provide the same service to all the Funds they have arrangements with. Which is usually... all of them.

You will also notice that it is the hospital groups that are creaming it in. All the health funds can do is pass those costs on to the consumer by way of increased premiums.

>>...then which private health fund are you with?<<

Your family circumstances and healthcare needs are bound to be different to mine, so knowing which company I'm with won't help you one bit. The price you pay is made up of the actuarially-determined cost of the services you have selected in the policy - they are all packaged slightly differently, you'll notice - so my policy components are highly unlikely to be the same as you have chosen.

What I can guarantee, though, is that you will get the same level of service from the cheapest policy that covers the bits you need, as you will from the most expensive.

>>I wouldn't be without Private Health cover<<

Nor would I.

>>The days of 'free' health care at public hospitals for those who could afford private health cover should be over.<<

That's a tough one. I'd hate to get to the US situation where they ask for your policy details before they scrape you off the road after an accident. But yes, anything remotely elective should be the sole provenance of private health.

Sorry if I sounded abrupt - I was focussing on the privatization bit, and its likely effect on pricing, rather than commenting on the value of private health insurance itself.

extracted..from..the header/forum
http://enpassant.com.au/2013/10/15/universities-cant-see-the-forrest-for-the-twiggies/

the 9th richest person in Australia.

His wealth is estimated at $3.6 billion,..and most of it comes from his company, Fortescue Metals Group or FMG.

This sort of ‘philanthropy’ is what capitalist megalomaniacs do when they want to buy a form of immortality for themselves and gratitude from the rest of us.

But here’s the funny or not so funny thing, depending on your point of view. According to Laura Tingle in the Australian Financial Review of 17 June 2011:

Forrest has never signed a corporate income tax cheque
for any of the listed companies he has run in the past 16 years.

And FMG has another $700&#8201;million in tax losses
still to bring to account before he will have to do so.

So since 1995 the Great Twiggy’s company FMG has paid no income tax. Not a penny. Now that is philanthropy. And the $65 million will be tax deductible, which means you and I bear the cost at Forrest’s personal marginal income tax rate, i.e. 46.5% of $65 million, or about $30 million.

Maybe we wouldn’t have to rely on the ‘largess’ of parasites like Forrest and his ilk, people who live off the labour of their workers, ..if we actually had a tax system..that got something out of the bludgers.>>

plus no fueltaxes..on their juice..and acorn rent
and avoidance of remediation..plus water theft/wasstage..plus free rail-line/ports..rorts..worrker education..dead corperations run by clever lawyers

are bleeding tthe bleeding loyt of the living dry
bbut the lie is wage..ISNT income..wage =wage..and we got nowage tax

but EVERY cent a corperation gets IS INCOME
yet the mongrels avoid it[cause half our polies
[from..both sides ARE..OR WERE LAWYERS

[and lawyers making laws..is treason

but mate..wouldnt you rather chose
where..your TAX Deductible cash/cache.goes to

private education..even..gets a dollar for dollar extra subsidy..on-top..of the tax credit/income deductible][..tax avoidance]

Herein lies the sheer stupidity of the Neo-liberal ideology.
While acknowledging that Government does have some legitimate function, Neo libs insist that governments must NOT indulge in any profitable ventures, while at the same time constantly barking for lower taxes.
This allows governments just one way of creating the funds necessary to fulfill their necessary function: printing money and encouraging inflation to pay off the debt.
Who complains most loudly about this strategy?
The bloody right whingers.
FACT: no one likes paying taxes.
FACT: democratic governments are elected by POPULAR vote.
FACT: since 1951, the top rate of income tax has dropped from 75% to 47% and will no doubt continue to drop, as the majority are never going to vote for a party that threatens higher taxes (witness recent election).
For decades in NSW the dairy industry worked under a quota system, supplying affordable fresh milk all year round. In 2000, largely for ideological reasons this highly functional system (remember when milk was FREE to primary and infant school kids?) was dismantled, resulting in small farmers (the pillars and mainstays of rural communities) being driven from their land, and consumer prices going UP.
The system WORKED.
The current postal system also WORKS, and provides income (tax alleviation) for a gov. hard pressed to find money any other way.
If it ain't broke, why frig around with it?
If you believe government does have a legitimate function, and you don't like paying taxes, don't like govs racking up debt, don't like inflation, please tell me where the gov is supposed to get the necessary funding from if it isn't allowed to conduct profitable business?
Screw ideology. Why not just go with what works?
Currently the world's most powerful gov. is undergoing a crisis over medical care. The US currently spends more per capita on health than France, yet the WHO ranks France no. 1, and the US at no. 38.
Screw ideology. What works?

grim..what works=govt printing..its own..money
not borrowed..at interest from..bankers[who stole the money system..plus the gold/silver from...our coin..and teeth..

continues at..end

who..via USURY..scape the cream..
into;;their own tax free trust funds..that own..any thing of value[via paper proof..now cyber proof..only..

true govt money is based onthe value..of our estates
[based on the assets worth..[increase..of capital; base..creates its own funds..thus free govt medical..free services etc

govt is CREATED...reason of being..is about service
but now its about revenue raising..from..its poor..and stealing us blind..by selling off our services..for capitalist profit

lately..going in to..take the gold reserves from..building 7..@[911]..cyclone sandy..[more gold lost]../sadman-insane gold got took..then..gadfiffy's gold..etc etc..[loot and plunder has to..stop]

we need govt..to create the money..to..build the asset
to..repair the asset..to hold control..over the value..of its own legal tender..and the business..of lending..interest free

[only coin..is lawful-tender..but by deflating the worth of notes..they stole everything else

govt dont need to borrow nuthin
nor even raise any tax/user pays
http://www.google.com.au/search?q=cec+money+creation+nat+bank
it need merely issue a bond..and govt bond is as good ass gold
[because it holds SUPPOSEDLY..[but by acts of treason..all.our service assets safe from capitalist gain/price rise pain.

Paul,

A "public good" which by definition provides benefit to the public exceeding its market price and requires government intervention to deliver it. Even the most basic public economic course would not classify private health insurance as a public good, and here the government is directly competing with private industry. The sale of medibank private would release funds and value to the government to build other infrastructure that is really a public good and needed now.

There are other icons that have no real justification for remaining in government hands such as Auspost, Qantas, Telstra etc, that if sold could launch a new wave of infrastructure development, or even just pay off Labor's debt.

the scam..has deep..treasonous..roots

http://www.google.com.au/search?q=constitutionlegal+tender+au

Generally, powers in section 51 of the Constitution of Australia

*..nor..make anything but gold or silver coin.a legal tender in the payment of debts”.
http://en.wikipedia.org/wiki/Section_51_(xii)_of_the_Constitution_of_Australia

RBA Banknotes: Legal Tender -
Reserve Bank of Australia Banknotes
banknotes.rba.gov.au/legal tender.html

Australian banknotes are a legal tender throughout Australia
(this is provided in section 36(1) of the Reserve Bank Act 1959).

A payment of coins is a legal a lawful tender

THE ONLY LAWFUL TENDER
so..why cant we pay debt..in/coin

cause..under the note system..[a bank*bill..REALLY..IS A BILL
at best its a debt receipt..[and paper debt is fictional debt
lawful tender cannot be used to..commit crime..yet

*they..DEBASED THE CROWNS COIN
seek to end..the coin-age
[rage]..

her hrh..face on the back..
WAS.assurance of weight/quality..of the coin
[in pounds shilling penny WEIGHTS..even..a dollar..is a specific weight quality....

all coin was by WEIGHTS..a pound was a promise to pay in..coin..
[pay bearer..one pound sterling silver*

thing is..

its all..inverted..fiat=/means=by decree
its only value..when..govt says it is
but in reality..its only an..iou

[a check]..payable..in..other paper only..

unless some mug gives you goods..for it..cause they are lawful...imbeciles..[legal term for ignorance's][wards of the state]..

how it happened..was bankers BOUGHT UP GOVT WAR BONDS
then DEMANDED ..instant payment..IN GOLD SILVER COIN..no silver
WE/they defaulted[was legally BANKRUPT*ed..by colluded bwankers

we were bankrupted..and then the thieves really began looting ALL THE GOLD..all the silver..all the copper[now they want our copper cables from our phone system

thee gold WASNT SOLD
it was LEASED..it needs to..be returned..but they sold it

thats like you..leasing someones car..or house..then SELLING-IT*..[plus keeping the proceeds of crime]..plus..so..much extra unspeakable treason's

we need to repeat..what that ling did..AUDIT EVERYTHING..to see who claims what][no lawful title exists..for things stolen..from us all

simply having it..is proof of crime
see how nuts the treasonous lawyers have made things

recall..that 1/3..rds..the bank of england..
was bought..by a tax stick..[fraud..thus guy faulks set the tally sticks afire..[nearly burned down..parliament house..JUST..to hide that FRAUD..PROCEEDS OF CRIME*!*

talking..exactly..about this topic

http://www.youtube.com/watch?v=sbqvvNiIfVs

some extra info
signs..of the times

the working poor
http://www.youtube.com/watch?v=0BszHshieSc

cant..pay..ya debt..we take body parts
http://www.youtube.com/watch?v=RxPqYhSrXcE

lets talk of the 13 billionfines upon chase
http://www.youtube.com/watch?v=eHAuJdsU0m4

states/..in functional-bankruptcy
http://www.youtube.com/watch?v=LxH8q4iCRJ0
[thats how they stole the fed..step one send it bankrupt..next
plunder the assets/pensions already..gone..[last time it..was only..the fed..this time it will be your srevice providers..wanting to steal..ever more cash

imf
http://www.youtube.com/watch?v=rj6YJQJ-8yA
more green taxes
http://www.youtube.com/watch?v=iBclsFKM_Tg
more imf
http://www.youtube.com/watch?v=MinZ5ws03NY
green energy tax burden[eu]
http://www.youtube.com/watch?v=62pON1NmBuA
power=money
http://www.youtube.com/watch?v=Tl_kBtl7pCA
tax sunshine*
http://www.youtube.com/watch?v=8Yt5wBTMl8I
crack-down..on..frakking
http://www.youtube.com/watch?v=VGe2NzaF9Hc
the great resesion..was a buying..opportunity[when we held actual shares..but now we only bet if they goup or down..we only got options of a share of a share[maybe][the house opf settlements..had to morgauge them...to allow 'instant'..share trading..but they dont hold your share..only..a promise to THE..MORTGAUGED share
http://www.youtube.com/watch?v=Xzoszwd0qFM

crosstalk,,wealth
http://www.youtube.com/watch?v=S0z6qVo8CGk
govt stimulus=corporate proffit
http://www.youtube.com/watch?v=YkBB0zp7kcg

bric* does deals
http://www.youtube.com/watch?v=IBBCa7P4d1o
post bubble
http://www.youtube.com/watch?v=sbqvvNiIfVs
production..what product?
http://www.youtube.com/watch?v=ekfkCXoWe60

SM, surly would it not be true that given the inefficiencies and incompetence inherent of public enterprise we should see Medibank Private either sustaining huge loses and being supported by the public purse or being driven out of business by the more efficient and more competent private enterprise owned heath funds. Why is it not so?
When the conservatives come to power and find public enterprise like Medibank Private, Australia Post and others do not fit their philosophical mantra of "private enterprise does it better" they simply remove the blight, that is the well performing public business, often at a bargain basement price to their cronies. By leaving the costly non profitable services in public hands, it proves the conservatives philosophical mantra of "private enterprise does it better".
Why not get your man Barry in NSW to "privatise" the railways? In NSW where private enterprise is "competing" with government in transport the state is forced to subsidies these private businesses to the tune of millions of dollars. SM, why is that so? Surely they would be such efficient operators that the public should not have to give them a cent. Why do Private Schools need such heavy financial assistance from the state? Could they not offer a quality education at a competitive price?

Paul,

Firstly, there is no justification for the government being in private health insurance. The government is directly competing with other businesses.

Secondly for a company with a supposed market value of $4bn, its profit of $400m over 2 years gives an annual return of 5% which is feeble by market standards. If sold, a private organisation could get greater profits, and pay company tax of almost as much as the government is getting now, and the $4bn could be used to build infrastructure or pay off labor's debt.

"In May 2009 the Rudd Labor government announced that Medibank would become a 'for profit' business and would therefore in future pay tax on its earnings. The process of converting the status of the business was completed on 1 October 2009, following approval from the regulator"
IOW, not only does Medibank already pay taxes just like any other -private- company, but also pays a dividend of 200m/PA into the gov's coffers.
Yep, we should definitely get rid of that.

yes..GET RID OF IT..WHY?
WE DONT WANT..government...<<<..directly..competing..with other businesses.>>

no..they dont want..the competition
lol..they..do love.the forced subsidies..plus no..competition

<<..If sold,..a private organization..could get greater profits..>>

now..where would these
EXTRA PROFITS come..from[tax payers..and customers?]*[thin air?]

, government is directly competing with other businesses.

<<..Secondly for a company with a supposed market value of $4bn, its profit of $400m over 2 years gives an annual return of 5% which is feeble by market standards...>>

yet so..if only 400customers..the extra=1 million..EACH
if..one million..that=extra 400bucks.each EXTRA..[give or take gst/bank-charges/special fees]

<<..If sold, a private organization
could get greater profits,..and pay company tax>>

lol
yeah..[after the TAX DEDUCTABLE..'s
of paying..off new*..4 billion..DEBT/plus..[with/our compulsory super..or free govt yanki dollars..at zero intrest

compounding/interest
shrinking customer wealth=?

get real..man
there are no free lunches..
only..infinite us dollars to buy up..any asset..
into future..cash-cows..that triple..the costs of GOVT was SET UP to..serve-us...in..extra fees PLUS charges/levies fees other charges so easy added on top of the real-bill

all..bought up..with..our..COMPULSORY SUpER*[or yank-paper
so..by..ever increasing fees and charges..we buy our own..super off[maybe]..but wont own..the assets[till..govt locks up..the criminals..or they repent their thefts

coming up..with all/this ENRON-esq..capitalist rubbish
for..their colluding mates..backers..[and their defenders!]..jail the lot..SEIZE BACK as PROCEEDS OF CRIME..so yeah go ahead.,.make my day

sell sell sell
[go2hell]

blah blah blah..by their works will..ye know them.

That makes government ownership an even worse deal for policyholders, Grim.

>>...not only does Medibank already pay taxes just like any other -private- company, but also pays a dividend of 200m/PA into the gov's coffers.<<

And this largesse comes straight out of the consumer's pocket.

The industry is very tightly regulated, operates on "community rating" - i.e. the insurance risk is spread across the entire population - and buys its hospital care from the same hospital groups, so the cost base is identical across the inductry. Medibank trades on its size to give the image of being more "secure" than the smaller players in the market, and can therefore charge higher premiums. However, this is just smoke and mirrors when you look at the content of the policies themselves.

But the reality is they are not able to be properly competitive with other Health Funds, when the government keeps dipping into their pockets every couple of years.

Ahem. That should read "industry". Rats.

which really makes it a "user pays" taxation system, which effectively subsidises income tax.
I don't have much of a problem with that.