Opposition treasury spokesman Joe Hockey said the sale of Medibank Private could raise between $3.5 billion and $4.5 billion. Mr Hockey said there was plenty of competition in private health insurance, listing a range of organisations, and said some activities were best left to the private sector.
"There is no longer a need for government-owned health insurers to ensure competition in the market. Medibank Private operates as if it is in the private sector so it should be sold to the private sector," he said in an address to the National Press Club in Canberra today.
Finance Minister Lindsay Tanner today dismissed the Liberal promise to sell Medibank Private to pay off debt, arguing a "fire sale" was not sound policy.
Mr Tanner said selling the insurer would do little to help the budget bottom line while removing downward pressure on health premiums.
"Privatising Medibank Private would cost the budget millions of dollars in forgone dividends, offsetting any public debt interest effect from proceeds of the sale," Mr Tanner said.
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