My question is to the Minister for Health and Ageing. I refer to today’s newspaper column by respected economic commentator Terry McCrann, who states:

... a company listed on the stock exchange ... would have to make a profit for shareholders.

In contrast the entire private health insurance sector is today at least nominally non-profit.

So what does the introduction of a profit-based player in the private health insurance sector mean?

They all switch to profit-making? Or Medibank Privatised can’t compete?

Minister, isn’t Terry McCrann right—won’t the sale of Medibank Private inevitably lead to higher premiums?

The privatisation of Medibank Private is no more likely to lead to higher insurance premiums than the privatisation of Qantas led to higher airfares and the privatisation of the Commonwealth Bank led to higher interest rates. The best guarantee of low premiums is competition, not government ownership. That is the best guarantee of low premiums. Let me quote someone who knows something about health insurance:

The pressure on premiums will be reduced if Medibank goes private. We expect much more aggressive competition from a privately owned Medibank.

That person, who does know something about private health insurance, is the chief executive of NIB. He should be respected by members opposite because the member for Hunter is his brother, and I prefer on this subject the view of the chief executive of NIB to that of any newspaper commentator, however distinguished.

Ms Plibersek interjecting

Order! The member for Sydney!

What does Tim Costello think of it?

The member for Sydney is warned!