This was published 9 years ago
Scare tactics: Human Services Minister Marise Payne hits back at CPSU
By Phillip Thomson
Human Services Minister Marise Payne said the Community and Public Sector Union had embarked on a scare campaign.
The CPSU launched TV ads on Tuesday saying the federal government was attempting to privatise Medicare following its moves to outsource parts of its payments system which was currently done by the massive Department of Human Services.
Big promotion: Senator Marise Payne.Credit: Alex Ellinghausen
"This is just another misleading and irresponsible scare campaign," Ms Payne said.
"Even the most cursory examination shows the union's claims hold no credibility.
"Enormously significant'. CPSU national secretary Nadine FloodCredit: David Tease
"The government is not privatising Medicare.
"Our intention to carry out the expression of interest was clearly stated in the budget papers – one of the most scrutinised documents the government produces each year."
The DHS outsourcing decisions will see $29 billion annually in Medicare and pharmaceutical benefits scheme payments farmed out to the private sector.
Ms Payne said the government initiated the expression of interest process to determine the level of private sector interest and capability in providing IT services for the claims and payments processes associated with Medicare.
"We took this action because the IT systems that manage the claims and payments processes are in need of a substantial upgrade," she said.
"In such circumstances it is responsible to review existing systems and test alternatives.
"At this point no decisions have been made. It is much too early to try to predict whether or how this might affect staff at the Department of Human Services."
The union said 5600 jobs would be directly affected.
Its ads make claims about the selling off of private health records but Ms Payne said any changes would need to meet the Australian Government's privacy and security requirements.
Community and Public Sector Union national secretary Nadine Flood said the Abbott government had been privatising "by stealth" and warned the outsourcing of public services is a major threat to Australian jobs, services and data privacy.
"It is the thin end of the wedge and signals the beginning of the end of Medicare as we know it," Ms Flood said on Tuesday.
"By sneakily putting the Medicare payments system on the block the Abbott government has avoided any real public scrutiny.