Privatization Of Public Assets For New Public Infrastructure Projects

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On March 26th, Finance Minister, Mathias Cormann announced that the Government-owned health insurance company, Medibank Private, would be sold on initial public offering. This announcement made Commonwealth treasurer, Joe Hockey, confident toward selling billions of dollars of public assets. In return, the Abbott Government will help unlock funding for new public infrastructure projects through reinvestment of the sale proceeding from existing Government-owned assets. The Commonwealth will provide states and territories incentive payments of 15 per cent of the sale price of privatised assets, with the returns to be reinvested into new priority infrastructure projects. This Privatization decision is actually a trick from the Government,…show more content…
In consonance with opposition, the Government would lose Medibank’s annual dividend payment of about $500,000 and sale will increase the budget scarcity. Stephen Jones, ALP opposition assistant spokesperson on health and convener of the save Medibank alliance, criticize the Government decision of privatization, receiving unexpected support from Former Liberal Prime Minister Malcolm Fraser, through a written letter in which Fraser clearly opposes the proposed sale of Medibank Private in 2006. With this arguments, the article encourages the opposition of the sale of Medibank, and that instead Medibank should be kept in public hands until future “people’s Government” can implement any new system of reforms and extensions for Medicare, Or else, the entire Australian healthcare system, Medicare, will be infected with Privatization, Outsourcing, charges and fees. On February 15, the rally was conducted at Sydney town, demanding to save Medicare. Ian McCauley, writing in New Matilda, says, two third of our $60 billion revenue gap is due to healthcare spending, but the decision of privatization must be fought or else the hospitals will soon be too expensive. If Medibank Private is sold to big corporate,
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