Australian Broadcasting Corporation


LOCATION: http://www.abc.net.au/lateline/content/2006/s1624567.htm

Broadcast: 26/04/2006

Cabinet gives green light to smart card

Reporter: Narda Gilmore

TONY JONES: Australians who claim Government health and welfare benefits will soon be required to have a new form of identification. The Federal Government has announced plans for a national 'smart card', which will be carried by the vast majority of Australians by 2010. While it will be needed to claim benefits, the Prime Minister says the card won't be compulsory - and is not the same as a mandatory ID card. But the Government has acknowledged the 'smart card' will help to boost national security.

NARDA GILMORE: The idea of a compulsory national identity card in Australia has been under consideration since the London bombings. Today, the Government ruled it out.

JOHN HOWARD, PRIME MINISTER: After a very good discussion, I think we have struck a good balance.

NARDA GILMORE: Instead, there will be the so-called 'smart card'.

JOE HOCKEY, HUMAN SERVICES MINISTER: On the front of the card you have a name and a photo and in the chip you'll have an address and date of birth.

NARDA GILMORE: The card will not be compulsory but any Australian wanting to claim Medicare benefits or welfare benefits like the dole, family payments or pensions will need to have one.

JOE HOCKEY: If you're claiming taxpayers' money from any source I think it's understandable that you have to be able to prove who you are.

NARDA GILMORE: It will cost about $1 billion to introduce but the Government predicts it will save three times that by cutting back on welfare fraud. The cards could also include additional information like emergency medical details. And while the Government says the data would be encrypted to protect privacy, there are concerns.

DR MUKESH HAIKERWAL, AUSTRALIAN MEDICAL ASSOCIATION: Linking databases and access across those databases is where we need much more community consultation and discussion because I don't think as a community we're ready for that yet.

STEVEN CIOBO, LIBERAL MP: I believe it's a very slippery slope between a smart card that contain that kind of information and a quasi-national ID card.

NARDA GILMORE: It is expected the majority of Australians will have a 'smart card' by 2010. 11.5 million currently carry Medicare cards. While the Opposition has given in-principle support, it also has questions.

KELVIN THOMPSON, OPPOSITION HUMAN SERVICES SPOKESMAN: The issue is, will this card be used for national security purposes and if so, how?

NARDA GILMORE: Police and security agencies will have access to the 'smart card's data.

JOHN HOWARD: This is not, how shall I put it, a Trojan horse for an ID card but I'm not denying for a moment that it will have enhanced security - identity security features.

NARDA GILMORE: It was a busy day for Federal Cabinet - it also signed off on a raft of changes to the private health insurance industry. That coincided with an official announcement that the Government will sell Australia's biggest health insurer, Medibank Private. With a 30% share of the market, it's expected to fetch at least $1 billion.

NICK MINCHIN, FINANCE MINISTER: It is not appropriate for the Government to be both the regulator of that industry and the owner of, at the moment, the single biggest player in that industry.

NARDA GILMORE: The Government is confident private ownership will lead to greater efficiency - but that doesn't necessarily mean lower premiums.

NICK MINCHIN: The Government's very confident that, as a result of a sale, there would be less upward pressure on premiums.

JULIA GILLARD, OPPOSITION HEALTH SPOKESWOMAN: The simple truth is that the sale of Medibank Private is going to lead to increased private health insurance premiums.

DR MUKESH HAIKERWAL: I would imagine that if they can't keep the costs stable, they may even rise for the first few cycles anyway.

NARDA GILMORE: The Government's hoping to finalise the sale in the next financial year. As well, it's introducing a raft of measures aimed at encouraging more people to take up private health insurance - the biggest shake-up of the industry in more than a decade. Among the changes, insurers will be required to provide more product information to help people compare policies when shopping around for the best value for money and hospital cover will be expanded to outpatient and other services, like dentistry and physiotherapy.

TONY ABBOTT, HEALTH MINISTER: If you treat things out of hospital, you are going to have lower costs than if you treat things in hospital.

NARDA GILMORE: But health insurers doubt those lower costs will lead to cheaper premiums.

DR MICHAEL ARMITAGE, AUST HEALTH INSURANCE ASSOCIATION: The Government's study indicates that the legislative changes are unlikely to affect health premiums

NARDA GILMORE: Any future increases in premiums will still require ministerial approval. Narda Gilmore, Lateline.