The birth of universal health insurance

The birth of universal health insurance

by Whitlam Institute

Lisa McKenna

'Our programme has three great aims: They are: to promote equality, to involve the people of Australia in the decision-making processes of our land, and to liberate the talents and uplift the horizons of Australian people.'(1)

And so E.G. Whitlam delivered the policy speech of the Australia Labor Party, as part of its most successful election campaign since 1943, in his address to the audience at the Blacktown Civic Centre on 13 November 1972. (2)

That address was a peculiar milestone in the legacy of the Whitlam Government. It was peculiar in that it reflected upon two very different aspects of the birth of the Whitlam legacy. It reflected the culmination of the vision which Whitlam and his 'comrades' (3) as he endearingly referred to them had been creating since at least the time of the first revelation of such vision during Whitlam's speech at the Newcastle Workers' Club in June 1965. (4)

It also, retrospectively, symbolised the early beginnings of a government that would leave a legacy of social justice that was, and would continue to be unprecedented in Australian politics.

The Whitlam Government came to power in December of 1972 and immediately began to implement reform in a wide range of areas. However, the area in which possibly the strongest legacy would be built, one which cannot be denied to this day even by the harshest of critics, is that of social welfare.

In 1973 Bill Hayden was quoted as having said:

'50 years ago Australia led the world as a social laboratory, this government is pledged to regain that position'

The introduction of Medibank (later to become Medicare) is one of the most enduring aspects of the Whitlam Government's social welfare legacy. 'Medibank was primarily designed to improve the equity of the health care system in two ways: first, to extend to the whole population a basic level of financial protection from health care costs and of access to a defined range of hospital and medical services and secondly, to distribute the costs of such health services in accordance with capacity to pay.'(6)

The legacy of the Whitlam Government's Medibank scheme is a health system that continues to benefit all Australians today and is envied the world over for its equality of access.

Much like Australia's health care system, Australia's education system is also the envy of many the world over and is another aspect of the lasting impact of the Whitlam Government's social welfare legacy. Six commitments were expounded in respect of tertiary education in Labor's 1982 election campaign. (7) Most notably, they included two major commitments:

• Assumption by the Commonwealth of responsibility for coordinating and fully funding higher education at universities and colleges of advanced education; (and)
• The abolition of fees in higher education. (8)

In creating an egalitarian higher education system the legacy of the Whitlam Government became one that would ensure the role of government would be to provide educational opportunity to all who are deserving rather than only those with the means to pay for such an opportunity. As Mr Whitlam himself suggested:

'The reforms of the Whitlam Government in education raised the community's expectation about the role of government in securing the best possible future for Australia's children... For the first time, all students cold expect to achieve equal opportunities in education.' (9)

The Whitlam Government created what could be argued to be the strongest and most lasting, positive legacy of any Australian government, especially in terms of social welfare. The 'Whitlam Government... recognised that society was responsible for all its members through the provision of universal services - education, health, transport, communications and selective services, - welfare housing pensions, counselling and the like.' (11)

It was this recognition by the Whitlam Government, that all members of society deserved equal opportunity, that ultimately resulted in the formation of policies that would create a legacy that has not only remained in the minds of, but continues to contribute heavily towards, the betterment of the Australian people, and Australia, almost three decades after the Whitlam Government left office.

1. Freudenberg, G. A Certain Grandeur: Gough Whitlam in Politics. Penguin Books Australia 1987 p.230
2. Ibid p.224 and 229
3. Ibid p.229
4. Oakes, L. Whitlam PM: A Biography. Angus and Robertson Sydney 1973 p.153
5. Speech by Bill Hayden, Hansard, 30 August 1973 in Veitch, D. The Social Laboratory: Australia under Labor 1972-1975 p.37
6. Scotton R. B. Medibank: Why, Howand Wither Chapter 5 in Emy H et al Whitlam Revisited:Policy Development, Policies and Outcomes. Pluto Press Sydney 1993 p.77
7. Karmel P. Tertiary Education Chapter 12 in Emy H op.cit. p.178
8. Ibid
9. Whitlam G. The Whitlam Government. Viking 1986 p 238
10. Ryan S. Womens' Policy Chapter 6 in Emy H. et al op cit p.86 and Roper T Social Welfare Chapter 13 in Emy H et al op cit p.188
11. Roper T Social Welfare Chapter 13 in Emy H et al op cit p.186

Bibliography.

Freudenberg, G. A Certain Grandeur: Gough Whitlam in Politics. Penguin Books. Australia. 1987.

Karmel P. 'Tertiary Education' Chapter 12 in Emy. H. et al Whitlam Revisited: Policy Development, Policies and Outcomes. Pluto Press. Sydney. 1993.

Oakes, L. Whitlam PM: A biography. Angus and Robertson. Sydney. 1973.

Roper T. 'Social Welfare' Chapter 13 in Emy. H. et al Whitlam Revisited: Policy Development, Policies and Outcomes. Pluto Press. Sydney. 1993.

Ryan S. 'Women's Policy' Chapter 6 in Emy. H. et al Whitlam Revisited: Policy Development, Policies and Outcomes. Pluto Press. Sydney. 1993.

Scotton R.B. 'Medibank: Why, How and Wither' Chapter 5 in Emy. H. et al Whitlam Revisited: Policy Development, Policies and Outcomes. Pluto Press. Sydney. 1993.

Speech by Bill Hayden, Hansard 30 August 1973 in Veitch, D. The Social Laboratory: Australia under Labor 1972-1975.

Whitlam G. The Whitlam Government. Viking. 1986.