Game-changing decision that gave Labor its edge

THIS is the moment when Labor made a crucial decision that would go on to define the election — and bring it to the brink of toppling Malcolm Turnbull.

LABOR still isn’t able to claim a victory in the federal election but there is jostling for credit for the strategy that brought it close.

The success of the Medicare privatisation claim at the centre of the Labor campaign has many fathers and mothers.

But a lot of people were involved in the conception and long gestation of the scare tactic, and this is how it became a happy event for the ALP.

About six weeks ago Labor Party national secretary George Wright called in health policy advisers to show them a video.

The 30-second production featured former Prime Minister Bob Hawke accusing the Liberals of wanting to privatise Medicare.

It had an instant impact with one of those at the viewing saying to Mr Wright, “You want to win, don’t you.”

According to one ALP figure familiar with the video’s premiere, Mr Wright jokingly replied, “Well, I’m not doing this (campaign from opposition) again.”

The ‘save Medicare’ campaign gave Labor an edge in the final weeks of campaigning. Picture: Lisa Maree Williams/Getty Images

The Wright presentation in Melbourne came after an election policy build-up, which began late in 2014 when the Bill Shorten Opposition decided to put the public health insurance scheme to the forefront of its agenda.

The provocation was the 2014 Budget, which had attempted to impose a co-payment for GP patients.

This broad strategy was reaffirmed, and additional effort allocated to the matter, in February this year when a Senate Estimates Committee hearing revealed the government had formed a committee to examine outsourcing elements of the scheme.

On February 10, Mr Shorten asked Prime Minister Malcolm Turnbull in Parliament: “Yesterday, the Prime Minister said he was totally committed to Medicare. But this morning it was revealed in a Senate estimates committee that the Prime Minister established a 20-person task force at a cost of $5 million to taxpayers to oversee his radical plan to privatise Medicare.

“Isn’t this just another case of the Prime Minister saying one thing and doing something completely different?”

Opposition Leader Bill Shorten with the Labor faithful on the day before the election. Picture: AAP Image/Mick Tsikas

This moment was the start of the privatisation campaign, an opening shot in an election when no one at the time knew would be held.

Mr Turnbull replied: “The scare campaigns come thick and fast from the Opposition. The government is totally committed to Medicare, as every member of this House knows.

“The examination of a more efficient way of transacting with citizens and patient-consumers is obviously a high priority for this government.”

After the May 3 Budget, which extended the Medicate rebate freeze to a total of six years, Labor had to come up with an alternative Budget that accounted for the extra Medicare costs.

This required an extra $8 billion in spending promises to be taken into the election, and increased the Budget deficit a Labor government would have to carry.

It was a risk and an investment. Labor’s election banner carried the word Medicare, and the Shorten tilt would be a disaster if no one noticed.

On June 12, the Bob Hawke video George Wright had presented to advisers a few weeks before went public.

Waleed Aly asks whether Labor achieved its result ‘off the back of fraud’.

Bill Shorten is grilled on the Medicare scare campaign on The Project last night.

It attracted comment, but the effect was less than Labor had hoped for. What was needed was a clear demarcation with the Liberals — a genuine fight over Medicare.

It didn’t come until Friday, June 17, the night of the news.com.au/Facebook debate between Mr Turnbull and Mr Shorten. This also was two days before the official ALP campaign launch.

Malcolm Turnbull finally responded with heat, calling the ad “disgraceful”. And the TV news bulletins that night ran it vigorously.

The third item on the ABC television news was, “The Prime Minister has accused Labor of running a disgraceful scare campaign about the future of Medicare, while the Opposition Leader is talking about getting young people into jobs.”

Fifth item on the Nine network had these grabs: “The Prime Minister accused Labor of misleading people, particularly the elderly, with claims the Coalition would privatise Medicare.

“Shorten: I will fight against the privatisation of parts of our Medicare system.

“Turnbull: Medicare will never, ever be privatised. Medicare will never, ever be sold.”

The fifth Seven News item had this from the reporter: “Our seat of the week, Hasluck in WA, is safe for sitting Liberal Ken Wyatt. And on policy, 56 per cent of people believe Medicare is more likely to be privatised under the Coalition.”

It was confirmation to Labor that the issue was not just influencing voters but had unsettled the Liberals.

On the Sunday, Mr Shorten announced the election would be a referendum on Medicare, and this kicked off the theme for the final two weeks of the Labor campaign.