Comments emphasising his concerns about impact on pensioners and poor people appear to leave door open to deal

Clive Palmer has sent mixed messages about the possibility of a compromise deal on the government’s proposed $7 Medicare co-payment, emphasising that his concerns were about the impact on pensioners and vulnerable groups.



The Palmer United party leader met the treasurer, Joe Hockey, on Tuesday night and appeared to leave the door open to considering an alternative plan by the Australian Medical Association, which is believed to have suggested exemptions or greater protections for pensioners and concession-card holders.

The meeting occurred after the health minister, Peter Dutton, said the government was “seriously having a look” at the AMA’s alternative and most of the debate was “about whether or not particular groups of people are eligible for exemption”.

Palmer is key to the government’s chances of securing the Medicare co-payment because Labor and the Greens oppose it as a matter of principle. It therefore cannot pass the Senate without the PUP senators’ support. The PUP leader had previously ruled out a compromise deal.

But in an interview with the ABC on Wednesday, Palmer laid out his concern about the impact: “What’s wrong with the co-payment is the fact it hits so many poor people and it makes their condition a lot worse.”

Asked whether he could be convinced if the government agreed to exemptions for pensioners and poor people, Palmer said: “I think all those things are hypothetical. We’d certainly have to look at real, proper tangible projects to know people are serious about it. It’s very hard to give an opinion on something if it’s hypothetical with the AMA proposals or whatever.

“We need to actually see the hard policy but I don’t think we can stand by and let our pensioners and vulnerable people be attacked by this policy. It’s not just pensioners; it’s also low-income employees, people with families.

“I mean, I don’t mind paying an extra $7 or $10 to go to see the doctor on my income, but healthcare in this country has been free to people and so it should be. You never know what stage of your life that you’ll need it.”

His answers appeared to represent a shift from previous comments expressing his outright opposition and ruling out a compromise deal.

After the ABC interview, Guardian Australia asked Palmer to confirm whether he was open to talks about proposals to exempt pensioners and vulnerable groups from the Medicare co-payment. “No,” he replied. Palmer added that healthcare must be accessible to all, and on the basis of press reports he did “not support the co-payment or the AMA solution”.

Dutton last week dismissed suggestions the co-payment was doomed, suggesting Palmer could be won over with concessions. “I just point you to changes that Mr Palmer supported recently around Fofa [future of financial advice], which people had said were doomed, people had made comments of opposition and they said that they wouldn’t vote for it, negotiations continued and an outcome was arrived at,” Dutton said.

On 1 August Palmer told Guardian Australia his senators were firmly against any Medicare co-payment on the basis it “crosses the Rubicon” on access to free healthcare. “No, we don’t want any co-payment at all: zero dollars,” he said at the time. Asked whether he was prepared to rule out a compromise deal he said: “Yes, absolutely.”

Hockey’s meeting with Palmer was the latest in his series of discussions with crossbenchers during the winter parliamentary recess, in an attempt to find a way forward on contentious budget measures.

Hockey told ABC radio on Wednesday the government was prepared to discuss possible changes, but he defended the Coalition’s push to introduce a new GP co-payment.

“You know, there is some irony in that pensioners pay over $360 for their pharmaceuticals each year, and when we ask for $70 to visit the doctor, if they have 10 visits, then the suggestion is somehow that’s unfair,” he said.

Hockey hit out at “overstated commentary” about the budget, saying it was “not about being likeable” but reflected “a steely determination to do what is right for Australia”.

“We’re not so precious as to say ‘there is no alternative’ but we also want to ensure that we get to the end game, which is to stop the blood flow of debt and to ensure that Australians have the same, if not better, quality of life in the future that we have today.”

Palmer said the pair had agreed that it was a good thing to get revenue aligned with expenditure, but it was a question of how to achieve this. Palmer reaffirmed his concerns that the budget was not fair.

The education minister, Christopher Pyne, is due to meet with Palmer on Wednesday to push the case for the higher education reforms, which include deregulation of tuition fees, an average cut of 20% to course subsidies, an increase to the interest rate on student loans, expansion of funding to non-university providers including private colleges, and extension of funding to pathway programs such as sub-bachelor courses.

Christopher Pyne (@cpyne) Birthday surprise from @CliveFPalmer! #auspol pic.twitter.com/1kAi88Q1qW

Pyne has signalled he is prepared to compromise on elements of the package including the unpopular changes to the interest rates on Hecs loans.

Palmer, who has called instead for university education to be free, has stated his opposition to fee deregulation. He said it would be “a very hard task” for Pyne to change his mind on higher education, raising concern about people leaving university with a heavy debt burden.

Asked specifically about fee deregulation and higher interest rates, Palmer told the ABC: “I guess they’re things that go diametrically against what we stand for. I stand with all the students in the universities across Australia.

“I know that Christopher Pyne, like myself, had the benefit of a free university education. I’d like to think if we didn’t have that benefit Christopher Pyne probably wouldn’t be where he is today; I wouldn’t have contributed billions of dollars of export to the country if I didn’t have that opportunity and I think the more we can give that opportunity to other Australians is a good thing.”

Hockey is due to travel to Western Australia on Wednesday to meet with one of the three PUP senators, Dio Wang, while Labor continues its campus-based campaign against the university reforms.

The shadow treasurer, Chris Bowen, said Wednesday marked “three months since Joe Hockey brought down the worst budget in living memory”.

“There is now broad agreement across the Australian community that this budget is manifestly unfair,” Bowen said. “Joe Hockey’s first budget has been a fundamental failure – in substance, fairness and salesmanship.

“Every day we see a new proposal by the government to change or scrap a key budget measure; this is a budget coming apart at the seams. The prime minister and treasurer should do the honourable thing and start from scratch.”