Federal Politics

Greg Hunt takes on health ministry in limited reshuffle

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Incoming Health Minister Greg Hunt says he wants to establish a better relationship with the nation's GPs amid the ongoing conflict over the government's decision to maintain a freeze on the Medicare rebate.

Named by Prime Minister Malcolm Turnbull on Wednesday to replace resigned minister Sussan Ley, Mr Hunt declined to discuss his thoughts on the freeze, which has angered doctors by capping the amount they are reimbursed.

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Greg Hunt reveals why he's happy to be named the new Health minister and what he sees for the future of Australia's health system. Courtesy ABC News 24.

But one of Mr Hunt's first conversations, in a telephone call made within 10 minutes of Mr Turnbull's announcement, was with Australian Medical Association head Michael Gannon, who told him GPs often felt "undervalued" in Australia.

"I want to re-establish that value - their role, their importance, their trust in the community," Mr Hunt said. "I do again want to repeat that for GPs, I want to be their health minister."

Dr Gannon told Fairfax Media he believed Mr Hunt was "very much" receptive to ending the rebate freeze. "I do believe that is genuinely desired by both Mr Hunt and the government as a whole," he said.

The AMA boss revealed he had also been in communication over the past fortnight with Mr Turnbull via the messenging service WhatsApp.

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He said the medical profession would co-operate much more effectively with existing government reviews of the medical benefits schedule, healthcare at home trial and private insurance review if cabinet and the expenditure review committee agreed to lift the rebate freeze.

"It needs to happen," he said.

Mr Hunt's promotion came as part of a minor reshuffle necessitated by Ms Ley's resignation following an expenses scandal. Mr Hunt will also take up her old sports portfolio, while NSW senator Arthur Sinodinos will take over Mr Hunt's role as industry minister.

Ms Ley's aged-care portfolio will be taken by Ken Wyatt, who becomes Minister for Aged Care and Indigenous Health - and the first Indigenous person to hold a federal ministry.

There were also changes to the junior ministry, with conservative Liberal backbencher Michael Sukkar promoted to the role of assistant minister to Treasurer Scott Morrison.

Fairfax Media understands the Victorian MP's responsibilities will include housing affordability, the "effects test" under consumer law and some aspects of foreign investment.

The limited reshuffle announced on Wednesday was an attempt to portray stability after a rocky start to 2017 for the Turnbull government, hit by numerous claims of travel entitlement abuse and controversy around Centrelink's automatic debt-recovery regime.

"This is not a major reshuffle. It is driven by the consequence of one resignation," Mr Turnbull said. "We have a very strong team and it is one that is performing outstandingly."

The PM said he enjoyed an "extraordinary range of talent on the backbench" and welcomed the opportunity to welcome new talent to his team of ministers and assistant ministers.

The health portfolio is seen as vital, given Labor's political advantage in that area and the successful "Mediscare" campaign it ran at the last election, from which the Coalition is still reeling.

Mr Hunt highlighted mental health as an issue "very close to my heart", and said he believed deeply in the importance of Medicare and the public health system. "We are already outstanding but we can be even better," he said.

But Labor's health spokeswoman Catherine King immediately went on the attack, accusing the government of continuing to punish GPs. "Malcolm Turnbull has changed his salesperson when it comes to health, but he hasn't changed a single one of his policies," she said.

Doctors, led by the powerful AMA, have campaigned against the government's continuation of the Medicare rebate freeze, a Labor-era measure that stalled the amount reimbursed to GPs from the government at $37 per consultation.

Dr Gannon said he had a good relationship with Ms Ley but there was "dismay and the anger among GPs" about the freeze, and they felt they had been "undervalued by governments of both persuasions for 25 years".

Ms Ley stepped aside from the portfolio earlier this month after it was revealed she bought an $800,000 investment property while on a taxpayer-funded trip to the Gold Coast, among several other questionable travel claims including expensive charter flights between capital cities. She later resigned from the position.

Senator Sinodinos had been considered an early favourite to take on the health role but was instead handed Mr Hunt's industry portfolio, which includes the PM's beloved topic of innovation.

Highly respected by colleagues, Senator Sinodinos was sidelined in 2014 after being engulfed in an ICAC inquiry affecting the NSW Liberal Party. ICAC has not yet released its findings in that inquiry, Operation Credo, but no findings of corruption have been recommended against Senator Sinodinos.

Mr Turnbull installed Senator Sinodinos as cabinet secretary after ousting Tony Abbott in order to "restore traditional cabinet processes". The functioning of cabinet and the role of Mr Abbott's chief of staff Peta Credlin was a major gripe among Coalition MPs under the former PM's tenure.

The role of cabinet secretary will return to the Prime Minister's office. Altogether the changes reduce the size of cabinet by one, and the number of women in cabinet will be reduced to five of 22.

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