Angus Taylor has said the opposition has no plans to forcibly break up insurance companies just hours after Peter Dutton said a Coalition government would be prepared to take the step if the treasury recommended it, adding further confusion to the party’s position.
The mixed messaging comes amid unease among some Coalition MPs about the lack of economic policies to sell to voters ahead of the federal election.
Taylor’s performance as shadow treasurer is also being questioned internally, with some colleagues describing him as the opposition’s weakest link ahead of a campaign to be fought on cost-of-living.
Dutton and Taylor brushed off the internal criticisms, first reported in The Australian, insisting the opposition would announce more policies when voters started paying attention closer to polling day.
The opposition has endured a messy three weeks as Dutton and senior ministers contradicted one another over whether the Coalition’s divestiture policy would extend to insurance companies, not just supermarkets and hardware chains.
Dutton put the idea on the agenda on 16 February, only for Taylor to rule it out on 5 March.
The Nine papers reported the position that “insurance does not form part” of the divestiture policy was removed from Coalition media talking points on Wednesday after being part of the guidance for MPs for weeks.
The apparent shift came after Dutton again swung behind the idea on Tuesday, despite his deputy Sussan Ley insisting it wasn’t opposition policy a day earlier.
Speaking in Brisbane on Thursday morning, Dutton said the Coalition’s policy was “very simple and very clear”.
“If the government I lead receives information, or advice from Treasury, that there is a concentration of market share within some of the big insurance companies that is leading to a distortion of the market – and leading to an increase in premium prices and leading to a situation where people can’t get insurance – then we will act,” he said.
“If the response is to bring those insurance premiums down and to make sure that Australians can get reasonably priced insurance coverage, it is to divest, that is the decision we will take.”
At a press conference shortly after in Sydney, Taylor said a Coalition government wouldn’t hesitate to crack down on anti-competitive behaviour in any sector.
But he said divestiture wasn’t on the agenda for insurers.
“When it comes to insurance, we don’t have a policy right now to add divestiture powers for insurance companies, but we are always on the lookout for abuse of market power and anti-competitive behaviour,” Taylor said.
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The comment leaves the door open to adopting the policy in the future, representing somewhat of a softening in Taylor’s position.
Coalition MPs have privately bemoaned the communications breakdown, which Labor has seized on as proof the opposition is either divided or confused – or both – on the policy.
Timeline
What the Liberals have said about divesting insurance companies: A timeline
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Opposition leader Peter Dutton:
“As we’ve done with the supermarkets, where we have threatened divestment if consumers are being ripped off, similarly, in the insurance market, we will intervene to make sure that consumers get a fair go because at the moment people are paying too much for their insurance and what’s resulting is that people aren’t taking out insurance.”
Shadow treasurer Angus Taylor:
“No, we’ve been clear on that,” when asked if divestiture policy would extend to insurers.
Liberal senator Jane Hume:
“You can take my word for it… that divestiture is not part of our policy for insurance companies”
Deputy opposition leader Sussan Ley:
“We do not propose divestiture with respect to insurance companies, and we’ve made that clear”
Dutton:
“If the advice to our government is that there is a concentration of power or market share vested in the big insurance companies in this country, and that that concentration of market share has led to businesses and families not being able to get insurance cover or indeed has led to people paying astronomical prices for their premiums and therefore market failure, my government will act and we will divest if that’s what’s required to get competition into the marketplace.”
Dutton:
“If there is a market problem here, if there is a failure within the market, it’s unremarkable to say that a government would react.”
Dutton:
“If the response is to bring those insurance premiums down, and to make sure that Australians can get reasonably priced insurance coverage, it is to divest, that’s the decision we’ll take”.
Taylor:
“When it comes to insurance, we don’t have a policy right now to add divestiture powers for insurance companies, but we are always on the lookout for abuse of market power and anti-competitive behaviour”
The insurance saga coincides with a growing unease among some MPs about the opposition’s lack of major cost-of-living policies so close to an election.
Some MPs are worried the Coalition will start the campaign without a substantial offer for under-pressure households, with Dutton again playing down the prospect of income tax cuts on Thursday.
The opposition leader brushed off the internal disquiet about the Coalition’s “small-target strategy”, while Taylor defended its economic agenda.
The shadow treasurer pointed to the plan to build nuclear reactors and the Coalition’s opposition to $100bn of “inappropriate” Albanese government spending as examples of two “major commitments”.
Guardian Australia understands the Coalition will announce new policies based on its 12-point “Back on Track” policy agenda that Dutton announced in January.
Dutton said the announcements would be rolled out when voters started turning their mind to the election, due in May.