❓ Minister McHale provides an update on the $30 million compensation fund for victims of finance brokers' misconduct, reporting high acceptance and progress towards settlement, while also criticising the previous Liberal government's handling of the issue.
AnsweredQoN 234Legislative Assembly
QuestionView source ↗
FINANCE BROKING - INSOLVENCY MANAGEMENT FUND
Can the minister inform the house of the current status of the Carpenter government’s compensation package for victims of the finance brokers scandal? Ms S.M. McHALE
Can the minister inform the house of the current status of the Carpenter government’s compensation package for victims of the finance brokers scandal? Ms S.M. McHALE
AnswerView source ↗
I thank the member for Albany for his question and also his advocacy on behalf of the substantial number of victims in the Albany region of the unscrupulous practice of finance brokers and the negligence of the then Liberal government. As members are aware, in February this year we announced that an agreement had been reached between IMF (Australia) Pty Ltd and the government to set up a $30 million ex gratia compensation fund. The offer was conditional upon formal acceptance by 95 per cent of the existing IMF clients by 2 May 2007. I can now report to the house that recent advice confirms that there has been an overwhelming acceptance of the government’s offer, with 1 100 claimant groups, comprising 2 100 individuals, agreeing to accept the ex gratia payment, which is approximately 99 per cent of the possible population. In addition, I can report that more than 200 victims who were not clients of IMF have also come forward so they can be assessed for the compensation fund. This means that the $26.6 million that we have ensured goes to the victims will now be shared on an equal pro rata basis between all eligible victims. IMF is currently preparing a report on the claims made by IMF and non-IMF clients so we can determine who is eligible for compensation. We anticipate that that will be the majority of the victims. IMF has invited the State Solicitor’s Office and the Department of Consumer and Employment Protection to review that documentation. That will occur within the next week. When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
Ms S.M. McHALE replied: I thank the member for Albany for his question and also his advocacy on behalf of the substantial number of victims in the Albany region of the unscrupulous practice of finance brokers and the negligence of the then Liberal government. As members are aware, in February this year we announced that an agreement had been reached between IMF (Australia) Pty Ltd and the government to set up a $30 million ex gratia compensation fund. The offer was conditional upon formal acceptance by 95 per cent of the existing IMF clients by 2 May 2007. I can now report to the house that recent advice confirms that there has been an overwhelming acceptance of the government’s offer, with 1 100 claimant groups, comprising 2 100 individuals, agreeing to accept the ex gratia payment, which is approximately 99 per cent of the possible population. In addition, I can report that more than 200 victims who were not clients of IMF have also come forward so they can be assessed for the compensation fund. This means that the $26.6 million that we have ensured goes to the victims will now be shared on an equal pro rata basis between all eligible victims. IMF is currently preparing a report on the claims made by IMF and non-IMF clients so we can determine who is eligible for compensation. We anticipate that that will be the majority of the victims. IMF has invited the State Solicitor’s Office and the Department of Consumer and Employment Protection to review that documentation. That will occur within the next week. When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
I thank the member for Albany for his question and also his advocacy on behalf of the substantial number of victims in the Albany region of the unscrupulous practice of finance brokers and the negligence of the then Liberal government. As members are aware, in February this year we announced that an agreement had been reached between IMF (Australia) Pty Ltd and the government to set up a $30 million ex gratia compensation fund. The offer was conditional upon formal acceptance by 95 per cent of the existing IMF clients by 2 May 2007. I can now report to the house that recent advice confirms that there has been an overwhelming acceptance of the government’s offer, with 1 100 claimant groups, comprising 2 100 individuals, agreeing to accept the ex gratia payment, which is approximately 99 per cent of the possible population. In addition, I can report that more than 200 victims who were not clients of IMF have also come forward so they can be assessed for the compensation fund. This means that the $26.6 million that we have ensured goes to the victims will now be shared on an equal pro rata basis between all eligible victims. IMF is currently preparing a report on the claims made by IMF and non-IMF clients so we can determine who is eligible for compensation. We anticipate that that will be the majority of the victims. IMF has invited the State Solicitor’s Office and the Department of Consumer and Employment Protection to review that documentation. That will occur within the next week. When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
Ms S.M. McHALE replied: I thank the member for Albany for his question and also his advocacy on behalf of the substantial number of victims in the Albany region of the unscrupulous practice of finance brokers and the negligence of the then Liberal government. As members are aware, in February this year we announced that an agreement had been reached between IMF (Australia) Pty Ltd and the government to set up a $30 million ex gratia compensation fund. The offer was conditional upon formal acceptance by 95 per cent of the existing IMF clients by 2 May 2007. I can now report to the house that recent advice confirms that there has been an overwhelming acceptance of the government’s offer, with 1 100 claimant groups, comprising 2 100 individuals, agreeing to accept the ex gratia payment, which is approximately 99 per cent of the possible population. In addition, I can report that more than 200 victims who were not clients of IMF have also come forward so they can be assessed for the compensation fund. This means that the $26.6 million that we have ensured goes to the victims will now be shared on an equal pro rata basis between all eligible victims. IMF is currently preparing a report on the claims made by IMF and non-IMF clients so we can determine who is eligible for compensation. We anticipate that that will be the majority of the victims. IMF has invited the State Solicitor’s Office and the Department of Consumer and Employment Protection to review that documentation. That will occur within the next week. When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
I thank the member for Albany for his question and also his advocacy on behalf of the substantial number of victims in the Albany region of the unscrupulous practice of finance brokers and the negligence of the then Liberal government. As members are aware, in February this year we announced that an agreement had been reached between IMF (Australia) Pty Ltd and the government to set up a $30 million ex gratia compensation fund. The offer was conditional upon formal acceptance by 95 per cent of the existing IMF clients by 2 May 2007. I can now report to the house that recent advice confirms that there has been an overwhelming acceptance of the government’s offer, with 1 100 claimant groups, comprising 2 100 individuals, agreeing to accept the ex gratia payment, which is approximately 99 per cent of the possible population. In addition, I can report that more than 200 victims who were not clients of IMF have also come forward so they can be assessed for the compensation fund. This means that the $26.6 million that we have ensured goes to the victims will now be shared on an equal pro rata basis between all eligible victims. IMF is currently preparing a report on the claims made by IMF and non-IMF clients so we can determine who is eligible for compensation. We anticipate that that will be the majority of the victims. IMF has invited the State Solicitor’s Office and the Department of Consumer and Employment Protection to review that documentation. That will occur within the next week. When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
When I announced the fund on behalf of the government, I indicated that the time frame for full settlement would be within four months from the closing day; that is, 2 May. I am confident that subject to progressing the date of release through the Supreme Court, we will ensure that all the necessary work will be done so that we can expeditiously pay the victims their share of the $30 million, which means, in effect, that this government will be assisting the many victims who have come forward and accepted the government’s offer and seen it as a way of finally putting closure on what was undoubtedly a traumatic, personally hurtful as well as financially hurtful episode in their lives and a very black mark on the record of the Liberal opposition whilst in government.
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