A parliamentary question regarding government assistance to builders affected by an indemnity crisis, focusing on the establishment of mutual funds and the impact of federal law. The questioner accuses the Labor Party of lying, which is withdrawn.

AnsweredQoN 1382Legislative Assembly
Asked
4 December 2003
Portfolio
Consumer and Employment Protection

QuestionView source ↗

I have a supplementary question. What will the minister do to assist builders suffering from the indemnity crisis now that the Labor Party has lied to them? Withdrawal of Remark The SPEAKER: The Deputy Leader of the Liberal Party knows that is unparliamentary. Mr D.F. BARRON-SULLIVAN: I withdraw that. Questions without Notice Resumed Mr J.C. KOBELKE

AnswerView source ↗

We have worked very hard to try to put in place support for mutual funds. A mutual cannot set up unless it has the substance and the potential to deliver. We cannot encourage people to rely on the insurance of a mutual only to find that it falls over. It needs to be checked out properly. We are meeting half the cost of the actuarial work, which is reasonably expensive, so that the mutual funds can hopefully get going. Three mutuals are being developed. There may not be room in the market for three; however, we are making sure that all of them have every opportunity to put forward a proposal. The main reason for the delay is that this area of insurance is covered by federal law. Mr D.F. Barron-Sullivan: You get this far - Mr J.C. KOBELKE: The Deputy Leader of the Liberal Party might not worry about these minor details; however, whatever we put in place could be totally overridden by federal law, under which insurance is regulated. The mutual funds have had some difficulty getting clearance and finding out from the Australian Prudential Regulation Authority whether they have to get an insurance licence or whether they fit within the regulation criteria that determines that they do not need cover as an insurer and can be regulated by the State Government.
Mr D.F. BARRON-SULLIVAN: I withdraw that. Questions without Notice Resumed Mr J.C. KOBELKE replied: We have worked very hard to try to put in place support for mutual funds. A mutual cannot set up unless it has the substance and the potential to deliver. We cannot encourage people to rely on the insurance of a mutual only to find that it falls over. It needs to be checked out properly. We are meeting half the cost of the actuarial work, which is reasonably expensive, so that the mutual funds can hopefully get going. Three mutuals are being developed. There may not be room in the market for three; however, we are making sure that all of them have every opportunity to put forward a proposal. The main reason for the delay is that this area of insurance is covered by federal law. Mr D.F. Barron-Sullivan: You get this far - Mr J.C. KOBELKE: The Deputy Leader of the Liberal Party might not worry about these minor details; however, whatever we put in place could be totally overridden by federal law, under which insurance is regulated. The mutual funds have had some difficulty getting clearance and finding out from the Australian Prudential Regulation Authority whether they have to get an insurance licence or whether they fit within the regulation criteria that determines that they do not need cover as an insurer and can be regulated by the State Government.
We have worked very hard to try to put in place support for mutual funds. A mutual cannot set up unless it has the substance and the potential to deliver. We cannot encourage people to rely on the insurance of a mutual only to find that it falls over. It needs to be checked out properly. We are meeting half the cost of the actuarial work, which is reasonably expensive, so that the mutual funds can hopefully get going. Three mutuals are being developed. There may not be room in the market for three; however, we are making sure that all of them have every opportunity to put forward a proposal. The main reason for the delay is that this area of insurance is covered by federal law. Mr D.F. Barron-Sullivan: You get this far - Mr J.C. KOBELKE: The Deputy Leader of the Liberal Party might not worry about these minor details; however, whatever we put in place could be totally overridden by federal law, under which insurance is regulated. The mutual funds have had some difficulty getting clearance and finding out from the Australian Prudential Regulation Authority whether they have to get an insurance licence or whether they fit within the regulation criteria that determines that they do not need cover as an insurer and can be regulated by the State Government.
Mr D.F. Barron-Sullivan: You get this far - Mr J.C. KOBELKE: The Deputy Leader of the Liberal Party might not worry about these minor details; however, whatever we put in place could be totally overridden by federal law, under which insurance is regulated. The mutual funds have had some difficulty getting clearance and finding out from the Australian Prudential Regulation Authority whether they have to get an insurance licence or whether they fit within the regulation criteria that determines that they do not need cover as an insurer and can be regulated by the State Government.
Mr J.C. KOBELKE: The Deputy Leader of the Liberal Party might not worry about these minor details; however, whatever we put in place could be totally overridden by federal law, under which insurance is regulated. The mutual funds have had some difficulty getting clearance and finding out from the Australian Prudential Regulation Authority whether they have to get an insurance licence or whether they fit within the regulation criteria that determines that they do not need cover as an insurer and can be regulated by the State Government.

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