Hon Paddy Embry asks about government plans to address rising public liability insurance costs for community groups and the estimated value of services provided by the non-government sector. The government outlines a five-point plan and other initiatives to address the issue.

AnsweredQoN 1321Legislative Council
Asked
18 April 2002
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

PUBLIC LIABILITY INSURANCE, COMMUNITY GROUPS
(1) What does the Government propose to do about insurances, in particular, public liability insurance, to prevent community groups closing in the next 12 months due to their inability to afford premiums? (2) Is the Government aware of the value of the services that the non-government sector provides to the community; and, if so, what is the dollar value of those services? Hon KEN TRAVERS

AnswerView source ↗

On behalf of the Leader of the House, I thank the member for some notice of this question. (1)-(2) It is assumed that by “non-government sector”, the honourable member is referring to the not-for-profit charitable sector, which provides a variety of community welfare services to the general public. Unfortunately, placing a value on the services this sector provides to the Western Australian community is a problematic task, and major definitional problems are involved. However, as a guide, the Premier referred to the Auditor General’s report of June 2000 titled, “A Means to an End: Contracting Not-For-Profit Organisations for the Delivery of Community Services”. That report estimated that this sector delivered, in money terms, 59 per cent of all community services throughout Australia. The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
(2) Is the Government aware of the value of the services that the non-government sector provides to the community; and, if so, what is the dollar value of those services? Hon KEN TRAVERS replied : On behalf of the Leader of the House, I thank the member for some notice of this question. (1)-(2) It is assumed that by “non-government sector”, the honourable member is referring to the not-for-profit charitable sector, which provides a variety of community welfare services to the general public. Unfortunately, placing a value on the services this sector provides to the Western Australian community is a problematic task, and major definitional problems are involved. However, as a guide, the Premier referred to the Auditor General’s report of June 2000 titled, “A Means to an End: Contracting Not-For-Profit Organisations for the Delivery of Community Services”. That report estimated that this sector delivered, in money terms, 59 per cent of all community services throughout Australia. The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
Hon KEN TRAVERS replied : On behalf of the Leader of the House, I thank the member for some notice of this question. (1)-(2) It is assumed that by “non-government sector”, the honourable member is referring to the not-for-profit charitable sector, which provides a variety of community welfare services to the general public. Unfortunately, placing a value on the services this sector provides to the Western Australian community is a problematic task, and major definitional problems are involved. However, as a guide, the Premier referred to the Auditor General’s report of June 2000 titled, “A Means to an End: Contracting Not-For-Profit Organisations for the Delivery of Community Services”. That report estimated that this sector delivered, in money terms, 59 per cent of all community services throughout Australia. The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
On behalf of the Leader of the House, I thank the member for some notice of this question. (1)-(2) It is assumed that by “non-government sector”, the honourable member is referring to the not-for-profit charitable sector, which provides a variety of community welfare services to the general public. Unfortunately, placing a value on the services this sector provides to the Western Australian community is a problematic task, and major definitional problems are involved. However, as a guide, the Premier referred to the Auditor General’s report of June 2000 titled, “A Means to an End: Contracting Not-For-Profit Organisations for the Delivery of Community Services”. That report estimated that this sector delivered, in money terms, 59 per cent of all community services throughout Australia. The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
(1)-(2) It is assumed that by “non-government sector”, the honourable member is referring to the not-for-profit charitable sector, which provides a variety of community welfare services to the general public. Unfortunately, placing a value on the services this sector provides to the Western Australian community is a problematic task, and major definitional problems are involved. However, as a guide, the Premier referred to the Auditor General’s report of June 2000 titled, “A Means to an End: Contracting Not-For-Profit Organisations for the Delivery of Community Services”. That report estimated that this sector delivered, in money terms, 59 per cent of all community services throughout Australia. The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
The response of the Western Australian Government to the issue of public liability insurance premiums has been to develop a comprehensive package of measures, which have since been mirrored in most States. On 5 February 2002, the State Government announced a five-point package of initiatives with the intention of providing a level of comfort to all groups affected by this issue. Such groups include not only the volunteering sector but also small business and sporting and recreational groups. The elements of the five-point package are, first, the introduction of a volunteers protection Bill to be submitted to the current session of Parliament. The Bill will provide volunteers with qualified immunity from personal liability and will be a key element in ensuring that individuals are not discouraged from participating in volunteer activity. The second element is a requirement for public sector agencies to review the level of insurance coverage required under government contracts to ensure it is appropriate. The third is to ensure that RiskCover, in conjunction with other government agencies, develops programs to promote risk-minimisation strategies to affected groups. This is expected to provide relief over the medium to long term. The fourth is a request that the Prime Minister extend the Australian Competition and Consumer Commission investigation into the insurance industry pricing to specifically include the matter of public liability insurance. This has since been announced, and the report will be finalised by July 2002. The fifth is the establishment of a working party to investigate legal remedies, including the capping of claims and ways of finding quick settlements. That working party is now assisting the work program on broad-based tort reform agreed to at the national forum on public liability insurance, held in Canberra on 27 March 2002. In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
In addition to this package, the State Government has formed a working party to develop a proposal to promote the benefits of pooling and bulk-buying arrangements. The State Government recognises the impact this issue is having on many organisations and businesses, and is considering all options for providing relief to those affected and solutions to the underlying cause of the problem. I emphasise that the public liability insurance issue is one that must be addressed at both federal and state levels. The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
The Premier had the opportunity to represent the State Government at the national forum on this issue. At that forum the States and Commonwealth agreed to attack the problem on two fronts to ensure both affordability of and accessibility to public liability insurance. This agreement includes, among other initiatives, examination of options for broad-based tort reform; examination of legal system costs and practices; amendments to the Trade Practices Act and comparable state legislation to define the extent to which an individual can legally and personally assume personal responsibility for high-risk activities; amendments to tax legislation to enable structured settlements; and greater focus on the insurance industry to ensure that it is not profiteering from recent events such as 11 September and the collapse of HIH. This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.
This Government’s calls for action have been acknowledged by the Commonwealth, as evidenced by the action it has finally taken, and the Government is working with the Commonwealth and other States to ensure that public liability insurance cover is available to the community at affordable prices. Work on the initiatives arising from the national forum is being progressed with a view to some tangible outcomes being achieved by the next ministerial meeting planned for late May 2002.

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