❓ A WA parliamentary question addresses the potential crisis in the housing industry following Dexta Corporation's decision to stop providing home indemnity insurance. The Minister acknowledges the seriousness of the issue and outlines government actions to mitigate the impact.
AnsweredQoN 878Legislative Assembly
QuestionView source ↗
I refer to the decision by Dexta Corporation, a major provider of home indemnity insurance, to immediately stop providing warranty cover. In view of the crisis that this could create in the State’s housing industry, which would consequently compound problems experienced by many builders over the past 13 months, I ask - (1) Is the minister aware that Dexta Corporation has a 40 per cent market share of the 2 000 building projects undertaken in Western Australia every month? (2) In view of the potential for a major crisis to affect our home building industry, what steps will the minister take to immediately provide an underwriting facility for all builders? (3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE
AnswerView source ↗
I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(1) Is the minister aware that Dexta Corporation has a 40 per cent market share of the 2 000 building projects undertaken in Western Australia every month? (2) In view of the potential for a major crisis to affect our home building industry, what steps will the minister take to immediately provide an underwriting facility for all builders? (3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(2) In view of the potential for a major crisis to affect our home building industry, what steps will the minister take to immediately provide an underwriting facility for all builders? (3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(1) Is the minister aware that Dexta Corporation has a 40 per cent market share of the 2 000 building projects undertaken in Western Australia every month? (2) In view of the potential for a major crisis to affect our home building industry, what steps will the minister take to immediately provide an underwriting facility for all builders? (3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(2) In view of the potential for a major crisis to affect our home building industry, what steps will the minister take to immediately provide an underwriting facility for all builders? (3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(3) Will the minister agree to exempt high value projects from compulsory indemnity assurance to assist the industry without compromising consumer protection? Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr KOBELKE replied: I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
I thank the member for this question. Some of his facts are wrong, but his question concerns a serious issue. (1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
(1)-(3) It has been reported correctly, I understand, that Dexta Corporation has stopped providing home indemnity insurance cover. It is estimated that Dexta has about 30 per cent of the Western Australian market, not 40 per cent. It is, nonetheless, a substantial amount. The situation with Dexta remains an ongoing concern. We are not dealing with an HIH Insurance collapse. Companies that insured with Dexta do not face a problem. Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr Barron-Sullivan: It’s only 40 per cent of the industry! Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
Mr KOBELKE: If the member for Mitchell listened he might learn something, although I know that is difficult for him. This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
This is a most serious matter. I regret that the member for Mitchell treats it so lightly and is using it as a political football. It is a problem because many major builders took out their home indemnity insurance with Dexta. This means many building projects will be held up if they cannot get a building licence because they cannot get home indemnity insurance. A suggestion has been made that Dexta may be able to obtain reinsurance and return to the market. We hope that will happen and we will do what we can to encourage it. With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
With Dexta no longer offering insurance, only two insurers remain in the market offering home indemnity insurance - HIH Insurance through Royal and Sun Alliance Insurance Australia Ltd and Reward Insurance Ltd. Government officers are speaking to people from both those insurers to see whether they can expand their capacity to pick up the Dexta clients. The Government will endeavour to support them in any way it can. One other State is looking at providing some support. I have asked that the home indemnity insurance forum, which we formed on the collapse of HIH, be reformed immediately. It was very productive in bringing forward all the players so that we could put on the table what were the problems and how they could be dealt with. We found that a range of difficulties at that time could be resolved by advancing matters between both insurers, the major builders and the Department of Consumer and Employment Protection. People were looked after in that process. They could advance a range of matters and look after people through that process. More importantly, it gave the Government a range of steps that need to be taken. I have already informed the House that the Government has been working on this. The Government has not been sitting on its hands; it has taken action in a number of areas to try to look after people. The Government has given a clear indication that the need for home indemnity insurance for developers will be removed during the construction period. Cabinet has already made that decision and the legislation is being drafted. The Government will also allow for mutual schemes to be offered. The legislation for that is also being drafted. The Government has given an undertaking to exempt multiunit, multilevel developments. It is possible to do that through regulation. The regulations have been drafted and I have asked that I be able to approve them either today or tomorrow so that they can be gazetted immediately. That was on the basis of a cabinet decision made some weeks ago. The Government is pursuing the matter to ensure it is in place as soon as possible. The legislation will also provide for a temporary suspension of the scheme if we end up with a disastrous situation in which builders cannot get the insurance required to obtain building licences. The Government has acted on a range of fronts. The legislation will be given priority by the Government. The Government hopes that the Opposition - unlike the way in which it acted over legislation today - will help move it quickly through the Parliament so the Government can respond on a number of fronts to what is a very worrying issue. As I have indicated, the Government wishes to speak to two insurers. The Government will see if other insurers will enter the market and provide cover. It is a big ask; extra things may need to be done. We will work with all sectors of the industry to ensure that we ease through this potentially large problem.
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