❓ Mr. Wyatt questions the Treasurer about the impact of ICWA dividends on CTP insurance premiums. The Treasurer avoids a guarantee of no impact, stating it will be minimal and defends the policy as sound, citing practices in other jurisdictions.
AnsweredQoN 253Legislative Assembly
QuestionView source ↗
INSURANCE
COMMISSION OF WESTERN AUSTRALIA — STATE REVENUE
253. Mr B.S. WYATT to the Treasurer:
I refer to the comments made by the Treasurer in the house
yesterday that a payment of a dividend by the Insurance Commission of Western
Australia to the state government would have a minimal impact on compulsory
third party insurance premiums, and his statement today that he was committed
to keeping third party premiums at an affordable level.
(1) What
advice has the Treasurer been given regarding the dollar impact on third party
insurance premiums by the introduction of a dividend payment from ICWA?
(2) Will the
Treasurer guarantee that the payment of dividends by ICWA to the state
government will have no impact on compulsory third party insurance premiums?
COMMISSION OF WESTERN AUSTRALIA — STATE REVENUE
253. Mr B.S. WYATT to the Treasurer:
I refer to the comments made by the Treasurer in the house
yesterday that a payment of a dividend by the Insurance Commission of Western
Australia to the state government would have a minimal impact on compulsory
third party insurance premiums, and his statement today that he was committed
to keeping third party premiums at an affordable level.
(1) What
advice has the Treasurer been given regarding the dollar impact on third party
insurance premiums by the introduction of a dividend payment from ICWA?
(2) Will the
Treasurer guarantee that the payment of dividends by ICWA to the state
government will have no impact on compulsory third party insurance premiums?
AnswerView source ↗
(1)–(2)
I will not guarantee that. I will guarantee that the impact will be minimal, if
any. That is entirely consistent with what I said yesterday. Let me repeat what
I said yesterday: this is sound public policy.
Several
members interjected.
Mr T.R. BUSWELL :
Let me finish. As I understand it, it is the same treatment that happens in
other jurisdictions around Australia whereby state entities provide compulsory
third party insurance.
Ms R. Saffioti :
The fees are a lot higher.
Mr T.R. BUSWELL :
The fees are a lot higher for a whole range of reasons, member for West Swan.
One of them is that ICWA does not have the massive pool of assets that the
Labor Party stuffed in there during the Burke years that appreciated and offset
the costs. They are the facts.
Several members interjected.
The
SPEAKER : Members!
Mr
T.R. BUSWELL : I am not making that up. It is history.
Ms
R. Saffioti interjected.
The
SPEAKER : Member for West Swan! Nobody can hear the Treasurer, and the
Hansard reporter cannot record the proceedings.
Mr
T.R. BUSWELL : Those fees went up 4.5 per cent this year. That has already
been announced by the government. The reason they went up 4.5 per cent this
year is, as I said yesterday, because there are significant claims costs in and
around compulsory third party insurance.
Mr W.J. Johnston interjected.
Mr T.R. BUSWELL :
There are, member for Cannington.
Mr W.J. Johnston :
That is another reason not to do it.
Mr T.R. BUSWELL :
No, it is not. That is another example of a government product that has had its
price suppressed for almost a decade in relation to compulsory third party
insurance, and ultimately somebody will have to pay. In my view, we need to
start correcting those premium fees to try to offset some of that cost
imbalance. That is a fact. Do I think that the impact of a dividend on the cost
will be significant? No, I do not. Can I guarantee that it will be zero? No. I
cannot. But my belief is that it will be either zero or minimal.
I will not guarantee that. I will guarantee that the impact will be minimal, if
any. That is entirely consistent with what I said yesterday. Let me repeat what
I said yesterday: this is sound public policy.
Several
members interjected.
Mr T.R. BUSWELL :
Let me finish. As I understand it, it is the same treatment that happens in
other jurisdictions around Australia whereby state entities provide compulsory
third party insurance.
Ms R. Saffioti :
The fees are a lot higher.
Mr T.R. BUSWELL :
The fees are a lot higher for a whole range of reasons, member for West Swan.
One of them is that ICWA does not have the massive pool of assets that the
Labor Party stuffed in there during the Burke years that appreciated and offset
the costs. They are the facts.
Several members interjected.
The
SPEAKER : Members!
Mr
T.R. BUSWELL : I am not making that up. It is history.
Ms
R. Saffioti interjected.
The
SPEAKER : Member for West Swan! Nobody can hear the Treasurer, and the
Hansard reporter cannot record the proceedings.
Mr
T.R. BUSWELL : Those fees went up 4.5 per cent this year. That has already
been announced by the government. The reason they went up 4.5 per cent this
year is, as I said yesterday, because there are significant claims costs in and
around compulsory third party insurance.
Mr W.J. Johnston interjected.
Mr T.R. BUSWELL :
There are, member for Cannington.
Mr W.J. Johnston :
That is another reason not to do it.
Mr T.R. BUSWELL :
No, it is not. That is another example of a government product that has had its
price suppressed for almost a decade in relation to compulsory third party
insurance, and ultimately somebody will have to pay. In my view, we need to
start correcting those premium fees to try to offset some of that cost
imbalance. That is a fact. Do I think that the impact of a dividend on the cost
will be significant? No, I do not. Can I guarantee that it will be zero? No. I
cannot. But my belief is that it will be either zero or minimal.
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