Labor has once again shown its complete lack of interest in doing anything to reduce the cost of insurance for Australian families and businesses, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.
Senator Coonan said Labor’s complete failure to grasp the importance of affordable and available insurance was well and truly exposed by Senator Stephen Conroy during estimates hearings this week.
“Despite a report by Trowbridge Deloitte last year which found that State taxes added as much as 60 per cent to the basic cost of property insurance, Senator Conroy this week dismissed the problem as a myth,” Senator Coonan said.
After being told by a Treasury official during the estimates hearing on Wednesday that there had been complaints about the level of taxes imposed by State Governments on insurance, and that the industry believed people did not take out insurance because of the additional tax, Senator Conroy’s response was:
“Yes, I believe in the Easter bunny as well.” (Hansard – Senate Economics Committee)
“Senator Conroy’s complete dismissal of the legitimate concerns that Australian business and families have with the high cost of insurance stamp duty and fire brigade levies is disgraceful,” Senator Coonan said.
“Surveys by the insurance industry have found that almost a third of home-owners without building insurance cited cost as the reason, while half gave the same reason for not insuring contents.
“A 2002 JP Morgan Deloitte General Insurance Survey found taxes and charges on insurance in a number of Australian States were the highest in the world, but that clearly doesn’t bother Senator Conroy.
“He could not care less about these imposts on insurance which the HIH Royal Commission recommended be abolished.
“Labor has repeatedly used its numbers in the Senate to stymie important liability reforms, and now we know why - the ALP’s financial services spokesman thinks the high cost of premiums is a fairy tale.
“It’s time Mr Latham pulled his Senators into line, and supported Australian families and business by backing the good work being done by the Australian Government and State Labor Government’s to resolve the insurance crisis.”