21/3/02
Western Australia's case for addressing the rise in public liability insurance premiums will be put forward at a national summit in Canberra, Government Enterprises Minister Nick Griffiths said today.
In a ministerial statement to the Legislative Council today, Mr Griffiths confirmed that he would be representing WA at the national summit to be chaired by Federal Assistant Treasurer Helen Coonan.
The Minister said the increase in public liability insurance premiums was threatening the viability of a number of volunteer organisations, sporting clubs and small businesses and putting at risk important community events.
He said he would be strongly presenting the case for identifying a national co-ordinated solution to rising insurance costs.
"The purpose of the summit is to discuss issues relating to the affordability and availability of public liability insurance," Mr Griffiths said.
"I am hopeful that effective national solutions to the problem will be identified."
Mr Griffiths said the effects of such events as the collapse of HIH Insurance and the terrorist attacks of September 11 had led to insurers taking a more cautious approach to risk that had flowed through to increases in premiums across the board.
"Some premium increases have been as high as 1,000 per cent," he said.
"I am concerned that an increasing number of organisations might not insure for public liability and that could, in turn, lead to financial difficulty for people who make claims against them.
"At the same time, I want to be assured that these circumstances are not being used by the insurance industry as an opportunity to increase profits at the expense of community groups, small businesses and sporting clubs."
Mr Griffiths said the Government had continued to try to identify ways of providing some comfort to these groups.
"Earlier this year the Premier announced the State's five-point plan to address increases in public liability premiums," he said.
"One of those five points was the introduction of a Volunteers Protection Bill that will provide volunteers with qualified immunity from personal liability.
"That Bill will be submitted to the current session of Parliament."
Mr Griffiths said the State Government did not want the Commonwealth to shirk from its responsibilities and he wanted to find a solution in co-operation with the Federal Government and the other States and Territories.
The summit will take place on Wednesday, March 27 in Canberra.
Minister's Office - 9222 8950
