Push for user pays fire services to eradicate inequity
Merimbula News Weekly, 29 April 2009
Most people will never need their services; homes are often saved by their efforts; and who is called to get that cat out of the tree?
Fire brigades protect property from fire, save those already alight and retrieve cats that can climb up but not down. But who pays to keep fire services afloat?
They receive government funding, but more importantly people who insure their homes against fire pay up to 15 per cent of their premium on a fire service levy.
Insurance companies then pass that levy on to the State Governments to maintain fire services.
That means people who insure their house against fire pay for those who do not.
A scenario maybe that you are insured against house fire, but the next door neighbour believes the probability of his house burning down does not warrant the cost of insurance.
However, his house does catch fire and the owner expects the brigade to arrive and save his property, while his neighbour sits there thinking why should he be paying for a fire service levy through his insurance to save the house of his neighbour who thought insurance against fire was a waste of money.
The Bega Valley Shire Council (BVSC) has looked into this matter and it believes councils should be responsible for collecting fire service levies, including administration fees, via a separate charge on rateable properties.
Council will submit a notice of motion at the Australian Local Government Association 2009 National General Assembly, to be held from June 21 to 24 at the National Convention Centre, Canberra, in a bid to have such levies become legislation for all Australian councils.
If successful, it is believed the cost of insurance would drop and the communities, as a whole, would support their fire service and not just those who insure against fire.
The motion was put forward by Councillor David Hede at council’s April 14 meeting and was passed unanimously.
Cr Hede said all property owners should contribute to the fire service levy.
“That is why we are going to put the motion up at the Assembly. All people should contribute to the fire service levy, not just those that choose to insure,” he said.
“Even if someone owned a rural block with nothing on it; a fire breaks out and the fire service tries puts the fire out on their land, they have paid zero for that service because the property was not insured for fire.”
Up to 50 per cent of homes lost during the Victorian bushfires were not insured and according to Councillor Hede those uninsured will benefit more than those that were insured.
“People chose not to pay insurance on their houses and those people would benefit more than people who insured their homes,” he said.
“Those who paid insurance will get their homes rebuilt, and those that didn’t would probably benefit more from the fundraising effort.
“If the motion is accepted at the General National Assembly, the result would also see the cost of fire service levies through insurance drop as much as 50 per cent.
“Council is hoping the Assembly accepts its recommendation, one that will benefit every community in Australia,” Cr Hede said.