VFF Says Fire Tax Must be Scrapped
Victorian Farmers Federation, 1 March 2009
Comments by the Insurance Council of Australia about Victoria’s Fire Services Levy are correct the Victorian Farmers Federation (VFF) has said today.
VFF President Simon Ramsay said that opposition to the levy by farmers had been a long held position of the VFF and would be included as a key aspect of the VFF’s submission to the Bushfire Royal Commission.
“When you have a situation where 1800 homes have been destroyed, where 9000 farms have been affected and where only 70 percent of property owners have insurance, you have to ask questions about the equitability of those who have paid insurance and funded the fire services used by the 30 percent who are uninsured,” Mr Ramsay said.
"If everyone expects the fire brigade to turn up when they are needed, then everyone should be prepared to contribute equally to the cost."
"The VFF has argued for many years that taxing insurance results in people under insuring, or not insuring at all. We made this point again in our 2009-10 Pre-Budget Submission presented personally by me, and others from the VFF, to Victorian Treasurer John Lenders in the days directly after the fires.”
“Funding fire brigades by taxing fire insurance makes as much sense as funding the police force though a tax on theft insurance. Continued increases in insurance tax are an indication that the cost is being spread across fewer insurers."
"Victoria has the highest taxes on property insurance in Australia with other States such as Western Australia accepting the inequity of a fire service levy and getting rid of it years ago."
“While farmers agree with the Insurance Council that a more equitable model needs to be found, we do not agree that compelling people to pay insurance is the answer. The introduction of a compulsory tax on fire services, amounting to the suggestion that fire brigades are the fourth level of Government in Australia, is incorrect.”
“The Prime Minister’s ‘we will rebuild’ in the weeks after the fire might be good political rhetoric that captures emotional sentiment, the reality leaves many questions unanswered. Who will have their property rebuilt? Who will fund the reconstruction? What is the value of insurance if the insured and non insured are treated equally?”
“The Black Saturday bushfires where a terrible national tragedy, lives were lost, homes were destroyed, and communities were united in grief. The generosity of the farming community took a leading role, as it continues to, in the reconstruction effort.”
“In the wake of this tragedy, Governments and communities will need to take account of lessons learned and the rigours of a Royal Commission are the correct environment for such analysis. For farmers, addressing a system which relies on an inequitable fire tax will be chief among our concerns,” Mr Ramsay concluded.
Media Contacts
Brendan Rowswell, VFF Public Affairs Manager, 0417 165 784