After almost a decade of inaction, the Morrison Government’s belated announcement of a reinsurance pool is a $10 billion apology note to the people of Northern Australia.
After neglecting Northern Australia for so long, it’s clear to these communities that yet another announcement from Scott Morrison is more about getting through the next election than actually delivering genuine support.
The Morrison Government’s own Members today noted that it has taken the Liberals and Nationals almost a decade to do anything on this issue.
The reinsurance pool, which is slated to begin in 2022, means Northern Australia will now have to wait more than a year to access any benefits from the Morrison Government’s latest announcement.
The Prime Minister has already failed to explain how much this will cut insurance premiums and when it will happen. This is just more spin from a Government that has promised to fix insurance costs for years but has only delivered yet another announcement.
While details on the reinsurance pool are scarce, Labor will, as always, work constructively with the Morrison Government to provide a better outcome for the people of Northern Australia.
Any reinsurance pool must be accompanied by a plan for mitigation, incentives to discourage building in risky areas, and better building standards. Further efforts to retrofit older building stock must be part of any viable plan for Northern Australia.
Failure to implement a full suite of measures in Northern Australia will see the Morrison Government subsidising insurance company profits and nothing will change.
