Labor says federal government reinsurance pool lacks detail

Labor has vowed to work constructively with the federal government on its reinsurance pool, but says the announcement lacks details.

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LABOR has vowed to work constructively with the federal government on its reinsurance pool, but says the announcement lacks details.

Opposition spokesman for Disaster, Emergency Management and Northern Australia Murray Watt said Labor supported lower insurance premiums for North Queensland.

“But people in Townsville have been listening to this government say they’ll fix the insurance crisis for eight long years,” Mr Watt said.

“Every election they promise it again, and each time North Queenslanders are left no better off.

“The Prime Minister won’t even say how much, or when, premiums will fall. Unless he can say that, today’s ‘announcement’ is just another empty promise.

“If the government wants to reduce premiums now they should start using their $4 billion disaster fund to invest in disaster mitigation.

“That fund announced it two years ago, and they haven’t spent a cent. In fact, by doing nothing, it’s earned the government $400 million in interest.”

Senators Murray Watt and Nita Green in Townsville. PICTURE: MATT TAYLOR.

Cairns-based Labor Senator Nita Green said the government had been dragged “kicking and screaming” to deliver something when it came to insurance.

“The ACCC report actually recommended that the government did not implement a reinsurance pool,” Ms Green said.

“North Queenslanders will need to see a lot more than just a headline or marketing stunt to have confidence this will actually bring insurance prices down.”

Ms Green said one of the biggest issues with North Queensland insurance was around strata units.

“I understand that part of the announcement today is around resilience building for strata units,” she said.

“That is something that we have called for before, and it’s certainly going to make up part of our policy that we take to the next election.”

Originally published as Labor says federal government reinsurance pool lacks detail