High finance’s low blow takes fun out of the fair

Third-generation showie Peter Short had a chastening message for the young and young-at-heart queuing for his ride at Friday’s Innisfail Show in north Queensland: enjoy it while you can.

‘If you don’t have cover, you can’t work’ … third-generation ‘showie’ Peter Short, at the Innisfail Show, says he can no longer get insurance at any price. Picture: Brian Cassey

Third-generation showie Peter Short had a chastening message for the young and young-at-heart queuing for his ride at Friday’s Innisfail Show in north Queensland: enjoy it while you can.

As things stand this is the “last hurrah” for sideshow alley.

The problem, for a change, isn’t Covid or even the suspension of the agricultural show circuit in the teeth of the pandemic last year – though that didn’t help.

This is what happens when the unseen world of high finance ­materialises at the door and lets fly with a baseball bat.

International reinsurers including Lloyd’s of London reviewed their risk profile in Australia and collectively pulled out of covering public liability for the travelling ride and attraction operators, leaving Mr Short and more than 1000 mainly family-owned concerns in the lurch.

They are being driven out of business one by one, threatening the viability of both country and big city shows.

Taking a break from working his $1m Orbiter ride, 66-year-old Mr Short said: “My premium is up in September and the broker has already told me I can’t renew it, not with anyone, not at any price.

“If you don’t have cover, you can’t work. It’s as simple as that. So I’m telling people to make the most of it … it might be our last hurrah because everyone is running out of insurance.”

Fifth-generation sideshow operator Sarah Gill, 36, wasn’t sure there was a future in the family business for her baby, Romy, 1.

“It’s not just going to affect us, this is an ecosystem involving whole communities,” she said.

The fun of the fair certainly has a serious side, with Australia’s 580 agricultural shows worth an estimated $1bn to the economy, according to government-backed estimates.

The impact of the insurance drought is being felt far and wide. Sydney’s Royal Easter Show, back from its Covid-induced hiatus in April, had to exclude five rides ­because the operators were uninsured. But that was only the start.

With show season in full swing – Cairns is next week, followed by the big-time of the Ekka in Brisbane from August 7, Royal Adelaide Show from September 4-12, Royal Melbourne Show from September 23 to October 3 and Royal Perth Show from September 25 to October 2 – sideshow alley is shrinking as more operators lose their indemnity.

Public liability insurance covers businesses against personal injury claims in the event of an accident. Aaron Pink, president of the Showmen’s Guild of Australasia, said he was better off than most: his policy runs until December, allowing him to see out the year with sons Connor, 26, and Keenan, 21.

Operator Sarah Gill with baby Romy at the Innisfail Show. Picture: Brian Cassey

The boys are sixth-generation showies who work Belgian-made dodgem cars and children’s rides with their dad, 49. “Asked what would happen if a solution was not found, Mr Pink said simply: “I’ll probably go broke.”

Rather than rely on outsiders, the travelling operators want to look after themselves by setting up a Discretionary Mutual Fund proposed by industry group the Australian Amusement, Leisure and Recreation Association, along the lines of schemes used by local councils and franchised businesses such as McDonald’s.

The federal government has asked Small Business and Family Enterprise Ombudsman Bruce Billson to run a ruler over the plan, which would probably have to be underwritten by the taxpayer.

There may be no alternative.

Mr Billson, a former federal small business minister, said the withdrawal of coverage posed an “existential threat to the industry” and had to be addressed.

“The insurance market is hardening,” he told The Weekend Australian. “That means insurers are being more selective in what kinds of risks they will insure, and they have chosen not to continue in this space.

“The show must go on is our motivation, and we are just looking for a solution that works.”

AALRA president Shane McGrath said the showies’ plight was the leading edge of a public liability crisis confronting small business nationally. Elsewhere in the amusement sector, caravan and theme parks had been hit by fourfold hikes in premium costs, he said. Townsville’s Barra Fun Park closed down after being unable to source insurance.

“We are the pointy end of the problem,” Mr McGrath said.

The Insurance Council of Australia this year commissioned former insurance executive and regulator John Trowbridge to identify potential fixes. In the case of the amusement sector, a “hard” insurance market had been compounded when the small number of predominantly overseas underwriters “reassessed” their position, tightening coverage.

An ICA spokesperson said Mr Trowbridge had found that “while there was no one-size-fits-all solution to these issues, solutions do exist but they will require collaboration between insurers, small business and government”.

Mr Short is counting on the breakthrough coming sooner rather than later. His life on the road is a family tradition that reaches back to 1906 when his grandfather, Old Les, got into the business and brought in Mr Short’s dad, Big Les.

He likes that his job puts a smile on the faces of people wherever he goes – especially in country towns, where the bright lights and excitement of the show is a treat they look forward to all year. “I’d hate to see it go – we’re just hoping reason prevails,” he said.

Assistant Treasurer Michael Sukkar offered some hope. “The federal government understands the issues and has been engaging with Australian Amusement, Leisure and Recreation Association on a regular basis to discuss their concerns,” he said.