Senator for Queensland, the Hon Jan McLucas, and Member for Leichhardt, the Hon
Warren Entsch MP, today welcomed news that the House of Representatives
Standing Committee on Social Policy and Legal Affairs would now consider issues
around residential strata insurance as part of its inquiry into the operation of the
insurance industry (the Inquiry).
Announced by Assistant Treasurer Bill Shorten and Committee Chair, Mr Graham
Perrett MP, an extension to the Terms of Reference will allow the Inquiry to examine
factors influencing the affordability of residential strata insurance.
“At the invitation of Strata Community Australia, Mr Entsch and I attended a meeting
in Cairns last week and heard from more than 150 strata title unit owners, managers
and real estate agents about rising costs of strata insurance.
“I thank Assistant Treasurer the Hon Bill Shorten MP and Mr Graham Perrett MP for
developing the new Terms of Reference for the insurance inquiry in direct response
to the concerns we raised. This will allow us to understand more about the underlying
causes affecting strata insurance affordability in Far North Queensland.
“The inquiry will also help us explore solutions to ensure strata insurance is
affordable and sustainable in the long term. This is an opportunity for the community
to make direct suggestions to the Government and I encourage everyone to
participate,” said Senator McLucas.
The Federal Member for Leichhardt, The Hon Warren Entsch welcomes today’s
announcement.
“I welcome the Government’s commitment to addressing this issue as a matter of
priority and I have made myself available as a supplementary member to the
committee and look forward to the commencement of hearings in late January.
“This is an action that needed to happen and it needed to happen quickly. If this
issue is not addressed by the next round of insurance premiums I have no doubt we
will see people forced out of their homes.
“The broadness of the terms of reference provides an unprecedented opportunity to
examine all aspects of strata title insurance affordability and this initiative provides
not only an opportunity to comprehensively identify issues affecting strata title but
also to set policy direction to re-instate affordability into this critical accommodation
sector,” Mr Entsch said.
The new terms of reference will be added to the Committee’s broader Inquiry into the
insurance industry’s response to the 2010-11 extreme weather events, during which
the Committee has undertaken an online survey and held public meetings.
Nearly 80 submissions have already been made to the Inquiry, with 16 public
hearings taking place across Australia, including a hearing in Innisfail on 29
September 2011.
Unit owners, body corporate managers and real estate agents are encouraged to
make a submission to the Inquiry. Information on making a submissions is available
by phoning 02 6277 2358, or by email to spla.reps@aph.gov.au
The Committee is expected to report to Government during 2012.
Media Contact: Kirsty Callahan 0427 585 668 (The Hon Warren Entsch MP)
Belinda Featherstone 0408 743 457 (Senator McLucas)
