The NSW Government’s decision to allocate $96 million for the State Emergency Service (SES) in the upcoming Budget doesn’t necessarily mean the SES levy on insurance premiums will be dropped.

The SES relies on council funding and an insurance levy that was introduced in 2009 and was blamed at the time for a rise in premiums.

Despite the funding increase, a spokesman for NSW Emergency Services Minister Michael Gallacher told insuranceNEWS.com.au today that the option of dropping the levy “hasn’t been discussed”.

SES Commissioner Murray Kear told The Daily Telegraph the Budget funding “would let the service move away from its reliance on insurance levies for income and make it a master of its own destiny”.

The funding will be provided over five years to, among other things, standardise the service’s 533 vehicles and support the 228 local SES units’ day-to-day running costs.

The Government considered the Queensland Floods Commission of Inquiry’s recommendations when allocating funding.

Over five years, $2 million will be invested in funding new wetsuits, rescue gear, specialised flood rescue boats and flood rescue training courses for the SES. An additional $1 million will be allocated to recruit expert staff including flood engineers and planners.

An Insurance Council of Australia spokesman told insuranceNEWS.com.au a large component of the NSW emergency services levy – typically about $44 million a year – is directed to the SES.

“However, it is too early to say whether the NSW Government’s five-year funding announcement will have any impact on premiums,” he said.

“ICA is heartened by a $1 million commitment to recruiting flood engineers and planners, and believes the SES can play a much more proactive role in making communities safer.

“This funding should underpin a much firmer commitment by governments to ensure at-risk communities are protected from extreme weather through permanent physical infrastructure and improved land-use planning.”