Some heavyweights in the Victorian scene have lined up for and against the review of the state’s fire services levy (FSL) system, making it even harder for State Treasurer John Brumby to shelve the results of the ongoing inquiry he called shortly before last year’s snap election.

Geoff Crick, the Victorian Farmer’s Federation high-profile Treasurer and a member of the “community alliance” set up by the Insurance Council of Australia to force a Government response, hit out last week over the levy. Responding to criticism of the alternative funding system, he said people who don’t insure get a free ride. “A lot of people, especially farmers, subsidise them, and help provide the service as volunteers.”

His outburst followed the rejection of the alternative scheme by the Municipal Association of Victoria (MAV), which says it would lead to a 12.75% rise on all Victorian properties. The alliance, which includes the National Insurance Brokers Association, has proposed replacing the levy with a property-based rates system collected by councils.

The insurance-based levy funds 77.5% of the Country Fire Authority (CFA) budget, and Mr Crick said the MAV’s rejection is disappointing. “A tax on property rates would lead to a dramatic drop in insurance, forcing all property owners to contribute,” he said.

A Government discussion paper on the submissions is expected next month. The high-pressure drive by the alliance for change is being watched with interest in NSW and Tasmania, as well. If Victoria changed its collection system it would probably force the only other two states using an insurance levy system to fall into step.

Meanwhile, CFA Acting CEO Neil Bibby has made the levy issue even more difficult by announcing a possible increase in the FSL. The CFA has signed a $71 million deal with the unions to employ an extra 125 permanent firefighters, along with a 20% pay rise over the next three years.