Victorian Premier Steve Bracks may have headed off possible criticism from vital rural voters of the state’s expensive and inefficient fire services funding system. In the face of mounting calls for change to the scheme, the Government sideswiped critical business groups on Friday by announcing an inquiry.

Treasurer John Brumby, who would lose stamp duty income from any change in the arrangement, announced the inquiry, which has been largely ignored by a media distracted by the imminent announcement of the election date by Mr Bracks. As one political pundit put it: “Now they can go into the election saying it’s the subject of an inquiry, so what’s the problem? It’s not a core issue for any party.”

Mr Brumby said the review will examine the existing arrangements and evaluate possible alternative models in use in other states and elsewhere. That will, according to industry sources, be the fourth inquiry into the fire services funding system since the mid-1980s. 

ICA Group Manager Southern Division, Peter Jamvold, who has been co-ordinating efforts by a number of industry groups to get the issue addressed, said the announcement of the inquiry is “a great development”.

“We’re delighted the Government has accepted there is a need to address the need for change in the funding system and that the gross unfairness of the system can be discussed,” he said. “There’s no scope now for continuing this system when Victoria needs a system that is fairer to all members of the community.”

But it was bad news for parties wanting the wider issues like stamp duty addressed. That includes NIBA and its members, business groups and the Federal Government. Mr Brumby has specifically excluded discussion of stamp duty from the inquiry. That issue may yet see the light of day if the HIH Royal Commission takes up its mandate to weigh into the subject if it chooses.

The Victorian Fire Services Funding Review Secretariat will take submissions up to December 31, and report next March.