NSW Premier Bob Carr has defended his government’s refusal to lower stamp duty rates for home-owners, saying the extra cash flow helped meet the unexpected demands of the HIH collapse. But didn’t the NSW Government introduce a fee to insurers to pay for losses associated with the $5.3 billion collapse?

Mr Carr said an increase in stamp duty also makes his government more prepared for the bushfires and drought. Opposition Leader John Brogden wants to know how Mr Carr can justify increasing more than 1000 fees, fines and charges while refusing to cut stamp duty.

Mr Carr said a budget has to be there for the unforeseen hits that a budget takes, like an HIH collapse or a bushfire crisis or for a drought. “It is good financial management that enables a government to accommodate an HIH collapse,” he said.