The Insurance Council of Australia (ICA) has warned Victorian Premier Steve Bracks against raising the Melbourne Metropolitan Fire Brigade (MFB) budget when it’s not justified.

ICA says the Government is planning a 10% rise in the MFB budget for 2006/07 to meet the cost of a new 4% enterprise agreement and a “significant expansion” in fire-fighting staff – despite the board and managers not wanting the staff increase.

A letter to Mr Bracks signed by ICA Group Manager Southern Division Peter Jamvold says the MFB board and management “argued strongly against” the increase in staff “because [it] is not required to expand programs, improve operational safety or increase efficiency”.

The last time the MFB board resisted Government-imposed raises in staffing levels – believed to be part of backdoor deals with unions – was in 2003/04, when the MFB budget grew by 22.5%.

Victoria already has the highest premium taxes in the world, with the Government deriving 75% of its fire services’ funds from the controversial fire services levy imposed on all property policies.

Mr Jamvold, who declined to comment on the contents of the letter, told Mr Bracks that the “persistent lack of economic restraint” obvious in setting MFB budgets has caused an average 10% annual compound rate of increase in funding since 1999. “The need for such a high sustained rate of increase belies the steady decline in the number and severity of fires in the MFB region.”