Relations between the insurance industry and the NSW Government reached a low point last week over reports that a meeting between industry representatives and Emergency Services Minister Tony Kelly ended with the Minister threatening to “taser” an ICA executive.

A report by The Australian last week revealed Mr Kelly clashed on October 2 with ICA tax analyst Alex Sanchez during a heated discussion on insurance levies.

Mr Kelly is alleged to have made the threatening remarks as he prepared to leave the meeting to attend an announcement on tasers, a gun which fires thin wires and incapacitates people with a strong electric shock.

“I wish I had a taser here right now – I would taser you,” he allegedly told Mr Sanchez.

Mr Sanchez revealed details of the incident to News Ltd newspapers and revealed he is considering a formal complaint.

The incident took place during a discussion on insurance taxes. Two weeks ago Mr Kelly enthusiastically embraced the unexpected imposition of another levy on premiums, this time to fund the State Emergency Service.

A senior industry lobbyist has questioned how the incident was allowed to get so far out of hand.

“If a discussion gets to that point you’ve lost the argument and there’s no point being there,” he said. “If you’re talking to professionals there is a time to back off.”

The lobbyist – who declined to be named – told insuranceNEWS.com.au a formal complaint from ICA to Premier Nathan Rees would harm relations between the council and the NSW Government.

“What’s that going to do for future relations with the minister and any other minister? The door may be closed, and ICA may be restricted in what it can do.”

The lobbyist also questioned why ICA officers felt “uncomfortable” when Mr Kelly made enquiries about insurance matters related to a member of his family. He said executives could put individuals in touch with company contacts without compromising their position.

Another Canberra lobbyist who discussed the matter with insuranceNEWS.com.au said it will be up to ICA CEO Kerrie Kelly to resolve the matter.

“She has to take some action,” one said. “One would think she must ensure the relationship moves forward.”

Late last week Premier Nathan Rees, who says he demands the highest standards from his ministers, said he believed Mr Kelly’s comment was “a throwaway line” and he would “absolutely not” be taking any action over the incident.

InsuranceNEWS.com.au submitted eight written questions to ICA last Wednesday seeking information on the incident and asking whether it will seek to re-engage with the minister. Spokesman Paul Giles had not responded by publication deadline at noon today. We'll keep you posted on progress.