The Northern Territory Government has bowed to public pressure and kept the Territory Insurance Office (TIO) under government ownership – the last general insurance operation in the country to be owned by the state.

Faced by growing public opposition, NT Chief Minister Clare Martin had little choice but to cancel the planned privatisation of the 27-year-old company.

TIO took over the general insurance roll in the NT after Cyclone Tracy in 1975 and has continued to provide insurance options to NT residents since.

It now contributes tens of millions of dollars each year to the NT Government and the economy. TIO CEO John Tsouroutis says the company has shown a commitment to the community and should remain as a publicly owned company.

“Investing in the provision of reliable and affordable insurance through TIO is an investment in the essential infrastructure of the NT, and we fully support the NT Government’s decision,” he said.

“I am sure the Government has weighed up the significant economic and community benefits that TIO provides to the NT and decided that they overwhelmingly exceed any costs or risk of being in business.”

The sale of TIO has been heavily debated, with the community showing strong support for keeping it as a government-owned entity within the Territory. This support included a 14,000-person petition.

“We are the Territory’s own insurance and banking provider and have a strong vision for the future,” Mr Tsouroutis said. “We can now look forward to continuing to invest in the local community with the confidence of a strong and certain outlook.”

But other members of the Government do not share Ms Martin’s opinion. Treasurer Syd Stirling, for one. He leaned heavily on the advice of the three merchant banking consultants called in by the Government to study the prospects of a sale – all of whom said now was the time to sell.