Victoria is “dragging its heels” when it comes to reforming funding for its fire services, says the Insurance Council of Australia (ICA). Peter Jamvold, the council’s Group Manager Southern Division told Sunrise Exchange News that the Victorian Treasury has gone to ground over the progress of its in-house inquiry into fire brigade funding.

While NSW is close to developing new fire services levy (FSL) models, ICA is still waiting for the Victorians to speak to them. Talks between the insurance/business coalition came to a halt after Treasurer John Brumby agreed to extend the March 31 deadline for the inquiry. Mr Jamvold says ICA has had “no further response”. However the council is hopeful Victoria will take action soon as it is “essential for any credible achievements” in the state’s FSL reform.

“The longer it takes the Victorian Treasury to respond to FSL reform, the longer it will take to sell it to the Government,” he said.

NSW, on the other hand, is looking at following WA into a funding system based on land taxes. A coalition similar to the Victorian group is being set up, and financial modelling is expected to be agreed soon.  Tasmania, the other holdout, would have to make its mind up on reform if one of the two others dropped its levy on premiums.

“Current indications are that both of Victoria’s fire services are going to have substantial increases in costs this year, which will subsequently transfer to FSL rates,” Mr Jamvold said. “It’s clear that funding is becoming less and less sustainable as time goes by.”