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Vic fire funding review a case of curious timing

The timing of a major Victorian Government review of fire services funding is set to coincide with the next state election, with critics expressing fear the election could be used to prevent debate on the issue.

The Government has commenced a 15-month review that will examine the ongoing viability of the state’s controversial fire services levy, which also exists in NSW and Tasmania.

LMI Group CEO Allan Manning – a major critic of the fire services levy – has expressed concern at the timing of the review, with preparation of a final white paper set to coincide with the state election on November 27.

“My fear is that the Government will delay the issue until after the election, then it will go away,” he told insuranceNEWS.com.au.

Victorian Farmers Federation President Andrew Broad earlier echoed similar concerns.

“If the answer is maintaining the status quo or just another review that pushes this issue beyond the 2010 election, it’s simply not good enough,” he said.

Victorian Treasurer John Lenders told State Parliament in Melbourne last week that the review is intended to engage both industry and the community to find a long-term solution.

“We need to go a step beyond cheap populist shots about inequitable systems of funding to what are solutions,” he said.

Both the National Insurance Brokers Association (NIBA) and Insurance Council of Australia (ICA) have campaigned for reform of fire services funding in NSW, Victoria and Tasmania.

Mr Lenders welcomed their support for the review, describing ICA as “hardly a friend of Labor”. 

He says NIBA is “probably the most vehement opponent of the fire services levy”, suggesting its heavy media presence has not gone unnoticed.

A review green paper has proposed seven options for Victoria, including replacing the fire services levy with a broader property-based system.