Media Release

PLANS by the Northern Territory Government to sell off the Territory Insurance Office (TIO) have been heavily criticised by KAP Leader and Federal Member for Kennedy, Bob Katter today.

A Federal Parliamentary Committee report had suggested that the TIO could be expanded to cover regions such as North Queensland where insurance premiums are now at exorbitant levels.

However, the Northern Territory Government is instead again looking at its potential sale, encouraged by the Federal Government’s planned financial incentives for state governments to sell ‘the people’s’ assets.

“Like people in North Queensland, the people of the Northern Territory will be left unable to afford to insure their homes or businesses if they sell off TIO.

“It is possible to get insurance, but it is impossibly and prohibitively expensive in North Queensland.

“The Northern Territory Government has once before attempted to sell TIO but the move was not supported by the board due to concerns over the availability of cyclone and flood insurance.

“It may be as much as 10 per cent of the homes in North Queensland now that are not insured. Normal people cannot afford $3000 and $4000 per year for insurance,” said Mr Katter.

Mr Katter has previously called for the Federal Government’s Asset Recycling Fund Bill to be renamed to the Imposing Privatisation Bill 2014 - to better reflect the Government’s intentions.

“Huge increases in the cost of living have occurred around the privatisation of assets. Insurance used to be around $600 when the State Government Insurance office was operating, now they’re $3000 to $4000.

“Electricity charges were $659 per year, now they’re nearly $2400 per year after corporatisation and de-regulation.

“Council rates are up around $3000, $1000 of which at least are created by federal and state government impositions.

“How an ordinary wage earner can afford $10,000 on these three charges is beyond our comprehension. This decision to sell the TIO cuts off one of our very few options for North Queensland,” Mr Katter said.

Mr Katter’s proposed solution to the insurance premium crisis involves a government loaned body that would keep premiums down and provide a cover where other companies refuse too.

“Government reports allow politicians to say what the people want them to say, which makes them look good politically, but then they go and do just the opposite.

"In other words, the report is just propaganda for a government who is intent on doing just the opposite,” Mr Katter said.

Mr Katter has previously announced two public meetings in Edmonton and Innisfail to address the issue of insurance premiums as north Queensland residents struggle under the burden of skyrocketing premiums; with dates to be announced shortly.