PUBLIC LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE

The Hon. L. STEVENS (Little Para) (14:53): Will the Treasurer provide a summary of the findings of the recently released report by the Australian Prudential Regulation Authority relating to public liability and professional indemnity insurance across Australia?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:53): I know that the member for Enfield and other people from the legal profession in this place—perhaps the deputy leader, the member for Mitchell, the member for Heysen and others—will be particularly interested in this because this was a contentious piece of law reform undertaken by this government when we first came into office. The government picked its best legal minds to deal with this issue. I was given the job. In fact, that decision was taken by premier Olsen's team before we came to office. We undertook significant tort law reform. Many if not all in the house will acutely remember those difficult times. We faced massively increasing premiums for indemnity insurance, liability insurance and, in many cases, a total retreat from the market providers of the insurance.

It was a very difficult crisis for all state and federal governments to deal with. Senator Helen Coonan, a minister with whom I enjoyed the pleasure of working, was a very good federal minister in the way she dealt with all of the states. It might be a little different now with telecommunications portfolio, but when she was managing this issue she did it very well. What I can say is that, following those tort law reforms, favourable results for South Australia in both public liability insurance and professional indemnity insurance premiums have occurred. These favourable results, as I have explained, follow a successful program of tort law reforms. I would like to go through those individual tort law reforms, but we do not have time—

The Hon. M.J. Atkinson: Why not?

The Hon. K.O. FOLEY: —we do not have time—including tort law reforms in acts, including the Recreational Services Act 2002, the Professional Standards Act 2004 and changes to the Civil Liability Act 1936. Further improvements to these and other tort law reforms are expected in coming years as the full impact of tort law reform takes effect. What I can say with public liability is that average public liability premiums in South Australia fell by 7 per cent in 2006 and are some 25 per cent lower than what they were in 2003. In absolute terms, South Australia now has the second lowest average public liability premium of $660, after Tasmania with $514—that was in 2006. We have maintained this position since 2003. The average premium in South Australia in 2006 was 10 per cent below the national average of some $735.

In respect of professional indemnity, in South Australia average professional indemnity insurance premiums have fallen by 17 per cent in 2006 and by 16 per cent between 2003 and 2006. I can say to the house in absolute terms that the average professional indemnity premium in South Australia of $3,238 was 21 per cent lower than the national average premium of $4,110. I know this was contentious tort law reform. I know that people on all sides of the house had differing views on this, but it was a situation where state governments and the commonwealth government had to act. We acted appropriately with significant reform, and the benefits of those reforms are now quite evident.