Compulsory Third-Party Insurance

Mr MARSHALL (Dunstan—Leader of the Opposition) (15:06): Thank you very much. My question is to the Treasurer. What impact will the introduction of compulsory third-party insurance policies issued by private insurers have on the premiums paid by South Australian motorists?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:06): Far be it from me to lecture the Liberal Party on the involvement of the private sector in offering competitive arrangements in insurance, but I would imagine that a competitive rate would be offered. Again, I have to say that this idea that somehow the government can do it better than the private sector is a little bit disturbing coming from the Leader of the Opposition but, again, I am sure that the comrades opposite are very keen to make sure that the government is involved where the private sector fails. Obviously, the Leader of the Opposition believes that the private sector fails in the insurance area and that the government should absolutely be in this space.

The SPEAKER: Point of order.

Mr PISONI: The Treasurer is not responsible for what he allegedly claims the Leader of the Opposition could be saying or not.

The SPEAKER: No, there has to be some scope for a minister to compare and contrast the policies and, in this case, the fundamental ideologies of the parties. I don't want him unnecessarily to dwell on the merits or otherwise of the state opposition, but he is allowed to refer to the Liberal Party's fundamental ideology of believing in the private sector compared to the Labor Party's trust in the public sector. We couldn't say very much if we couldn't say that. Treasurer.

The Hon. A. KOUTSANTONIS: Yes, sir. If I have offended 'Tovarich' Marshall, I apologise, but I am always fascinated when I hear the Leader of the Opposition claiming the government can issue third-party premiums better than the private sector, and I will be incorporating that in all my speeches now to the business community.

The SPEAKER: Point of order.

Ms CHAPMAN: Now, clearly this is debate. The question was very clearly about what impact there would be. He may say it could be better, it could be the same—

The Hon. A. Koutsantonis interjecting:

The SPEAKER: The Treasurer is called to order.

Ms CHAPMAN: —it could be worse. That's the question: what the impact will have on the premiums, not the comparing of what's to happen. At this stage, there is just a tirade of—

The SPEAKER: The Treasurer is talking about premiums.

Ms CHAPMAN: No, he is not.

The SPEAKER: Yes, there was a reference in there to premiums. Treasurer.

The Hon. A. KOUTSANTONIS: Thank you, sir. Look, before the election, we were told to take the handbrake off. We have, and now they are upset that we have and are allowing the private sector to get involved. Now, they want us to put the handbrake back on. I don't believe for a moment that opening up compulsory third-party premiums to the competitive private sector will push rates up. If the Leader of the Opposition has evidence that the private sector will push rates up, please provide it to the house.

I note that the opposition is very uncomfortable with the private sector involving itself in third-party premiums. They are very upset about the government's plans to privatise the Motor Accident Commission. I have let industry know what the opposition's views are. I have let the insurance industry know that the opposition do not believe that they can do it in a more competitive way. I say to the younger members of the opposition: it is time to take back your party from the socialists.

Mr van Holst Pellekaan: Point of order.

The SPEAKER: I think the Treasurer has finished. That would obviate the need for the member for Stuart's point of order.