Compulsory Third-Party Insurance

Mr PICTON (Kaurna) (14:32): My question is to the Treasurer. Treasurer, can you provide an update on the implementation of the private sector provision of compulsory third-party insurance?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:32): Oil on troubled waters, sir. I am pleased to advise the house that the private sector provision of compulsory third-party insurance has as of 1 July this year successfully transitioned to the four private CTP providers: AAMI, Alliance, SGIC and QBE. Hens are still laying, the world has not come to an end, despite the concerns of members opposite. Under the new model, more than one million South Australian motorists now have been allocated to one of the four private providers who offer CTP insurance, private providers who employ South Australians in the private sector.

The transition occurred with no disruption to motorists, and the registration insurance certificate will now display the name of each motorist's nominated insurer. Motorists can still use the EzyReg system for registration renewals as well as other usual methods of payment. For motorists, the transition has been seamless. The CTP private insurers have now also paid an initial market share allocation fee of approximately $260 million to enter the South Australian CTP market. Together with the $1.34 billion that has already been returned from excess Motor Accident Commission capital and profits, this provides a total distribution of $1.6 billion which goes directly to the Highways Fund for the building, upgrading and maintenance of road infrastructure for all South Australians.

The commencement of the private CTP insurers coincides with the appointment of Ms Kim Birch as the specialist, independent and objective CTP Insurance Regulator to regulate the CTP insurance market and to ensure motorists are protected with the standing to engage with the insurance industry and key stakeholders. Ms Birch has extensive experience in the regulation of CTP insurance, having worked in senior roles for 12 years in the Motor Accident Insurance Commission of Queensland, where she oversaw the performance of the scheme and regulated six licensed CTP insurers. I welcome Ms Birch to South Australia and to this key role. I look forward to working with her and her office.

The South Australian government will continue to work with each of the approved insurers to ensure the transition to the new CTP insurance arrangements remains a success for South Australia. We have nothing to fear from the private sector. I would like to take this opportunity to put on the record my thanks to the Motor Accident Commission Board and in particular the current chair, Mr Bill Griggs, for their support and assistance during this process, as well as the dedicated team in the Department of Treasury and Finance, who worked tirelessly and dedicated themselves to meet this deadline for this important reform for the South Australian community.

Despite scaremongering, despite attempts in parliamentary committees to frighten people that the world would collapse and cease to spin on its axis if the private sector delivered compulsory third-party insurance, it has worked well. I say to the younger members of the Liberal Party: don't let orange be the new blue. Retake your party from the socialists.

Mr VAN HOLST PELLEKAAN: A point of order, Mr Speaker: debating.

The SPEAKER: I uphold the point of order.

Members interjecting:

The SPEAKER: The Treasurer is warned, although I don't think his booths were smashed.