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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-03-05 Daily Xml
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COMPULSORY THIRD-PARTY INSURANCE

The Hon. J.J. SNELLING (Playford—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for Defence Industries, Minister for Veterans' Affairs) (14:08): l seek leave to make a ministerial statement.

Leave granted.

The Hon. J.J. SNELLING: This government is acting to reduce the cost of living for South Australians wherever it can. For example, in last year's budget we introduced a water rebate of up to $75 for South Australian households. Today I advise the house that I will give notice to introduce a bill to make our compulsory third-party scheme fairer and cheaper for South Australians.

Mrs Redmond interjecting:

The SPEAKER: I call the member for Heysen to order.

The Hon. J.J. SNELLING: Last year, with the Premier, I announced a green paper describing potential reforms to make the state's compulsory third-party insurance scheme cheaper for South Australian motorists and ensure that those injured in motor vehicle accidents receive the lifetime care and support that they need. Late last year, after the initial consultation, a white paper and draft bills were released for further consultation.

Through the green and white paper process the government has received submissions from, and held discussions with, many interested parties, including the RAA, the South Australian Bar Association, the Law Society, the Australian Lawyers Alliance, disability support groups, the Australian Medical Association and the public. I thank everyone for their constructive contributions and for participating in the consultation process.

South Australia's CTP scheme is one of the most expensive in the country, with drivers of a class 1 passenger vehicle in the metropolitan area paying more than $500 per car in CTP premiums. For a typical South Australian family that needs more than one car to get to work and to get their kids to school, these costs can rise quickly, putting pressure on the family budget.

Right now, injured persons can only claim on the scheme if they prove that the accident was the fault of a South Australian vehicle, with any potential compensation being in the form of a once-off lump-sum payment. This means that at the moment about 40 per cent of catastrophically-injured road accident victims each year are not covered because there is no-one at fault.

Too often on country roads we have serious crashes involving kangaroos, unfamiliar dirt roads or driving conditions, or other freak occurrences that result in accidents where the victim has no-one to sue. Where compensation is available, the costs are paid mainly from the CTP premiums charged on the 1.3 million vehicles garaged and registered in South Australia and these costs will continue to increase steadily if the government does not act.

The government's changes to the CTP scheme will see every South Australian motorist receive a reduction of nearly $150 in their CTP premiums over the next two years. These changes, plus a recent improvement in the performance of the scheme, mean that the typical class 1 passenger vehicle premium will fall from $512 in 2012-13 to $408 in 2013-14, a saving of $104. When the new lifetime support scheme is introduced in 2014-15, it is estimated that motorists will still receive a continuing saving of $44 before inflation, compared to their current compulsory third-party premiums.

The CTP changes will also make the scheme fairer and deliver better care and support to South Australians who suffer serious injuries in vehicle accidents and, as a result, need lifetime treatment, care and support. Unlike the current scheme, people who suffer catastrophic injuries such as spinal and brain injuries will be cared for for the rest of their lives without having to prove fault. Importantly, all children who suffer injuries in vehicle accidents will be entitled to no-fault compensation for medical costs if they are under the age of 16 at the time of the accident.

Through the government's reforms, South Australian motorists will pay around $130 million less in premiums to fund the CTP scheme in 2013-14. The RAA, doctors, disability groups and now the South Australian legal profession all support this reform. The RAA's group managing director, Ian Stone, says that 'the RAA strongly supports a scheme that focuses on the best health and life outcomes for injured motorists', while Penny Gale from the RAA has acknowledged that the scheme will reduce costs for South Australian motorists.

John White from the Law Society is also supporting the changes and has said that their negotiations with the government will result in more people potentially being eligible for compensation under the scheme, compared with the original white paper proposal. After 12 months, who is the only group that remains silent on this significant saving for South Australian motorists? It is those opposite—the Liberal Party. After 12 months, the Leader of the Opposition—

The Hon. I.F. EVANS: Point of order, Mr Speaker.

The SPEAKER: The remedy, member for Davenport, is not a point of order: it is withdrawing leave. Is the minister finishing up?

The Hon. J.J. SNELLING: I am winding up, sir.

The SPEAKER: Good.

The Hon. J.J. SNELLING: After 12 months, the Leader of the Opposition is the only person yet to come out and support this cost of living reform for South Australian families. I call on those opposite and this week's Leader of the Opposition to support the speedy passage of this legislation through the house so that South Australian motorists can receive this benefit as soon as possible. And with that, Mr Speaker, I give notice that on the next day of sitting, I will move that I have leave to introduce a bill for an act to provide a scheme for the lifetime care and support of persons injured in motor vehicle accidents, and for other purposes.

The SPEAKER: I am very relieved that you weren't anticipating an order of the day.

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