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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-06-17 Daily Xml
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Motor Accident Commission

Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (14:25): My question is to the Treasurer. Has the government undertaken any modelling or received any advice regarding the likely changes to the cost of CTP premiums after the cap on pricing is removed?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:25): What we have done is we have got PricewaterhouseCoopers to do some modelling for us about the best model to allow a competitive market to grow in the compulsory third-party premiums area. There has been a lot of confusion, I think, by the media and members opposite, that we are somehow selling the Motor Accident Commission as a monopoly provider—

Members interjecting:

The Hon. A. KOUTSANTONIS: I know you want to be noticed where we send backbenchers to die, but it's okay, we know you are there; it's alright. What we are doing is we have got modelling about what is the most efficient way to allow South Australians to have more choice when it comes to compulsory third-party premiums, remembering that we compel South Australians—every South Australian that registers their motor vehicle—to have compulsory third-party premiums. So, it is a compulsion on South Australians, and we now have a government-run monopoly that issues those premiums. We believe, as do our commercial advisers, that the best option for South Australians is that that go out to a competitive market.

Mr Marshall: You can do that with the existing legislation.

The Hon. A. KOUTSANTONIS: Yes, we can. The legislation that we are seeking to introduce is to have an independent, industry-specific regulator. What the Leader of the Opposition is talking about is, 'Well, why don't you just use the government guarantee to protect taxpayers'—

Mr Marshall: Don't put words in my mouth!

The Hon. A. KOUTSANTONIS: —like a bank—

Members interjecting:

The Hon. A. KOUTSANTONIS: —like a bank—

Mr PISONI: Point of order, sir: the minister is—

The SPEAKER: Why is the member for Unley waving his arms about?

Mr PISONI: —entering debate. When he refers to what he believes the Leader of the Opposition has said, he is obviously entering debate.

The SPEAKER: I thank the Leader of the Opposition for answering my question. I don't uphold the point of order.

The Hon. A. KOUTSANTONIS: The advice that our commercial advisers gave us is the Motor Accident Commission cannot guarantee that premiums won't increase or decrease under a government monopoly. The best way to ensure a competitive market which will actually give motorists a more competitive outcome is that we will allow the private sector, in a competitive way, to offer people premiums.

I know members opposite are harking back to the 1980s, when there were great socialist initiatives by using government guarantees to run public institutions. We do not believe that. We believe that the private sector can do this better. I am stunned that there are members in the Liberal Party who actually think issuing government guarantees in the private sector is a good thing, and I am looking specifically at the member for Davenport—

Members interjecting:

The SPEAKER: Point of order.

Mr GARDNER: The Treasurer's characterisation of what he believes Liberal Party members' views are is clearly debate.

The SPEAKER: I think the Treasurer has made his point. Supplementary, deputy leader.

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