Wednesday, February 13, 2013.
REF: PE.13.02.13.
The Honourable Bill Shorten MP
Federal Minister for Financial Services and Superannuation
Federal Minister for Employment and Workplace Relations
Suite M1 48
Parliament House
CANBERRA ACT 2600.
Dear Bill,
With local communities in Northern New South Wales and Queensland recovering from the human misery and financial costs of record flooding, I write to raise some key policy and funding issues as you continue your leadership in the area of insurance and natural disasters.
Parts of regional Australia certainly have been hit by more frequent floods, bushfires and cyclonic storms in recent years, and with more awareness of climate change, perhaps we do need new pro-active frameworks for dealing with this reality, as per our conversation recently.
I am aware you have advanced options and that these are under consideration with the Insurance Council of Australia.
The Member for Hinkler, Paul Neville, gave a wonderful account of the Bundaberg floods, and while we had already discussed the idea of a bipartisan commitment to flood mitigation which I had intended to detail in my speech, Mr Neville did it so elegantly, I simply supported him.
Such a scheme would involve ‘doing many Granthams’ across Australia – relocating flood-prone homes or raising them out of flood, and levees being built – over the next 10 years.
I have said that it does need to be Federal, State and local government in a combined effort. One policy tool I have talked about in Parliament before is the use of no-interest loans for infrastructure, such as New South Wales has. Perhaps a system of interest rate subsidies for infrastructure by local government may achieve a similar outcome.
The Clarence River peaked as a flood of record at 8.08 metres with a 17-kilometre levee bank system just holding, mainly due to State Emergency Services and Clarence Valley Council sandbagging 300 metres of vulnerable sink hole areas around Dovedale.
In fact, there is local debate over whether the Grafton levee was breached in Fry Street.
This particular flood was fast and furious, and upstream at Copmanhurst and Upper Copmanhurst some families lost everything as several metres of floodwaters inundated their homes or rural properties.
The Governor-General, Her Excellency Quentin Bryce, AC, CVO, and I met with these folk when she made a Vice-Regal visit to the Grafton area on February 1. I know that her presence lifted the spirits of many locals that day.
Bill, I would like to formally invite you to visit the Clarence Valley to take a firsthand look at issues of concern which families, businesses and farmers have been raising with me in the wake of our latest natural disaster.
This flood also breached the levee bank at Ulmarra (Cowper electorate next door to me) and caused major flooding in the village of Brushgrove and small town of Lawrence in my electorate of Page.
It was also the dirtiest flood in living memory with a massive amount of flood debris washed down to places like Brushgrove and on to the popular surfing beaches of Yamba.
Local residents tell me they can live with a major flood every five years or so, but to experience three such events in the past four years is enough to test the will and endurance of the hardiest soul.
This is why the Brushgrove/Cowper Levee Action Committee is renewing its campaign for a 1:20 year flood levee to protect the village, at an estimated cost of about $3 million and built in stages, if need be. It is a matter that has been before the Clarence Valley Council and the former Maclean Shire Council for some time
Committee Secretary Kay Spurr, who holds Masters Degrees in Public Administration and Writing, has provided me with a study of the physical and mental health impact of a flood event on Brushgrove and an assessment of the social benefits of a 1:20 year flood levee.
Brushgrove pensioner Bruce Hancock emailed me on February 8 from ‘Mud Central’ about how insurance companies either will not issue flood insurance policies or charge huge premiums for same in the 2460 postcode area. His is a story repeated across the Clarence Valley.
I know it as well in my hometown of Lismore, where people are priced out of the market, therefore in effect there is no market to serve our needs.
Mr Hancock cited a recent report in The Daily Examiner newspaper of a man whose premium went up by 1010 per cent in one year. In Mr Hancock’s case, his own premium rose by $800 after the 2011 floods and another $600 a year, taking his monthly payment to $293.
Mr Hancock also says that now is the time to look at the concept of a National Disaster Insurance Scheme which would take over the flood/fire/cyclone liability of the insurance industry. I understand his feelings on this completely, but the pressure needs to continue on the ICA to deal fairly on this matter and to operate a super market, and to not price us out of the market.
Mr Hancock points to the New Zealand experience, where a scheme originally set up to cover war damage in the 1940s, now covers damage cause by earthquake, flood and volcanic eruption. I have visited New Zealand and had a firsthand look at their insurance schemes and the no fault as well.
It is, of course, easier in one small jurisdiction to have such a scheme work. I am more focused on moving the mitigation scheme forward, as I see that it has potential to work and work well.
The other issue is that of the opt out clause. It is time to reconsider this, as whilst some insurers have done it regarding floods – some have not and furthermore they are saying if you do not have the flood coverage, we will not cover you at all. Again leaving no market for the people.
The Australian Government and state governments have Natural Disaster Relief and Recovery Arrangements in place, and we have the Australian Government Disaster Relief Payment, which I was able to secure for the Clarence Valley Local Government Area as a special case.
While these different categories or levels of assistance provide a helping hand to many Australians, one anomaly is that some people experiencing hardship and stress can miss out on emergency assistance because their individual circumstances might not meet strict eligibility criteria as it is applied.
One way of overcoming this, and of making the entire system more cost effective, could be to quarantine a decent pool of national emergency management funding to upgrade and strengthen older flood levees, build new ones, or to raise or relocate homes out of flood.
State governments could make contributions to flood mitigation infrastructure, leveraging off a national fund, as required, and have local government factored in as well.
The Insurance Council of Australia’s chief spokesman Campbell Fuller is on record (SMH Weekend Business February 2-3) as encouraging a pro-active approach to properly built and properly maintained flood levees in order to reduce the cost of insurance premiums. He did not offer assistance though, which would also be welcome.
I look forward to your reply.
Yours sincerely,
Janelle Saffin MP
Federal Member for Page.
Friday, March 1, 2013.
REF: PE.01.03.12.
The Honourable Bill Shorten MP
Federal Minister for Financial Services and Superannuation
Suite M1 48
Parliament House
CANBERRA ACT 2600.
Dear Bill,
I write to congratulate you on the Australian Government’s new National Affordability Insurance Initiative which you announced in Queensland yesterday, and note there appears to be some $33 million as yet unallocated for flood mitigation projects nationally.
I want to ensure that my electorate of Page receives its fair share of this funding, starting with urgent projects like a 1-in-20-year flood levee for the village of Brushgrove in the Clarence Valley, which I alerted you to in recent correspondence. This long overdue project is estimated to cost about $3 million.
The Northern Rivers has always been an area prone to flooding, but during recent years there has been a dramatic increase in the frequency of these events and the ensuing damage bills. I will seek talks with our local councils and chambers of commerce on compiling a list of fully costed flood mitigation projects which could be considered by the National Insurance Affordability Council.
As you know, I successfully lobbied to have the Australian Government Disaster Recovery Payment activated for the Clarence Valley Local Government Area to provide flood aid after January’s record flood event. Centrelink has processed more than $11 million in these cash payments, helping hundreds of residents who could not access emergency welfare assistance.
I also thank you for keeping under consideration my invitation to visit Brushgrove and other parts of the electorate to see firsthand the potential benefits of new levees or reinforcing existing levees, and the great flood recovery effort by Federal, State and local agencies.
Yours sincerely,
Janelle Saffin MP
Federal Member for Page.
2 comments:
Excellent work Janelle! When I heard the announcements re flood mitigation funding I was aghast when no mention was made of the Clarence Valley.
the levys are a great idea except unless they go all the way to the ocean there only going to help some people if u put a levy at brushgrove the resedents of woodford island that dont live in town will be hit with alot more water in a flood the levys only pretect where they souround...maclean levy was a cm of being breached...if u put a levy at brushgrove wont that mean theres more water in the river resulting in the breach of other levys including maclean??
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