Monday, October 22, 2007

Increased Fire Service Levy ignites anger

The Nationals Member for Benalla and Spokesperson for Police & Emergency Services, Bill Sykes, is angry that the Fire Service Levy (FSL) on building insurance has risen again.

“This is the fourth rise in the FSL in the last 12 months and it now means that the levy is at 49 per cent, which is outrageous,” Dr Sykes said.

“This rise is effective as of October this year and it will dramatically affect insurance premiums and it has the potential of discouraging people from insuring. This cannot be in the best public interest.”

With this increase in the FSL, coming on top of the terrorism levy (not paid on farm insurance), GST and State Government stamp duty charged on property insurance premiums, country people are looking at significant increases in their insurance bills.

“A country business paying an insurance premium of $1,000 will now be facing a bill of around $1,840 due to the FSL increases.”

Dr Sykes said that New South Wales was the only other state to have a FSL, and it is much lower compared to Victorian premiums.

“Again I find it extraordinary that country Victorians are slugged by this price hike. While the cost of the FSL will go up across the board, the amount paid by country Victorians who purchase property insurance will increase more than that paid by their metropolitan counterparts.

“This Labor Government continues to turn its back on country Victorians. On top of this fire levy increase it has also refused to give a commitment to replace water taken from storages of private citizens to fight fires, many of which start on Crown Land.”

“Everyone knows Labor can’t manage finances. It has had windfall gains from record levels of income from land tax; stamp duty, police fines and pokies revenue, along with GST returns, yet it still keeps hitting Victorians with increased fees and charges.”

Dr Sykes concluded, “This increase on fire service levies will place a further burden on country families and businesses who are already struggling because of the continuing affects of the drought. The Brumby Government should have more compassion”.


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