State Government Dividends from ICWA hidden
What they promised
The RAC sought assurances...that ICWA would not be used as a source of additional funds for government through the calling-in of special dividend payments [and has] been reassured by the State government’s response.- Matt Brown (RAC)
What they say now
Insurance Commission of Western Australia Amendment Bill 2013’ will align the Insurance Commission of Western Australia to other state-owned GTEs by making it subject to dividend provisions- Troy Buswell, 12/6/13
31 Jul 2013 - Despite pre-election assurances to the contrary, the Insurance Commission of Western Australia will be required to pay a dividend to the State Government at a potential cost of $1 billion to WA motorists.
The Insurance Commission of Western Australia (ICWA) is the sole provider of third party insurance cover for WA motorists. ICWA is currently not required to pay a financial dividend to the WA Government.
In the lead up to the State election the RAC sought assurances from both political parties that this situation would not change. The Barnett Government assured the RAC that there was no provision in the ICWA Act that allowed for the payment of such a dividend.
On 12 June 2013 the Treasurer Troy Buswell introduced legislation into Parliament, the ‘Insurance Commission of Western Australia Amendment Bill 2013'. The changes proposed in the legislation will make ICWA subject to dividend provisions. This is contrary to the assurances given by the Barnett Government prior to the election.
The West Australian has reported that senior Perth finance executives have indicated that the introduction of the dividend would put pressure on ICWA to lift third party premiums in future years increasing costs to all Western Australian motorists. The premiums jumped by 4.5% this year.
The legislation is currently progressing through Parliament.