Jeremy Rockliff's latest announcement about state-run insurance is a huge financial risk that requires answers to very serious questions.
Tasmania has already seen the consequences of serious stuff-ups with state-owned companies, with the Spirit of Tasmania fiasco costing taxpayers more than $500 million.
As the CEO of RACT made clear on ABC radio this morning, this latest proposal has the potential to be even more costly.
Jeremy Rockliff needs to answer the following questions today:
-
How much funding will his proposal require to set up? Is it $200 million? $500 million? What are the estimated annual operating costs?
-
Has he received any advice from Treasury, and is there a business case?
-
Cost of living is causing pain now. How many years before this new government business is up and running?
-
How can he promise significantly lower premiums, without the new government business running at a massive loss?
-
Will the company be underwritten with reinsurance? If so, how will he deliver the savings he's promising? If not, doesn't this expose taxpayers to huge financial risks?
-
If he's using the MAIB to provide the capital required, how will he ensure car regos won't rise, or money set aside for road crash victims isn't being put at risk?
Tasmanians don't trust Jeremy Rockliff to run government businesses after his massive stuff up with the Spirits.
If he can't answer the most basic questions about his latest desperate promise, Tasmanians will be rightly concerned that this will quickly turn into an even bigger fiasco.
Josh Willie MP
Shadow Treasurer
Shadow Treasurer
