Mr WOOD - 2006-02-23
During the TIO debate, it was stated that the government does not insure its own buildings. If we had a cyclone similar to Cyclone Tracy, would your government have an estimate of what the repair bill would be on its own buildings? Does the government have any money tucked away in reserves to pay for that damage? If not, where would you find the money to pay for such damage?
ANSWER
Madam Speaker, that is right; the government, and governments around the country, do not insure their assets. That is pretty common practice.
If an event like Cyclone Tracy did occur, we would have to pay to rebuild all our public assets. That is a fact of life. We keep a pretty good asset register and have a fairly good idea of what rebuilding costs would be. If there was another event like Cyclone Tracy, we would receive considerable federal assistance, but we would also have to look at borrowing to be able to rebuild. It is common practice among governments that you self-insure; you do not insure as the private sector does.
ANSWER
Madam Speaker, that is right; the government, and governments around the country, do not insure their assets. That is pretty common practice.
If an event like Cyclone Tracy did occur, we would have to pay to rebuild all our public assets. That is a fact of life. We keep a pretty good asset register and have a fairly good idea of what rebuilding costs would be. If there was another event like Cyclone Tracy, we would receive considerable federal assistance, but we would also have to look at borrowing to be able to rebuild. It is common practice among governments that you self-insure; you do not insure as the private sector does.
Last updated: 09 Aug 2016