Why Insurance Prices Have Risen
Illawarra Mercury
Saturday January 31, 2004
BILL Whiley (Mercury, January 22) accuses me of writing ``nonsense" with regard to price rises and GST, citing insurance as an example.
The following explains why insurance prices have risen:
1 Severe natural events causing damage of a kind never seen before. The floods of 1998-99, the severe hailstorm of a few years ago, numerous occurrences of wind storm damage, bushfires of recent years and earth tremors.
2 Increased crime and the events of September 11 have had their effect on the Australian insurance market.
3 The increasingly litigious nature of Australian society has resulted in huge rises in public liability and CTP insurance.
4 The spectacular failure of HIH and FAI.
Mr Whiley complains about the rise in the cost of a rail ticket.
He should look no further than the NSW Government's increasing reluctance to subsidise what is a loss-making exercise for them, ie pensioners on cheap fares. The cost of the service per person is much more than the price of their ticket.
The Keating Government immediately put up ``hidden" sales tax after using GST scare tactics to regain government. Did Mr Whiley complain then?
At least the GST is an open, end-user tax. It does not accumulate at every stage of handling, and is not paid on essentials.
If Mr Whiley has any evidence of profiteering from the introduction of the GST, he should alert the ATO. There are laws to prevent this.
We are living in the best country in the world and it is economically sound. Australia is one of only a handful of countries with a first class standard of living.
For goodness sake let's stop all this whingeing, count our blessings and be happy.
-B OEHM,
Figtree.
© 2004 Illawarra Mercury
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