20 April 2011

Senator the Hon. John Hogg
President of the Senate
Parliament House
CANBERRA  ACT  2600


Dear Mr President

Pursuant to Senate Standing Order 38(7), I present to you an interim report of the Economics References Committee in relation to the Committee’s inquiry into state government insurance and the flood levy.

The reference was referred to the committee on 3 March 2011 for report by 2 May 2011. The committee was directed to examine:

• the provisions of the flood levy bills;
  
• current insurance and reinsurance arrangements of the states and territories of their assets and infrastructure; and
  
• the appropriateness of fiscal arrangements for natural disaster reconstruction efforts.

As directed by the Senate, the committee has written to the Queensland Government requesting any documentation it has relating to arrangements it may have made to insure or reinsure state assets. The committee has not as yet received a response from the Queensland government.

The committee has also written to the insurance company AON Benfield requesting any information it may have on offers or proposals of insurance or reinsurance for Queensland's state assets. It is awaiting a response from the company.

To date, the committee has only received two submissions, from the Commonwealth Grants Commission and a Melbourne-based academic.  

The committee has been directed by the Senate to holding public hearings in Queensland. In addition to a planned Brisbane hearing, the committee intends to hold a public hearing in Canberra to hear from Treasury, the Commonwealth Grants Commission and the Insurance Council of Australia, among others.   

Accordingly, the committee requests an extension of time to report until 30 June 2011. It is crucial that the committee receives and analyses documentation from the Queensland Government and other parties on the state government's arrangements or offers to insure state assets.

Senator Alan Eggleston
Chair