Fire levy welcome | Upper Yarra Mail | Star News Group Local community news

Fire levy welcome | Upper Yarra Mail | Star News Group Local community news

YARRA Valley business operators have welcomed the Coalition Government's announcement that a property-based Fire Services Levy will be in place by July 2013.

Announcing the consultation and implementation timetable for the new system last week, Deputy Premier and Leader of The Nationals Peter Ryan said it would replace the Fire Services Levy (FSL), which is currently tied to insurance payments.

The new system would, he said, make for a fairer, more equitable means of funding fire services in Victoria.

Mario Galteri of Coldstream Timber, and John Stanhope of Black Spur Nursery in Healesville had called for change, particularly following the 2009 bushfires when the levy increased dramatically and it became apparent that many property-owners were under, or uninsured.

Both men welcomed the announcement, saying a property-based levy would spread the load more equitably.

“The levy was increasing year after year. It started with 30 per cent and went up astronomically to a point where the government charges were more than the premium,” Mr Galteri said.

“I think anyone who is paying fire insurance on their property would be a lot happier if everyone was bearing the cost,” Mr Stanhope said.

“You would just hope it's not going to make insurance dearer, and that we won't see hundreds of public servants on the payroll to implement it.”

Treasurer Kim Wells said the government would release a position paper in June and engage in a comprehensive public consultation process.

“The position paper will outline the proposed arrangements for key aspects of the new levy including its design and structure, eligibility for concessions and the most effective and efficient method to phase out the insurance-based model and implement a property based model,” Mr Wells said.

The government intends to introduce legislation in early 2012 with a transition period starting on 1 July 2012 to allow insurers to phase out the FSL prior to full implementation from 1 July 2013.

“I am happy it's going in the right direction and that every property, whether insured or not will pay towards the levy.

“As a business, we have never begrudged paying the levy, but what we are upset about is that people who didn't insure still had the full benefit of the fire services,” Mr Galteri said.

“With what is proposed, hopefully it will all even out.”