THE House of Representatives Standing Committee on Economics will hold public hearings by videoconference on Friday, October 25 with representatives of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).
The committee’s Chair, Daniel Mulino MP, said that both regulators had given valuable evidence to the committee’s recent inquiries into flood insurance and economic dynamism, and the committee looked forward to exploring other important areas of their work.
“ASIC and APRA have crucial responsibilities supporting the stability and vitality of Australia’s markets and financial system,” he said.
“Both regulators have broad remits – particularly ASIC – and their performance has a huge impact on commerce and personal finance in this country. It is appropriate that they face regular parliamentary scrutiny, and this committee’s reviews of their annual reports are a part of that.”
More information about the reviews and upcoming public hearings are available on the committee’s website.
Public hearing details
APRA
Date: 25 October 2024 Time: 9am to 11am Location: Videoconference
ASIC
Date: 25 October 2024 Time: 1.30pm to 3.30pm Location: Videoconference
The public hearings will be broadcast live at aph.gov.au/live.
The proposed AUKUS agreement will establish a framework to enable the exchange of information and transfer of material and equipment between Australia, the United Kingdom and the United States of America to deliver nuclear-powered submarine capability to Australia.
Committee Chair, Lisa Chesters MP, said, "The committee has heard a wide range of perspectives in its first two hearings for the proposed AUKUS agreement and is looking forward to hearing from local witnesses on the potential impacts the agreement will have on Perth.
"The purpose of the agreement is to facilitate Australia’s acquisition of nuclear-powered submarines. The committee’s inquiry will continue to examine whether the provision of these submarines will provide Australia with a strategic defensive advantage and whether the agreement is ultimately in Australia’s national interests."
At the public hearing, the committee will hear evidence from Stop AUKUS WA, Nuclear Free WA and the Conservation Council of WA. Prior to the hearing, the committee will visit HMAS Stirling and HMAS Henderson to view the proposed sites where AUKUS facilities will potentially be built.
The hearing can be accessed online. The committee will hold its next public hearing in Canberra on October 24. Programs for all hearings and further information about the inquiry is available on the committee’s website.
Public hearing details
Date: Tuesday 22 October 2024 Time: 2pm to 3pm (AWST) (approximately) Location: Anglesea 1, Mercure Perth, 10 Irwin Street, Perth
2pm - 3pm: Stop AUKUS WA, Nuclear Free WA, Conservation Council of WA
Chair of the committee, Daniel Mulino MP, said the title Flood failure to future fairness reflected “the collective failure by insurers to meet their obligations to policyholders after the 2022 floods, and our hope for a fairer system in the future through the 86 recommendations in this report".
Dr Mulino said, "Too many cases were badly mishandled. Inconsistent decision-making meant neighbours received different outcomes after the same event. Long delays caused emotional, mental health and financial strain. More than two years on, many people still can’t go home. Initial offers were often too low, which was especially problematic for cash settlements.”
Recommendations in the report include:
registration of the General Insurance Code of Practice with ASIC; and that the code be made enforceable through insurance contracts;
standardising key terms across all insurance contracts through legislated definitions, including “rainfall runoff”, “storm surge”, “wear and tear” and “lack of maintenance”;
new regulatory guidance by ASIC to clarify that insurers cannot deny claims based solely on expert reports that do not link the damage observed with the reported cause, including for hydrology and building reports;
requiring insurers to provide guidance to policyholders on any maintenance obligations up front, and that there be a presumption of coverage in cases where maintenance would be infrequent, costly and highly irregular (for example, stumps);
requiring insurers to make a decision on whether to accept or deny a claim within 12 months, and if that doesn’t occur, that they be required to accept the claims in full;
requiring insurers to report key data on claims management performance to ASIC quarterly and, after a natural disaster, monthly; and that this data be published at the insurer and brand level, along with data on breaches of the Code of Practice.
Dr Mulino also highlighted recommendations to address inadequate temporary accommodation arrangements.
“At present,” he said, “the maximum guaranteed length often falls short of the actual time it takes to complete the rebuild. The committee heard heartbreaking stories of families moving from motel to motel at short notice for months, only to end up camping in sheds and backyards after their allowance expired after 12 months – regardless of whether repairs on their home are complete.
"We believe insurers should, by default, assume the risk of how long it takes to complete works, and to bear the cost of temporary accommodation.”
The report also recommends that insurers be required to give at least three months’ notice of any changes to their temporary accommodation arrangements.
Dr Mulino also noted evidence heard on policy exclusions for pre-existing damage or lack of maintenance applied to parts of a building unobservable by policyholders, such as stumps.
“Policyholders often pay premiums for decades with neither the insurer nor the insured knowing the state of the stumps,” he said.
“It is understandably frustrating when, after a flood, the floorboards are taken up and an insured person or family is told that they won’t be paid out due to the condition of the stumps. This aspect of coverage almost becomes a lottery,” Dr Mulino said.
“The committee recognises that insurers should not assume the risk of all pre-existing damage, but stumps are an example where too much risk is being placed on households. The committee recommends that insurers should generally take on this responsibility.”
The report also responds to the growing number of uninsurable properties at very high risk. Dr Mulino said “some form of government intervention” would be needed for such properties, and that guiding principles for such intervention include the need for ongoing community and household level mitigation investment, and that no further development should occur in high-risk areas. Specific recommendations include:
disclosure of flood risk levels through property conveyancing and rental agreements;
exploring regulatory mechanisms to discourage banks from financing new housing developments at a 1-in-100 flood risk or higher;
changes to building codes to boost flood resilience;
extending the Bushfire Resilience Rating App to flood risk;
requiring insurers to reduce premiums after household-level mitigation works;
further development of buyback and resilience programs for the highest-risk properties.
Further information on the inquiry as well as a copy of the report can be obtained from the inquiry website.
The framework established under the AUKUS agreement will enable the exchange of information and the transfer of material and equipment between Australia, the United Kingdom and the United States of America to deliver nuclear-powered submarine capability to Australia.
Committee Chair, Lisa Chesters MP, said, "The AUKUS agreement is intended to provide Australia with access to critical naval propulsion information, facilitating Australia’s acquisition of nuclear-powered submarines. The committee’s inquiry is continuing to examine whether the trilateral agreement will provide Australia with a strategic advantage and access to submarines that will enhance our existing fleet.
"The committee looks forward to hearing from witnesses in Adelaide about local benefits and potential challenges presented by the AUKUS agreement. The committee will also speak with representatives from ASC, who will sustain and jointly build Australia's SSN-AUKUS submarines. ASC has extensive experience sustaining Australia's Collins-Class submarines and the Committee is interested to learn more about the future of Australia's domestic submarine industry under the AUKUS agreement.’
The hearing can be accessed online and the program is available on the Committee website, along with further information about the inquiry.
The committee will travel to Perth on October 22 for tours of HMAS Stirling and HMAS Henderson and a public hearing and will hold a further public hearing in Canberra on October 24. Further information about the inquiry is available on the committee’s website.
Public hearing details
Date: Friday 18 October 2024 Time: 9.30am to 11am (approximately) (ACDT) Location: Vault 2, Adina Apartment Hotel Adelaide Treasury, 2 Flinders Street, Adelaide
9.30am-10am: Friends of the Earth Adelaide and Caring for South Australia 10.00am-11am: ASC (Australian Submarine Corporation)
More information about the Committee and its inquiry can be found on the Committee’s website.
THE festival director of Byron Bay’s BluesFest will today appear before the House of Representatives Standing Committee on Communications and the Arts as it continues its public hearings for its inquiry into the Australian live music industry.
The hearing will host a roundtable with ongoing festivals ranging from small community events to large self-sustaining multi-day festivals. The committee will also speak with Century, a long-established venue and event management business serving clients in Sydney metro and Newcastle areas.
Paul Mason, a live music industry consultant who has a range of experience in the Australian music sector — both in artist project management, business planning and production, will also front the committee.
The committee will receive an update from Victorian not-for-profit youth music advocacy organisation, The Push, which supports young Victorians to participate in contemporary Australian music. The Push will appear alongside the Australia Institute to discuss the release of its most recent research report into young Australian music audiences.
The hearing will conclude with a youth music and all-ages-event roundtable.
Committee Chair, Brian Mitchell MP, said, "The committee looks forward to delving into the issues that have impacted iconic Australian festivals such as BluesFest."
Details of the public hearings are below, with the full programs and terms of reference available on the inquiry webpage. More information about the committee, including membership, may be found on the Committee’s website.
Public hearing details
Date: Thursday, 17 October 2024 Time: 9:40am – 3pm AEDT Location: Australian Parliament House, Committee Room 2R1
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