NT Government thinking about selling TIO

p2154-Adam-GilesLETTER TO THE EDITOR

 

Sir – The NT Government is beginning a mature conversation about the future of both the Territory Insurance Office and the Darwin Port so that we can deliver the best value for taxpayers’ money and ensure our infrastructure meets the future needs of a growing Northern Australia.

 

For several months, the NT Government has been investigating what opportunities might exist for the Territory under the Commonwealth’s asset recycling incentive program.

 

The Asset Recycling Initiative offers States and Territories a 15 per cent incentive to sell eligible assets and re-invest the proceeds in critical new, economy-growing community infrastructure.

 

TIO is the last insurance company in government ownership anywhere in the country.

 

When it was formed in 1979, most banks and insurers did not operate in the Territory. Today, there are 12 insurers competing in the Territory market, all of which offer cyclone insurance and all but one of which offer flood insurance.

 

Cabinet is seeking to ascertain whether the Government should be in the business of owning a financial services business or whether it would be more beneficial to unlock the value of taxpayers’ investment in TIO to fund economy-growing infrastructure that is critical to the development of the Northern Territory.

 

No final decision has been reached regarding TIO but any option that was considered in the future would have to ensure Territorians would still be able to access flood and cyclone insurance and that we protect the TIO brand.

 

I’d like to hear from Territorians about what future economic infrastructure they think any potential asset recycling revenue could be invested into.

 

Adam Giles

Chief Minister

 

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3 Comments (starting with the most recent)

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  1. Dr Wrongo
    Posted October 8, 2014 at 8:59 am

    The governments’ best mates are in business and it must be extremely frustrating for these people to see a business owned by government.
    It belongs to the community and works for the community, when it could belong to private enterprise and work for the private owners.
    Then it’s all about maximising profits and the only way to do that is to increase premiums and reduce or try to avoid payouts.
    Great for the new private owners but no good for the previous owners, i.e. the general public.

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  2. Spot
    Posted October 7, 2014 at 9:43 pm

    Even contemplating this seems to be very hypocritical. Wasn’t there an issue with the previose government when they tried to destroy TIO?
    With the statement that no final decision has been made on TIO do we presume that the Darwin port may have already been sold to an overseas company which will be able to manipulate our own trading practices out of Darwin?

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  3. Peters
    Posted October 7, 2014 at 2:53 pm

    The Territory is blessed by having a local insurance company but as with many of our advantages we won’t know that until its gone.
    The complaints about national and multinational insurance companies interstate in times of disasters are legion, the insured not being paid out on technicalities, was it a flood or a storm?
    As for the Alice no other insurance company will insure householders in flood prone areas.
    TIO do that because they are local, they are our insurance company.
    Hang onto TIO, Territorians.

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