Phillip Thompson (Herbert, Liberal National Party) Share this | Hansard source

Thank you, Speaker. I too want to pay my respects and tributes to you. Thank you for your help, guidance and knowledge, from when I was a baby MP in this place, for some nice calm direction and sometimes for a kick in the backside. I'm a little different from the member for Sturt; I have been kicked out under 94(a), and probably rightly so! You embody this place. This place would be a rabble without your guiding hand. I appreciate everything that you have done. Many have now taken an interest in the Speaker's panel and want to be involved and learn. That is because of you in that chair and the way you handled yourself here and handled the many personalities that are here. Thank you for everything you have done in your service to the parliament and nation, and I look forward to catching up with you while you sit with me on the backbench until you retire. Thank you.

It would be an understatement to say that Townsville tourism and hospitality businesses have endured some of the toughest couple of years. Border closures, restrictions, snap lockdowns and uncertainty have all taken their toll. Businesses have downsized, laid off staff and even closed their doors for good. This year, another enemy has reared its head, in the form of public liability insurance. Adventure businesses and food trucks have been affected, some having to suspend operations.

There are many reasons why businesses might obtain public liability. In many cases, it's to protect them against legal action from someone who may sue due to injury or death arising from activities conducted by that business. For the most part, it is a result of government requirements from local councils and state governments to obtain a permit to operate in the field or location they are in.

Recently, there have been massive increases in the cost of premiums charged by public liability insurers, especially in North Queensland. Insurers have decided that the risks are too high and have either priced themselves out of the market or refused to cover businesses at all. One business in the electorate of Herbert affected by this is Horseshoe Bay Water Sports on Magnetic Island. Dom and Kristen Spataro spent hours of their time, which they could have spent investing in their successful business, looking for public liability insurance. Their efforts came to nothing, and they were struggling a few weeks ago. They had no other choice but to stop operating. I went over to Magnetic Island to visit Dom and Kristen after they contacted me for help. I already knew this was an issue that has been faced by many in the community, but it was clear it was having a deeper impact.

What became clear as I spoke to them was that it wasn't just the availability or willingness of insurance companies to cover their water sport business; it was the level of coverage that was being demanded by the Townsville City Council to operate at Horseshoe Bay. This level of coverage was double the amount required by similar businesses in other Queensland local government areas. Townsville City Council requires $20 million worth of coverage for Horseshoe Bay Water Sports. However, in Airlie Beach and on the Gold Coast it's only $10 million. Dom and Kristen were able to find coverage for that amount, but when they contacted the Townsville City Council to ask for the required coverage to be lowered, they were met with 'no'—no other option, no discussion, just 'no'. Since then I've written to the mayor requesting that this situation be reviewed. I don't understand why Townsville businesses should be required to cover themselves at a level double the amount required for similar businesses in the south-east.

This issue is not contained to one business in one location; there have been a significant number in the electorate of Herbert who have contacted us for help. This is an issue which needs to be sorted out, and all three levels of government need to be involved. In general terms, the federal government doesn't mandate businesses to have public liability insurance; however, state and local governments do, and they have a responsibility to ensure their requirement levels are appropriate and achievable by businesses.

We are seeing clear market failure when it comes to public liability insurance. We've seen the Small Business and Family Enterprise Ombudsman working with the industry nationwide to find a solution. They're looking at a discretionary mutual fund, which will most likely be that solution. I do believe that there is a requirement for the federal government to step in, because it's been failed by the state and local government. People's livelihoods should not be destroyed because of public liability insurance.

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