Tuesday, 15 October 2024

 Bev McARTHUR (Western Victoria) (19:00): (1180) My adjournment matter for the Assistant Treasurer concerns the Victorian Managed Insurance Authority’s COVID-19 event insurance. The events industry in Victoria was one of the biggest victims of COVID; it fell between the cracks. While tourism, the arts and sport were supported, other events not only received no funding but were little considered in the regulations. Business events lost most. Before COVID more than 120,000 were staged, adding $12 billion of economic activity annually. The Economy and Infrastructure Committee’s events inquiry heard that one early Department of Jobs, Precincts and Regions stakeholder meeting was told ‘The event industry hasn’t received any financial support because it’s not a real industry’ and that ‘Health regulations were not tailored to them because business events aren’t a real type of event’. The link between the government’s attitude to Victorian businesses with international events expertise and the financial and reputational humiliation of its Commonwealth Games bid is clear. As one events industry leader wrote to me:

A ten minute read of the business case by any experienced event person would have confirmed that what was proposed was never possible.

But it seems that no experienced event people were ever asked to read it. One more positive outcome from the inquiry was in the area of insurance, a vital enabling function which the public sector can provide without the counterproductive consequences of direct subsidy. The 2022–23 VMIA annual report evaluates the scheme glowingly, saying:

The successful development and implementation of the new insurance demonstrated VMIA’s ability to work across the sector and innovate risk transfer solutions.

It adds:

Independent economic analysis indicated that the COVID-19 Event Insurance product delivered significant benefits to the Victorian economy.

As a member of the inquiry which recommended insurance support I am very interested in this assessment, and the action I seek from the minister is more detail on the operation of this scheme. By which date were events first covered by this insurance and what value of coverage was issued? Does an assessment exist to show the number of events and the amount of economic activity which these guarantees enabled? What was the final cost of any payouts required, and were these significantly outweighed by the economic benefit to the state of events which were ultimately staged? The annual report’s positive evaluation suggests such figures must be available, and I believe it is important they be released. Finally, I would ask that the minister consider that, should the evidence he produces prove substantial economic benefit, the scheme of targeted guarantees be continued. Insurance remains one of the biggest challenges to this industry and is a key factor for the growing number of events not proceeding.