Climate change levy proposed

3:15p.m. 10th July 2008

Sunshine Coast property owners in low lying areas could be slugged with a levy to insure their land against the impact of rising sea levels.

The proposal is contained in a submission from the Insurance Australia Group in a submission to the House of Representatives standing committee on climate change.

It suggested property owners pay a regular levy based on a percentage of their land value into a fund for a fixed term, from which they would be compensated if the land became usable.

It said the scheme could be operated by government alone or in conjunction with the private sector and if the land became unusable, the landowners would be compensated the “entire land value” and revert ownership to the government.

IAG estimated the value of property at risk in Australia ranged from $50 billion to $150 billion.

The Real Estate Institute of Queensland said it made sense to begin planning for the impacts of climate change now and the levy would enable property owners in these areas to protect their investment.

REIQ Chairman Peter McGrath said the land holders had to bear some responsibility but he believed governments should also contribute to the fund.

The ICA submission foreshadowed particularly grim outcomes for properties in coastal areas that are also on inland floodplains, as they are liable to both river and ocean flooding.

“The potential impacts on the Australian community arising from sea level rise when combined with the current exposures to inland flooding are therefore likely to be significant.

“It is in this context that the general insurance industry considers that urgent adaptive measures are required.”

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Posted by News_Watcher from Redcliffe

on 10 July, 2008 at 5:17 p.m. ( Suggest removal )

Another interesting story for readers to consider and the House of Representative's Standing Committee on Climate Change, Water, Environment & the Arts report into climate change will be interesting reading. However, some 7 years ago, I was party to a meeting where discussion took place re canal developments along our coastline and taking into account the possibility of the sea level increasing.

I think councils and governments really need to give some serious considering to blocking any future development along the coast which could be placed at risk.
As there are several inquiries currently underway by various committees of the House of Reps, I enclose this link to that committee.
http://www.aph.gov.au/house/committee/cc...

Considering other major news stories around, I haven't as yet had a look at the various submissions lodged to the committee but I provide this link to the Insurance Council's submission. http://www.aph.gov.au/house/committee/cc...

Considering other reports in previous months; what happens if a major flood was to take place? Even talking to my next door neighbor, at the back our places, at least 60 houses have been built in the last 12 months and perhaps for them, they don't know of the history to the area and are at risk if flooding was to take place within the canals. 425, 000 addresses at risk and I would invite readers to check out the information on the above links. Just another headache for us to face. I think there was a report a few weeks ago where Queensland could face more cyclones.

Posted by MissMarina from The Coast

on 10 July, 2008 at 5:29 p.m. ( Suggest removal )

Isn't this just more doom and gloom crystal ball-gazing designed to con unsuspecting taxpayers into paying a fear tax, thereby taking the heat off governments who should be doing a lot more to address the real issue of climate change rather than worrying about upsetting the big oil companies/vehicle manufacturers/resources companies/etc etc as they are currently.

Posted by newsblog from Coolum

on 10 July, 2008 at 6:49 p.m. ( Suggest removal )

here, take my underpants, I dont have any money to give... someone else took it all
now, if theres a levy, and the seas rise, perhaps its not such a bad thing.
but hangon .. what if this climate change thing really is a big cheat thing designed to keep the poor poor, and the wealthy less wealthy?? What if te sea doesnt rise ? what if this climat chang thing really does turn out to be crap as many have suggested??? Do i get my underpants back?

Posted by jboast from Buderim

on 10 July, 2008 at 6:57 p.m. ( Suggest removal )

I assume that the same principle will apply to those landowners inland which is being dried up by climate change? No, I don't think so.
Everything is being blamed on climate change which makes me think back to all the doom and gloom of the "Y2000", remember the prediction all computers would crash.

Posted by ben18318 from warana

on 10 July, 2008 at 10:01 p.m. ( Suggest removal )

and jboast I think we all remember how much money was made by the IT geeks who were shouting from the rooftops Y2K if you don't pay me to fix it we will all be "rooned"

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