Mrs HULL (2:55 PM) —My question is addressed to the Minister for Small Business and Tourism. Is the minister aware of any action being undertaken by the state governments to address the crisis of the rising cost of public liability insurance that is closing down small businesses and impacting on community events and volunteer organisations?

Mr HOCKEY (Minister for Small Business and Tourism) —I would like to thank the member for Riverina for her question, because I know a number of members have been raising this issue over the last few months. As the member for Riverina and a number of other members have told me, this is a looming and significant problem facing small businesses and the broader community over the last few months and into the future. For example, the member for Riverina gave me the example of the Junee Arts Council—in fact, all the arts councils in the Riverina are being refused public liability insurance because they are volunteer based organisations. All New South Wales arts councils have been asked to postpone any activity or event that might have a public liability component.

Another example the member for Riverina gave me was a paint-ball importer and distributor—just a distributor—who has had his premium increased from $1,000 per annum to $30,000 per annum. Snowy Mountains Flyfishing Adventures in the member for Eden-Monaro's electorate have been charged a 317 per cent increase in premiums. In the member for Page's electorate, the Channon Community Markets in Lismore had a 500 per cent increase in premiums. In Pearce, the Yanchep Riding School's premiums have risen 779 per cent to $21,000 a year. In the member for Murray's electorate, the Muskerry Moto Park was forced to close because it was unable to get insurance after spending $300,000 over three years establishing the park. The list goes on—and it is not just coalition seats; it is Labor seats as well. In Newcastle, the Newcastle skating rink was forced to close when premiums jumped 975 per cent to $86,000 a year. These are not isolated examples—the issue is spread right across Australia. The most significant response can only come—and must come—from the state governments. It has to come from the state governments because, under the Constitution, the states have responsibility for this area of law. It is not going to matter how much money is paid in premiums, it is never going to satisfy the fact that the number of claims per annum on public liability has risen from 55,000 per year in 1998 to 88,000 per year in 2000.

The SPEAKER —The member for Blaxland!

Mr HOCKEY —Public liability has become a lawyer's feeding frenzy, and it is closely aligned with the fact that the state governments—

The SPEAKER —I warn the member for McMillan!

Mr HOCKEY —It is closely aligned with the fact that the state governments have chosen to deregulate the plaintiff legal profession, allowing them to advertise `no win, no fee' and at the same time creating a culture in the broader community that suing for public liability is an opportunity to hit the lottery.

The states are reluctant to recognise that only they can solve it. Behind the scenes, the states are doing something—but I say it is not enough. Victoria announced on 30 January a $100,000 package to assist adventure-tourism operators, helping them to establish risk plans. So Steve Bracks is saying, `Yes, we do have responsibility, but we are going to contribute $100,000 to it.' Queensland announced on 23 January the establishment of a task force on public liability insurance. South Australia announced on 23 October last year the establishment of a working party. Tasmania has released a paper on it, the ACT has released a paper on it, the Northern Territory has announced that it is holding a series of community forums and Western Australia is in the business of trying to close down small businesses with industrial relations changes, not trying to keep them open by taking a strong and firm stance on public liability. The federal government stands ready to help coordinate the efforts of the states.

Mr HOCKEY —Mr Speaker, the Leader of the Opposition laughs. Does the Leader of the Opposition think it is a funny matter?

The SPEAKER —The member for Batman!

Mr HOCKEY —Do you think it is a funny matter? Mr Speaker—

The SPEAKER —The Member for Hunter!

Mr HOCKEY —Mr Speaker—

The SPEAKER —When I am ready to recognise the minister I will. I call the minister.

Mr HOCKEY —Mr Speaker, this is a very significant issue in the community.

Mr Crean —Then do something.

Mr McMullan —What did you do with HIH?

The SPEAKER —The minister has the call. The member for Chisholm is warned!

Mr HOCKEY —This is a very significant issue in the community. Senator Helen Coonan and I are working—

Mr Martin Ferguson —Got your foot out of your mouth now, have you, Joe? Carpeted—

The SPEAKER —The member for Batman is warned!

Mr HOCKEY —Senator Helen Coonan and I have invited the states to come to the table with a proposal that provides a national solution to this growing problem. We will work with the states to come up with a solution. We stand prepared to do what we can to try to help the states to address the significant issue. At the end of the day the states know, as does the broader community, that this can only be solved by changes in legislation, and the legislation can only be passed by the state parliaments. There is no other solution to this. If the Labor Party in opposition think it is a funny matter, the Labor Party ought to be aware that this is having a profound effect in the broader community. As members on this side of the House will attest, if something is not done about public liability premiums, not just for small businesses but for sporting clubs and a range of other groups, in fact it will have a more profound effect on those community groups and small businesses over the next 12 months. We stand ready to help and support the states in their efforts, but there is a recognition by this government that more work needs to be done.