LETTER TO THE EDITOR
Sir – The Territory Insurance Office (TIO) will have new ownership but will remain a stand-alone brand in a deal worth $424 million.
Under the new arrangements, Allianz will take ownership of TIO insurance, while the banking services will transition to People’s Choice Credit Union.
The Government had the option of selling the insurance, banking and Motor Accidents Compensation arms of the business with an estimated total value of $609 million. However the Government has decided that selling the MAC scheme is not in the interests of Territorians and it will remain in Government ownership.
The new arrangements for insurance will see the iconic TIO brand retained and flood, storm surge and cyclone cover continue to be offered.
TIO will continue in its current form but now has the backing of the largest insurer in the world.
All along, the government has said that any new owner must look after the respected TIO brand, maintain the services Territorians rely on, and look after TIO’s staff.
Allianz have committed to all this, ensuring that TIO has a long future in the Territory and that Territorians continue to have access to the insurance cover they need.
Under this new model nothing changes for customers. The TIO name remains, branches stay open, policies stay the same, flood and storm surge cover continues and staff keep their jobs.
I want to assure Territorians that this is not a decision we have taken lightly but the Government believes it is the best outcome for taxpayers because it reduces their exposure to risk and frees up $424 million in funds for the development of Northern Australia.
The funds raised through this change of ownership now enable us to invest in the infrastructure we need to unlock the full potential of the Northern Territory, creating jobs and opportunity for our children. They also allow us to do important community flood mitigation work.
$215 million in proceeds will go into a long term Infrastructure Development Fund.
The remainder will be available for more immediate community infrastructure projects including $50 million for flood mitigation work in Rapid Creek, Katherine and Darwin’s Rural Area.
$25 million would be set aside for works in Rapid Creek and the Darwin Rural Area, while another $25 million would be allocated to Katherine.
The $25 million for Katherine includes $7.6 million to move Katherine’s Ambulance Centre out of the flood zone.
LETTER TO THE EDITOR