News Release
Office of the Official Opposition
 

Government falls short of insurance expectations

Door still shut, where's the accountability?

August 3, 2004

George Sweeney, MHA for the District of Carbonear-Harbour Grace, says government’s automobile insurance reform package does very little in the way of savings and benefits for the average consumer in the province.

"For a government that went into the election ten months ago with a plan to reduce rates and provide fairness to consumers they have fallen far short of expectations," said Mr. Sweeney. "I am telling consumers not to accept this proposal as being satisfactory. The public was promised 20-30% savings before the election but now the Conservatives are substituting this watered down proposal that simply does little for consumers.

"I now understand that many consumers will experience a net increase in their policies since the announcement of a freeze on March 17th. Government led consumers to believe they would receive a 9-15% reduction on their insurance policies with refunds being issued retroactively to March 17th. This is simply not the case and government should not have falsely raised the expectations of consumers. Government failed to tell consumers that the freeze only prevents companies from applying for new rate increases and all other previously approved rate hikes will be implemented at a cost to consumers."

Sweeney feels it is unfortunate that government felt the need to push forward with a $2500 deductible despite public outcry that it would not work. "Consumers are being forced to give up some of their right to compensation for a cost savings plan that is minimal now and will not work at all over time. I anticipate rates will begin increasing again as soon as the freeze is over next year. Government should have implemented the cap they announced last year."

The Opposition Critic is also concerned with recent tactics used by the Department of Government Services to withhold information under the Freedom of Information Act. "The opposition has received correspondence from the Department on two occasions rejecting information unless we pay for the documents. I don’t call that keeping a commitment to being open, transparent and accountable."

Sweeney believes government is hiding information concerning the status of Public Utilities Board (PUB) involvement in the insurance reform file. He believes the opposition received a bill of $195 for information because government is trying to make it difficult for the opposition to get information. "I have been given information from other sources that indicates government’s own numbers do not match those of the insurance industry and I believe they want to cover it up. Additionally, while government claims to have a plan for further reforms, I believe they’re much further behind than they’re willing to tell the public."

Sweeney is also calling on Minister Whalen to inform the public of the cost of a public relations campaign being launched to promote the insurance reform package during the current polling period. The PC party was very critical last year when the Liberal government issued a similar householder, claiming it was an unnecessary expenditure of public funds to promote the government with taxpayers money.

Media Contact:
Jeff Mackey
Caucus Communications
Office of the Official Opposition
709-729-6427