A PROPOSAL to break up insurance companies that gouge customers has been shelved by the Federal Opposition.
Shadow treasurer Angus Taylor ruled the measure out of his economic pitch to voters ahead of the Federal Election.
Mr Taylor contradicted Opposition Leader Peter Dutton by saying the Liberals had no plans to extend divestiture powers to the insurance sector.
His comments come a couple of weeks after Mr Dutton told Sky News a government he led would intervene in the insurance market if consumers were being ripped off, “as we’ve done with supermarkets, where we have threatened divestment”.
Asked about the policy last week, Mr Taylor said the Coalition would keep break-up powers confined to supermarkets and hardware.
“Not insurers?” asked Australian Financial Review political editor Phil Coorey.
“No, we’ve been clear about that,” Mr Taylor told the AFR Business Summit in Sydney.
Mr Taylor later clarified the Coalition would “take action” if insurers did the wrong thing by customers, but did not specify what the measures would be.
Treasurer Jim Chalmers was quick to pounce on the discrepancy.
“Our opponents have had three years now to come up with coherent, costed and credible economic policies and they’re yet to do so,” he said.
“Just today, Angus Taylor and Peter Dutton have been sprung, hopelessly split on intervening in the insurance market.
“So the coalition is hopelessly divided when it comes to economic policy.”
Mr Taylor gave an indication of what voters could expect under a coalition overnment, with speculation an election will be called in coming days.
The economy had stalled under Labor, with Australians experiencing a fall in living standards and excessive government spending crowding out private investment, he said.
He promised to slash red tape and make it easier for foreigners from friendly nations such as the US and Japan to invest in Australia.
The coalition would create a whitelist for trusted investors, putting them on an express lane to approval from the Foreign Investment Review Board and speeding up decision times, which take 41 days on average.
“This is about smarter screening, not weaker oversight – a faster yes and a faster no – ensuring we focus resources where they are needed most while fast-tracking responsible investment,” Mr Taylor said.
The proposal was welcomed by the Property Council, which said a whitelist would remove burdensome red tape and make Australia a more desirable destination for global investors.
