Territory Stories

Statement of Corporate Intent MAC Business 1 July 2006 to 30 June 2009

Details:

Title

Statement of Corporate Intent MAC Business 1 July 2006 to 30 June 2009

Other title

Tabled paper 822

Collection

Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT

Date

2007-02-22

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/283640

Citation address

https://hdl.handle.net/10070/410715

Page content

TIO continues to be the sole provider of motor accident compensation services through the administration of the MAC Business for and on behalf of the Territory Government. Subject to any unforeseen events, and in particular continued strong growth in the investment markets, it is not anticipated that premium (CTP) rates will increase in the near future. As a result, any increases in gross written premium are expected solely through increased vehicle numbers on Territory roads and reducing the number of unregistered vehicles. 3.4 Other External Factors Other external matters that affect MAC'S performance include the following: MAC is continuing to provide information and advice to Treasury and the Minister with regard to the abolition of common law benefits for non-residents in favour of the no fault approach. As detailed above, the reinsurance costs faced by MAC Business far exceed other jurisdictions. This arises from the continuation of common law rights for non-residents and the high quantum of court awards for catastrophic injury claims. A Government sponsored Committee of Review has recommended the abolition of common law for claims in the Territory, which if accepted, will result in a significant reduction in high quantum claims and in the medium term a reduction in reinsurance costs. However, as the timing and content of legislative change is yet to be determined, the budgets contained in this Statement of Corporate Intent 2006-2009 for the MAC Business do not include the potential impact of this proposal. Northern Territory Economy The Northern Territory economy is expected to be buoyant over the next 5 years. Gross State Product ('GSP") growth is expected to average 4.5% and be the highest growth rate of all jurisdictions. There is a positive outlook for Territory employment. The forecast average growth of 2.3% per annum in the five years to 2009-10 is the strongest of all Australian jurisdictions. Summary of Territory Economic Indicators Territory Gross State Product (GSP), at around $9 billion, accounts for around 1.2 per cent of national Gross Domestic Product (GDP). Following strong growth in 2004-05, Territory GSP growth is forecast at 6.2 per cent in 2005-06. Continued strong growth reflects the improving employment outlook, population growth maintaining a solid pace and the continuation of the cyclical recovery across a range of industries. Solid interstate migration outcomes will underpin forecast population growth of 1.0 per cent in 2006. Annual growth beyond 2006 will be heavily influenced by prevailing employment and economic conditions. Employment is forecast to increase by 2.0 per cent in 2005-06. The economic base of the Territory is expected to expand significantly over the next decade with significant capital infrastructure projects on the horizon. 22 Statement of Corporate Intent - MAC


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