Call for national event insurance scheme knocked back

The Federal Government has rejected a senate committee inquiry calling for a national insurance guarantee for events impacted by Covid restrictions, arguing that it is the sole responsibility of states and territories.

The senate committee inquiry was launched with bipartisan support from both Labor and the Greens.

On Friday a report resulting from the inquiry recommended the bill for a government backed insurance scheme for the live events not be supported, with three Coalition Senators voting in favour of the recommendation.

The report also said the performing arts sector had already received “significant funding” from all levels of government and has “shown the capacity to recover”.

The Department of Prime Minister and Cabinet stated that market failure alone is not an argument for government intervention, particularly “if the failure does not have a material impact on the functioning of the wider market”, according to a report in The Guardian.

“But in the event of a market distortion leading to inefficient or inequitable outcomes, the cost of intervention may be justified.”

The office of Arts minister Paul Fletcher said the minister was examining the report.

“As we have consistently said, it is decisions by state government health authorities which trigger the business losses faced by producers of arts and entertainment events,” a spokesperson for Fletcher’s office told The Guardian.

“Therefore, it is state governments which are best placed to provide cover against this kind of risk.”