Live Performance Federal Insurance Guarantee Fund Bill 2021

High-Level Summary
The Live Performance Federal Insurance Guarantee Fund Bill 2021 proposes to establish a fund to underwrite insurance for the live performance industry, addressing the inability to secure insurance due to COVID-19 risks.

Summary
The bill mandates the creation of the Live Performance Federal Insurance Guarantee Fund, which will be established through a legislative instrument by the Treasurer. The fund aims to provide insurance coverage for the live performance industry, which has faced market failure in obtaining insurance due to the ongoing impacts of the COVID-19 pandemic, such as border closures, lockdowns, and social distancing requirements. From the explanatory memo:
The Treasurer is required to make the rules regarding the establishment, governance, and operation of the fund within 30 days of the Act's commencement. The Act will commence on the later of the day after receiving Royal Assent or the day the Consolidated Revenue Fund is appropriated to fund the insurance guarantee.

Argument For
Normative Bases
  1. Pro-Democracy
  2. Egalitarianism
  3. Non-Discrimination

The bill should be supported because it provides crucial support to the arts and entertainment industry, which is a significant contributor to the Australian economy, valued at $112 billion and employing hundreds of thousands of workers. By underwriting insurance, the bill mitigates the market failure caused by COVID-19, enabling the industry to plan and execute live events, thereby promoting economic recovery and safeguarding jobs [Judgment]. Additionally, by supporting the arts, the bill enhances cultural engagement and democratic participation, as the arts often serve as a platform for social dialogue and community cohesion.


Argument Against
Normative Bases
  1. Propertarianism
  2. Utilitarian Ground Truth

The bill should be opposed because it could set a precedent for government intervention in industries that face market challenges, potentially leading to increased reliance on public funds and reducing market incentives for private solutions [Judgment]. Furthermore, the allocation of taxpayer money to a specific sector might not be the most efficient use of resources, especially when other sectors could arguably benefit more from government support in the pandemic's aftermath.


Date:

2021-08-25

Status:

Before Senate

Sponsor:

HANSON-YOUNG, Sen Sarah

Portfolio:

Unspecified

Categories:

Media / Advertising, Social Support / Welfare, Economic Policy

Timeline:
25/08/2021
27/07/2022

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