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read moreIn an effort to raise the profile of the insurance crisis impacting amusement and attractions operators, events and regional shows, the Australian Amusement, Leisure and Recreation Association (AALARA) and the Showmen’s Guilds of Australia have today advised that members across the country will commence a series of stop work campaigns from Saturday 7th May.
The planned action results from fears expressed by the Showmen’s Guilds and AALARA that ‘the show won’t go on’, slamming the Federal Government’s backtracking on a promise to support a Discretionary Mutual Fund (DMF) for the amusement and leisure industry.
Explaining the action, AALARA President, Shane McGrath stated “while this action is unfortunate, our industry has been left with no option. As an industry we employ thousands, entertain millions and mean so much to so many.”
Slamming last week’s rejection by the Federal Government of financial support for a DMF to the industry, McGrath advised “the peak industry association has been working with the Federal Government for 14 months on a solution to the public liability crisis that has been an existential threat to the industry.
“We have experienced a market failure that has seen insurance premiums increase more than 300%, while some operators have been unable to achieve any insurance at all. This has resulted in amusement rides excluded from events, sitting idle in theme parks or in sheds across the country.”
On 6th December 2021, the Australian Small Business and Family Enterprise Ombudsman released a final report into the insurance crisis facing Australia’s amusement, leisure and recreation sector, declaring the Show Must Go On.
The 42-page report found that a Discretionary Mutual Fund provided the most practical and durable solution to enable the industry to remain operational in a hardening global insurance market. In the Report, Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman said “the clear and present danger is real. The sector employs over 7,000 people and contributes $1.84 billion to the economy in total. This inability to secure insurance coverage puts thousands of jobs at risk and means many of the attractions people know and love are on the brink of being a thing of the past”.
McGrath advises that “the Ombudsman’s report supports our position in establishing an industry owned and operated DMF. We have jumped through many hoops, invested significant member funds at the encouragement of the government and completed all the required due diligence, only to be denied support at budget time.
“As an industry our members provide the attractions that underpin Australia’s tourism industry, they provide the amusement rides at agricultural shows and local school fetes which are such important community events. Our members have waited patiently as their association worked through the process and feel that the government, the system, has failed them.”
Supporting AALARA’s stance, Australasian Showmen’s Guild President, Aaron Pink added “many of our members have struggled over the last few years through floods, bushfires and COVID.
“The insurance crisis is having a devastating effect on our industry, especially amongst smaller operators who are experiencing an inability to gain insurance. An industry DMF will increase safety and make affordable coverage available for generations to come.”
AALARA cited a number of theme parks, which have struggled through lockdowns, having been forced to pay up to $1.5 million for insurance this year when four years ago they secured coverage for $150,000.
AALARA added “for an industry that has been decimated by COVID-19 over the past two years, this is the final straw for many operators who have had to close for good, through no fault of their own.”
Image: Perth Royal Show.
3rd May 2022 - AALARA updates operators with latest safety guidance
27th April 2022 - Federal Government unwilling to back AALARA’s call for an industry Discretionary Mutual Fund
18th March 2022 - World’s largest inflatable theme park continues tour of Australian cities
14th March 2022 - AALARA launches 2022 Conference program
4th February 2022 - AALARA sets up Safe Operation of Inflatables Sub Committee
24th January 2022 - AALARA announces May dates and Gold Coast venue for 2022 Conference
24th December 2021 - Pop up zip line over Melbourne’s River Yarra proves popular
17th December 2021 - Insurer Sportscover surprised by Small Business Ombudsman’s support for attractions mutual fund
16th December 2021 - Five children dead after inflatable jumping castle blown into air at Tasmanian school
6th December 2021 - Small Business Ombudsman’s report calls for a Discretionary Mutual Fund as solution for amusement and attractions insurance challenges
18th November 2021 - Risk management the key to way out of attractions industry’s insurance crisis
8th November 2021 - Federal Opposition gets behind events industry’s call for cancellation insurance scheme
25th October 2021 - AALARA urges members to respond to Australian Small Business Ombudsman’s insurance crisis interim report
24th September 2021 - Global attraction attendance report shows industry resilience in 2020 and the beginnings of recovery
24th October 2014 - Princess Anne praises cultural and social heritage of Australian agricultural shows
17th October 2012 - Agricultural shows in decline, while country events thrive
15th August 2012 - Without volunteers agricultural shows ‘will cease to exist’
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