Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has conceded failure in his pursuit of a Discretionary Mutual Fund for the attractions and amusement industry.
In December 2021, Billson backed a proposal by the Australian Amusement, Leisure and Recreation Association (AALARA) to create a Discretionary Mutual Fund (DMF) as a solution to lack of affordable insurance available for attractions industry operators - including adventure tourism, carnival and showground amusements, children’s rides, inflatables, laser tag, theme parks, transportable rides and waterparks.
Following extensive industry research, Billson’s report The Show Must Go On - released in his capacity as ASBFEO - called for Federal Government backing for the creation of an attractions industry DMF as a solution to the public liability crisis.
At the time of the release of The Show Must Go On, Billson suggested that in a hardened global insurance market establishing “a DMF as the only current workable solution to the immediate need for coverage in the sector.”
Billson backed this up in February this year with a new report Additional Insights Supporting a Discretionary Mutual Fund for the Amusement, Leisure and Recreation Industry, which highlighted ongoing difficulties faced by industry operators.
However, as reported today by the ABC, Billson has admitted that the initiative has not been successful in securing Federal Government support.
Despite industry operators continuing to face challenges in securing and maintaining insurance cover, Billson that he was “disappointed that … our recommendations weren't embraced.
"It's a very big challenge. There is a need for some innovation to find a way forward, and we thought a Discretionary Mutual Fund was the most practical, durable way.”
However, the push for a DMF was not backed leading industry insurer Sportscover.
Speaking to Insurance Business Australia (IBA) and the InsuranceNews website after the release of The Show Must Go On, Sportscover Australia Chief Executive, Simon Allatson said that establishing a DMF for the attractions sector was not the right course of action, expressing surprise that Billson was supporting an attractions sector-based DMF.
Allatson advised “it was our submission (to the Ombudsman) that a stronger focus on quality assurance, risk management, safety protocols, and training would provide greater security for the sector.
“As in any market, there are good risks and poor risks. A DMF should not be established to subsidise poor risks at the expense of operators who are operating safely and professionally.”
There remains the possibility that key AALARA members and stakeholders in the wider industry could fund a DMF without Government support.
Images: Australian Small Business and Family Enterprise Ombudsman Bruce Billson (top) and the cover of The Show Must Go On report (below). Credit: ASBFEO.
About the author
Nigel Benton
Co-founder/Publisher, Australasian Leisure Management
Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.
With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.
Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.
In addition to publishing, Nigel speaks on marketing communications at a range of industry events.
He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).
In 2020, he launched the new Asian Leisure Business website.
As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.
Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.
His philosophy on life is to be kind to all and to indulge those that you love.
His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring for a little pug named Stella.
Click here to connect with him via LinkedIn.
Read more from this author
Related Articles
22nd December 2023 - Blaming rising insurance costs Albany Indoor Adventures facility closes its doors
18th December 2023 - Bells Family Carnival the subject of a feature-length documentary
25th November 2023 - Coroner rules that boy’s 2017 carnival ride death was preventable
22nd September 2023 - Insurance company to end coverage for artists working at heights
4th September 2023 - Caravan Industry Association of Australia advises of insurance cover for jumping pillow and playgrounds
22nd February 2023 - Inquest into Hillcrest Primary School jumping castle deaths cannot commence as WorkSafe refuses to release findings to coroner
10th February 2023 - Small Business Ombudsman continues to back AALARA’s DMF plans for the amusement and attractions industry
19th October 2022 - Tragedy of Hillcrest Primary School jumping castle deaths acknowledged by Tasmanian Coroner
9th September 2022 - Rising cost of public liability insurance now impacting entertainment venues
12th August 2022 - Australia’s mainstream media acknowledges attractions industry insurance crisis
29th July 2022 - Rising Melbourne Royal Show carnival prices a result of increased insurance costs for ride operators
12th July 2022 - Insurance underwriter highlights the importance of liability waivers
8th June 2022 - Coroners report into Royal Adelaide Show ride death calls for national reform of show ride regulations
31st May 2022 - New Liability Insurance package launched for outdoor adventure, recreation and tourism activities
24th May 2022 - AALARA reaffirms commitment to industry safety
4th May 2022 - Fearing for the future of the amusement and attractions industry AALARA and the Showmen’s Guilds announce stop work campaign
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
6th December 2021 - Small Business Ombudsman’s report calls for a Discretionary Mutual Fund as solution for amusement and attractions insurance challenges
22nd December 2021 - AMPSEA partners with Sportscover to deliver National Insurance Scheme
17th December 2021 - Insurer Sportscover surprised by Small Business Ombudsman’s support for attractions mutual fund
25th October 2021 - AALARA urges members to respond to Australian Small Business Ombudsman’s insurance crisis interim report
20th October 2021 - Ombudsman’s insurance crisis report says ‘the show must go on’
11th August 2021 - Australian live entertainment groups call for federal insurance guarantee
2nd August 2021 - AALARA works through solution to insurance market challenges
7th July 2021 - Public liability insurance crisis further impacting Queensland country shows
21st June 2021 - Small Business Ombudsman launches review of AALARA’s Discretionary Mutual Fund proposal
3rd May 2021 - Moving to address industry insurance crisis AALARA releases survey on Discretionary Mutual Fund
22nd April 2021 - AALARA’s first Roadshow event addresses key industry issues with update on moves to establish discretionary mutual fund
24th March 2021 - AALARA presents need for Federal Government backing for insurance crisis resolution at Canberra meetings
12th February 2021 - Inability to secure insurance forces closure of Barra Fun Park in Townsville
30th December 2020 - AALARA releases ‘urgent request for the survival of our industry’
18th November 2020 - AALARA takes action as attractions operators face public liability issues
16th November 2020 - Industry operators impacted by rising insurance premiums
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
