Green slip price hike necessary: premier tells NSW drivers
19 Jan 2009 1:17 PM
SYDNEY, Jan 19 AAP - A big hike in green slip costs is necessary to cover insurance costs, NSW Premier Nathan Rees says.
Green slip prices are set to rise by up to $70 a year for NSW motorists after the Motor Accidents Authority (MAA) approved a seven per cent base premium increase for compulsory third party (CTP) fees from February 1.
The MAA said the global financial crisis had affected insurance company investments, creating the need for the rise.
Mr Rees said there had been a reduction of $150 for the green slip in real terms over the past 10 years.
"We would always like it lower, but that insurance has to be covered," Mr Rees told reporters on Monday.
"You'd like to be able to provide everything for free, but the fact is you can't."
The increase comes on top of the $10 government levy increase in November's mini-budget and means drivers have seen their base CTP rate jump 14 per cent, three times the national inflation rate.
