Review of Intergovernmental Agreement for the Australian Building Codes Board

30 October 2008

The Insurance Council of Australia has only just been informed that the Federal Department of Innovation, Industry, Science and Research is undertaking a review of the Intergovernmental Agreement (IGA) that defines the operation of the Australian Building Codes Board (ABCB) and subsequently the Building Code of Australia (BCA).

“The review is vitally important as it is a unique opportunity for much needed government reform of Australia’s building regulation system. This review process must result in the emergence of a national construction code regime,” said Ms Kerrie Kelly, Chief Executive of the Insurance Council of Australia.

The Insurance Council will make a detailed submission to the review – noting the very short timeframe for final submissions of 30 November 2008.

“It is important that the existing built environment is protected and the BCA is modernised to ensure that Australia’s future built environment is resilient to the hazards of hail, fire, flood and wind,” said Ms Kelly.

The critical issues for reform in this area that have been identified by the general insurance industry include:

· The roles and purpose of the ABCB in the IGA should be expanded to include the development of building codes that express a cost effective level of minimum property resilience designed to counter the threat of extreme weather to the economic value and sustainability of a property.

· Changes to the BCA to ensure that it contains minimum requirements for property resilience to resist the hazards of hail, fire, flood and wind in order to protect the financial sustainability of individuals and communities by ensuring the survival of property in which they have invested.

· A definition of sustainability should be included in the IGA incorporating the concept of the economic sustainability, resilience and replacement cost of a structure, as well as the ‘green’ qualities of the building.

The Insurance Council has today made an interim submission to the review based on these critical issues.

“The Insurance Council encourages all other interested stakeholders to make a submission to this review and welcomes any future dialogue with these stakeholders,” Ms Kelly said.

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Media enquiries: Sean Sampson 02 9253 5161 0421 482 884