The state government and Western Power have agreed to pay $10 million in compensation to assist residents affected by last December's bushfire in Toodyay.
The state government and Western Power have agreed to pay $10 million in compensation to assist residents affected by last December's bushfire in Toodyay.
Western Power and the government will contribute $5 million each as an ex-gratia, goodwill payment.
Today, the state government said it accepted the findings of the second report into the fire, which found a Western Power pole started the blaze.
However, it acknowledged that Western Power does not accept liability and the issue of liability can only be resolved in a Court of law.
"Despite two reports into the cause of the fire, we have the unusual circumstance of conflicting evidence with the cause still not determined," said Premier Colin Barnett.
"The question of liability can only adequately be resolved in a Court of law therefore if people or their insurer choose to litigate, that is their right," he said.
Residents who received payments from the financial assistance package will not waive their right to future litigation against the power company.
The financial assistance will be available in six categories: Residential buildings - up to $150,000; External structures - up to $15,000; Site Clean-Up - up to $5,000; Home contents - up to $30,000; Tools of trade - up to $5,000; Private cars - up to $10,000.
The total payment for each property is capped at $190,000.
Mr Barnett said it was a fair and considered package.
"It recognises the impact of the fire on those people who were not insured or who were not fully insured and at the same time recognises the contributions already made by insurance companies," he said.
The State Government and Western Power have developed a financial assistance package of up to $10million for residents directly affected by the December 2009 Toodyay bushfire.
An estimated 137 properties were damaged, with 38 homes destroyed. Unfortunately some homes were not insured and many others were underinsured.
The report handed down by EnergySafety on February 15, 2010 did not determine a cause for the fire while a second report released on August 13, 2010, after new evidence was examined, concluded the fire started from a Western Power pole.
The State Government accepts the finding of the second report but acknowledges Western Power does not accept liability. The issue of liability can only be resolved in a Court of law.
The Government and Western Power will each contribute $5million as an ex-gratia, goodwill payment.
Residents receiving payments through the assistance package would not need to waive their rights to future litigation against Western Power.
Financial support will be available to affected households in six categories:
Residential Buildings
Up to a maximum of $150,000 for established homes which were damaged or destroyed
External Structures
Up to a maximum of $15,000 for sheds, fences and other external structures
Site Clean-up
Up to a maximum of $5,000 toward the cost of site clean-up and rubbish removal
Home Contents
Up to a maximum of $30,000 for home contents
Tools of Trade
Up to a maximum of $5,000 for items used for employment purposes (tools and equipment)
Private Motor Vehicles
Up to a maximum of $10,000 for private motor vehicles including cars, motor homes and motorbikes.
Total payment for each property is capped at $190,000.
Premier Colin Barnett said the total payment for each property was capped at $190,000, which compared favourably with the support provided to victims of the February 2009 Victorian bushfires ($15,000 for contents and a maximum of $85,000 for homes destroyed) which were primarily funded by donations.
RiskCover will be writing to affected residents inviting them to make a claim for assistance, as well as advertising in local newspapers. Alternatively, residents can contact Risk Cover on 9264 3879.
"This is a fair and considered packaged designed to help affected families get back on their feet," Mr Barnett said.
"It recognises the impact of the fire on those people who were not insured or who were not fully insured and at the same time recognises the contributions already made by insurance companies."
Up to 20 homes were uninsured with many of the remaining homes affected being underinsured. Some of the properties affected were holiday or second homes.
On December 30, 2009, a day after the fire, the State Government announced up to $3,000 in emergency help for affected households and declared the fire a State Natural Disaster.
This triggered support under the WA Natural Disaster Relief and Recovery Arrangements (WANDRRA) including emergency accommodation, food, essential clothing and counselling.
The Premier confirmed that a further global allocation of $85,000 for counselling support services to help people who have experienced stress and trauma as a result of the fire would be provided as part of the package.
"I recognise that the true impact of the fire on people's lives may only just be sinking in so the Government has moved to increase this assistance," he said.
"Despite two reports into the cause of the fire, we have the unusual circumstance of conflicting evidence with the cause still not determined.
"The question of liability can only adequately be resolved in a Court of law therefore if people or their insurer choose to litigate, that is their right."
