Volunteer committees managing public assets on Crown land in East Gippsland, Victoria, are now required to arrange and fund their own insurance, following a recent policy change by the East Gippsland Shire Council.
The council’s decision, effective from July 1, ends its provision of insurance for 43 community groups responsible for facilities such as sports pavilions, public toilets, and community halls. The council expects this change to reduce its annual expenditures by over $57,000.
This move aligns with the Department of Energy, Environment and Climate Action’s (DEECA) Committee of Management Guidelines, which clarify that local councils are not mandated to insure state-owned assets.
East Gippsland Shire chief executive Fiona Wiegall said the state government should bear responsibility for insuring these properties.
“Why isn’t the state insuring these buildings that it’s then asking the community to manage?” Wiegall said, as reported by ABC.
The withdrawal of council-funded insurance has raised concerns among affected volunteer groups, many of which operate on limited budgets.
Mick Harrington, president of the Lindenow South Football Netball Club, said the additional financial burden could hinder community engagement.
“We’re just a small club trying to make ends meet and trying to give people in the community somewhere to go and this is just another barrier,” he told ABC.
Harrington also questioned the long-term effectiveness of the policy, suggesting that uninsured losses could eventually result in greater costs for government.
“What will happen is, eventually when someone’s buildings burn down, they’re going to approach the shire [or] the state government to rebuild them. So, it’s not going to end up being very much of a saving when they need million-dollar buildings rebuilt,” he said.
For some committees, the cost of securing insurance independently is prohibitive.
Deborah Woodburn, chair of the Gelantipy Public Hall committee, reported that quotes for insuring their facility ranged from $5,000 to $6,000 – an amount beyond the committee’s reach.
DEECA currently provides public liability insurance for committees of management but does not cover property or asset insurance.
A department spokesperson said the agency is “committed to having ongoing discussions on this issue” and is working to support committees as they adapt to the new arrangements.
East Gippsland Shire Council has indicated that while insurance coverage for Crown-owned assets has ceased, other forms of support will continue.
Chris Stephenson, general manager place and community at the East Gippsland Shire Council, said discontinuing insurance coverage would not affect the other forms of assistance the council offers to Crown land committees.
“Committees receiving annual allocations from us will receive their 2025-26 funding as usual. We are also maintaining our current commitments to ground maintenance for DEECA facilities where we have agreements in place and will continue to offer strategic and maintenance advice where needed,” he said.
The council’s decision reflects broader financial pressures facing local governments in Victoria.
Jennifer Anderson, president of the Municipal Association of Victoria, noted that councils are increasingly required to fund services that were previously the responsibility of state government.
“There’s only ever so much money to go around, so they have to prioritise and look at what they can afford and what they can’t afford on behalf of their community,” she said, as reported by ABC.
Former council chief executive Chris Eddy raised questions about whether local ratepayers should be responsible for insuring state-owned assets, such as roads and public buildings.
“Councils are more and more looking at whether they can continue to meet those costs when really they’ve been picking them up on behalf of the state for many years,” he said.
Committees seeking guidance on insurance matters are advised to contact DEECA, while general support remains available through the council’s community facilities team.
