The Editor

Dear Sir,

In your article "Premier hypocritical on insurance: MP" of March 13, 2002, the Opposition's Peta Seaton declares the State Government is "profiteering from this insurance crisis".

This is simply wrong. Ms Seaton should check her facts.

The fact is the State Government has spent more money fixing insurance collapses and funding fire services that reduce insurance company costs than it has received in insurance taxes.

In this and last financial year the State Government has spent more money fixing insurance collapses and funding fire services that reduce insurance company costs than it has received in insurance taxes.

In this and last financial year the State Government has spent more than $400 million more to help the insurance industry than it has received from it.

The State Government has spent more money fixing insurance collapses and funding fire services that reduce insurance company costs than it has received in insurance taxes.

In this and last financial year the State Government has spent over $400 million more to help the insurance industry than it has received from it.

The State Government has received $1379 million in the past two years from the general insurance industry in stamp duty, the fire services levy and the insurance protection tax, which was established to help pay for the cost of the HIH collapse.

In the same period the State Government has met insurance-related costs of $1808 million including:

* $714 million for Fire Brigades,

* $214 million for Rural Fire Services,

* $600 million for people effected by the HIH collapse, and

* $250 million to address skyrocketing medical indemnity insurance costs in public hospitals.

Maybe Ms Seaton could tell your readers where she would cut funds from: the NSW Fire Bridgades, our Rural Fire Services, or doctors in public hospitals?

Yours sincerely,

Michael Egan

NSW Treasurer