Territory Insurance Office sale to be investigated by Senate inquiry

The Federal Senate will investigate the proposed sale of the Territory Insurance Office (TIO) after being asked to look into it by the Northern Territory Opposition.

The chair of the Senate inquiry into the privatisation of state and territory assets, Labor senator Sam Dastyari, said the Northern Territory Government should hold off from selling the insurer until the committee has had time to investigate.

"I'm quite worried that while we're going through a full inquiry process to determine whether or not this is in the interest of Territorians for [TIO] to be sold, the Government is trying to rush ahead and do it anyway," he said.

"What we're calling on the Government to do is take a step back, pause, allow us to conduct a proper inquiry, let's get to the bottom of the facts before you rush ahead and sell this asset."

Senator Dastyari said his committee would investigate the social and economic impact of the sale.

The senator conceded there was little his inquiry could do to stop the Giles government selling TIO, but he warned the sale may not be the good deal the Government is claiming.

Chief Minister Adam Giles has previously argued selling the insurer would be a good deal for the Territory because of a Federal Government proposal to introduce "asset recycling".

That idea would see the Commonwealth contribute an additional 15 per cent of the sale price of any asset sold by a state or territory government, if the money is reinvested in infrastructure.

But the asset recycling legislation is yet to pass the Senate, Senator Dastyari said.

"The economics of this only stack up if the Federal Government, through it's asset recycling programs, are actually there to give support to the Territory Government," he said.

"I think there's a real danger here that the Territory Government is running ahead without having properly considered whether or not there is going to the Federal Government financial support.

"Let's be clear: at this point in time it does not exist.

"The legislation is not supported, yet you've got the Chief Minister running around claiming that there's going to be such a windfall for the Territory and counting within that windfall support from the Territory Government that is simply not there."

Senator Dastyari said his committee will hold a meeting in Canberra next week and try to arrange to get to Darwin as soon as possible.

Giles jeopardising NT insurance safety net: Labor

Northern Territory Opposition Leader Delia Lawrie had asked the committee to investigate the social and economic impact of selling TIO.

"Territorians have been very clear, they do not want TIO sold," Ms Lawrie said.

"A staggering 82 per cent of people polled in the electorates of Sanderson, Katherine, Goyder and Daly last night do not agree with the sale of TIO.

"Adam Giles is pushing ahead with his plans to sell TIO without any real consultation with Territorians.

"When his colleague Willem Westra van Holthe consulted with residents in Katherine he heard loud and clear they do not want their insurer sold.

"Motivated by a quick cash-grab to pork barrel his way to the next Territory election, Adam Giles is jeopardising the insurance safety net of Territorians who will face massive insurance premium hikes and reduced coverage in a private insurance market."

Westra van Holthe says he now supports TIO sale

Government frontbencher Willem Westra van Holthe said he now believed the sale of TIO was the best course of action, despite previously saying he had "major concerns" about the proposal.

He said he had received briefings from TIO executives since first raising his concerns.

Mr Westra van Holthe refuted suggestions there was overwhelming public discontent with his government's actions.

"For every person who says they're opposed there are plenty of others who support the sale of TIO," he said.

Mr Westra van Holthe said any new owner of TIO must ensure flood insurance remains for his electorate of Katherine.

The senior government member said he expected to issue to be discussed at length in a Cabinet meeting to be held in the next few days.