Farmers, small business owners and tourism operators will be asked to join a class action against power companies and the Victorian Government that will attempt to win compensation for those affected by bushfires.
Victorian law firm Slidders Lawyers has asked victims to enter their details on its website. As well as the most recent bushfires, Slidders is calling for those affected by fires in north-eastern Victoria in 2003, the Grampians in 2006 and fires in Gippsland and the Alpine region in 2006 and 2007 to register their details.
Power supplier SP Ausnet, which is listed on the Australian Stock Exchange but majority owned by Singaporean interests, is expected to be one of the targets of the class action.
SP Ausnet is the company responsible for fallen power lines around Kilmore East, which may have sparked the Kinglake fire that claimed 100 lives and wiped out numerous towns.
SP Ausnet said in a statement to the ASX this morning that it is currently talking to the Victorian Supreme Court about the status of any proceedings. The company also assured shareholders that it has “insurance policies in place consistent with industry standards”. According to some reports, the company’s liability is likely to be capped at $100 million.
But the reassurances have done little to calm investor nerves. SP Ausnet shares fell by as much as 10% this morning, before recovering slightly to be 7.5% lower.
Victorian Premier John Brumby has refused to comment on the power line claim, saying it would be examined as part of the Royal Commission into the bushfires.
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Individuals, businesses and organisations wishing to make a donation to the State Government’s Victorian Bushfire Appeal Fund can go to or call the toll free number 1800 811 700<
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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