John Twomey, Operations Manager, HGFA, writes:

The HGFA membership fee for 31/8/13 to 1/9/14 is $314.00 plus
payment of your State/Regional Levy. An increase of $44.00

The HGFA withdraws its previous offer to accept early payment of next years fees
at this years prices.

The HGFA Fee increase for the year 31/8/13 to 1/9/14 is solely attributed to an
increase in the level of HGFA Insurance necessary to satisfy the requirements of
our operational environment.

HGFA records show the 2002-03 Aviation policy was for a $10 M coverage; I think
it was $10 M two years earlier. It has been $10 M for at least 11 years.

A $20,000,000 insurance coverage requirement is being demanded across all levels
of Government in the country. The Committee of Management has no choice but to
provide it or otherwise our members would have commenced to lose their sites on
public lands, which are most of our sites. The Schools would also lose access to
most of their training sites.

This increase from $10,000,000.00 to $20,000,000.00 in coverage has resulted in
an increase in our Aviation Insurance policy of 62%.which equates to $44.00 per
HGFA member which is the amount that the HGFA Fee has had to be increased to
meet the unavoidable increase in Insurance costs.

The Victorian State Government now require it for all the VHPA sites in Victoria
that are in National Parks and in State Forest (many 10's of sites) and Local
Government is requiring it also. Most of Victoria's sites are leased from the
State Government and the leases on these sites have lapsed and they need to be
renewed which requires $20 M Aviation and General Insurance coverage.

Queensland government at all levels have required it since late last year and
they were placated in the interim and permitted existing leases and permits to
continue until this latest insurance renewal on the promise the renewal would be
for $20 M coverage. Permits and leases that had lapsed in the last insurance
period had to be renewed with an additional $10 M of cover in each individual
situation.

NSW government at all levels is now demanding $20 M coverage as is WA and SA.
The only state not heard from to date is Tas.

Most home insurance policies include $20 M coverage and Car policies include $30
M coverage.

This financial year we are making a large operating loss of which most was
incurred because throughout 2012 we were forced (had no option) to legally
defend against a frivolous law suit which ended when the other party agreed to
walk away but by that time it had cost HGFA approximately $122,000.00 in legal
costs. The other party sold their house to meet their legal costs and the HGFA
had no likelihood of recovering its costs.