Who knew death could be so lucrative?
An apparent turf war has erupted over the right to cremate the state's bodies, with some private funeral operators wanting Victoria to follow other states and allow them to build and operate crematoriums.
In Victoria only non-profit cemetery trusts, which are government regulated, can conduct cremations. As a result, cremations can cost more than double that charged in other states and some Victorian funeral homes have been sending bodies interstate to be cremated.
One funeral company director said the lowest cost of a cremation in Melbourne was about $800, while there were options in South Australia for less than $400.
Traditionally, the operation of cemeteries and crematoriums has been separate from the activities of funeral directors.
But controversy arose last year when the Southern Metropolitan Cemeteries Trust, which manages eight cemeteries, called for expressions of interest to provide mortuary services at its Bunurong Memorial Park in Dandenong South.
Australian Funeral Directors Association national president John Fowler said allowing cemeteries to encroach on the services of funeral directors would create an unfair market.
"We have to have the opportunity to compete with them by having our own crematoria. We think that's reasonable," he said.
The association has been urging the government to change the law so that private operators can own and operate crematoriums.
"Every funeral director will be affected if the government allows the cemeteries to build mortuaries on their premises," Mr Fowler said.
Southern Metropolitan Cemeteries Trust chief executive Jane Grover said the trust had not tried to impinge on the activities of funeral directors.
But she said there should be no change to the current arrangement, whereby cemetery trusts have exclusivity over cremations.
Revenue from cremations allows the trusts to pay for other responsibilities, including maintenance.
"We have to look after these grounds in perpetuity," Ms Grover said.
Some funeral directors are now offering families cheaper cremations by transporting bodies interstate.
But the General Metropolitan Cemeteries Trust has written to funeral directors expressing concerns about a "steady increase" in private cremations by Victorian-based funeral directors in NSW and South Australia.
The letter from chief executive Jacqui Weatherill said a reduction in cremation revenue could result in increased prices in Victoria.
She told Fairfax Media that Victorian cremations were highly regulated so families could be assured of a high-quality service.
Across Australia many well-known funeral brands are owned by the publicly listed company InvoCare, where Mr Fowler is also general manager. But he stressed InvoCare had not been involved in seeking changes to the sector.
InvoCare has three national brands, including White Lady Funerals and Simplicity Funerals, in addition to many other state-based businesses, such as Le Pine Funerals in Victoria.
Fairfax Media understands there are no plans to allow private crematoriums in Victoria.
National Funeral Directors Association Victorian director Nigel Davies said InvoCare wielded great influence and could take business away from the cemetery trusts if it moved to conduct more cremations interstate.
"Then the cemeteries trusts are looking at a big hole in their budgets," he said.
Mr Davies is also director of Lonergan and Raven Funerals, which is not owned by InvoCare.
He said the cost of cremations in Melbourne started at about $800, but he had been offered options in South Australia for less than $400.
James McLeod, managing director of family-owned Tobin Brothers, said his funeral company offered Victorian families cremations in NSW at lower prices.
"From the perspective of the client family, the service is completely integrated and seamless," he said.
Mr McLeod said that if laws were changed to allow private crematoriums, the company would "look carefully at entering the market" in Victoria.
Health Minister Jill Hennessy said the current law ensured cemeteries were well cared for, providing a pleasant environment where families and friends could say goodbye to loved ones or visit their graves.
Families had the right to choose the "most suitable arrangement", which included interstate cremation if they wanted, she said.
Sydney University accounting professor Sandra van der Laan said the funeral sector was highly lucrative.
"It's a billion-dollar industry in Australia," she said. "The more parts of the market you can get involved in, the more opportunities for profit."
