WORKCOVER CORPORATION

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:31): My question is to the Premier. As leader of the government, does the Premier accept responsibility for the deterioration of WorkCover's performance over the last six years? Does he concur with the Clayton-Walsh report's finding that the WorkCover scheme was in good shape when Labor took office in 2002?

The Clayton-Walsh report states that during the late 1990s 'claim payments were very well controlled, reducing in real terms throughout the five year period' and that 'the scheme began the 2000s in an apparently healthy position with respect to both financial stability and reputation for forward-thinking as represented at various seminars and conferences'.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:32): Let us put this question into context. Look at the economic conditions of the late 1990s compared to the economic conditions of today when unemployment was higher and there were less people employed. That would have a—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: I could go back to the appalling management of the last WorkCover management team and the performance of the previous board and I could refer to—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: —the highly politicised decision by the then management and board to cut the levy following the privatisation of electricity and prior to the election, which has been well commentated upon, but —

Mr Hamilton-Smith: Clayton says you're wrong.

The Hon. K.O. FOLEY: He doesn't say that at all—

Mr Hamilton-Smith interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The point we are at is that, if the opposition wants to say that WorkCover's financial performance is a result of poor management and poor leadership, what the member opposite is saying is that very fine South Australian business people, who sit on the board of WorkCover and have done so for five years, have failed this state. Are you saying that?

Members interjecting:

The SPEAKER: Order!

Ms Chapman: Are you blaming the board now?

The Hon. K.O. FOLEY: Well, the board was given the job of managing the organisation, and that board has managed the disaster.

An honourable member interjecting:

The SPEAKER: Order! I have already issued a warning.

The Hon. K.O. FOLEY: That is reflecting on some very fine business people in this state.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The board—and I do not need to name the people, or I can if you would like?

An honourable member interjecting:

The Hon. K.O. FOLEY: All right: Bruce Carter, a prominent businessperson; Peter Vaughan, CEO of Business SA; David Klingberg, a major industrialist in this state, recently resigned and replaced by Mr Tom Phillips; Sandra De Poi. There are a number of very senior South Australian business people who have managed and directed that business to the best of their ability. In their place is an outstanding CEO, the former CEO of Flinders hospital, Julia Davison, somebody for whom I am sure both sides of politics have high regard. The management of the organisation has been significantly changed.

An honourable member interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: What it comes down to is the fundamental shape of the legislation that has been largely intact since the mid-1980s. Other state governments, Victoria, New South Wales in particular, in recent years have reformed their statutory scheme significantly. What has been proposed in our system is a fair system that still gives us a scheme that provides a more generous set of benefits to workers than either Victoria or New South Wales, but will give the government of the day the ability to see that that unfunded liability is eliminated, and over time—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Over time the levy rate, one would hope, will reduce to a more competitive rate as it relates to other states. But I should note that the government has no intention, and will not agree to the suggestion of common law coming back into the system, but I think it is very important to note that the shadow attorney-general is calling for it here today.

Members interjecting:

The Hon. K.O. FOLEY: The Deputy Leader of the Liberal Party is calling for the introduction of common law.

The Hon. M.J. Atkinson: And the member for Mitchell.

The Hon. K.O. FOLEY: And the member for Mitchell.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: We have agreed as a parliamentary Labor Party, as difficult as it has been, for obvious reasons, but our party has shown courage and leadership in being prepared to do what we believe to be in the best interests of the taxpayers and the community of South Australia.

Mr Hanna interjecting:

The SPEAKER: Order! The member for Mitchell is warned.

The Hon. K.O. FOLEY: I am looking forward to this pressure being applied to the—as he likes to be referred to—alternate premier. I would like to see the pressure applied to him now as to what is his position.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: His party has now had the Clayton report for over 24 hours, and we will have legislation tabled tomorrow, and I look forward to seeing what the Liberal opposition's position will be. We have already seen the shadow minister saying that they will not support a cut to workers' benefits.

Members interjecting:

The Hon. K.O. FOLEY: Yes you have.

Members interjecting:

The Hon. K.O. FOLEY: Oh yes you have. Here we go—the shadow minister for industrial relations on 18 February, quote:

We will oppose cutting workers' entitlements because that is not the long-term result that is required in South Australia for the workers compensation scheme. It is a better management of the scheme that is required.

He then said on Channel 10 news—Duncan McFetridge, on 18 February:

Workers' payments don't need to be cut. The whole workers compensation scheme for South Australia needs to be better managed.

He said that again on ABC news. It was on Adelaide Now—

Members interjecting:

The Hon. K.O. FOLEY: Oh, 'Hear hear!' So, Mr Speaker, the Liberal Party—

Members interjecting:

The SPEAKER: Order! The Deputy Premier.

The Hon. K.O. FOLEY: For the most important piece of legislative reform in this session of parliament, indeed this term of government, the Liberal opposition is now saying that they will not support the legislation.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: That will be interesting—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: —because, sir, as he would like to be referred to, as he parades around the state, the alternate premier now has the pressure upon him to articulate a Liberal Party position.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Because if the alternate premier aspires to higher office it will take political courage and an ability to make a hard decision and do what is in the best interests of the state. On this one, as much as he has been allowed to get away with it so often in this state in the last 12 months, the pressure and the spotlight is now on the Leader of the Opposition. What is his position? We have made our decision. What is he going to do? That is now the question.