Ministerial Statement

WORKCOVER CORPORATION

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: Today, in Executive Council, His Excellency the Governor gave assent to the WorkCover Corporation (Governance Review) Amendment Act 2008 and the Workers Rehabilitation and Compensation Amendment Act 2008. The government's WorkCover reforms have now passed into law and most of the reforms, both legislative and administrative, will come into effect on 1 July 2008. The legislation fulfils the government's commitment made in this house in March 2007 to have reforms operational by 1 July 2008.

The reforms will help deliver the objectives set by the government when the WorkCover review was announced. They are:

1. Injured workers should receive fair and equitable financial and other support, that should be delivered efficiently and equitably to enable the earliest possible return to work.

2. The average employer levy should be reduced.

3. The scheme should be fully funded as soon as practicable having regard to these objectives.

Most importantly, the change to the WorkCover scheme will help deliver a healthy and viable scheme to support future generations of workers who may be injured. The changes were necessary to address the lowest return-to-work rates in the country, a scheme that was failing workers, an unfunded liability approaching $1 billion, and nationally uncompetitive levies. As a Labor Premier committed to the interests of workers, I was not prepared to stand by and preside over the slow and inevitable demise of WorkCover, which is critical to the protection of injured workers. I was not prepared to stand by and watch the cost of the scheme grow, reducing the state's competitive advantage and risking damage to our employment base.

Ms Chapman interjecting:

The SPEAKER: Order! The deputy leader will come to order.

The Hon. M.D. RANN: The reforms deliver entitlements to injured workers that overall compare more than favourably with schemes operating interstate. It is no secret that the government faced strong opposition to the reforms from some unions and lawyers. Notwithstanding that opposition, and in some cases the puerile personal attacks on ministers, the government remained on the course of responsible action.

The opposition belatedly supported the reforms. We heard what they said on day one, then there was something different on day two, and then there was something different on day three. The opposition belatedly supported the reforms following the intervention of the South Australian business community. That is hardly leading from the front: that is hardly setting the agenda.

I remind the house that, when Alan Clayton was engaged to undertake the independent review of the WorkCover scheme, we embarked on an extensive process of consultation. Many unions and employer groups made written submissions and made presentations in person to Mr Clayton. Following the introduction of the legislation into the house, I invited interested parties, including unions, to make suggestions on how to improve the bill. As a result, the government introduced amendments to aspects of the scheme, particularly relating to injured workers' entitlements. We were prepared to listen and make critical amendments. No-one can credibly claim that there has been insufficient consultation over the reforms. No-one can claim that they were not listened to.

The government also accepted an amendment to the WorkCover legislation requiring a review of the impact of the changes to be undertaken as soon as practicable after December 2010. The reforms to commence from 1 July include:

changes to weekly payments;

the establishment of a WorkCover ombudsman;

the creation of a $15 million return-to-work fund;

allowing the Auditor-General to audit WorkCover statements; and.

an increase in death benefits to $400,000.

It is anticipated that the remaining changes to the WorkCover legislation will be phased in over the next 12 months and include the introduction of:

medical panels;

modified work capacity reviews; and.

rehabilitation and return-to-work coordinators.

A sensitive and comprehensive information campaign about the upcoming changes will be provided to all injured workers and interested parties so they are aware of how they will be affected. The royal assent given to WorkCover today: WorkCover in this state being brought into line with other Labor governments around the country.