WORKCOVER CORPORATION

The Hon. P. CAICA (Colton—Minister for Agriculture, Food and Fisheries, Minister for Industrial Relations, Minister for Forests, Minister for Regional Development) (14:30): I seek leave to make a ministerial statement.

Leave granted.

The Hon. P. CAICA: Today I have tabled WorkCover's 2008-09 annual report and the report of the WorkCover Ombudsman. Members are aware of the issues facing the WorkCover scheme. The past year has seen a major effort in the implementation of the legislative reforms which were passed by this parliament in June 2008. Those reforms are now, for the most part, fully implemented, although the full impact of the reforms is still building. The challenge is now to ensure that the benefits of these legislative reforms are realised as those changes are bedded down within the scheme.

This government and WorkCover are of the view that the legislative reforms, coupled with improved case management and a renewed focus on improving return-to-work rates in this state, provide a means of redressing what has historically been a poorly performing workers compensation and rehabilitation scheme.

The figures contained in this year's report revealed that this has been a year of two halves for the WorkCover scheme. Like many investors, WorkCover was hit particularly hard in the first half of the financial year by the global financial crisis. Losses in the investment markets and economic factors such as decreasing interest rates had a significant impact on WorkCover's assets and liabilities. However, I am pleased to inform the house that the second half of the year has seen much of those losses recouped.

Most importantly, WorkCover has been able to report a third successive six-month period where it has made a saving on its claims liability. In the past financial year, WorkCover has also achieved an actuarial release of $171.2 million against its strategic plan target of $60.1 million. The combined effect of these results has seen WorkCover report an unfunded liability at June 2009 of $1.06 billion, which is still far too high but an improvement nonetheless on the $1.3 billion reported to December 2008.

These are positive signs that things are moving in the right direction in the WorkCover scheme but there is still a long way to go. Importantly, the government and WorkCover are working hard to improve the return-to-work performance of the scheme. In the past financial year six projects totalling approximately $2.4 million have been approved under the $15 million Return to Work Fund. These projects are focused on retraining, skills development and job matching for injured workers.

There will soon be a further call for expressions of interest for funding from the Return to Work Fund. WorkCover will be looking for projects that involve collaboration with local organisations to help injured workers and their families through the return-to-work process.

I have also today tabled the first annual report of the WorkCover Ombudsman. A very important part of the package of legislative reforms introduced by the government was the creation of the independent Office of the WorkCover Ombudsman. This government recognised that it was crucial that injured workers and employers not only have an impartial and independent source of information and support but also that they have access to an independent body that could review claim determinations. In addition, the WorkCover Ombudsman's role includes providing recommendations to the compensating authority, self-insurers and the government about how claims management can be improved.

The WorkCover Ombudsman's report reveals that a number of decisions made by case managers were deficient, particularly within the first few months of operation of the legislative amendments. Importantly, the ombudsman reports that, through his work, case managers have received additional guidance and information and that there has been a dramatic reduction in the number of cases where the ombudsman has found a basis to reinstate payments that had been discontinued by case managers.

I have emphasised this government's firm commitment to achieving even greater improvement in case management performance, and the WorkCover Ombudsman makes an important contribution to that end. The government is committed to ensuring that everyone involved in the scheme—employers, workers, rehabilitation providers and case managers—fulfils their obligations to help ensure that, where possible, injured workers achieve a safe and early return to work. Also, we are committed to ensuring that the workers and businesses of this state have a scheme that is fair, sustainable and competitive.