House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Bills WorkCover Corporation (Governance) Amendment Bill WORKCOVER CORPORATION (GOVERNANCE) AMENDMENT BILL Introduction and First Reading Introduction and First Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Planning Minister for Industrial Relations Minister for Business Services and Consumers The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Industrial Relations, Minister for Business Services and Consumers) (12:05): Obtained leave and introduced a bill for an act to amend the WorkCover Corporation Act 1994. Read a first time. Second Reading Second Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Planning Minister for Industrial Relations Minister for Business Services and Consumers The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Industrial Relations, Minister for Business Services and Consumers) (12:05): I move: That this bill be now read a second time. I seek leave to have the second reading explanation inserted in Hansard without my reading it. Leave granted. This Bill proposes amendments to the WorkCover Corporation Act 1994. This Bill aims to build upon the amendments made to this Act in 2008 which replicated part of the governance arrangements used for other statutory authorities subject to the Public Corporations Act 1993. A strong focus of this Bill is a move towards a professionally focussed Board of management which, as far as practicable, reflects the competencies of a publicly listed corporation. Changes to the WorkCover Board will: Reduce the required number of members from nine to seven and the quorum threshold from six to four to streamline and focus the Board. Provide for the Minister to recommend suitable Board member and Chair person appointments to the Governor. Remove the existing rehabilitation and occupational health and safety representation requirements and the requirement to consult with employee and employer stakeholder associations for four of the positions on the Board. These provisions are replaced with the requirement of relevant qualifications or experience to unite Board members with a business focus rather than often opposing stakeholder views. The Government will continue to consult with relevant stakeholders when considering appointments. Increase Board member accountability by enabling the Minister to recommend to the Governor the removal of a Board member for any reasonable cause. Require the Minister to approve the formation of any remunerated Board Committees to ensure WorkCover's existing exemption under the Department of the Premier and Cabinet Circular 16—which allows Board members to be paid for each subcommittee they are a member of—is used prudently. Dissolve the existing Board membership upon commencement of the relevant transitional provisions to enable the recommendation of a new Board to the Governor based on these new provisions. Other key changes within this Bill will: Bring WorkCover closer in line with other public corporations by applying sections 7 and 8 of the Public Corporations Act 1993 to it. These sections govern provision of information and records to the Minister and provide for a representative of the Minister or Treasurer to attend Board meetings. This formalises the arrangement that has existed for a number of years, where an observer from the Department of Treasury and Finance attends meetings of the Board. Require WorkCover's Chief Executive Officer to be available directly to the Minister as well as the Board to enable closer Ministerial scrutiny of WorkCover's operations. These proposed amendments, in conjunction with the recently reviewed WorkCover Corporation Charter, provide the Government with greater oversight and control over WorkCover. These powers will be used to ensure the operational changes required by the Charter are implemented by WorkCover and its claims agents, as envisioned. I commend the Bill to Members. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title This clause is formal. 2—Commencement The measure will be brought into operation by proclamation. 3—Amendment provisions This clause is formal. Part 2—Amendment of WorkCover Corporation Act 1994 4—Amendment of section 4—Continuation of Corporation This amendment provides for the application of sections 7 and 8 of the Public Corporations Act 1993 in relation to the Corporation. Under section 7, a public corporation must, at the request of the relevant Minister, furnish the Minister with such information or records in its possession or control as the Minister may from time to time require. Under section 8, the relevant Minister or the Treasurer may appoint a person to attend (but not participate in) any meeting of the board of the public corporation to which the section applies, and such a person will also be entitled to have access to any papers provided to members of the board. 5—Amendment of section 5—Constitution of board of management The membership of the board of management of the Corporation is to be reduced from 9 to 7. The members will be appointed by the Governor on the recommendation of the Minister. The Act will no longer specify particular qualifications or criteria for board membership but a provision is to be inserted into the Act that will provide that a person appointed to the board must have such qualifications, skills, knowledge or experience as are, in the Minister's opinion, relevant to ensuring that the board carries out its functions effectively. It will also be expressly provided that a person appointed to the board must at all times act professionally and in accordance with recognised principles of good corporate governance. 6—Amendment of section 6—Conditions of membership It will now be possible to remove a member of the Board from office on the recommendation of the Minister on any other ground that the Minister considers to constitute a reasonable cause. 7—Amendment of section 11—Proceedings The quorum of the board is to be reduced from 6 members to 4 members given the reduction in the size of the board. 8—Amendment of section 13—Functions This clause amends section 13 to replace the word 'disabilities' with 'injuries' so that the terminology is consistent with the Workers Rehabilitation and Compensation Act 1986. 9—Amendment of section 14—Powers This clause removes a redundant provision. 10—Amendment of section 16—Committees The Corporation will be required to obtain the approval of the Minister before it establishes a committee that will include 1 or more persons who will be paid for their participation as members of the committee. 11—Amendment of section 21—Chief Executive Officer The Corporation is to be subject to the statutory requirement to ensure that its CEO is reasonably available to the Minister in order to assist the relevant Minister or Ministers in the administration of this Act and the Workers Rehabilitation and Compensation Act 1986, and to ensure that the CEO complies with any reasonable request by the Minister to provide information about the operation or administration of either Act. 12—Amendment of section 28—Regulations It is proposed that the regulations under this Act will be able to require the collection and collation of information that is relevant to the functions of the Corporation under an Act, and to require the provision of reports to the Corporation, or by the Corporation to the Minister. Schedule 1—Transitional provision 1—Transitional provision All current board positions will be vacated on the commencement of this schedule. Debate adjourned on motion of Mr Pederick.