Legislative Council Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia Legislative Council published Ministerial Statement Ministerial Statement WorkCover Corporation WORKCOVER CORPORATION The Hon. P. HOLLOWAY Legislative Council Minister for Mineral Resources Development Minister for Urban Development and Planning Minister for Industrial Relations Minister Assisting the Premier in Public Sector Management The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:20): I seek leave to make a statement in relation to the annual report of WorkCover Corporation for the financial year ending 30 June 2010. Leave granted. The Hon. P. HOLLOWAY Legislative Council The Hon. P. HOLLOWAY: I have today tabled the annual report of the WorkCover Corporation for the financial year ending 30 June 2010. WorkCover SA's results for the financial year reflect a profit of $77 million and an unfunded liability of $982 million. This is a considerable improvement on the previous financial year, when the corresponding figures were a loss of $75 million and an unfunded liability of $1.059 billion. This positive result continues the recent trend of real improvements in WorkCover's claims liability. For the fifth half year in a row WorkCover has recorded a claims result better than projected by its actuary. The outcome for the 2010 financial year is particularly pleasing as the final result was adversely affected by more than $100 million, due to movements in long-term interest rates that are outside WorkCover's control. Without these movements in financial markets these results would have been significantly better. I can also advise members that the WorkCover board decided at a recent meeting to extend the Employers Mutual contract for the provision of claims management services in South Australia for a further 18 months. The extended contract will run from the current expiry of 1 July 2011 until 31 December 2012. At the current time the scheme is experiencing significant change in the areas of work capacity reviews, medical panels, the cessation of redemptions and the introduction of new technology. A statutory review of the scheme is due to begin early next year. The board's decision to extend EML's contract reflects a desire to maintain certainty in service delivery during this period of change. The board will continue to monitor Employers Mutual's performance and will reassess its position in 2012.