WORKCOVER

The Hon. R.I. LUCAS (15:10): I seek leave to make an explanation before asking the minister representing the minister for WorkCover on the subject of WorkCover.

Leave granted.

The Hon. R.I. LUCAS: On 4 September last year, the Auditor-General wrote to WorkCover raising a number of issues in relation to the audit; in particular, I quote from attachment F of that letter. It states:

Internal audits are not providing...assurance that controls are operating effectively throughout the year to enforce each requirement of the WRCA. Not projecting the value of detected errors across the whole scheme to estimate the value of undetected errors reduces the quantitative data needed by senior management to make decisions about whether controls or processes need changing. Not communicating the quarterly results of EML's quality assurance audit to WorkCover’s Board Audit and Risk Committee may delay intervention by WorkCover to remedy ongoing issues.

Amongst a series of recommendations, the Auditor-General recommended as follows: that quarterly results of EML's quality assurance audits should be passed on to and monitored by WorkCover’s Board Audit and Risk Committee to ensure EML are adequately addressing any issues.

On 25 September last year, WorkCover responded to the Auditor-General's recommendations and, in part, said:

WorkCover does not agree that claims agent quality assurance audits should be passed to the Board Audit and Risk Committee quarterly, however, agrees that such results should be discussed at executive management team meetings on a quarterly basis to ensure actions are appropriate to the audit findings.

It is clear that WorkCover has snubbed its nose at the Auditor-General's recommendations, and it is clear that WorkCover management is intent on the WorkCover board not being appraised on a regular basis about the risks that have been identified by the Auditor-General in relation to the issues the Auditor-General has raised. My questions to the minister are:

1. Has this issue been raised with the minister and what was the minister's response?

2. Does the minister support WorkCover's refusal to agree to and implement the recommendation of the Auditor-General on this issue?

3. If the minister does not support the Auditor-General's recommendation and therefore supports WorkCover's position, can he give his reasons why he disagrees with the Auditor-General?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:12): I thank the member for his questions. I will refer them to the minister responsible for WorkCover in another place and bring back a response.