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House of Assembly - Fifty-First Parliament, Second Session (51-2)
2008-02-28 Daily Xml
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Grievance Debate

WORKCOVER CORPORATION

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (15:26): The state Labor government will today table bills it claims will eliminate WorkCover Corporation's $844 million unfunded liability within five to six years; reduce levy rates to a range of 2.25 per cent to 2.75 per cent; and provide for fair support to injured workers, delivered efficiently, and to enable the earliest possible return to work.

Mr Rann has told parliament that he expects to debate the legislation in the three weeks of April sittings, which end on 1 May. State Labor has had six years to consider this matter and to deliver the legislation. The parliament will see the bills for the first time today.

The ALP is deeply divided on the issue, and publicly divided. The state opposition will now consider the legislation, when we get it, and will consult widely, during March, with stakeholders, including Mr Clayton. We will ensure during these consultations whether the legislation, we are yet to even see, achieves what the government claims. If it does not, we will seek to amend it.

We will rule nothing in and nothing out, until the process of consultation during March is complete. We will do what the Labor government has failed to do. We will consult with the people most affected. The state Liberals' objectives will be to ensure: that the overall levy rate is reduced to at least 2.25 per cent by 1 July 2009; that the scheme is fully funded within the five to six year range; and that workers' entitlements are not unfairly or unnecessarily cut by the Rann government before all other options to eliminate incompetence, inefficiency and poor management by this government have been examined.

In his report Mr Clayton has observed that the WorkCover scheme was in a healthy and financially stable position, with a reputation for forward thinking, in 2002 when the Rann Labor government took office. In six years Mr Rann and Mr Wright have destroyed the scheme, necessitating this legislation to come before parliament later today.

Proposed cuts to workers' entitlements have only arisen in the context of a mismanaged WorkCover scheme. It should never have come to this: high levies burdening small business; cuts to workers entitlements—none of it should have arisen. It didn't under the same legislation with the former government; it has under this government. It is State Bank economics. Treasurer Foley told Parliament this week that no-one was responsible for the WorkCover Corporation's predicament.

The Premier and the minister on behalf of the government have denied responsibility. The Treasurer has excused the Labor government appointed board of WorkCover and its members. We are told no-one is responsible for $844 million of unfunded liability or for high business levy rates, nor the need to cut workers' entitlements. These denials are an affront to responsible government.

The state Liberal opposition is particularly determined during the March consultation process on this legislation to hear from business and from the unions. Representation will be considered on the basis of the quality of the arguments presented and the manner in which they are put. There are two questions that need to be answered by the Rann Labor government:

why is it that the existing legislation enabled the previous Liberal government to run an efficient scheme (as noted by Mr Clayton); and

why are self-insurers able to run an effective scheme for over one-third of the South Australia workforce under the existing legislation?

Mr Speaker, we face this challenge in 2008 for one simple reason: the Rann government's mismanagement of WorkCover.

Members interjecting:

The DEPUTY SPEAKER: Order!

The Hon. K.O. FOLEY: Madam Deputy Speaker, I will not let that comment by the leader sit without an apology and a withdrawal.

Members interjecting:

The DEPUTY SPEAKER: Order! The two members standing will sit down.

The Hon. K.O. FOLEY: I am taking a point of order.

The DEPUTY SPEAKER: That is what you need to do; if you rise to your feet you must say—

The Hon. K.O. FOLEY: I seek to make a point of order, Madam Deputy Speaker. The Leader of the Opposition has reflected on me as a member of this parliament. He said, and I quote, 'The Treasurer should stop taking his orders from Peter Vaughan.' I find that offensive to both Mr Vaughan and myself, and ask him to apologise and withdraw.

Mr HAMILTON-SMITH: There is no apology due. It is exactly what he said during interjections yesterday—and the Attorney. It is exactly what they said during interjections—

The DEPUTY SPEAKER: Order, Leader of the Opposition!

Mr HAMILTON-SMITH: —so take a bit back.

The Hon. K.O. Foley: That's not true, Martin.

Mr HAMILTON-SMITH: It's what you said—

The DEPUTY SPEAKER: Leader! The matter is not unparliamentary; however, the leader may choose to withdraw and apologise.

Mr HAMILTON-SMITH: No apology is due or warranted.

Members interjecting:

The DEPUTY SPEAKER: Order! I call the member for Mawson. I want to make the point that if the opposition disrupts the member for Mawson when he is speaking I will add extra time to allow the member for Mawson to have a decent say.

Members interjecting:

Mr PISONI: I rise on point of order—standing order 141: members quarrelling. The Treasurer is quarrelling across the chamber.

The DEPUTY SPEAKER: The member for Unley will sit down. When the house has come to order I will invite the member for Mawson to commence his grievance, and will add time for any disruption.

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