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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-10 Daily Xml
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Question Time

WORKCOVER BOARD

The Hon. R.I. LUCAS (14:50): I seek leave to make an explanation before asking the Minister for Industrial Relations questions about WorkCover.

Leave granted.

The Hon. R.I. LUCAS: On 4 January the former minister for industrial relations announced what was to be an independent review of the Workers Rehabilitation and Compensation (Scheme Review) Amendment Act 2008 (or WorkCover) which was required by the passage of the 2008 legislation. The former minister announced two people: Mr Bill Cossey, and Mr Chris Latham, who he described as a senior partner at PricewaterhouseCoopers with more than 20 years' experience in providing advice on the operation of accident compensation schemes both here in Australia and internationally. If one goes to the website of PricewaterhouseCoopers, Mr Latham is described as a Partner, Actuarial in the Sydney office.

I have been informed that the WorkCover board in recent months has commissioned a secret report into WorkCover, and a copy of that has recently been given to the WorkCover board. I am further advised that the WorkCover board appointed Mr John Walsh to undertake that secret report and secret review of WorkCover. When one goes to the PricewaterhouseCoopers website—surprise, surprise—one finds that Mr John Walsh is also listed as a Partner, Health Actuarial in the Sydney office of PricewaterhouseCoopers.

What we have in summary then is the government announcing an independent review being conducted by an independent reviewer from PricewaterhouseCoopers in Sydney, and the WorkCover board having commissioned a secret report from a partner in exactly the same company (exactly the same office) in Sydney. One of the issues being reviewed is obviously the return-to-work performance of the scheme and the performance of the various rehabilitation providers.

Members will be aware in recent years of issues relating to the high profile WorkCover board member Sandra De Poi, and in particular there are those of us who can remember the last state election and her involvement in the dodgy how-to-vote cards supporting her partner the member for Mawson, Mr Bignell.

Last year's Auditor-General's Report shows a huge increase (an almost doubling) in the value of contracts received by two of Ms De Poi's companies from WorkCover. The total value of the contract has jumped from $3.1 million to $5.9 million. Industry concerns have been put to me that, in the current year 2010-11, they understand that number will increase significantly again when the audit accounts are produced in a few months, and that this has led to the closure of a number of long-term quality smaller rehabilitation providers here in South Australia. My questions are:

1. Have any concerns been expressed to the minister about the recent significant increase in the value of contracts being awarded to Ms De Poi's companies and, if yes, what action, if any, did he take?

2. What evidence, if any, is there that the return-to-work outcomes or other outcomes being achieved by Ms De Poi's companies are better than the scheme average and most other providers for each of the 2007-08, 2008-09 and 2009-10 financial years?

3. When was the minister first advised of the Walsh review commissioned by the WorkCover board? Has he been provided with a copy of either a draft or the final report?

4. How much money was paid by WorkCover to PricewaterhouseCoopers for the Walsh review?

5. Given the announced review of WorkCover was supposed to be independent, how does the minister justify the commissioning of a secret report by WorkCover from a partner in the same company of the independent reviewer appointed by his government?

The Hon. B.V. FINNIGAN (Minister for Industrial Relations, Minister for State/Local Government Relations, Minister for Gambling) (14:54): I thank the Hon. Mr Lucas for his question. It was a typical question from the Hon. Mr Lucas which starts off on one subject, covers two or three subjects and all is overlain with an nice bucket of mud thrown at people who are going about their business, implying that they are, somehow, involved in some sleazy or corrupt activity and that they are not legitimately going about their lawful business. That is the Hon. Rob Lucas's playbook: when in doubt throw mud and put out accusations of sleaze, barely sourced (if at all) or simply off the top of his head and hope that enough of the disparaging and unfair imputations that he throws out will stick to individuals. That is clearly the modus operandi—

Members interjecting:

The PRESIDENT: Order! The Hon. Ms Bressington and some others sat there and listened to a long-winded explanation by the Hon. Mr Lucas, so they will sit there quietly and listen to the answer from the minister.

Members interjecting:

The PRESIDENT: If you listen you might learn something.

The Hon. B.V. FINNIGAN: That is a typical sort of question that one expects from the Hon. Mr Lucas. He has mentioned the review of the legislative changes that happened in 2008. As my predecessor (the Hon. Mr Holloway) announced, the government initiated a review of the 2008 reforms as required by the amendments that were made at that time. It is important to note that the review is not a review of the entire scheme.

The review will assess the impact of the 2008 reforms on workers who have suffered compensable disabilities and who have been affected by the operation of the reforms; the impact of the 2008 reforms on levies paid by employers under Part 5 of the Workers Rehabilitation and Compensation Act 1986; and the impact of the 2008 reforms on the sufficiency of the compensation fund to meet its liabilities. That is the scope of the review. It is looking at the 2008 reforms and what impact they have had. It is not a general review of the entire scheme.

As the honourable member has pointed out or, certainly, as my predecessor has pointed out, Mr Bill Cossey AM and Mr Chris Latham have been appointed to conduct that review and finalise their report within four months. The honourable member—

Members interjecting:

The PRESIDENT: Order! If you will listen to the minister you will learn something.

The Hon. B.V. FINNIGAN: Thank you, Mr President. The Hon. Mr Lucas spent a lot of time talking about a whole range of issues and I am responding to them. The review is into the 2008 reforms. It is not some sort of comprehensive review of the whole scheme; it is for a specific purpose. The government has appointed two experienced people who are able to conduct that review, including Mr Chris Latham, who is an experienced actuary.

I assume the Hon. Mr Lucas is talking about—although it is always hard to know because he might just be muckraking; you never quite know the basis of his allegations or stories, but I assume his is talking about in late 2010 when WorkCover engaged PricewaterhouseCoopers to undertake a review of the provision of rehabilitation services within the South Australian workers compensation scheme.

I am advised that the board did engage PricewaterhouseCoopers to undertake a review of the provision of rehabilitation services in late 2010. I am further advised that the final report is currently being considered by the board and that it will need an opportunity to consider the content of the report and agree to a proposed course of action.

The Hon. Mr Lucas suggested that this was a secret report and that there was some sort of underhand process whereby WorkCover was commissioning secret reviews which were in competition with the review that is being undertaken in accordance with the legislation. I have just put forward that it is very simple. There is the review required by the legislation. People have been appointed to conduct that independent review, and the report will be finalised within months. That review will assess the 2008 reforms and the impact they have had on the scheme. I assume what the honourable member is referring to when he talks about some secret, underhand report is WorkCover having engaged PricewaterhouseCoopers late last year to undertake a review of the provision of rehabilitation services within the WorkCover scheme.

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