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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
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Parliamentary Committees

PARLIAMENTARY COMMITTEE ON OCCUPATIONAL SAFETY, REHABILITATION AND COMPENSATION: ANNUAL REPORT 2011-12

The Hon. G.A. KANDELAARS (16:55): I move:

That the report of the committee, 2011-12, be noted.

The committee has an important role in investigating matters relating to the administration of the state's occupational health, safety, rehabilitation and compensation legislation and other legislation affecting these matters, including the performance of SafeWork and WorkCover. The annual report covers two financial years, namely, 2010-11 and 2011-12.

The Occupational Safety, Rehabilitation and Compensation Committee differs substantially in operation to other standing committees. While a number of factors are identical to all other standing committees of parliament, the key difference with this committee is that members are not remunerated, not that the press understand that issue; thus the members' dedication to the work of the committee is noteworthy. The committee tends to be issue-focused, and its level of activity fluctuates, depending on the existence of topical matters.

The members are committed to the important work of the committee, and they have applied themselves diligently in the previous two years. The committee has worked well and collectively, and each member has contributed a significant amount of time for a very important cause and each can feel proud of his or her efforts.

The Occupational Safety, Rehabilitation and Compensation Committee met on 19 occasions between July 2010 and June 2012, undertaking a single in-depth inquiry into vocational rehabilitation and return to work. The committee also invited the Hon. Susan Ryan AO to make a presentation on labour participation of mature-aged workers. While the committee has not undertaken a formal inquiry into this issue, it did undertake research, and it believes that further work is required to address issues associated with an ageing workforce and the resultant change in workforce requirements and skill-retention issues.

The committee notes that South Australian return-to-work rates of injured workers have consistently been lower than the national average for the past 14 years and, in fact, are currently the lowest in the nation, yet the frequency of use and expense of vocational rehabilitation is exceptionally high and on the increase. Such a combination of factors continues to have a negative impact on WorkCover's unfunded liability and the overall performance of the scheme, not to mention on the life of those workers who have not returned to work.

Following the reforms of 2008, this state's workers compensation scheme has constantly been in the spotlight. Several independent reviews have been conducted, and it is clear that the South Australian return-to-work rate is significant to all stakeholders. The committee recognises this significance, and the aim of its inquiry was to discover reasons for the current rate and ways to improve it. The committee noted that there is no consistent method of measuring return to work in Australia, which is a significant cause for concern.

Another problem is that rehabilitation is driven by claims management imperatives, rather than a system that genuinely assists injured workers and employers. Evidence was presented to the committee in relation to claims related costs which it was stated were inappropriately allocated to rehabilitation. Whilst rehabilitation should deliver value for money, the evidence indicated it has not been achieved and the system needs substantial reform.

In May 2012 the Age Discrimination Commissioner, the Hon. Susan Ryan AO, was invited to make a presentation to the committee while she was in Adelaide. The commissioner provided the committee with an overview of what is occurring at a national level to address structural barriers to mature aged workers remaining in the workforce. It may surprise some of my parliamentary colleagues to learn that a mature-aged worker is anyone over the age of 45, of which South Australia has the highest concentration. The commissioner informed the committee that the federal government is working towards removing barriers so that people can continue to work into their 70s and beyond.

The reasons for this are twofold. Firstly, there is an increased interest by many mature aged workers in remaining in the workforce for longer, but they may need more flexible working arrangements to allow for those who have caring responsibilities or disabilities. Secondly, research predicts that as baby boomers leave the workforce, there will be a skills shortage that will not be met by new young workers or immigrants. This mass exodus will affect Australia's productivity and economic outcomes. The committee is interested in the health and safety and injury management constraints that may impact on mature aged workers and believes that further work is required to address issues associated with an ageing workforce and the resultant change in workforce requirements and skills retention.

The 14th report of the Occupational Safety, Rehabilitation and Compensation Committee summarises the committee's work for the financial years 2010-11 and 2011-12, and the cost to the taxpayer has been minimal. The total expenditure of the committee over this period was $3,461. I would like to take the opportunity to thank all those people who have contributed to the inquiries undertaken by that committee. I thank all those people who took the time and made the effort to prepare submissions for the committee and to speak to the committee.

I extend my sincere thanks to members of the committee: the Presiding Member, the Hon. Steph Key MP; yourself, Mr President, for your time on the committee; the Hon. John Darley MLC; the Hon. Rob Lucas MLC; Mr Ivan Venning MP; Mrs Leesa Vlahos MP; and Mr Alan Sibbons MP. I would also like to take the opportunity to thank the staff of the committee: Mr Rick Crump, Ms Carren Walker, Ms Mia Ciccarello, Dr Leah Skrzypiec and Ms Sue Sedivy.

Debate adjourned on motion of Hon. J.S.L. Dawkins.

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