Page 1729 - Week 09 - Tuesday, 17 October 1989
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A working party was established in May 1983 to examine certain aspects of the Workmen's Compensation Act, following expressions of dissatisfaction with the ACT workers compensation system by a number of organisations and individuals. Its terms of reference did not encompass any major philosophical or policy changes but were directed more towards changing legislation to enable workers compensation arrangements to function more effectively.
The report from the working party in 1984 contained 37 recommendations, of which three have been implemented. Seventeen other recommendations are ready for consideration by the proposed industrial relations advisory committee when it is formed, and that will be prior to their introduction into this Assembly. The remaining 17 recommendations have been largely overtaken by events of the past five years and have been deferred for consideration in a full review of workers compensation legislation.
One of the working party's recommendations was that the Minister should appoint an expert body to hold an inquiry to review the whole philosophy of accident compensation in the ACT. In December 1986 a consultant actuary was commissioned to undertake such an inquiry. The actuary's report was received on 16 July 1987. It concluded that it is highly doubtful that the reduced premium rates introduced in Victoria and New South Wales are viable in the long term at the level of benefits currently in force; the premium and benefits structures introduced elsewhere may not be appropriate to the ACT industry structure; there is insufficient data available on ACT compensation experience to enable an accurate costing of major changes to the ACT arrangements; and current ACT premium rates appear to be excessive, and the ACT should seek the agreement of insurers to an immediate reduction of around 20 per cent.
The report recommended that the ACT move urgently to establish an adequate database for workers compensation premiums and costs; the ACT continue to develop its own premium and benefits structure, having due regard to benefits introduced in other jurisdictions and to the premium and costs structures which emerge from the ACT data; and major changes to ACT arrangements not be made before 1 July 1989, so that the present review of the Victorian WorkCare system can be assessed, changes to the New South Wales and Commonwealth schemes can be assessed, and adequate arrangements can be put in place to collect and analyse data, to deliver and monitor rehabilitation services and to develop and implement safer work practices.
The consultant's recommendations were considered realistic and were accepted in principle. Action was taken to establish a database system to obtain details of premiums and claims paid. This information would allow premium levels to be monitored more effectively. It has been clear for a long time, however, that in order to address a number
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