Page 2670 - Week 09 - Thursday, 25 August 1994
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Unfortunately, the criticisms did not suggest any common direction which would have enabled a final scheme to be prepared. The views expressed in those submissions indicated that agreement on final details of a scheme was unlikely at this time.
In late 1993, the Government suggested to the Workers Compensation Monitoring Committee that an interim scheme of occupational rehabilitation be introduced pending the development of a final scheme. This proposal for a "bare bones" type of scheme received the support of all members. The interim scheme has, as its centre pin, a legal obligation for employers, through their insurers, to provide reasonable occupational rehabilitation to injured workers unless the claim is rejected. This central obligation is contained in the new section 15B in the Bill. Some supporting elements were also added by the committee, with employers being required to develop and maintain an occupational rehabilitation policy in consultation with their work force and to appoint a rehabilitation coordinator for their employees.
The interim scheme relies heavily on the good faith of the parties. It does not specify what is to be contained in a rehabilitation policy, nor the qualifications or duties of a rehabilitation coordinator. Those matters will need to be addressed in a final scheme. The interim scheme does establish a legislative framework within which workers can enforce a legal right to receive occupational rehabilitation and through which employers and insurers can carry out occupational rehabilitation in a fully effective manner.
The legislative provisions are only part of the occupational rehabilitation strategy proposed by the Government, with the endorsement of the Workers Compensation Monitoring Committee. The other non-legislative element is the development of a "protocol", or code of practice, which will set out the manner in which each party will seek to carry out its obligations in relation to occupational rehabilitation. The protocol is a new development. Through it, the Government believes, the industry parties will be able to develop and observe an agreed code of practice, thereby avoiding the need for complex regulatory obligations to control all aspects of workers compensation.
This protocol has the potential to provide flexibility and adaptability, which are not characteristic of legislation. Insurers have expressed support for the use of voluntary codes rather than prescriptive legislation. The Government will be proceeding with the development of a final occupational rehabilitation scheme. If the protocol fails to achieve the results expected of it, then this can be taken into account when the final scheme is developed. If it is successful, then it may not be necessary for the Government to legislate.
Madam Speaker, the Bill also introduces important reforms concerning the making of weekly compensation payments. These payments are of vital concern to injured workers and their families. It is an essential aspect of a workers compensation scheme that it should deliver quickly income maintenance payments to the injured worker to ensure the security needed to underpin the appropriate rehabilitation program. In this regard, our existing scheme is seriously deficient. There are no time limits on meeting claims for weekly compensation payments. Workers can be left for months while their entitlement to workers compensation is decided. These problems have been recognised by the unions and employer associations and, most importantly, by insurers.
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