Page 3432 - Week 12 - Tuesday, 11 October 1994

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It is unfortunate that all parties have not been able to agree on the provisions of the legislation, given the very simple and straightforward objectives of the Bill. In early 1992 the Workers Compensation Monitoring Committee presented its scheme to the Minister for Industrial Relations. However, the scheme included a number of elements which were not supported by all parties. The proposal, as it stood, was released for public comment. Thirteen submissions were received, and all were critical of the proposed scheme; neither was any common direction articulated in the submissions which would have enabled an acceptable, revised proposal to be developed.

Towards the end of 1993 it was suggested that an interim scheme be decided on by the members of the Workers Compensation Monitoring Committee, pending the development of a final scheme at a later date. Unfortunately, as I mentioned earlier, agreement has yet to be reached on the provisions, although I understand that total agreement has been reached on the operation of the rehabilitation protocol. I am sure that the lack of agreement is, and has been, of the utmost frustration to the Government, which has been urging reform in this area for some time. It has even resulted in the Government taking an arbitrary approach to the resolution of the major issue in relation to the Bill. The Minister's presentation speech actually outlines the situation very clearly. I would like to quote this short section from the Minister's presentation speech:

Both insurers and unions agreed that a worker should be given eight weeks' notice before weekly compensation payments are terminated; but they disagreed about how the termination should take place. Insurers asked for the right to give a worker eight weeks' notice of termination of the weekly compensation payments. Unions asked that court approval always be required where the termination of weekly compensation payments was contested.

The Government has decided on a compromise position. The Bill provides that, for the first 12 months, insurers can unilaterally terminate weekly compensation payments by giving eight weeks' notice. After 12 months, court approval will be needed. Thus the Bill provides a 12-month window in which employers can readily terminate benefits in the way that they would envisage. This 12-month period enables the insurer to collect evidence and information and to determine whether they are, in fact, liable. At the end of 12 months the insurer can still terminate benefits but must seek court approval. This provides a measure of protection to the long-term, more seriously injured workers.

This is an arbitrary decision, and it satisfies not very many of the players in the process. It has been the major focus of much discussion and debate since the Bill was tabled in the Assembly on 25 August.


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