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Legislative Assembly for the ACT: 2000 Week 6 Hansard (25 May) . . Page.. 1762 ..

MR BERRY (continuing):

unjustified discount on their workers compensation insurance premiums. That is a serious matter for the community. It is one which has gained some momentum not only in the ACT but interstate as well and there are moves afoot in other places to address the issue.

The entire scheme could well be undermined by underreporting practices as the Nominal Insurer deals with more claims and premium increases arise as insurers seek to recoup moneys forgone. That means, in effect, that businesses which pay the proper amount end up paying more for workers compensation premiums than they should.

One of the difficulties, as I mentioned earlier, is in getting access to a set of data which accurately quantifies the extent of a whole range of workers compensation related payments and benefits-I suppose they are better described as inputs and outgoings-to ascertain the extent to which employers underreport their wage and salary bills to insurers. Strong evidence was provided by the insurance industry, employee organisations and the government indicating that this practice is of great concern. It was reported to us that it is of particular concern in the building and construction industry.

The evidence put to us was that underreporting could be anywhere between one per cent and 75 per cent. That is a wide range, but it certainly demonstrates that something needs to be done about the problem confronting us in relation to workers compensation. It is noteworthy, against the background of what I said in relation to the building and construction industry, that 471/2 per cent of the current claims before the Nominal Insurer come from the building and allied industry sector. That means, in effect, that the Nominal Insurer has to be funded to deal with claims by insurers who, in many cases, have paid the appropriate rate when it comes to their premiums and declared their wage and salary bills accordingly.

I want to make clear at the outset that this issue is one for only a small number of employers in the ACT. An overwhelming number of employers who contribute to the scheme do so quite accurately as far as we can make out, but it gets back to the argument or the old adage that it only takes one rotten apple in a barrel to upset the whole barrel.

The committee lamented that the workers compensation database is still not complete after five years in office of the Carnell government. Without a database of this kind, effective policy development is severely restricted. We received evidence that we are getting close to having a database provided. It is the view of the committee that if the project has not been completed by the end of the calendar year the Assembly should consider a course of action against the government.

I regard that as a serious matter. I can tell you that I will be considering moving a censure motion against the minister if we do not see this database up and running before the end of the financial year. It is a demonstration that the government has failed to deal with a basic matter of administration, that is, its administration of workers compensation. It is something that the government has known about for five years.

I have heard the Treasurer speak in recent speeches on the budget of the commitment of the government to building social capital. Social capital is about employers properly and fairly contributing to the protection of their workers through workers compensation

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