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Legislative Assembly for the ACT: 2003 Week 3 Hansard (13 March) . . Page.. 1097 ..

Annual Report did not include costs of employing staff to work on HIH matters. I am advised by the Fund Manager that the reported costs include:

Professional services - including audit fees paid to the Auditor General and other auditors, accountancy fees paid to consultants who prepare financial statements for the Fund, managerial fees to the Public Trustee for managing investments and staff costs not related to HIH ($318,873);

Computer costs - including leasing IT equipment and maintenance costs for the AIMS database ($124, 029);

Payments made to claimants under policies issued by liquidated insurer NEM ($56, 146);

Rent - office space for staff working on Fund activities ($42,127);

Security costs - associated with a risk assessment for the AIMS database ($22,881);

Office expenses - including stationary and furniture ($12,359);

Legal fees - general advice on the operations of the Fund ($8,818);

Communications costs - including IT network, phones and provision of data lines ($6,561);

Other costs - including staff training ($4,513);

Travel - for instance, to attend liquidators meetings ($2,749); and

Printing, postage and stationary ($2,266).

This information is included in Note 7 to the Financial Statements at page 115 of the Annual Report.

The Fund does not employ staff in its own right to undertake its legislative functions. I am advised by the Fund Manager that five staff are employed on temporary contracts through ACT WorkCover under the Public Sector Management Act 1994 to assist the Fund Manager to perform her functions under the Workers Compensation Supplementation Fund Act 1980.

The work by staff employed at ACT WorkCover to perform functions under the Workers Compensation Supplementation Fund Act is not directly comparable with the work (or costs of work) of employees of private sector insurers, as their roles are significantly different.

The main functions of the Fund Manager (and staff assisting the Fund manager) are set out in sections 12, 28 - 29 and 34 - 36 of the Workers Compensation Supplementation Fund Act 1980, and include dealing with and making payments to liquidators, recovering debts owing to the Fund, approving the terms of weekly payments settlements negotiated by the supervising insurer and referring lump sum settlements to court for approval.

The role of the Supervising Insurer is set out in subsection 30(2) of the Workers Compensation Supplementation Fund Act 1980. This includes: investigating claims; where appropriate negotiating the terms of the settlement of the claims and exercising any rights of the failed insurer arising out of an insurance policy.

I am advised by the Fund Manager that administrative costs to the Fund will reduce in future, as many of the staffing costs to date have been associated with due diligence

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