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Legislative Assembly for the ACT: 2003 Week 3 Hansard (13 March) . . Page.. 1098 ..

requirements for the Fund, which are part of the initial review of HIH liabilities, and will not need to be undertaken again.

(b) In addition, why is there a discrepancy between the figures in the Statement of Financial Performance (p.106) and the Statement of Cash Flows (p.108)?

I am advised that the figures differ due to the differing purposes of the Statement of Financial Performance and the Statement of Cash Flows. The Statement of Financial Performance (p.106) presents information on an accrual basis, which involves the recognition of revenues and expenses when the economic transaction giving rise to the movement of resources occurs, irrespective of the timing of any related movement in cash. Similarly, the Statement of Financial Position (p.107) involves the recognition of assets and liabilities when the economic transaction giving rise to the movement of resources occurs.

The Statement of Cash Flow (p.108) involves the recognition and recording of transactions on the basis of the receipt and payment of cash, and does not recognise the timing of related resource movements or the stocks of resources (other than cash) at the end of a reporting period.

(3) Nominal Insurer Advisory Committee (Page 14):

(a) Given that ACT WorkCover as the Nominal Insurer also sets and collects the levies from insurers and self-insurers based on claims costs, what transparency is there in place to ensure that claims are managed for the best possible outcome to keep levies down?

It is not strictly correct to say that ACT WorkCover is the Nominal Insurer. The Nominal Insurer is a person appointed under section 164 of the Workers Compensation Act 1951. Ms Jocelyn Plovits, who is also appointed as the Occupational Health and Safety Commissioner, currently performs the functions of the Nominal Insurer.

The Nominal Insurer sets and collects levies from insurers and self-insurers. The formulae used to calculate the Nominal Insurer Levy is based on insurers' market share. This formula and the levy arrangements are the subject of consultation with insurers and self-insurers through the Nominal Insurers Advisory Committee (the Committee).

The terms of reference of the Committee are to provide advice to the Nominal Insurer in the performance of functions and the exercise of powers under the Workers Compensation Act 1951, and to allow communication between the Nominal Insurer and approved insurers and self-insurers in relation to levies raised for claims against the Nominal Insurer.

The Committee is constituted of five members representing approved workers' compensation insurers in the ACT and one member representing self-insurers in the ACT.

(4) Construction Industry Safety (Page 23):

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