NSW Workers’ Compensation Self-Insurers Association AGM

I begin this morning by acknowledging the input of the NSW Workers Compensation Self Insurers Association - through its parent body the National Council of Self Insurers Association - to the review of the Comcare scheme.

Your contribution is indicative of the importance you and your members place on the occupational health and safety of employees - and on the delivery of effective workers’ compensation arrangements in the event of a workplace injury or illness.

Your contribution also reflects concerns about the need for a comprehensive national framework to deliver consistent workers’ compensation and Occupational Health & Safety programs across Australia - including access to self-insurance arrangements and consistency in those arrangements.

As acknowledged by the Productivity Commission in its 2004 report into National Workers’ Compensation and OH&S Frameworks, workplace injury and illness imposes significant economic and social costs on injured workers, their families, employers and the wider community.

The lack of a nationally consistent approach has created significant compliance costs for employers and has led to differences in outcomes for injured workers in terms of benefits payable and entitlements to those benefits.

While twenty years of cooperative effort at the national level has achieved incremental improvements in the consistency of OH&S laws, the Australian Government recognises that the current systems are still fragmented and inconsistent across jurisdictions and across industry sectors.

The Australian Safety and Compensation Council (ASCC) has been moderately successful in achieving national consistency in traditional OH&S areas, while there has been very little progress in any area of workers’ compensation.

During last year’s election campaign, the then Labor Opposition made a commitment to work cooperatively with state and territory governments to harmonise OH&S legislation within five years of coming to office - and to replace the Australian Safety and Compensation Council with a new, independent national body.

The Rudd Government has made progress in its commitment to reduce the regulatory burden on business and to improve competition and productivity by creating a seamless economy.
The harmonisation of OH&S laws has long been identified as a key issue for business, with the inconsistencies of current approaches resulting in unnecessary cost and complexity - particularly for businesses that operate across borders.

Harmonising OH&S laws will cut red tape, boost business efficiency and provide greater certainty and protections for all workplace parties.

As you would be aware, in a significant step toward making the harmonisation of OH&S laws a reality, the Deputy Prime Minister launched the National Review into Model OH&S Laws in April this year.

The review will make recommendations on the optimal structure and content of a model OH&S Act – which can then be adopted in all jurisdictions.

In particular, the review is focusing on issues in the disparate OH&S Acts that need to be harmonised to promote safe workplaces, increase certainty for duty holders, reduce compliance costs for business and provide greater clarity for regulators without compromising safety outcomes.

The review panel has consulted extensively with stakeholders to inform the development of recommendations on model OH&S laws.

The panel received 243 written submissions which is testament to the considerable interest in this important area of reform.

The panel is now preparing to deliver its first report to the Workplace Relations Ministers’ Council by the end of this month followed by its second and final report at the end of January 2009.
The first report will cover the priority areas of duties of care and the nature and structure of offences, including defences.

The second report will cover all other matters including consultation provisions, enforcement and compliance, and regulatory powers.

I am also very pleased to say that in July this year, the Council of Australian Governments - comprising the leaders of the federal, state and territory governments - signed an inter-governmental agreement to end the fragmented and inconsistent approach to the protection of workers’ health and safety.

The agreement sets out the principles and processes for cooperation between the Commonwealth, states and territories in developing and implementing uniform OH&S legislation complemented by consistent approaches to compliance and enforcement.

COAG also agreed to an accelerated timetable for implementing the model OH&S laws, with the implementation timeframe brought forward one year to 2011.

The other priority area for the government is to establish a new independent national body to oversee workplace safety and workers’ compensation in Australia.

In September, a bill was introduced into Federal Parliament to establish Safe Work Australia - which will replace the Australian Safety and Compensation Council - and will help end complex and costly inconsistencies in OH&S and workers' compensation laws across Australia.

A key function of Safe Work Australia will be to develop the model OH&S laws, including model regulations and model codes of practice.
It will also develop a national compliance and enforcement policy and explore ways to harmonise workers' compensation laws.

As you can see, there is a significant amount of work taking place that will help promote a more cooperative approach among all jurisdictions towards workplace health and safety.

Before concluding, I would like to touch briefly on the Comcare Review.

I am aware that some of the Association’s members are self-insured under the Comcare scheme while other members may have an interest in developments in relation to the Commonwealth jurisdiction more generally.

The Government has delivered on its election commitment to initiate a review of the Comcare scheme.

In December 2007, the Government placed a moratorium on new applications by private corporations seeking to join the Comcare scheme to enable a review of the scheme to be undertaken.

With the recent expansion of the types of industries covered by the Comcare scheme, the Government is seeking to ensure that all employees covered under the scheme are protected by rigorous OH&S safeguards and appropriate workers’ compensation benefits.

In January, the terms of reference for a review of the Comcare scheme were released and submissions from interested parties were invited.
The purpose of the review is to ensure that Comcare is a suitable OH&S and workers’ compensation system for self-insurers and their employees.

The review received a large number of submissions from employees and unions, from state governments, the legal profession, and from businesses and employer representatives.

It also undertook consultations with key groups, including the National Council of Self-Insurers Association.

A wide range of issues were raised in those submissions and consultations and I understand that the Deputy Prime Minister, Julia Gillard, is currently considering a report from her Department on the outcomes of the Comcare Review.
The report will assist in the determination of the Government’s position in relation to workers’ compensation and OH&S coverage under the Comcare scheme.

In closing, I would like to emphasise the Rudd Government’s commitment to working cooperatively with the states and territories to achieve a harmonised approach to OH&S - and streamlined access by multi-state employers to worker’s compensation arrangements.

The harmonisation of OH&S arrangements is an important component of the Government’s commitment to relieving the regulatory burden on businesses operating across jurisdictions.

Our determination to increase the nation’s economic performance can only be achieved by improving workplace productivity.
Essential to improving workplace productivity is the need to reduce the costs to business of complying with cumbersome and complex workers compensation and OH&S arrangements that are currently in place.

The role played by the NSW Self Insurers Association, and its members, in contributing to the debate on the way forward for harmonisation is very much welcomed and appreciated by the Australian Government.

Thank you once again for your kind invitation to your AGM this morning.