South Australia

Statutes Amendment (WorkCover Governance Reform) Bill 2003

A Bill For

An Act to amend the WorkCover Corporation Act 1994 and the Workers Rehabilitation and Compensation Act 1986.

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Amendment provisions

Part 2—Amendment of WorkCover Corporation Act 1994

4 Amendment of section 4—Continuation of Corporation

5 Insertion of sections 4A and 4B

6 Amendment of section 5—Constitution of board of management

7 Amendment of section 6—Conditions of membership

8 Repeal of sections 8 and 9

9 Amendment of section 10—Validity of acts of members

10 Insertion of section 15A

11 Repeal of section 17

12 Repeal of Part 4

13 Amendment of section 21—Chief Executive Officer

14 Amendment of section 22—Other staff of Corporation

15 Amendment of section 27—Exemption from stamp duty

16 Insertion of section 27A

Part 3—Amendment of Workers Rehabilitation and Compensation Act 1986

17 Amendment of section 65—Preliminary

18 Insertion of sections 65A and 65B

The Parliament of South Australia enacts as follows:

Part 1—Preliminary

1—Short title

This Act may be cited as the Statutes Amendment (WorkCover Governance Reform) Act 2003.

2—Commencement

This Act will come into operation on a day to be fixed by proclamation.

3—Amendment provisions

In this Act, a provision under a heading referring to the amendment of a specified Act amends the Act so specified.

Part 2—Amendment of WorkCover Corporation Act 1994

4—Amendment of section 4—Continuation of Corporation

Section 4(3) and (4)—delete subsections (3) and (4)

5—Insertion of sections 4A and 4B

After section 4 insert:

4A—Application of Public Corporations Act

The Corporation is a statutory corporation to which the Public Corporations Act 1993 applies.

4B—Limitation of Ministerial power of direction

Despite section 6 of the Public Corporations Act 1993, the Corporation may not be directed by the Minister about the exercise or performance, in relation to a particular person, of a power or function under the Workers Rehabilitation and Compensation Act 1986 or the Occupational Health, Safety and Welfare Act 1986.

6—Amendment of section 5—Constitution of board of management

Section 5(2)(c) and (d)—delete paragraphs (c) and (d)

7—Amendment of section 6—Conditions of membership

(1) Section 6(2)—delete subsection (2) and substitute:

(2) The Governor may remove a member of the board from office on the recommendation of the Minister.

(2a) The Minister may recommend the removal of a member of the board on any ground that the Minister considers sufficient.

(2) Section 6(3)(e)—delete paragraph (e) and substitute:

(e) is found guilty of an offence against the Public Corporations Act 1993; or

8—Repeal of sections 8 and 9

Sections 8 and 9—delete the sections

9—Amendment of section 10—Validity of acts of members

Section 10(2), (3) and (4)—delete subsections (2), (3) and (4)

10—Insertion of section 15A

After section 15 insert:

15A—Specialist advisors

(1) The Governor may appoint suitably qualified persons to provide advice to the Corporation on—

(a) occupational health and safety; and

(b) rehabilitation; and

(c) dispute resolution.

(2) The remuneration of the advisors appointed under this section is to be met by the Corporation.

(3) The Public Sector Management Act 1995 applies to an advisor appointed under this section in the same way as to an advisory body member within the meaning of that Act.

11—Repeal of section 17

Section 17—delete the section

12—Repeal of Part 4

Part 4—delete the Part

13—Amendment of section 21—Chief Executive Officer

Section 21(3) and (4)—delete subsections (3) and (4) and substitute:

(3) The CEO will be appointed by the Governor after consultation between the Minister and the board about the proposed appointment and the terms and conditions of appointment.

14—Amendment of section 22—Other staff of Corporation

Section 22(3) to (6) (inclusive)—delete subsections (3) to (6)

15—Amendment of section 27—Exemption from stamp duty

Section 27—delete "The" and substitute:

Despite section 29 of the Public Corporations Act 1993, the

16—Insertion of section 27A

After section 27 insert:

27A—Corporation not to be required to pay dividends

Section 30 of the Public Corporations Act 1993 does not apply to the Corporation.

Part 3—Amendment of Workers Rehabilitation and Compensation Act 1986

17—Amendment of section 65—Preliminary

(1) Section 65(1)—before the definition of "class" insert:

average levy rate means a single percentage notionally applicable as the rate of the levy under section 66 to all classes of industry;

(2) Section 65(1)—after the definition of class insert:

Committee means the WorkCover Average Levy Rate Committee established under section 65A;

(3) Section 65—after subsection (4) insert:

(5) For the purposes of this Division, the Compensation Fund has a sufficient level of solvency if the amount in the Fund equals or exceeds an amount calculated in accordance with the formula for the time being adopted by the Corporation (being a formula that the Corporation must adopt to calculate the sufficiency of the Fund to meet its reasonably estimated liabilities as they fall due from time to time).

18—Insertion of sections 65A and 65B

After section 65 insert:

65A—WorkCover Average Levy Rate Committee

(1) The WorkCover Average Levy Rate Committee is established.

(2) The function of the Committee is to recommend an appropriate average levy rate under section 65B as part of processes prescribed by that section preliminary to the making of any changes to the rates of the levy under section 66.

(3) The Committee is to consist of five members appointed by the Governor of whom—

(a) one is to be appointed to preside at meetings of the Committee; and

(b) one is to be appointed on the Minister's nomination made after consultation with associations representing employers determined to be appropriate by the Minister; and

(c) one is to be appointed on the Minister's nomination made after consultation with the UTLC and other associations representing employees determined to be appropriate by the Minister; and

(d) two are to be persons with insurance, financial risk management, actuarial or other relevant expertise.

(4) At least one member of the Committee must be a woman and at least one must be a man.

(5) A member of the Committee will be appointed for a term of not exceeding three years and, on the expiration of a term of appointment, is eligible for reappointment.

(6) The Governor may remove a member of the Committee from office for—

(a) incapacity to carry out duties of office satisfactorily; or

(b) neglect of duty; or

(c) dishonourable conduct.

(7) The office of a member of the Committee becomes vacant if the member—

(a) dies; or

(b) complete a term of appointment and is not reappointed; or

(c) resigns by written notice addressed to the Minister; or

(d) is convicted of an indictable offence; or

(e) is found guilty of an offence against Part 2 of the Public Sector Management Act 1995; or

(f) is removed from office by the Governor under subsection (6).

(8) On the office of a member of the Committee becoming vacant, a person must be appointed, in accordance with this section, to the vacant office.

(9) The Committee has all the powers of a royal commission, and the Royal Commissions Act 1917 applies with the necessary modifications in relation to the Committee's members and proceedings and persons appearing or summoned before it.

(10) Subject to the regulations, the Committee may determine its own procedures.

(11) The Committee may not incur expenses in respect of expert advice provided by a person other than as a witness before the Committee except with the prior approval of the Minister (which approval must not be unreasonably withheld).

(12) The remuneration and reasonably incurred costs and expenses of the Committee are to be met by the Corporation.

65B—Levy rates notices and determination of average levy rate

(1) This section applies to a notice under section 66(6) (a levy rates notice) that either—

(a) fixes the percentages applicable to classes of industry as the rates of the levy under that section; or

(b) varies the percentages so fixed.

(2) The Corporation may not publish a levy rates notice unless—

(a) the Corporation has first referred the question of an appropriate average levy rate to the Committee for its recommendation; and

(b) the Minister has considered—

(i) the average levy rate recommended by the Committee and the supporting reasons of the Committee; and

(ii) any advice of the Corporation relating to the Committee's recommendation,

and has determined an average levy rate that is to be applied by the Corporation in formulating the levy rates notice; and

(c) the Corporation has certified to the Minister that it has applied the average levy rate determined by the Minister in formulating the levy rates notice.

(3) If the Compensation Fund does not have a sufficient level of solvency, the Minister must—

(a) determine an average levy rate that is not less than that recommended by the Committee; or

(b) be satisfied that there are, in the circumstances, good reasons for determining a lesser average levy rate.

(4) The Minister may issue guidelines for the purposes of this section that—

(a) are to be observed in recommending or determining an average levy rate; or

(b) provide the basis for determining whether the Corporation has applied the average levy rate determined by the Minister in formulating a levy rates notice.

(5) On publication of a levy rates notice, the Minister must, within six sitting days, cause—

(a) a copy of the Committee's recommendation; and

(b) a statement of the average levy rate determined by the Minister; and

(c) a copy of the guidelines issued by the Minister under subsection (4),

to be laid before each House of Parliament.

(6) None of the requirements of this section is to be taken to provide a basis for challenging or calling in question in any court the validity of a levy rates notice.