Page 2628 - Week 12 - Thursday, 16 November 1989
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
This review must consult very widely within the ACT and ensure that the ACT's idiosyncrasies are known and taken into account when an ACT workers compensation scheme is formulated. The insurance industry, trade unions and employers have been constantly calling for this type of review and for the implementation of the 17 recommendations of the 1984 report. It is encouraging to see that the importance of this matter has been so conscientiously looked into by all members of the Assembly.
A further report was received on 16 July 1987 which concluded what was widely known in 1984 - that changes had to be made to workers compensation in the ACT. These changes, it was agreed, were urgent but at the same time of such importance that consideration of them would take a great deal of time to ensure that the legislation introduced would be relevant and applicable to the ACT situation.
Mr Speaker, this brings us to where we are at present with workers compensation in the ACT. Certain questions must be looked at so that we can understand the problems with the ordinance at present. Firstly, why are workers compensation premiums in the ACT the highest in Australia? The Australian Bureau of Statistics has estimated that the cost to ACT industry of workers compensation in 1987-88 was of the order of $529 per employee. This cost is simply too much for an employer to be expected to pay and still be running an efficient business.
Let us look briefly at the building and construction industry and the premium situation for workers compensation as it exists. The construction industry has the highest rate of premium in the ACT at 40 per cent for builders labourers and an average for the industry as a whole of 18 per cent.
If we look at the total wages paid to labourers registered with the Building and Construction Industry Long Service Leave Board it comes to around $3.8m for January and February of this year. At a premium of 40 per cent, ACT employers pay around $1.5m in premiums for workers compensation every two-month period, or $9m per annum. This situation must be alleviated to ensure that the private sector is fully encouraged to establish new business in the ACT.
It is little wonder that new businesses are not interested in setting up in Canberra when they can establish themselves in Queanbeyan and pay a fraction of the costs for workers compensation cover. This is especially important as the private sector increases its employment ratio of the population from 50 per cent public service and 50 per cent private sector to 70 per cent or higher in the public sector in the future. The high premiums at present offer little incentive for business to come to Canberra.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .