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  4. 2 May 2006

Motor Accidents (Lifetime Care and Support) Bill

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About this Item
SubjectsRoad Safety; Accidents; Motor Vehicle Insurance; Compensation
SpeakersScully Mr Carl; Hartcher Mr Chris
BusinessBill, Message, Report, In Committee, Motion, Report Adopted


    MOTOR ACCIDENTS (LIFETIME CARE AND SUPPORT) BILL
Page: 22405


    In Committee

    Consideration of the Legislative Council's amendments.
    Schedule of amendments referred to in message of 4 April

    No. 1 Page 2, clause 2, line 6. Omit all words on that line. Insert instead:

    (1) This Act commences on a day or days to be appointed by proclamation, except as provided by subsection (2).

    (2) Section 66 (Auditor-General to report on Costing Study) commences on the date of assent to this Act.

    No. 2 Page 4, clause 6 (2). Insert after line 17:

    (g) domestic assistance,

    No. 3 Page 4, clause 6 (2). Insert after line 19:

    (i) education and vocational training,

    No. 4 Page 13, clause 25. Insert after line 24:

    (5) In conducting its review, a Review Panel must take into account any written submissions prepared by or on behalf of the participant that are submitted to the Panel.

    No. 5 Page 30. Insert after line 34:

    (66) Auditor-General to report on Costing Study

    (1) In this section:

        Costing Study means the study entitled NSW CTP No-Fault Long Term Care Costing Study prepared by PricewaterhouseCoopers Actuarial Pty Ltd (ACN 003 562 696) and issued on 17 June 2005, which forms the Appendix to the New South Wales Government publication entitled Lifetime care and support for people with a catastrophic injury from a motor vehicle accident (ISBN 1 876958 22 7) issued by the Motor Accidents Authority in June 2005.

    (2) The Auditor-General is to conduct a review of the Costing Study in order to determine whether the assumptions and costing projections set out in the Study are soundly based.

    (3) The Auditor-General must, as soon as practicable after the expiration of the period of 6 months commencing on the date of assent to this Act, prepare a report on the conclusions reached on that review and furnish a copy of the report to the Minister.

    (4) The Minister is to lay (or cause to be laid) a copy of the report before both Houses of Parliament as soon as practicable after the Minister receives the report.

    (5) If a House of Parliament is not sitting when the Minister seeks to lay a report before it, the Minister may present copies of the report to the Clerk of the House concerned.

    (6) The report:

    (a) is, on presentation and for all purposes, taken to have been laid before the House, and

    (b) may be printed by authority of the Clerk of the House, and

    (c) if so printed, is for all purposes taken to be a document published by or under the authority of the House, and

    (d) is to be recorded:
      (i) in the case of the Legislative Council, in the Minutes of the Proceedings of the Legislative Council, and

            (ii) in the case of the Legislative Assembly, in the Votes and Proceedings of the Legislative Assembly,
              on the first sitting day of the House after receipt of the report by the Clerk.
        No. 6 Page 31. Insert after line 8:

        67 Appointment of Parliamentary Committee

        (1) As soon as practicable after the commencement of section 33 (Constitution of Authority) and the commencement of the first session of each Parliament, a committee of the Legislative Council is to be designated by resolution of the Legislative Council as the designated committee for the purposes of this Act.

        (2) The resolution of the Legislative Council is to specify the terms of reference of the committee so designated which are to relate to the supervision of the exercise of the functions of the Authority and the Advisory Council under this Act.

        Mr CARL SCULLY (Smithfield—Minister for Police) [7.37 p.m.]: I move:

        That the Legislative Council's amendments be agreed to.

        Mr CHRIS HARTCHER (Gosford) [7.37 p.m.]: I thank the Hon. John Ryan, who is in the Speaker's gallery, who led for the Coalition in debate on this bill in the Legislative Council. I acknowledge the work he put into this legislation and the amendments he was successful in negotiating for and on behalf of the Coalition in collusion or agreement with the Greens. There were four main amendments to the Motor Accidents (Lifetime Care and Support) Bill. The first major amendment, which was sponsored by the Opposition, refers the PricewaterhouseCoopers costing study to the New South Wales Auditor-General for report to the Parliament. The Opposition sponsored this amendment because it is concerned that this scheme would impose a significant new potential liability on the public purse. This scheme has the potential to return billions of dollars in contingent liability to the State budget and to have an impact on our triple-A credit rating. The New South Wales Government has achieved a gold medal performance for its incompetence in financial management, and its promises about the cost of anything cannot be trusted.

        The scheme will generate a revenue stream of about $250,000 a year which, over time, will involve billions of dollars. We should not embark on such a scheme without comment by the Auditor-General. Opposition members are determined to ensure that the Government is held accountable for its promise that the additional premium motorists will pay for compulsory third party green slips will be limited to an average of $20. We also point out that the Government's estimate has been formulated in 2005 dollars and not in 2007 dollars, which is when the scheme will be introduced. We are pleased that the Legislative Council passed this amendment and we look forward with great interest to the Auditor-General's report. When this matter was debated in the Legislative Assembly I spoke on behalf of the Coalition and I said that we would be moving an amendment in the Legislative Council. I acknowledge the support for that amendment by members of the Legislative Council. It is simple commonsense. Clearly, any scheme that has the potential to cost the taxpayers of this State millions of dollars should be properly assessed, and the Auditor-General is the appropriate person to make that assessment.

        It is unfortunate that the Government had to have this amendment forced upon it. The Government was so determined to have its way that it was prepared to act recklessly regarding the liability that could be imposed upon the people of this State. This is not a reflection on the merits of the scheme but a recognition that Parliament—as the body responsible for the finances of the State of New South Wales and to which the Government is accountable in the final analysis—must ensure that the community can afford the schemes that Parliament puts into operation. We are conscious of the New Zealand example, where the accident compensation scheme accrued a bill of some $6 billion after several years of operation and simply became unaffordable. We cannot afford to take that risk in New South Wales so it is appropriate that the Auditor-General assess the scheme's potential costs.

        Two other amendments sponsored by the Greens but supported by the Opposition were designed to ensure that the scheme provides for domestic assistance, and education and vocational training. This type of care was promised in the white paper but was not specifically included in the bill that the Government presented to Parliament. I acknowledge again the work of the Hon. John Ryan in examining the white paper, assessing the Government's promises in this area and then comparing those commitments with the bill introduced in Parliament. The Hon. John Ryan noticed the variations between the white paper and the legislation, and kept the Government honest by obliging it to keep the promises it made in the white paper.

        Incredibly, the Government was set to refuse these amendments when the Hon. Lee Rhiannon first proposed them to the Legislative Council. The Hon. John Della Bosca said that they would make no difference to the bill and that cover for these types of claims was provided in other legislation. The combined Opposition forces shamed the Government into agreeing to the amendments during consideration of the bill in Committee, when the Hon. John Ryan pointed out that, if the amendments made no difference to the Government's intent, no harm could be done by including them in the bill. That simple, self-evident point had been lost on the Hon. John Della Bosca. Amending the bill made the Government's intent clearer and had the advantage of clarifying the rights of catastrophically injured people to these forms of claims.

        The final amendment, which was also sponsored by the Opposition, ensured that a review panel operated by the Lifetime Care and Support Authority must take into account any written submissions prepared by, or on behalf of, a participant in the scheme. These panels, to be set up by the Lifetime Care and Support Authority, are the final forum of appeal in relation to medical disputes. The Coalition's amendment was designed to ensure that participants in the scheme have the right to make submissions and ensure that the review panel takes into consideration written submissions made by participants in the scheme; otherwise it is possible that a review panel could determine an appeal without considering the exact circumstances of a person with a disability.

        Scheme participants who have a disability are entitled to know that an assessment panel fully understands their needs for treatment and care. The kinds of assessments made by these review panels are not exactly the same as the medical assessments made under the Motor Accidents Compensation Act 1999. These decisions are not limited to objective considerations about physical impairment but also include issues relating to social situations in which the participants may find themselves. The support needs of a parent with dependent children may well be different from the support needs of a single adult. These needs vary with age or with a participant's residential location. These considerations are very personal and people with a disability should be entitled to express their needs or to have them expressed to a panel through an advocate, at least in written form. We are pleased that the Legislative Council passed this amendment.

        The passage of these amendments illustrates the important role that the Legislative Council plays as a House of review. In the Legislative Assembly the Government traditionally ignores and overrides sensible ideas proposed by the Opposition. It does not have that luxury in the Legislative Council, which functions appropriately as a House of review. I am glad that the honourable member for Bligh is here to lend me her support. The Coalition was successful in gaining support for the amendments, which improve the legislation and present better opportunities to people who have suffered catastrophic injuries. They ensure accountability and give panel representation to injured parties.

        The amendments also make sure that the costs of the scheme are assessed properly so that Parliament and the people of New South Wales know the exact extent of the potential liability imposed by the operation of the scheme. These amendments are beneficial and are a sign that Parliament is functioning properly. Had they been suggested in the Legislative Assembly, the Government would have rejected and overridden them in its usual manner—probably without even bothering to respond or to consult its advisors. It simply refuses to accept amendments and uses its sheer weight of numbers to push legislation through.

        Ms Clover Moore: And you wouldn't do that in government, would you?

        Mr CHRIS HARTCHER: I assure the honourable member for Bligh that we would not do that in government. The honourable member for Bligh was in this place when the Coalition was in government. She knows what a co-operative and consultative government we were. The Coalition supports the Legislative Council's amendments.

        Motion agreed to.

        Legislative Council amendments agreed to.

        Resolution reported from Committee and report adopted.

        Message sent to the Legislative Council advising it of the resolution.

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