A parliamentary question probes potential insurance industry misconduct (profit manipulation, price collusion) related to workers' compensation, seeking government investigation and transparency. The government deflects, citing prior review and focus on current policy reform.

AnsweredQoN 321Legislative Council
Asked
6 November 2002
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

(1) Will the Premier please advise this House whether Mr Brendan McCarthy, the former Director of Operations of the Chamber of Commerce and Industry of Western Australia, did in fact say in his evidence before a committee of this Parliament that insurance companies were able to contrive any profit or loss that they liked by manipulating their outstandings? (2) Did he also say or imply that the remarkable similarity in their rates indicated price collusion? (3) If this is in fact true, will the Government investigate whether this is illegal under federal legislation? (4) Will the Government now demand that the insurance industry open its books and recall Brendan McCarthy to give sworn evidence at an open inquiry? (5) If not, why not? (6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE

AnswerView source ↗

I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(2) Did he also say or imply that the remarkable similarity in their rates indicated price collusion? (3) If this is in fact true, will the Government investigate whether this is illegal under federal legislation? (4) Will the Government now demand that the insurance industry open its books and recall Brendan McCarthy to give sworn evidence at an open inquiry? (5) If not, why not? (6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(3) If this is in fact true, will the Government investigate whether this is illegal under federal legislation? (4) Will the Government now demand that the insurance industry open its books and recall Brendan McCarthy to give sworn evidence at an open inquiry? (5) If not, why not? (6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(4) Will the Government now demand that the insurance industry open its books and recall Brendan McCarthy to give sworn evidence at an open inquiry? (5) If not, why not? (6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(5) If not, why not? (6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(6) Will the Government now demand that the insurance industry disclose costs of opposing injured workers’ claims, including litigation costs and the costs of video surveillance? (7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(7) If not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
I thank the member for some notice of this question. (1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.
(1)-(7) The comments made by Brendan McCarthy to the Legislative Council’s Standing Committee on Legislation in 1998 would have been appropriately assessed by the committee at that time, in the context of all the evidence received. It did not pursue the matter further. The above matters occurred during the tenure of the previous Government and will not affect this Government’s implementation of its policy to reform the workers compensation system to ensure that it is equitable for both injured workers and employers.

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