CHAPTER 2: THE SEACARE AUTHORITY ? PERFORMANCE OF ITS STATUTORY FUNCTIONS
2.1 Seacare Authority accountability framework
2.2 The Outcome and Output for 2004-05
2.3 The Seacare Scheme national context
2.4 Seacare Authority Strategic Plan 2004-05 to 2009-10
2.5 Seacare Business Plan 2004-05
2.6 Relationships with national OHS and workers’ compensation bodies
2.7 Outlook for 2005-06
Table 2 below provides a summary representation of the Seacare Authority Accountability Framework, and provides an overview of the matters covered in this Chapter.
2.1 The Seacare Authority Accountability Framework
Table 2: The Seacare Authority Accountability Framework 2004-05
| Element |
Role |
Result |
| Minister |
Agrees to the Outcome and Output/s, and Parliament appropriates a budget |
Seacare and Comcare advise the Minister in achieving the Outcome and Output/s |
|
|
Outcome |
Captured in the Portfolio Budget Statements (PBS). It specifies what the Government is expecting from its annual budget appropriation to the function: ?To minimise the human and financial costs of workplace injury in the Commonwealth jurisdiction? |
| Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) |
Responsible for helping the Government achieve the Outcome by implementing the Output within its legislative responsibilities |
Advises the Minister on the performance of its functions specified in the legislation it administers ? to support the Government?s specified Outcome |
|
|
Output |
Captured in the PBS. It contains performance measures which are reported in the Seacare Authority Annual Report |
| Seacare Authority Strategic Plan 2004-05 to 2009-10 |
The Authority develops a Strategic Plan to identify and prioritise its longer term objectives in its delivery of the Output |
The Strategic Plan is overlayed by the mission: ?To take a leading role in minimising the human and financial costs of workplace injury in the Australian maritime industry? |
| Seacare Authority Business Plan 2004-05 |
The Authority develops its Business Plan to identify, cost and measure its deliverables against the Outcome as stated in the PBS |
The Business Plan enables the Authority to prioritise actions and to measure progress in achieving stated deliverables within its budget |
| Seacare Management Group (SMG) |
Staff in the SMG are responsible for supporting the Authority and assisting it to deliver against its Business Plan which contributes to the achievement of its Strategic Plan |
Comcare provides staff to form the SMG. Comcare also provides secretarial assistance and enabling services to the SMG including for information technology, financial management, human resource support and accommodation |
| Annual Report to Parliament |
Seacare Authority reports to Parliament on the operation of the Authority and on scheme performance ? (i.e. how has it delivered the Output and contributed to the Outcome) |
Performance is reported in the Annual Report |
2.2 The Outcome and Output for 2004-05
During 2004-05, the Authority contributed towards Comcare?s
Outcome - Minimise human and financial costs of workplace
injury in the Commonwealth jurisdiction. The Output expected
of the Seacare Authority in assisting to meet this Outcome was
- Regulate the Seacare scheme of workers? compensation, rehabilitation
and occupational health and safety.
Three measures for assessing the performance of the Seacare Authority in meeting this Output were identified in the PBS. These are: (i) the incidence of workplace injuries (target: 40% reduction by 30 June 2012); (ii) incidence of work-related fatalities (target: zero for the 10 years to 30 June 2012); and (iii) Seacare scheme performance meets Seacare Authority requirements.
Achievement of performance measure (i) would require, on average, a 4% reduction in the injury incidence per year measured from the base year (2001-02). In 2004-05, there was a sharp reduction in the incidence of injury in the jurisdiction such that if this reduction can be maintained, the ten year target will be achieved. Over the year, the incidence of injuries decreased by 37% from the base year using the National Occupational Health and Safety Commission (NOHSC) definition of injuries (see paragraph 4.6.2) and decreased by 42% using the Seacare definition of injuries, therefore performance against measure (i) has been met over the year.
Seacare met performance measure (ii), as there were no work-related fatalities in the maritime industry covered by the OHS(MI) Act over the year.
With respect to performance measure (iii), the Authority has discussed these achievements with industry stakeholders as well as other performance outcomes and has identified actions to refine its Strategic Plan and business plans to ensure that Seacare scheme performance continues to meet the Authority?s requirements.
2.3 The Seacare scheme - national context
The Seacare scheme is one of ten rehabilitation and workers? compensation schemes in Australia and one of two such schemes operating under Commonwealth legislation (Comcare being the other). It is the only national, industry based, rehabilitation and workers? compensation scheme. Seacare is one of eleven OHS jurisdictions and one of three operating under Commonwealth legislation (Comcare and the offshore oil and gas sector, regulated by the National Offshore Petroleum Safety Authority (NOPSA) pursuant to the OHS schedule of the Petroleum (Submerged Lands) Act 1967 being the others). As a Commonwealth statutory authority, the Seacare Authority is guided by Australian Government policy.
2.4 Seacare Authority Strategic Plan 2004-05 to 2009-10
In May 2004, the Authority adopted a five year Strategic Plan (2004-05 to 2009-10). The Strategic Plan proceeds from the Authority?s mission: to take a leading role in minimising the human and financial costs of workplace injury in the Australian maritime industry.
Having regard to the Output specified in the PBS, the Authority?s Strategic Plan is built around its regulatory responsibilities associated with administration of scheme legislation.
In relation to administration of the OHS(MI) Act, the Authority?s strategic objective is:
- assist the Australian maritime industry to sustain a significant, continual reduction in the incidence of work-related injury and disease, and to avoid work-related fatalities.
In relation to administration of the Seafarers Act, the Authority?s strategic objective is:
- be an effective regulator for workers? compensation and rehabilitation/RTW in partnership with the Australian maritime industry, and to be recognised by the industry as effective.
And in relation to the administration of the Seafarers Rehabilitation and Compensation Levy Act 1992 and Seafarers Rehabilitation and Compensation Levy Collection Act 1992, the Authority?s objective is:
- to manage an efficient and effective Seafarers Safety Net Fund.
Within this framework the Authority places a high priority on policy development and practical initiatives aimed at fulfilling its statutory functions, including:
- monitoring the operation of the Seafarers Act;
- promoting high operational standards of claims management and effective rehabilitation procedures by employers;
- publishing material relating to the operation of the Act, claims management, rehabilitation and the incidence of injuries;
- monitoring the operation of the Seafarers Rehabilitation and Compensation Levy Act 1992 and Seafarers Rehabilitation and Compensation Levy Collection Act 1992 and regulations;
- ensuring that the obligations imposed by theOHS(MI) Act and regulations are complied with;
- cooperating with other bodies or persons with the aim of reducing the incidence of injuries to employees;
- formulating policies and strategies relating to the OHS of employees;
- advising operators, employees or contractors on OHS matters;
- collecting, interpreting and reporting information relating to OHS;
- liaising with other bodies concerned withOHS;
- accrediting OHS representatives trainingcourses; and
- advising the Minister on rehabilitation, compensation and in relation to OHS, on the most effective means of giving effect to the objects of the OHS(MI) Act, on the making of OHS regulations and on approval of codes of practice.
2.5 Seacare Authority Business Plan 2004-05
The Seacare Business Plan for 2004-05 was endorsed in May 2004. The Business Plan disaggregated the PBS Output (Regulation of the Seacare scheme of workers? compensation, rehabilitation and occupational health and safety) into two sub-outputs:
- Sub-Output 1.1: the effective operation of the Seacare Authority and performance of regulatory functions under Seacare scheme legislation; and
- Sub-Output 1.2: implementation of Seacare Authority decisions arising from performance of its statutory functions.
The key actions, initiatives and sub-programs under each sub-output are described below.
2.5.1 The effective operation of the Seacare Authority and performance of regulatory functions under Seacare scheme legislation
This sub-output involves actions consistent with the statutory functions of the Authority including discharging the regulatory requirements of scheme legislation. It covers:
- the requirement to provide advice to the Minister regarding the Authority?s powers and functions relating to scheme legislation including compensation, rehabilitation, the making of OHS regulations and approving OHS codes of practice and the Seafarers Safety Net Fund; and
- performance of other statutory functions including:
- formulation of policies and strategies relating to OHS or employees;
- monitoring the operation of the Seafarers Act;
- promoting high operational standards of claims management and rehabilitation;
- reporting on and evaluating scheme performance including reporting to Parliament through the Authority?s Annual Report;
- communicating with stakeholders; and
- managing the Seafarers Safety Net Fund.
Provision of advice to the Minister
The Authority, through the Chairperson, maintained regular communication with the Minister for Employment and Workplace Relations on outcomes arising from Authority meetings. Some of the key matters about which the Chairperson kept the Minister informed were:
- the application of the Seafarers Act and the OHS(MI) Act and their interaction with otherActs;
- Seacare scheme performance and strategies for improvement; and
- the making of OHS regulations and approving codes of practice.
Performance of statutory functions under delegation
In performing its statutory functions, the Chairperson of the Authority is able to delegate to the Chief Executive Officer of Comcare (as specified in section 125(1) of the Seafarers Act) who may in turn delegate to the Deputy CEO of Comcare and to certain staff of Comcare (those performing the functions of the Seacare Management Group) the following powers under the Seafarers Act:
? Section 3 ? power to approve industry training courses;
- Section 3 power to approve industry training courses;
- Section 20A power to exempt employment from the operation of the Seafarers Act;
- Section 63(2) power to approve a form or forms;
- Sections 72, 73 and 79 power to extend time limits for the determination of the employer s liability;
- Section 95 power to require an employer to provide evidence of an insurance policy under section 93;
- Section 98 power to obtain information relating to the operation of the Seafarers Safety Net Fund; and
- Section 106 power to require employers to provide information to the Authority.
In 2004-05, the SMG has exercised its delegated powers in relation to applications for exemption, extensions to the period to determine employer?s liability, provision of information on insurance and provision of information to the Authority.
Exemptions under section 20A of the Seafarers Act
An employer may, by applying to the Authority using the approved form, seek an exemption under section 20A from the application of the Seafarers Act with respect to a particular employee, group of employees, or employees on a particular ship. The Authority has in place guidelines identifying procedural requirements as well as circumstances under which it will consider granting an exemption.
Any request for an exemption must be accompanied by evidence identifying that the employees will be covered by an alternative and valid workers? compensation policy (usually under State or Territory workers? compensation legislation) for the duration of the period for which the request for exemption is made.
If a voyage undertaken falls within the jurisdiction of the Seafarers Act and the employer does not have an insurance policy under the Seafarers Act, or an exemption from the application of the Act granted by the Seacare Authority, the employer may risk loss of workers? compensation indemnification for employees on that voyage both under state or territory legislation as well as the Seafarers Act. The employer also runs the risk of prosecution action for failure to have a policy of insurance in accordance with the Seafarers Act.
During 2004-05 the Authority received applications for exemption for employment on 19 vessels.
Exemptions in relation to 18 vessels were granted as set out in Table 3 below. Applications for exemptions were considered and granted in accordance with the Seacare Authority exemption guidelines.
Table 3: Section 20A exemptions granted by the Seacare Authority in 2004-05
| Employer |
Ship |
Date exemption granted |
Dates of exemption |
| Natannavak Ltd |
Eldfisk |
16 July 2004 |
16/7/2004 - 20/8/2004 |
| MG Kailis Pty Ltd |
Roper K; Montoro K; Parmelia K; Territory Commander K; Pacific Lady K; Grete K; Brute Force K; Island Leader K; Maria Louise K |
12 August 2004 |
12/8/2004 - 11/8/2005 |
| Adsteam Harbour Pty Ltd |
Tug Beltana |
21 January 2005 |
7/1/2005 - 10/1/2005 |
| Coral Princess Cruises (NQ) Pty Ltd |
Oceanic Princess |
29 March 2005 |
8/5/2005 - 4/10/2005 |
| Coral Princess Cruises (NQ) Pty Ltd |
Coral Princess |
29 March 2005 |
3/4/2005 - 12/7/2005 |
| Adsteam Harbour Pty Ltd |
Wooree |
2 May 2005 |
4/5/2005 - 8/5/2005 |
| Austral Fisheries Pty Ltd |
Austral Leader |
20 May 2005 |
25/5/2005 ? 16/6/2005 |
| International Maritime Services Pty Ltd |
Moonlight Express |
30 May 2005 |
6/6/2005 - 4/7/2005 |
| Carpentaria Management Services |
Aburri |
31 May 2005 |
1/6/2005 ? 31/5/2006 |
| International Maritime Services Pty Ltd |
Minjerribah |
9 June 2005 |
27/6/2005 ? 27/7/2005 |
Source: Seacare Authority
Extension of time for consideration of compensation claims
Employers may request an extension of time to consider or reconsider a claim for compensation on application to the Authority. During 2004-05 the Authority received five requests for an extension of time under sections 72, 73, 73A or 79 of the Seafarers Act. Three requests for extensions were granted.
Reviewable decisions under the Seafarers Act
The Seafarers Act entitles an aggrieved person or organisation to seek a review of an Authority decision by the Administrative Appeals Tribunal (AAT) in a number of circumstances. For example, an employer may seek an AAT review of a decision by the Authority where it has refused to grant an extension of time to determine a compensation claim. Decisions made by employers or insurers are also reviewable. For example, an employee has a right to seek a reconsideration of a decision by the employer or insurer. Following a negative outcome of a request for a reconsideration, the employee may request an AAT review of the reconsidered decision. Applicants to the AAT may also appeal a decision of the AAT to the Federal Court on a point of law.
The Seacare Authority reviews the AAT and Federal Court decisions to determine if there are any significant court judgments with implications for Seacare scheme legislation. Significant matters are summarised in Chapter 5.
Insurance arrangements
Under section 93 of the Seafarers Act, an employer must have a policy of insurance from an authorised insurer1 or be a member of a protection and indemnity association (P&I Club) that is approved in writing by the Authority and is a member of the
International Group of Protection and Indemnity Associations. This section of the Seafarers Act aims to ensure each employer is insured or indemnified for the full amount of the employer?s liability for all employees employed by the employer under the Seafarers Act.
Under sections 94 and 95 of the Seafarers Act, an employer is required to provide the Authority with information relating to their insurance coverage within 14 days of being issued with or renewing a policy of insurance or indemnity. During 2004-05, the Authority has worked to ensure employers comply with section 94 of the Seafarers Act and since January 2005, employers have been able to report their compliance through the Authority?s on-line reporting system, Seacare Online.
Based on the information provided by employers to the Seacare Authority on insurance arrangements, there are three insurers providing workers? compensation policies under the Seafarers Act. While the Authority is able to approve arrangements for workers? compensation insurance cover through P&I Clubs, ship owners report that the P&I Clubs are unwilling to provide cover due to the long tail nature of incapacity benefits and strict limitations on settlement claims through cash redemptions under the Seafarers Act. Consequently, no employers have arranged cover through P&I Clubs.
Seacare scheme workers? compensation data collection
The Australian Maritime Industry Compensation Agency Ltd (AMICA), the trustee to the Australian Maritime Industry Compensation Foundation (AMICF), is responsible for the collection, storage and reporting of workers? compensation data for the Seacare scheme. A copy of each workers? compensation claim lodged with an employer by an employee (using a form approved by the Authority) is required to be forwarded to AMICA for data recording.
1 Section 3 of the Seafarers Act defines ?authorised insurer? to mean a general insurer or Lloyd?s underwriter under the Insurance Act 1973 or an insurer that carries on State insurance (whether or not the State insurance extends beyond the limits of the State concerned).
As part of the claims data gathering process, AMICA also seeks updated claims history information from employers through a six monthly Claim Update Report. Statistics maintained in the database are provided to the Seacare Authority, NOHSC (for the national Comparative Performance Monitoring report and for the national OHS statistics collection) and to Campbell Research and Consulting Pty Ltd (for the Return to Work Monitor) for scheme and national OHS reporting purposes.
The board of directors of AMICA Ltd at 30 June 2005 was:
- Mr David Sterrett (Chairman of Directors);
- Mr Peter Bremner (Director), General Manager Shipping, CSR Ltd;
- Mr Dermot Loughnane (Director), Managing Director, Teekay Shipping (Australia) Pty Ltd;
- Mr Peter Beekman (Director), General Manager, Stolt (NYK) Australia Pty Ltd;
- Mr Robert Bird (Director), Chief Operating Officer, ASP Ship Management Pty Ltd; and
- Mr Simon Billing (Director), Chief Operations Officer - West Australian Branch, Australian Mines and Metals Association Inc.
There were 16 member companies of AMICF at 30 June 2005.
Scheme Performance Reporting
The Authority worked closely with employers, AMICA, AMSA and scheme insurers to produce and disseminate a range of performance reports on the Seacare scheme during 2004-05.
During the year, a secure online reporting facility, Seacare Online, was established on the Seacare website to enable employers to report details of their operations under both the Seafarers and OHS(MI) Acts, insurance arrangements, ships details and employee details including employee numbers, hours worked, employee occupations and age range. This system enables the Authority to analyse scheme statistics and consider a range of performance reports at its meetings. The key reports are subsequently disseminated to industry stakeholders by a variety of means.
The standing reports considered by the Authority include statistics on: (i) employee numbers and hours worked; (ii) compensation claims data reported to AMICA, including a breakdown of the status of claims; (iii) OHS incidents reported to AMSA, and qualitative information on both reactive and proactive investigations; (iv) ships covered by Seacare scheme legislation; (v) employer insurance details; (vi) applications for extensions of time and reconsiderations (relating to compensation claims made under the Seafarers Act); (vii) applications for exemption from the Seafarers Act; (viii) AAT and Court cases; (ix) incidence of injuries (claims per 1 000 employees); (x) injury frequency rate (claims per 1 million hours worked); and (xi) return to work and rehabilitation outcomes.
The Authority engaged the actuarial firm Taylor Fry Pty Ltd to obtain a range of employer insurance data from insurers and AMICA for aggregation and reporting. Taylor Fry collect data on Seacare scheme workers? compensation insurance premiums and related data such as scheme legal costs and long tail claims. The Taylor Fry report for the year 2003-04, provided in June 2005, gives comprehensive and reliable data relating to premium costs in the industry, which are analysed in Chapter 4 of this report.
The Authority also participated in the 7th national CPM report, due for publication in the new financial year, and participated in the RTW Monitor 2004-05.
Communications
In November 2004, the Seacare Authority held its Sea Safe-Work Awards. This was the second occasion that the Awards were presented. The Awards were introduced in 2003 to recognise and reward the best positive initiatives being taken by employers, shipping operators, seafarers, health and safety committees, health and safety representative trainers, rehabilitation providers and others ? all aimed at providing safe workplaces for seafarers and eliminating injury.
|
|
|
Captain Neil Butt & Mr Peter Barrow, Farstad Shipping (Indian Pacific) receiving the award for Best Solution to a Major OHS Risk 2004. |
|
Ms Melanie Parker, MP Safety Management accepting the award for Best Rehabilitation and Return to Work Program 2004. |
Nominations for the 2004 Awards were invited from across the maritime
industry between April and August. Following consideration of the nominations
by a judging panel representing employers, employees and government,
awards in three categories were made in 2004. These were:
- OHS Leadership Award ? in recognition of an employer or operator who demonstrates outstanding leadership through commitment and achievement in minimising workplace injuries and disease;
- Best Solution to a Major OHS Risk ? for innovation and effectiveness in developing a solution to a major OHS risk or hazard; and
- Best Rehabilitation and Return to Work Program ? recognising the parties involved in an outstanding rehabilitation and return to work program.
The winners of the 2004 Awards were:
OHS Leadership Award:
ASP Ship Management
Highly Commended ? Mermaid Marine
Australia
Best Solution to a Major OHS Risk:
Farstad Shipping (Indian Pacific)
Highly Commended ? CSR Shipping
Highly Commended ? Mermaid Marine Australia
Best Rehabilitation and Return to Work Program:
MP Safety Management Pty Ltd,
CSR Shipping Ltd & Mr Brian Neilson
The Authority continues to place a high priority on its communications with the industry. The Authority?s regular cycle of quarterly meetings was again held in Melbourne, Sydney, Canberra and Fremantle. The Sydney meeting was scheduled to coincide with the Authority?s OHS Conference and Sea Safe-Work Awards and an industry briefing was held prior to the Fremantle meeting to enable as many industry participants as possible to directly communicate with the Authority and to exchange views on key policy and operational issues.
The Seacare Authority maintains its own website at www.seacare.gov.au. The primary purpose of this site is to provide access to information about the Seacare Authority, the Seacare scheme, the Seacare Authority?s activities and publications/forms, as well as news on current events impacting on the operation of the Seacare scheme. The Seacare Authority?s secure, online reporting facility, Seacare Online, is also available to employers via the Seacare website.
The Seacare Authority?s website contains information about the scheme including:
- the Seacare Authority, its mission, membership, contact details, functions, strategic objectives and service charter;
- relevant legislation and scheme coverage;
- latest news, notices and events;
- Seacare forms, including secure employer access to on-line reporting forms;
- workers? compensation;
- rehabilitation and return to work;
- occupational health and safety;
- Seacare Authority publications including the Annual Report; and
- links to related sites and a search function.
Seacare Authority forms
The Authority currently has nine approved forms under the Seafarers Act and two approved forms under the OHS(MI) Act. During the year, the Authority approved and distributed a new workers? compensation claim form along with an employer?s determination form to be used from 1 April 2005. Seacare Authority forms and their issue date are listed in Appendix 2. Copies of all forms are available on the Seacare Authority website.
2.5.2 Implementation of Seacare Authority decisions arising from performance of its statutory functions
Occupational Health and Safety
The Authority?s Strategic Plan places a strong emphasis and importance on the Authority?s OHS functions and improvements in injury prevention performance. During the year, the Authority, industry and employee representatives have worked together to identify the key drivers of OHS performance, to propose remedies and to refine strategies to improve performance. One such example of this process was a close analysis of injury data by working parties at the Seacare OHS conference held in November 2004 and continued by the Authority at its planning meeting in February 2005. Following this meeting, the Authority agreed to supplement its ?leaders program? within its OHS strategy by highlighting good performance within the industry, particularly from employers who demonstrate strong safety leadership and commitment, so that assistance and guidance can be provided by the Authority and industry peers where poor performance is identified. The Authority also sought the greater involvement of employees in OHS and asked employers to promote activities such as Sea Safe-Work Day, held each year on 28 April.
Work has continued on adoption of applicable national OHS standards. The Authority, assisted by its OHS Standards Taskforce, proposed to the Minister manual handling regulations and a code of practice and has commenced developing a proposed regulation for the next priority area of regulation of confined spaces.
During the year, the Authority sought to improve the quality and delivery of Health and Safety Representative (HSR) training by requiring HSR trainers to be Registered Training Organisations (RTO) and for the content of courses to be checked by an Authority sub-committee.
During the year discussions were held with NOPSA to enable both regulators to develop a better understanding of their respective roles and responsibilities. A Memorandum of Understanding was settled to enable cooperation and consultation, as required, on OHS matters regarding the offshore petroleum and maritime industries that may affect the respective roles and responsibilities of the Authority and NOPSA.
The Australian Maritime Safety Authority (AMSA) performs the occupational health and safety Inspectorate function as provided in Section 82 of the OHS(MI) Act. The functions of the Inspectorate are:
- to ensure, in accordance with the Act and regulations, that the obligations imposed by or under the OHS(MI) Act or the regulations are complied with;
- to advise operators, employees or contractors, on occupational health and safety matters; and
- to provide the Authority with information.
AMSA marine surveyors, who are trained in OHS, are appointed as inspectors under the OHS(MI) Act and as required, perform a range of functions under the Act, including: investigations of accidents and dangerous occurrences; issuing prohibition notices; issuing improvement notices; and advising employers of their duty of care, as well as on approaches to safety prevention.
AMSA advised the Authority that six improvement notices and nine prohibition notices were issued by AMSA during the year. Two vessels also sought AMSA's involvement in concerns raised by provisional improvement notices that were issued by the vessel?s Health and Safety Representatives. Following on from OHS initiatives in previous years, that included campaigns which focussed on signage, machinery guarding, manual handling and slip, trip and fall hazards, in 2004-05, AMSA concentrated on inspections that targeted specific ships where concerns existed that OHS performance was not adequate. AMSA advised the Authority that it also initiated in 2004-05 a program of OHS inspections with the objective of inspecting all ships covered by Part II of the Navigation Act on an annual basis. Guidance was provided to the AMSA inspectors to assist in these inspections, which resulted in a number of vessels requiring follow up inspections to ensure that any safety issues that were highlighted had been addressed.
Rehabilitation and return to work (RTW)
Rehabilitation and RTW performance reported in Chapter 4 of this report suggests that performance is yet to reach satisfactory levels. RTW outcomes in the industry are constrained by the limited availability of temporary suitable alternative duties for seafarers, as reduced hours and modified duties are often not available on board a ship at sea. Before returning to sea, seafarers must also satisfy the strict ?fit-for-sea duty? requirements of the industry. In addition, where injured seafarers are returned to their home ports following an injury, the availability of suitable duties in some locations, as well as access to skilled rehabilitation providers, is limited.
The Seacare Authority continued to participate in the RTW Monitor during 2004-05. The RTW Monitor is an Australian and New Zealand survey of the return to work experience of injured workers, including seafarers. All workers? compensation schemes in Australia (and including New Zealand), with the exception of Western Australia and the Northern Territory, participate in the survey. The RTW Monitor is managed by a private consultancy firm, Campbell Research and Consulting Pty Ltd. The Seacare Authority commenced participation in 1999-2000.
The RTW Monitor surveys all seafarers who lodged a compensation claim in the seven to nine months prior to each survey period ? for the Seacare scheme there are four surveys each year, in August, November, February and May. Each survey involves approximately 10 to 20 seafarers.
In addition to interviewing injured seafarers, the RTW Monitor analysed compensation payment data provided by AMICA relating to the interviewed seafarers, to ascertain compensation costs per claim. The RTW Monitor results contribute the data for four of the six Seacare Authority rehabilitation and RTW benchmarks.
Workers? compensation
In 2004-05, the Authority?s main focus in relation to workers? compensation was to monitor workers? compensation insurance premiums and develop better workers? compensation data collection arrangements for scheme performance reporting.
In November 2004, the Seacare Authority engaged Taylor Fry Pty Ltd, actuarial consultants, to collect comprehensive Seacare scheme insurance premium data from Seacare scheme insurers for 2003-04 (the late extraction date for premiums data enables claims and insurance data to mature before collection). Taylor Fry also obtained comprehensive data on the insurance policy excesses negotiated by Seacare scheme employers in seafarer workers? compensation insurance policies, and on the extent of identified burning cost policies (policies where the premium is adjusted over a specified premium contract period according to claim performance).
In the Seacare scheme, premiums contribute primarily to payment of weekly compensation, medical and other rehabilitation costs, when the claim exceeds the insurance policy excess. Premium income does not contribute towards the cost of scheme services, unlike the arrangements in some of the centrally managed schemes in Australia, where for example the premium or scheme income contributes towards:
- provision of occupational health and safety services ? in the Seacare scheme OHS services are provided by AMSA, which performs the OHS Inspectorate function under the OHS(MI) Act. AMSA incorporates the costs of this function into its ship safety regulatory functions funded through revenue raised from ship owners by the application of the Marine Navigation (Regulatory Functions) Levy Act 1991;
- provision of other scheme regulatory services including the operation of the Authority which is directly funded by Government; and
- dispute resolution costs ? to the extent that dispute resolution rests with the AAT in the Seacare scheme, this cost, leaving aside legal representation, is met by the Australian Government which supports the AAT through a budget appropriation.
However, the Seafarers Act workers? compensation insurance premium also
covers some employers, at their request, for liabilities which may arise
from the application of sections 128, 132 and 132A of the Navigation
Act 1912. Those sections impose obligations on employers to meet
expenses of seafarers where the seafarer is left on shore sick or injured.
Claims Management
The Authority continued to provide advice to employers and seafarers on obligations and rights under the legislation and on good claims management practice.
Accreditation of health and safety representatives (HSR) training courses
The Authority?s objective for HSR training is to ensure that accreditation of HSR training courses promotes competency standards equivalent to the highest national standards, and that HSRs are equipped to competently perform their functions as set out in the OHS(MI) Act.
In 2004-05, the Authority sought to improve the standard of course delivery by introducing a requirement that training providers be registered training organisations (RTOs) and that they submit their course content to the Authority as part of the accreditation process. The Authority established a course accreditation sub-committee for this purpose, supported by a training and accreditation advisor. During the year, the Authority revoked the accreditation of two training providers and extended the accreditation of one, Australian Maritime Safety Consultants Pty Ltd, pending its application for reaccreditation under the new requirements.
Table 4 below summarises the aggregate outcome of training delivered over the period 2002-03 to 2004-05.
Table 4: Outcomes from accredited training course delivery ? 2002-03 to 2004-05
|
|
Courses delivered |
Seafarer |
Seafarer completions |
Completion rate % |
||||||||
| 2002-03 |
2003-04 |
2004-05 |
2002-03 |
2003-04 |
2004-05 |
2002-03 |
2003-04 |
2004-05 |
2002-03 |
2003-04 |
2004-05 |
|
| Face to face courses |
13 |
8 |
11 |
167 |
89 |
127 |
165 |
89 |
127 |
98.8% |
100% |
100% |
| Distance course |
22 |
0 |
0 |
22 |
0 |
0 |
8 |
0 |
0 |
36.3% |
- |
- |
| Total |
35 |
8 |
11 |
189 |
89 |
127 |
173 |
89 |
127 |
92.5% |
100% |
100% |
Source: Providers of Seacare scheme accredited HSR training courses, and Seacare Authority
2.6 Relationships with national OHS and workers? compensation bodies
Heads of Workers? Compensation Authorities (HWCA)
During 2004-05, the Authority was represented at meetings of HWCA, a forum for the heads of Australia?s workers? compensation schemes to exchange information and develop initiatives in relation to scheme design and scheme administration. The Seacare scheme continues to be included in the HWCA Comparison of Workers? Compensation Arrangements in Australia and New Zealand. The HWCA Comparisons document is available at www.hwca.org.au.
Heads of Workplace Safety Authorities (HWSA)
During 2004-05, the Authority was represented at meetings of HWSA, a forum for the heads of Australia?s OHS authorities to exchange information and develop initiatives in relation to occupational health and safety. One of the key issues considered by HWSA with significance to the Seacare scheme was a memorandum of understanding (MOU) between jurisdictions to facilitate investigations involving cross border or cross-jurisdictional issues. Both Seacare and the Inspectorate, AMSA, are signatories to this MOU.
Workplace Relations? Ministers Council (WRMC)
During 2004-05, the Authority continued to take account of WRMC decisions which impact on the Seacare scheme. The key WRMC decisions impacting on the Authority concerned national OHS standards and implementation of the National OHS Strategy.
The Authority continues to be guided by policy commitments made by the Commonwealth Minister at WRMC.
National Occupational Health and Safety Commission (NOHSC)
The Seacare Authority is not a member of the NOHSC nor does it have formal observer status at NOHSC or on NOHSC committees. Nevertheless, Seacare works through the Comcare representatives who attend NOHSC and its committees to ensure maritime industry OHS issues are considered in NOHSC fora. Seacare is strongly committed to coordinated efforts to improve OHS in Australia.
Key areas of NOHSC activity where Seacare has a close involvement include:
- implementation of the National OHS Strategy ? where the Seacare Authority is required to report progress against the national targets and on its support for the National Action Plans endorsed by WRMC;
- the development of OHS standards and codes of practice which guide Seacare Authority adoption of standards and codes applicable to the maritime industry;
- NOHSC coordination of data for the national CPM report, where the Authority provides an annual data set on the Seacare scheme, as well as participation in a CPM companion report on OHS arrangements across Australian OHS jurisdictions; and
- NOHSC coordination of national data standards for OHS and workers? compensation, which influence Seacare scheme data collection and reporting.
2.7 Outlook for 2005-06
Key priorities for the Seacare Authority in 2005-06 will be:
- providing advice on and responding to the outcomes of the review of the Seacare scheme;
- implementing the Seacare Authority OHS Strategy in support of the National OHS Strategy;
- encouraging improved OHS and injury management performance and practice via the Sea Safe-Work Awards and Seacare OHSConference;
- progressively adopting declared OHS standards and codes of practice to the extent that they are applicable to the maritime industry;
- examining key scheme cost drivers to determine opportunities for reducing cost pressures in the scheme; and
- efficiently managing the Seafarers Safety Net Fund and working with the maritime industry to identify options for the long-term management of the Fund.
