1948

WESTERN AUSTRALIA

REPORTOF THE

AND

NOT f3E I~GM0)/II

ROYAL COMMISSIONON

Workers' Compensation

Presented to both Houeee of Parliament by His E:rcellency's Command.

[SEOOND SESSION OF THE NINETEENTH PARLIAMENT.]

PElt'l'H:BY AUTHORITY: WILLIAM H. WYATT, OOYER:\'MEN'r PRINTER,

In4S.

No. 12.ApPROXIMATE COS1' OF PAPER:

Printing (640 Copl€'s) £65

J6337j4j.fB---,64.0.

Royal Commission on Workers' Compensation,

REPORT OF THE COMMISSIONERS,

To Sir James JIitchell, Kniqht Gmild 01'088 of the .Ll]os! Disf1'nguislwj Orela of Snlnt JIichad and SaintCeorqe, Lieutennnt-Couemor In and m'er the State of Westenr Australia and ite De pendencies In the Common­

wealth of Australia.

MAY IT PLEASE YOUR EXCELLENCY-

In pursuance of bhe Oommiseion issued by Yom' Excellency on the 231'<1 dnv of .Fuly, 1947, appointingus to inquire into and report upon the following, namely j-c-

1. Whether there can he initiated in 'Yestern Australia a social service which, with or withoutmodifications, additions and safeguards, may embrace the following features:

(a) Compensation to all employees throughout, the State during any period of incapacityfor work, whatever the cause or circumstances of the incapacity, and notwithstandingan absence of insurance coyer.

(h) An absence of an~' proposal forms, policies or documents of insurance, agents' commis­sions and expenses, and generally a substantial saving in overhead costs as comparedwith the total overhead C08ts now being incurred by insurance companies (and beingpassed on to industry in the form of premiums) in connection with workers' C0111_'

pensat.ion insurance.

(c) The cost of the new social service to be horne by employers throughout. the State, butsuch cost not to exceed the present. cost to industry of premiums paid under workers'compensation legislation; nor the compensation to be less than that provided forunder the said legislation; and the cost to be collected by a system of special stampsaffixed to wages sheets, or by some other system, in lieu of the present system of pay,ment of premiums.

(ell An assessment of risk in specified types of industry and a schedule of charges to em­ployers varying with the type of risk and having relation to premium rates now beingcharged to employers in different types of industry.

(e) Legislation giving effect, to the foregoing.

\Vhat. modifications, additions and safeguards would he necessary or expedient in view of Corn­monwealth social service legislation, or in order to place th"e social service on a sound basis.

.~ The estimated annual cost for administa-ation of the service and in meeting the claims of in­capacitated employees, t.he esbimate to be for each of the first, five years after the initiationof the service.

L A suggested schedule of charges to specified different. t.ypes of industry, and the estimated re­ceipts therefrom, which should he sufficient. to cover all estimated outgoings under the socialservice.

Ii, The form of statutory body (e.g., trustees) which should be charged with the administrationof the social service, and the powers and duties of such statutory body.

0. Whether, and in what circumstances, employees should make contribution (in respect of in­capacity not arising out. of or in the COLU'se of their employment) to the statutory fund estab­lished by the service, the rate of such contribution (if any) and t.imes and method of payments,and whether such contributions (if any) should be voluntnrv or compulsory.

7. The effect. of nny such service upon the business of insurance companies conducting worker-s'compensation insurance within the State, and whether such companies or any other bodiesshould or may properly underwrite the whole 01' any part of liabilities under the service.

8. Whether there is any similar social service or other scheme already in existence in any otherpart of the world, and, if so, the salient features and operation thereof; but it is not desiredthat. yon should leave the State for the pnrpose of any enquiry in relation to this Commission.

9. If the State should guarantee the fulfilment of all liability under the social service, what con­tingent liability (if any) would the State reasonably face, and how best could such contingentliability be provided for.

10. Any other aspect in relation to the said social service which yon should consider it. desirable toexamine and report upon.

4

We have the honour and privilege to submit this our report :-

GENERAL CO~mIENTS.

In all, the Commission met onIu occasions. Of these 22 were private meet ings and inspections and 27public :,;ittill~s at Perth and Kalgoorlie when 60 witnesses were examined 011 oath and the evidence takencomprises I. 121 putres, and fn addition. the Chair-man, wit.h the n.pprovnl of the GOYOl'lll110nt, visited thoEaatcrn Ktlite:·; for tho purpose of obtaining first-hand iuformntion regarding ndministrat.ion and controlof the other Australian 'Vol'ke~'S' Compensation Acts.

As an appendix to this Report will he found a list of witnesses, their official designation, and thereference pages to their evidence.

Information from Great Britain, tho United States of America, Canada, New Zealand and the EasternStates of Aus.trulia ,HlS obtained to ascertain the latest trends in social and indust.rinl Iegislatiou relating tot.lrc compensnt.ion of employees for incapucitv for work.

Publications covering the operations of the current British SOCi'lI Service Legislation have beenexamined. It is understood that that section of the scheme dealing with compensation for IndustrialAccidents will COIne into operation this year. Tho Act provides for joint contributions by employers and theirworkers. The cost. of the benefits is estimated at £28.500,000, with n further £3,500,000 for administ.r-nt.ion.

It seems that, no single scheme exists in any count.ry whereby workers are compensated on the samebasis for both industrial and non-industrial accidents and sickness. The latter is provided for in vnriouaways by voluntary contributory or governmental pension systems. Evidence has shown t,hut. employees in'Vestern Aust.t'alia am somewhat similarly provided for by Commonwealt.h Social Services and volunt.arvFriendly Societies, Hospital Benefit. and other schemes. The introduction of n social service embracingcompensation for iucapecit.v for accident or Sickness whether work-caused or otherwise, would clash seriouslywith Commonwealth Government legislation and place increased costs on local industry for tho provisionof benefits to '-,t section only of the population. '''itnesses indicntecl that such fl, scheme. pm-ticularlv if itinv olvcd direct financial contributions by omployeea, is not, desired 01' considered necessary. They havest.ressed the need, however, for early attention to the raising of t-he benefits under the 'Yorkers' Compensat.ionAct., better administrative control and the introduction of safeguards for the prevention of accidents and therehabilitation of incnpecit.nted workers.

Satisfactory evidence as to the incidence of non-industrial sick leavc relating to all workers was notnvnilnhle to the Commission. Data as to average days sickness pOl' annum per employee was, however,submitted in regard to the following groups of workers :-

Offlcors under Public Service Act.

Salaried Officer."! of tho "T .A. Government Railways

Met.ropolitan 'Y<~t8l' Supply Wages Employees

State Shipping Ser-vice Employees

Fire Brigade Staff

"Friendly Society 1\Iembel's-'V.A.

6·5

7·6

4·8

4·6

5·6

11·5

'" Australia.

Hospital Benefit Fund Members

Clerical employees, Westralian Fanners Co-op

10·5

I I . 0 (per claim;

4·0

"Figures include compensation cases.

From these returns the a verage sick leave was approximately 7· 3 days per annum.

The Hon. Federal Minister for Health and Social Services, when introducing the Unemployment andSickness Benefits Bill in the Federal Parhnmcnb in 1944, stated that a Report submitted by an AdvisoryCommittee indicated that the average time lost, per person by sickness was equivalent to 4 per cent. (about12 working days per annum).

Tn tire ven.r ended Sut.h June, HJ46, the total amount paid in '''esterll Australia for claims under the'Yorkers' Compensut.ion Act. (excluding miners' diseases and workers covered by 17 self-insurers) was £332,974(medical and hospital expenses ale included in this figure). 'Vorkers within the scope of t.110 Act, i.e., in receipt,of earnings not exceeding £500 per annum, totalled 143,000, so that the average claim cost pel' worker (notper claimant) was £2· 33, Assuming the a vernge compensation rate to be £3 lOs. OcI. per week, the averagetime lost pel' worker (not pel' claimant) was about 3 days in that year, It should be noted that no age limitis provided in the 'VOllwIS' Compensation Act. Evidence indicated that male workers are employed atages considerably in excess of 65 years.

·,

From the foregoing and t.nc evidence available. it would appear that tho t.ime lost pOl' worker owing tonon-induat.rial accidents and sickness substant.ially exceeds that. lost on account of accidents occru-ring

at work.

Your- Commission perused the evidence submitted to, and the recommendations made by the Pur-lin­

menturv Select Committee of the Legislative Assembly to which the State Government Insurance Bill was

referred in H137, and recalled those witnesses who tendered evidence on Social Service. Their views have

been considerably amended, following tho introduction by the Commonwealth Government of the Social

Services Consolidated Act. This legislation, which is subject to a means test, affords a measure of financial

securit-y to cit.izcns, including wage earners, during periods of incapacity not. at.t.ributablc to their employ­

mont. Witnesses generally deemed it unnecessary to super-impose a State non-industrial sickness and accident,

insurance scheme on the Commonwealth Scheme.

Friendly Societies, Hospital and Medical Benefit Schemes, and other forms of voluntary Bonofit or

Provident Funds to which employees can and do contribute i.n large numbers, provide benefits additional

to those available under the Social Sorvioes Consolidated Act.

The following table, as compiled from figures submitted by the Government Statistician is published

for general information. The figures under State Insurance Office embrace claims under Silicosis and the

Companies figures embrace both Tariff and Non-Tariff Companies, but do not include Self-Insurers.

E~IPLOYERS' LIABILITY Ab,TD WORKERS' CO~IPENSATION.

591)

2

a lu·e.

889942o-l6o

4164]

822497777

...

Expenditure.Percentage of Expenditure to

Year Premium Income.

ended PremiumCommls- Commie-30th Income. Other Total Other Tot,

•JUllC. Claims. sian andEx- Expen- Claims. sion and

Ex- EXJlcAgent's Agent'sCharges. penses. djburo.

Charges. penses. ditur

£ £ £ £ £ % 0' % %,0

State Office ... 19:)2 102,777 65,654 ... 2,706 68,360 63·9 .. . 2·6 66"Companies ... ... 128,621 77,600 16,372 38,480 132,452 60·3 12·7 29·9 102,State Office ... 1933 109,944 79,fl45 ... 2,666 82,611 72·7 ... 2·4 75·Companies ... ... 139,224 100,383 14,741 40,595 155,719 72·1 10·6 29·2 111·1State Office ... 1934 129,347 111,595 ... 2,ol49 H4,044 86·:) ... 1·9 88·Companies .. , .. , 142,635 116,503 13,631 30,491 109,625 81·7 9·6 27·7 11!HState Office ... 1935 178,662 148,158 ... 3,023 151,181 82·9 ... 1· 7 84·{Companies ... ... 149,251· 136,564 14,196 42,978 193,738 91 '.5 9'5 28'8 129·State Office ... 1936 245,948 173.022 ... 3,799 176,821 70·3 ... 1·5 71·Companies ... ... 156,251 ]33,854 14,225 '10,834 188,913 85·7 9'1 213·1 120·State Office ... 1937 270,690 206,987 ... 4,091 211,078 76·5 ... 1'5 77·Companies ... ... ]83,081 150,450 14-,561 44,489 209,500 82·2 7·9 24·3 1I4·State Office ... 1938 251,622 205,051 ... 4,258 200,309 81·5 ... 1·7 8:]· .Companies ... ... 21:3,825 174,518 15,987 49,132 239,037 81·6 7·5 2~'U ! ns-State Office ... 1930 292,484 207,494. ... 4,444 211,938 70·0 ... 1· ;) 7~'

Companies ... ... 232,909 181,362 16,827 50,105 248,2\)4 77·9 7·2 21·5 1Of)·State Office ... 1940 335,850 1\)4,20-1 ... 14,026 208,230 57·8 ... 4·2 62·Companies ... ... 242,188 167,96fl 17,858 51,862 237,089 60·3 7·4 21·4 08·1State Office ... 1941 323,596 167,191 '" 28,653 195,844 51·6 ... 8·8 130·Companies ... ... 235,311 133,222 17,179 54,401 20-1,892 56·6 7·3 23·2 87·State Office ... 1942 304,143 166,370 ... 27,059 H13,420 54·7 ... 8·9 63·Companies ... ... 242,276 137,266 17,717 52,07<1 210,349 66·6 7·3 21·5 85·State Office ... 1943 181,404. 142,140 ... 20,178 162,318 78·4 ... 8·9 87·:Companies ... ... 240,839 134,265 18,574 71,336 224,175 54·4 7·5 28'!l UO·State Offlce ... 19M 162,804 122,791 ... 11,002 133,7fl3 75·4 ... 6,8 S~·'

Companies ". ... 268,254 127,777 21,352 7B,n25 220,0.54. 47·6 7·9 28·7 84·-State Office ... 1945 188,185 146,856 ... Il,85\) 158,715 78·1 ... 6'0 ! B-1·Companies ... ... 280,582 125,051 21,308 78,122 224.481 44'0 7·6 27·8 79·State Office ... ]946 243,217 185,463 ... 10,824 196,287 76·3 ... 4·4 80·Companies ... ... 298,753 152,580 20,357 77,198 250,135 51-1 6·3 2:)'8 83·State Office ... 1047 272,215 277,421 ... 18,005 290,426 101 ·9 ... 4·8 106·Companies ... ... 352,·172 179,075 24,358 98,725 302,158 50·8 6·9 28·0 83·

.

The following table, also compiled from figures submitted by the Government Statistician, is published

to show n comparison of tho figures when premiums and claims for Silicosis in the Mining Industry areexcluded :-

It will be noted that no taxation was paid by tho State Government Insurance Office in the years

ended 30th .Iune, 1946 and 1047. Althongh the statement indicates a taxable surplus so far as 'Yorh(r~'

Compensation Insurance (Accident Section only} is concerned, the figures covering the whole of the operations

of tho Office, i.e., including Silicosis in tho Mining Industry and Motor Vehicle Insurance were such thatno taxable surplus resulted.

E"IPLOYERS' LIABILITY AND \yOHKERS' COMPENSATION.

(Excluding Govornmcut Workers, Self-Insurers, and Silicosis in the Mining Industry.)

Expenditure. Percentage of Expenditure to PremiumIncome.

YearEnded Name. Premium Commie- "Manage- Total Connula- Manage- Total30th Income. sian and ment Taxa- Ex- sion and ment Taxa- Ex-June. Claims. Agent's Ex- tion. peudi- Claims. Agent's Ex- t.ion. pendi-

Charges. penses. ture. Charges. penses. turc.

- I .-

f £ £ £ £ f % % 0' % 0//0 ,0

1941 State Office Um,672 124,795 '" 0,127 13,715 140,637 H4·4 ... 4·7 3'5 72'6Companies 235,311 133,222 17,179 49,696 4,895 204,892 5{)·6 7·;l 21·1 2·1 87·1

1942 State Offico 184,680 123,347 '" 10,740 6,072 140,159 66·g ... e-s 3·3 75·9Companies 242,276 137,266 17,717 46,093 9,27:3 210,349 56·6 7·3 19·1 3·8 86·8

1043 State Office 121,020 9>,050 '" 9,438 5,847 109,335 77·7 ... 7·8 4·g 90·3Companies 2413,839 134,2H5 18,1)74 5:3,912 17,424 224,175 54·4 7-5 21·8 7·1 90·8

Hl-!4 State Office 112,506 70,706 '" 7,419 1,498 79,H2:I 62·8 ... 6·6 1·3 70·7Companies 268,254 127,777 21,:I52 53,~45 23,580 226,OS4 47·6 7,n 19·9 g'8 84,2

1945 State Office 130,9Hl 78,526 '" 7,143 1,551 87,219 60·0 ... 5·5 1·2 66·{jCompanies 280,582 125,051 21,308 ;",5,202 22,020 224,4.81 44'5 7·6 19·0 8·2 79·9

1946 State Office 1613,005 101,074 ... 7,469 ... 108,543 60·9 ... 4,5 ... , 65·40Companies 298,753 152,580 20,357 m,938 19,260 250,135

1

51·1 6·8 19·4 6,4 83·71947 State Office 183,959 129,580 '" 8,052 ... 137,632 70·4 ... 40'4 ... 74·8

Companies 352,472 179,075 24,:358 74,489 24,245 302,158 50·8 6·9 21·1 6·9 85·7

-- ._"-" _._~--

In 'Vestern Australia the number of companies who are carrying 011 'Yorkers' Compensat.ion i-ieke areas follows ;-_.

Tariff Companies 58Non-Tariff Companies 5State Office ISelf- Insurers 17

Total 81

'Vith these introductory comments, yom' Commission now proceeds under- six Parts to :-..­

Part I~Answer the various references made to it ;

Part 2-0uUine a suitable controlling Board and its functions ;

Part 3--,Suggest necessary amendments to Sections of the Act to close up existing anomalies;

Part 4--Suggest amendments to Sections of the Act, to bring the provisions of the Act up to unAust.ralian averagc ;

Part 5--Recommendations regarding Silicosis in the Mining Industry ;

PU1'~ 6--Genoral;

Government Insurance;

Monopoly;

Clinic;

Medical Attention;

Rchubilitution ;

Concluding Remarks.

7

PART I.

ANSWERS TO VARIOUS REFERENCES nlADE TO THE COMMISSION.

REFERENCE f..-Whether there can be initiated in Western Australia a social service which, with or withoutmodifications, additions and safeguards, may embrace the following features :,._-

(a) Compensation to all employees throughout the State during any period of incapacity for work, whatever the causeor circumstances of the incapacity, and notwithstanding an absence of insurance cover.

It has been fairly definitely established by witnesses representing groups of employee.s, t.hut. suchft, scheme is not desired by them. \Vitnessos generally deemed it unnecessary to superimpose a State non­industrial sickness and accident insurance schemo on tho existing Commonwealth Govcmrnent.:s Scheme.The int.roduct.ion of a social service of the type suggested would result. in employers having to accept.responsibility for compensating employees for incapacity arising from causes not associated with theiremployment. This would amount to special taxation on employers with a benefit to a section only of thepopulat.ion. This added cost would place local industry in an unfair and detrimental position when incompetition with other State.'>.

COMniISSION'S FINDING:-

We are of the opinion that the proposal as a State undertaking is not desirable economically and notexpedient or practicable financially. Having regard part.iculurlv to the high cost involved (ace cst.imat ounder reply to Reference 3), the benefits provided under the Commouwealt.h Social Services Consolidat edAct, the mnny voluntary schemes available to citizens generally, and there being no public demrmcl O!'

support for a social service on the lines indicated in the terms of reference, your Commission recommendsthat no action be taken in this matter.

(b) An absence of any proposal forms, policies or documents of insurance, agents' commissions and expenses, andgenerally a substantial saving in overhead costs as compared with the total overhead costs now being incurredby insurance companies (and being passed on to industry in the form of premiums) in connection with workers'compensation insurance.

WE ARE OF THE OPINION

1. Mothod of Insurance.

That the existing method 01 a proposal Iorm foilowed by a policy capable of renewal by payment ofa renewal premium is the most economical. system of recording workers' compensation insurance. Thissystem is pract.ically world 'wide and is conducteel at a low cost.

In Queensland, where a monopoly in workers' compensation insurance exists, this system is inoperation, and the management are quite convinced that it is the most economical from their point, of view,especially in view of the necessity for branches (10) and agents (Clerks of Courts, 220).

'Vhile in Queensland, t.he Chairman interviewed the New Zealand reprcsentative of tho State In­surance Office, who was visiting that State. He advised that a monopoly in workers' compensation insur­ance was to operate in New Zealand this year and 'that it had been definitely decided to adopt tho policyand renewal receipt basis.

From the evidence submitted, it is clear that any system which involves a departure from the presentpolicy method would be difficult to control par-ticularly in so far as casual or seasonal workers are con­cerned. Even under existing conditions it would be difficult to police insurance without policies. In viewof the low cost of the policy, the only document which would bo eliminated, it is obvious that no materialsaving would result from the int.roduot.ion of any other system.

2. Administration.

That there is room for economy in expenses of administration :­

(a) Apportionment 01 Costs:

Control is necessary to ensure an accurnto appcrt.ionment. of cost of administration,taxation and other charges, etc" as between workers' compensation and other insurancebusiness. The method of making ret.urns to the Government Statistician seems to tendmore to simplicity than accuracy. In many offices varied classes of insurance businessare undertaken and expenses aro allocated in proportion to premiums received under thevarious insurance headings. Your Commission is not in a position to say whether thisallocation is an equitable one.

The Chair-man ascertained t.hnt the figures supplied in Victoria, New South "~al(':,>. andQueensland arc actual ones and not apportioned, awl there is no reason why not.ual figure,:;should pot be supplied in this State.

(b) commtsston and Agents I Charges.'''e have noted from U18 figures supplied to the Government Statistician by insurers

that commission paid to agents amounted in some years to nearly S pOl' cont. of the premiumsreceived by tariff and non-tariff offices. As non-tariff offices generally do not pay agents'commission on workers' compensation business, it would appear that the figures referredto largely represent the amount. paid by the tariff offices. This totalled £24,358 for the yearended 30th J uno, 1947, which in the opinion of the Commission is far too high as a prOCl.lrfi·t.ion cost- for insurance business which is compulsory.

The Underwriters' Association explain that the rates of commission for workers' COIn·

pensat.ion business under the Association Tariff is fixed at 5 per ccnt., for the first £100 ofpremium, 2-! per cent. from £100 to £300, and 1-:1 per cent. in excess of £300.

From this it would appem that. some offices have either exceeded the amount allowedby the Tariff, or have included in the figures bonuses and discounts to the insured as com­mission.

We are of the opinion that all discounts, allowances, and agents, commission made tothe insured should be treated as a reduction of premium, and that the overall oommlsston toagents should not exceed 2-! per cent. This should result in a saving of over £10,000 per annum.

(e) Co-operation in regard to Investigation and Settlement of Claims.

'Vith one exception where a group of five companies overate a bureau, no effort. appearsto have been made by insurers generally to co-operate in the direction of setting up an organ­isation for the economical investigation and setblement of claims,

We are of the opinion that consideration should be given by insurers to establishing sucha bureau for generally recording informat.ion respecting claims, and inter alia the co-operativeemployment. of asse-ssors for claims investigation, the appointment of a medical officer forexamining injured workers and giving opinions on medical mat.ters, to the recording of legalopinions and decisions for ready reference, thus avoiding further legal costs on matters alreadydetermined.

Wo understand that some insurers have already set up a bureau for the investigat.iouof hail claims which is giving satisfactory results.

(d) Wage,.

Considerable doubt exists with your Commission regarding the uso of the correct. basisfor the collection of premiums as an assessment on the wages and salaries paid by each em-ployer in respect of workers as defined by the Act. .

The Act provides for a Statutory Return of 'Vages for each year, or period of insurance,on which an adjustment of premium is made.

It has been suggested that some employers do not declare the full amount of wages asrequired by the Act, thus lowering the total premium payable by such employers, In othercases the statutory declaration is not demanded.

Another method adopted to avoid payment of the full premium is to classify portionof their- workers on a classification item carrying a lower rate of premium than that for thecorrect classification.

These practices, it was further suggested, were encouraged by some insuring authoritiesas an inducement to securing from the employers their more remunerative t.ypes of business.'Ye were informed that to question wages returns or to send an inspector to check them wouldmean loss of business,

The Chairman ascertained in his visit to the Eastern States :~-

(i) That the annual Ret.urn of W,'ges is definitely required of every employer.

(ii) That some larger companies, and certainly the State Offices, employ a specialofficer to inspect wages books as thought necessary, to ascertain that t.I16 returnsUTe accurate both as regards total wages and correct classiflcat.ion of employees.'''here these officers are employed premiums recovered have been over 10 timesthe amount of the expenditure incurred in tho investigation,

(iii) The keeping of proper statistical records enahles a good check to be kept andadvice from this Branch to the Wages Inspector is the usual call for a check up,

(iv) Correct wages returns are essential to the Commission in New South 'Vales, andthe Board in Victoria, because on the premiums collected, less re-insurances(which are all done in the State) the assessment is made on tho insurance com.panj' for cost of the expenses of the Commission and Board respectively.

(v) The declaration at the end of one ;year is bhe basis for assessment in the new year,unless the employer can prove the declared figure to be too high for the newyear.

9

(e) Premiums.

Your Commission feels that an over all supervision of this sub-heading should be placedin the hands of the proposed Board with power to act where necessary.

That generally there is scope for o reduction in rates of premiums charged, or alternativelyincreased benefits at existing premiums.

The rates charged in this State, with few except.ions, are much higher than those operatingin the Eastern States, while the benefits in this State arc 10w8r. The rates charged in Queens­land are subject to fluctuation in the neal' future, consequent on Amending Acts giving greaterbenefits.

Although the new benefits arc operating, increased rates are not being charged until l stJuly next, when they are to go up 25 per cent. 'I'he Insurance Commissioner so informedthe Chairman, and further stated that they are meeting the losses for t.his year from theirreserves, which are adequate for a short period.

In Victoria, the rates were increased by 50 per cent. a few months ago, following amend­ments to the Act. Until a full year's experience is obtained, it cannot be said that this in­crease is a fixed one.

The Underwriters' Asscciat.ion officers and the Commissioner- of the State Office informedthe Chairman that t.hey think the increase is too low find must go up higher on the experience.

It is desirable to here state the methods adopted in the three (3) States visited in fixingpremiums :-

VICTORIA.

A committee consisting of the Government Statistician, the State Insurance Com­missioner and a representative of the Underwriters make a recommendation to the Govern­ment. "'hen approved by Executive Council, this becomes the fixed rate for the StateOffice. By a gentleman's agreement it is adopted. by the insurance companies. Can­sequerrtly, while the maximum rating is fixed, lower rates can be charged, or bonusesallowed. The tariff is revised cvcry three (3) years on a loss ratio basis of OOi pel' cent.

NEi,V SOUTH 'VALES.

An Insurance Premiums Commission is appointed under Act, of Parliament. Veryxtensive and detailed returns arc required by this Commission from every insurance com­

pany and from self-insurers. The ratio of loss is based on 70 per cent. Each year theactual figure is ascertained and if the ratio is lower than 70 pOl' cent., the companies arerequired to adjust their renewal notices to give to their clients a bonus as authorised bythe Commission. This authorisation usually permits the creation of a reserve to meetyems when the loss ratio is insufficient. Companies must charge clients according to ratesassessed, less adjusting bonus if such is declared, but are permitted to grant unJ' furtherbonuses they desire. Business cannot be refused at the fixed rates by an insurance com­pan;)' registered to do 'Yorkers' Compensation Lnsurance.

QUEENSLAJ.~D.

There have been only three (3) revisions of premium. rates in 30 years and one of thesewas wholly clown. 'I'hero is no fixed loss ratio, but on actual results it would appear tohe over SO per cent.

Tho premium rating in 'Yestern Australia in the past has been" go as you please." TheUnderwriters appear to have drawn up a tariff based on a loss ratio of OOl per cenb., whichis generally accepted by the companies affiliated. The non-tariff companies appear to haveadopted this tariff less a percentage reduct.ion.

Tho State Office made a still larger percentage reduction, but now fixes its rates on itso-W11 experience, having set up f'. fairly comprehensive statistical section. The rates areperiodically reviewed, using a 70 per cent. loss ratio as a base.

No insurer is bound to accept business, and so far as YOlli' Commission can ascertain,an individual employer could be refused cover although insurance is compulsory. The soonerthe Act is amended to provide for adequate supervision the better for all concerned..

Your Commission is of the opinion that the question of revision of premium rating is onethat should have the early attention of the Board, if such is appointed, and that premiums befixed on a loss ratio to be determined from time to time.

(f) Self-Insurers.

That Self-Insurers, i.e., those employers who, with the approval of the Minister undersection 10 of the Act, carry their own workers' compensation risks, be required to make similarreturns to the Government Statistician and to the suggested Board a3 are required from otherinsurers.

(0)

10

There are seventeen (17) firms or companies registered as Self-Insurers under tho Act.These self-insurers arc extensive employers of labour, but do not. make workers' compensationreturns to the Government Statistician. There is no uniform system of accounts for record­ing the amounts allocated or paid for expenses and claims resulting from accidents to theiremployees. Your Commission endeavoured to obtain data that would enable a reliableret.urn to be compiled, but without success.

It was ascertained that generally 'vculamity risk" has not been provided for by self­insurers. In the opinion of the Commission such a provision should be insisted on wherethe Minister considers it necessary.

If a board is to be appointed as recommended, it becomes immediately necessary forthese accounts to be properly kopt., because if allowed to continue as insurers they must. con­tribute towards the working expenses of the Commission.

The Chairman ascertained that the policy in Victoria was not to license any more self­insurers. Those already so appointed when the Board came into existence are being con­tinued. There nrc eight (8) only.

In Ne,Y South 'Vales the policy is quite the opposite. Tho Commission consider theself-insurer should be encouraged, and are prepared to license any applicant that can satisfythem of their bona fides. There are sixty-four (64) operating.

(g) Prevention of Acoldents.

That more attention be given to the introduction of necessary and compulsory safeguardsfor the prevention of accident and disease in industry. To achieve this, full co-operationof employers and workers s~lOuld be sought.

Evidence disclosed that in most Acts employers were required to provide various typesof safeguards, thought necessary to protect workers, but, with the exception of the miningindustry, no compulsion was placed on the employees to use them. A board, if appointed,should control accident prevention activities by co-ordination of the various GovernmentDepartments and Associations caring for the various activities of employers.

At least five (5) Departments are empowered by Acts of Parliament to supervise variousaspects of the preventdone e-c-

Chief Inspector of Factories over Industry.

Chief Inspector of Machinery over Power Plants.

Chief Inspector of Mines over :l\Illles,

Government Architect 0\"01' Scaffolding,

Conservator of Forests over Timber Industry.

A Co-ordinating committee, to assist the Board as required, seems necessary.

The cost of the new social service to be borne by employers throughout the State, but such cost not to exceedthepresent cost to industry of premiums paid under workers' compensation legislation j nor the compensationto be less than that provided for under the said legislation j and the cost to be collected by a system of specialstamps affixed to wages sheets, or by some other system, in lieu of the present system of payment of premiums.

An extension of the present Workers" Compensation Act benefits to workers in regard to non-industrialaccidents and sickness would result in an additional cost which it would be impossible to finance by anyalteration in the exist.ing method of workers' compensation insurance, and it would certainly be unfair anddetrimental to the interests of the State to burden industry with such additional costs.

Taking into consideration the above, and subject to U1e opinion expressed in Our general comments,we feel convinced, however, that improved benefits under the 'Yorkers' Compensaf.ion Act are possible,without proportionately increasing the existing premium rates,

Evidence indicated that.many employers are knowingly paying higher premiums for workers' compollsa·t.ion insurance in preference to transferring this business to other insurers operabiug at lower rates. Thishas largely been brought about by some employers, on the grounds of convenience, preferring to have all theirinsurances with the one Office,

We are of the opinion that a system of special stamps affixed to wages sheets is not likely to be moreeconomical than the existing method of collecting premiums. Employers appearing before the Commissionstrongly opposed the stamp collection method.

Even under existing monopolies, there is no evidence of stamps having been adopted in lieu of thePolicy method. Tho pay roll assessment is used III certain American States where compulsory State Fundsexist. The collection of premiums is undertaken by means of pay roll assessments without policies being issued,but it is noted that where the method is used, there are exclusions in so far as employers in certain specifiedindustries are concerned. In some of these States employers are not required to protect agricultural workers,and in every case casual employees such as domestic servants and gardeners are excluded. This would notbe workable under our 'Vorkers' Compensation Act.

11

(d) An assessment 01 risk in specified types of industry and a schedule of charges to employers varying with the typeof risk and having relation to premium rates now being charged to employers in different types of industry.

We recommend as functions of the proposed Administrative Board the inauguration of H, uniformmethod of compiling stat.ist.ics relating to workers' compensat.ion from all insurers, and a permanent Committeeunder the direction of the Board recommended in Part 11 of this Report., to fix a schedule of maximumpremium rates. ,Yo a1'O convinced this would assist, in establishing a uniform classification and a moreaccurate premium rating schedule.

The Stat.ist.ical Bureau established by the Council of Eire and Accident Underwriters of the Common­wealth may fill this need if all insuring authorities co-operate and the results of its operations are madeavailable to the Board. This ,\'13 feel sure Cali be arranged.

(e) Legislation giving effect to the foregoing.

Under a special sect.ion of this Report, proposals have been made for amending the 'Vorkers' Compeusa­t.icn Act to bring it more into line with what we consider to He be reasonable and fair Australian standard,If adopted, the Commission's recommendations should result, in conaidera'hly increased benefits to workersincapacitated from causes associated with their- employment, without greatly increasing the cost to industry.

REFERENCE 2.-What modifications, additions and safeguards would be necessary or expedient in viewof Commonwealth social service legislation, or in order to place the social service on a sound basis.

Under Commonwealth Social Service legislation, a married beneficiary (with children) is permittedto receive, in addition to the Commonwealth Benefit of a maximum. of £2 Ius. Od. per week, income duringthe period of incapacity not exceeding £2 Os. O,L per week; £1 Os. Od. of which may be received from anysource, and an addit.ionul £1 Os. Ocl. from an approved Friendly Society or similar approved body. "'hereworkers' compensation payments are made during the period of incapacity, .t.he benefit is reduced by theamount of eompcnsat.ion payable. In practically every case the workers' compensation payment wouldexceed the benefit which the incapacitated worker would receive under the Commonwealt.h Act.

Any State scheme to furnish up to £2 03. Od. per week, would, in all probability, be recognised by theCommonwealth Government as an "approved Indy" in accordauca with t.ha provisions of the Act; butthis would not provide employees with benefits c .i.nparable with those payable under the 'Varkel'S' Compansa­tion Act, and could not. be financed without au'asta-rtinlly increasing 'the cost to in-lusbry.

In addition to the sickness benefits referred to above, consideration must be given to the Old Ageand Invalid Pension,') Act. As previously stated, workers are not limited to any age grouping under the'Vorkel's' Compensabion Act., but the Commonwealth Act applies to age groups, viz., 60 for females and 65for males. The Commonwealth Government has publicly intimated that consideration is being given to ascheme for periodical lightening of the existing means test, in what was was not stated, but with a view toits gradual abolishment over a period of years. The estimate for a total removal of the means test is approxi­mately £40,000,000 per annum. It is not part of OLU' function to comment on this statement, beyond drawingattention to the important part such a policy must have on tho References made to this Commission.

Evidence given before the Commission repeatedly stressed the heavy claims made under the Workers'Compensation Act by employees of advanced a~es. 11.may be desirable, as Old Age Pensions become moreIibernlised, to consider limiting the employment of pensionable persons to the less hazardous industries.

It seems inevitable that, the more inclusive scope of the social insurance programme of the Common­wealth Government will compel, through pl'esslU'o of aggregate cost, close attention to the efficiency andeconomy in the adminiat.rat.ion of Workers' Compensation in all States and also a more constructive use ofbenefit payments.

REFERENCE 3.~~-The estimated annual cost lor admInIstration 01 tho service and In meeting the claims ofincapacitated employees, the estimate to be [or each of the first five years after initiation or tho service.

It is almost impossible to make any estimate of the annual cost of administration of the service andmeeting t.he claims of incapacitated employees for, as was stated earlier, no definite figures could be obtaineda-s to the incidence of non-industrial accidents or sickness, but from such information as was available to theCommission it would appear that the average time which might be lost per employee per annum might rangefrom six (6) days (which is about 'twice the average period lost through work caused injuries) to twelve (12)clays.

The additional cost in meeting claims from workers now within the scope of the 'Yorkers' Compensa­tion Act, estimated at 143,000 would approximate £500,000 per annurn. To this would have to be addedthe number of employees in ".,estern Australia outside the scope of the Act, and this information was notavailable to the Commission. Estimating the annual cost is made more difficult when it is noted that withrelatively few exceptions wcrkera are engaged without preliminary medical examination,

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REFERENCE 4.--A suggested schedule of charges to specified dltlereut types of lndustry, and the estimatedreceipts therefrom, which should be sufficient to cover all estimated cut-goings under the social service.

In view of the answers given to the preceding questions, no attempt has been made to prepare aschedule of charges for specified different typos of industries, or to estimate receipts and outgoings.

Lack of definite information as to U10 incidonco of non-industrial accidents and sickness prevents anyaccurate attempt at such a forecast. The classification of rates for Workers' Compensation insurance couldnot be used as a guide as there is obviously no reason to associate the industrial hazard of any particularworker 01' class of worker wit.h UlO non- industrial hazard.

REFERENCE 5.-The form of a statutory body (e.g., trustees) which should be charged with the adminIs­tration of the social service, and the powers and duties of such statutory body.

Already there are in existence Workers' Compensation Commissions in other Australian States, in theUnited States of America and Canada. These bodies are charged with the administration of the workers'compensation laws, and have varying power in relation to making awards of compensation and in ect.tlingall questions of fact. Only questions of law are referred to the Courts, whereas in "'estern Australia alldifferences, whether as to fact or law, are settled by the Courts.

The Commission strongly recommends the formation of an administrative board. Its suggestedpersonnel, po·wars and functions are dealt with more fully under Part 11 hereof.

REFERENCE 6.-Whether, and in what circumstances, employees should make contribution (in respectof incapacity not arising out of or in the course of their employment) to the statutory fund establishedby the service, the rate of such contribution (if any) and times and methods of payments, and whethersuch contributions (if any) should be voluntary or compulsory.

The workers do not desire the suggested social service and t,110 Unions, who represent the bulk of theemployees have clearly indicated that the workers would certainly not favour a contributory scheme. Theirdesire is for increased benefits under legislation which provides them with compensation when incapacitatedthrough injury or sickness, the result of their cmployment.. Existing voluntary flat rate contt-ibut.ion schemesare favoured for family medical and hospital services. Some workers obtain additional benefit in tho formof sick pay which is available from Provident Funds and Friendly Societies.

In evidence it was disclosed that full benefit membership of Friendly Socict.ics is increasing. Thefigures are as follows :-

1943-44,27,891; 1944-45,28,865; 1945-46,30,345. (These figures exclude juvenile member-ehip.)

The Hospital Benefit, Fund of "'estern Australia, which has been operating in its present form since1041, and. which arose from a decision to widen the scope of 'the Fund introduced by the Porth Hospital inH129, has had an average membership oyer the last three (3) years of approximately 57,000 persons, thocontributions having risen from £8,7]6 in the first year of operation to £52,542 in the sixth.

Benefits consist of cash payments at a specified daily rate in respect. of periods spent as an in-patientin anJ' hospital in "'estern Australia" and are paid in' addition to those met by 'the Commonwealth Govern­ment. Othor similar schemes are oporating and that conducted by the Bankers' Health Society which hasbeen represented in this State since 1946 with a membership then of 270, had on the 15th September, 1947,a membership of 2,285. The hospital benefit scheme conducted by the United Friendly Societies has amembership of 6,650.

"'itnesses from the Commonwealth Department of Social Services informed the Commission t.hatthere are many other privately conducted benefit, and provident schemes in operation in this State.

It. is apparent; 'therefore, that workers generally have availed themselves of t.he opportunity ofmembership of these voluntary schemes which not only provide benefit in the event of their incapacity,but usually extend medical services and /01' hospitalisation to all members of their families.

REFERENCE 7.-The effect of any such service upon the business of insurance companies conducting workers,compensation insurance within the State, and whether such companies or any other bodies should or mayproperly underwrite the whole or any part of liabilities under the service.

It was contended by insurers' reprcsentabivos that it was the function of insurers not to legislate butto underwrite the risk which the law imposed on employers and to carry out the requirements of the Act..This they have endeavoured to do. It was maintained that if a recommendation for a social service schemefor insurance was made, it must be in tho form of a monopoly which would result in the loss of a large amountof business which contributes to Government revenue in a number of ways, and the consequent unemploy­ment of a number of trained insurance personnel, necessitating the readjust.mont of offices generally. Itwas further stated that the companies genernlly would bo prepared to quote for such insurance or to actas underwriters for a State Fund provided they were supplied with a definite basts upon which to formulatetheir quotations.

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REFERENCE 8.-Whether there is any similar sooial servlee or other scheme already in existence In any otherpart of the world, and, if so, the salient features and operation thereof; but it is not desired that youshould leave the State for the purpose of any inquiry in relation to this Commission.

Tho International Labour Office Survey of Social Services i.n 1033, the latest available, contains a list ofSocial Services opcrat.ing in many parts of the world. The return indicates a marked variation in the oper­ation of the various schemes, but the Commission was not able to find that any scheme exists similar to thatcontemplated in the Terms of Reference.

REFERENCE 9.-If the State should guarantee the futfilmeut of all liability under the social service. whatcontingent liability (if any) would the State reasonably face. and how best could such contingent liabilitybe provided for.

Information supplied in answer to the previous questions illustrates that there is a big leeway to beaccounted for between estimated costs and the amount. which might. be saved in administ.rnt.ion. A compulsorycontributory scheme is not favoured by t.he workers, and a voluntary scheme would seemingly not at.tractcontributors. A compulsory scheme might require to be subsidised by the Govomment and in regardto this probability the Under 'I'reasuret-, in his evidence, made tho following points :-

" (a) If the State has to make a direct contribution, I know of no means whereby tho cost of thiscontribution can be recovered from tho people of ,"Vestern Australia, unless by an increase inone of the existing forms of taxation still left to the State, or by the imposition of some newform of taxation.

(b) The (ypes of taxation still imposed bv the State are as follows :­

Land Tax;

Stamp Duty;

Probate Duty;

Liquor and other licenses ;

'I'otnliaator Tax

Motor Tux.

(c) ,"Yith the possible except.ion of Land Tax, it is quite clear that an increase in the existing formsof tax would be a sectional tax and would not. fall on all tho people, nor would the incidenceof the tax have any relation to the benefits enjoyed by the people who were paying it.

(d) Failure to increase revenue in order to provide for t.he State's contribution to any proposed socialinsurance scheme would mean that the cost. of the State's contribution would merely increasetho State's Consolidated Revenue Fund deficit. It is t.rue that under the principles an;lll1ethodsadopted by the Commonwealth Grunts Commission, pat-t., if not the whole of this deficit, wouldbo made good by a grant from the Commonwealth Govemment.. There is a limit, however,to the amount which the State could spend on such a social service scheme and still hope toobtain a grant from the Commonwealth Government to uieet it. Tho methods adopted by t.110Grants Couiruission are that, subject to a comparison of expenditure as between the States, it,endeavours to place a claimant State's budgetary position on au equality with the averageof tho budgetary positions of the three nonolaimant States, namely New South 'Yales, Vic­toria and Queensland.

(e) One of the items of expenditure most readily comparable is that relating to social services andat present the cost of social services in "Testern Australia has been below tho average of thethree non-claimant States. It would he competent, therefore, for "'esterll Australia to increaseits costs of social services by the amount by which the ,"Yestern Australian scale of expenditureis below the Commission's standard and still expect this increased expenditure to he recoupedin the grant recommended by the Grants Commission.

(f) It must be understood that an extension of the State's social service expenditure to meet tho cost.of a scheme your Commission may have in mind cannot be looked upon as a permanent r-ight.It depends 011 :--

(i) A continuance of the Grants Commission's present methods;

(ii) A continued economy in ot.her forms of socitll service expenditure; and

(iii) The relative social service expenditure in the non-claimant States."

As the Commission has not rooommended the introduction of a Social Service Scheme, no otherinvest.igat.ion vvas made in this connect.ion.

REFERENCE 10.-Any othor aspect in relation to the said social service which you should consider it desirableto examine and report upon.

In tho COlll'SO of its enquiry tho Commission took full evidence and made exhaustive investigations inrelation to tho operations of existing ...corkers' compensation legislation and at the express wish of theGovernment., submits later in this Report suggested amendments based on such evidence and investigations(see Parts III and IV). .

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PART II.

WORKERS' COMPENSATION BOARD.

It is recommended that a Workers' Compensation Board bo created to administer the Act.

At present each insurer is responsible to his own clients and goes to the Court only when dealing withminors, the registration of lump sum agreements or the sot.t.lement of disputes.

Your Commission feels that. if a Board is set up, decisions will be consistent, stntiaties and returns frominsurers will be on a uniform basis, minors can he dealt wit.h more expertly, lump sums paid on a basis that willbe more heneficial to all parties, and disputes set.t.lcd with a minimum of delay and cost.

'Yo believe there will be ample work to keep a Board fully occupied.be a lot of foundation and administrat.ive work to be done, and this willcreation of the Boarcl will relieve Local Courts of a, large volume of work.

CONSTITUTION OF BOARD.

In the initial stages there willrequire close attention, The

The Board shall consist of three (3) members to be appointed by the Governor :-­

(a) Tho Chairman to be a Judge or a person qualified for appointment as a .Iudge.

(b) A representative of the Jnaurcrs.

(0) A representative of the Workers.

\Vith necessary provisions to covel' appointment, period of tenancy, deputies during absence etc.

Decision..s to be by a majority of the Board. except on matters of law, when the Chairman alone shalldetermine, subject. to appeal to Full Cour-t.

Remuneration to be fixed by the Governor.

In Victoria the Chairman receives his salary as a County Cour-t Judge, £2,000 pel' annum. and £2;"10from the Fund for acting as Chairman. Other members' salaries are fixed by regulation at £850 per annum,and cost of living allo-wance £54 pOI' annum.

In New South 'Vales, where three (3) permanent .Iudges act, they receive their remuneration as Dis­trict Court Judges at £1,500 per annum.

Necessary safeguarding provisions will he required.

A Registrar to be appointed to act as n Conciliation Officer with such powers as the Board may f1'01n timeto time determine.

The Registrar and other officers of the Board to be appointed under the provisions of the Public Ser­vice Act..

FUND.

A Fund to he established.

The Board to prepare a budget of its annual expenditure. Such expenditure to be equally spreadover all insurers, including self-insurers, on the basis of premium revenue. These payments to be made tothe Board quarterly and paid into tho above Fund.

The Fund shall PRJ' aU:-

Salaries and travelling expenses of the Board.

Salaries of the Registrar and nll other officers of the Board.

Costs and expenses of Administration.

Reasonable expenses for accident prevention and safety measures.

Costs of prosecutions etc.

Compensation to any worker who may not be covered by his employer. For this compensationan appropriation from the Fund of £1,000 should he made.

Returns to enable adequate statistics to be prepared, (to be prescribed) and to be supplied by all in.surers. The returns to be tabulated by the Government Statistician as directed by bhe Board.

A separate Trust Fund will require to be established for receipt. of compensation payments for minorsand lump sum. payments for deceased persons and any other special payments of a like nature. Paymentsfrom this Fund will be made by the Board's officers in accordance with tho decisions of the Board.

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POWERS AND DUTIES OF THE BOARD.

For the purpose of conducting an enquiry, the Board shall have the powers of a Royal Commission.

The Board shall have exclusive jurisdict.ion to examine into, hear and determine all matters and ques­tions arising under- the following headings :-

(a) Minors.

(b) Lump stun payments in redempt.ion of weekly payments or consequent upon the death of aworker. l,Vith regard to the latter the Chairman was informed that the CommonwealthAuthorities am willing to co-operate with the State in tho matter of componsat.ion payment.sto widows. If the Commonwealth Social Services Department is consulted in each case theyare willing to treat with tho widow on their ordinary scale, provided weekly payments ofcompensation do not exceed tho agreed amount. An apport.ionment of tho lump sum may alsobe made on account of t.he children awl in some cases lump SLUn payments made for certainapproved expenditure.

(c) Disputes, which would inclnde:-

(i) The question whether an injury received by a worker entitles hun to compensation underthe Act.

(ii) The existence and degree of incapacity for work by reason of an injury.

(iii) The pol'lnanence of disablement by reason of an injury.

{iv} The degree of diminution of earning capacity by reason of an injury.

(v) Tho amount of average earnings of a worker.

(d) The existence, for the purpose of the Act, of the relationship of any member of tho family of aworker as defined by the Act.

(e) The existence and extent. of dependency.

Actions or decisions of thor Board shall In final, except that it shall have power to r8C0113i(19l' anymatter. Deoieiona of the Board shall bo upon the real merits and [ust.ico of the case and it shall not. bebound to follow strict legal precedent.

In connection with reprcsent.nt.ion before the Board, it is suggested that the procedure before the In­dustrial Arbitration Court should bo followed as closely as practicable with a view to reducing costs to aminimum.

The Board may submit, to a medical referee or Medical Board for repor-t, any matter which seems mat­erial to any quest.ion arising in a proceeding. For this purpose a panel of doctors should be drawn up.

The Board shall require a Premiums Committee consisting of the Auditor General, as Chairman,Manager of the State Insurance Offlce and a representative of tho Insurers, to advise it on the rates requiredto implement the Premium Tariff on a loss ratio as determined by the Board. This Committee shall be avail­able to advise the Board from tune to time.

No Insurer shall bo permitted to refuse insurance cover to ally employer at tho rates so prescribed,provided that the whole of such employer's workers' compensation-insurance is dealt with by one Insurer.

.Insurers shall he permitted to quote rates lower than those proscribed, 01' alternatively grant a bonusto employers, or both.

It is imperat.ive that the Board shall take an active part in connection with compulsory safeguardsfor the prevention of accident and disease in Industry, this being one of the major avenues of reducing claims,and consequently the cost to Industry. For this purpose the Board shall be empowered to incur reason­able expense from the FWHI.

The Board shall submit an Annual Report to Paa-liament..

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PART III.

ANOMALIES.

The attention of the Corumlssion has been drawn to what are regarded as anomalies which exist underthe present Act. Cases cited illustrated the injustice of oertn.in settlements now mandatory, whereby workerswibh trivial permanent disabilities receive the maximum amount provided under tho Act. Others disclosedthat some workers already paid the maximum amount under the Act had returned to work and received afurt.her injury entitling then, to fur-ther payment of the maximum. In another instance oompeneat.ion, inthe form of lump sum payments under bhe Second Sched ile, which already exceed" twice the maximumliability, has been paid to a worker for a series of accidents to one of his limbs.

other anomalies which have arisen in regard to claims under the Third Schedule of the Act by workers inthe Mining Industry are dealt with under Part V 01 this Report.

With the object o[ obviating such cases, the Commission recommends vesting in the AdministrativeBoard the power to consider :-

(1) All cases of permanent part.ial or total incapacity, and make awards of compensation within thelimits prescribed by the Act as may appear proper, after taking into consideration all thecircumstances of t.he case.

(2) The modification of weekly payments when a part.inllv incapacitated worker resumes otherthan his fOlTIWr employment.

(3) Lump SHIn payments in redempt.ion of weekly pnymenta.

PART IV.

AbIENDbIENTS.

Your Commission has found t.hat., in compar-ing the 'Vestern Australian 'Yorkers' Compensation Actwith those of tho other Australian States, although the definition of " worker" within tho scope of its provis­ions ia more limited the benefits arc in most instances inferior.

It has been stated, and correctly so, that upon the adequacy of the Benefit Scale rests the injuredworker's chance of decent maintenance during helplessness and the protection of his dependent family fromeconomic embarrassment.

'Vhilst recognising that. even the most advanced 'Yorkers' Compensation systems in operation con­stitute an incomplete st.mcture, the Commission realise 'there are a number of human factors involved in thesubject, experience of which has demonstrated in many countries the necessity for keeping payment withincontrolled limits.

All witnes-ses were of the opinion that, workers in Western Australia should be afforded benefits atleast equal to a fair Australian standard, and to this end many suggestions were submitted. These have beenconsidered by the Commission and the [allowing recommendations are made :-

SECTION -tDefinition of Member of Family.

Extend definition to include " de facto" wife or husband or person standing in loco parentis.

Definition of Worker.

Amend remuneration limit. from. £500 pel' nunum to £750 per annum. Extend definition to includemembers of employcrs family residing in the employer's house, subject to the provisions that, the employershall, when supplying his estimate of wages, or at the t.ime of employment, disclose to his insurer that he isso employing a member of his family and name such employee and specify the rate of his remuneration.

Sub-Clause (b): Extend the term "worker" to include any person working in connection with fel­ling, hewing, hauling, carriage, sawing of milling of firewood for another person who is engaged in thatindustry.

Amend remuneration limit from £500 pel' annum to £750 per annum for 'I'ributors.

Definition of Dependants :

That provision should bo made that payments of compensat.ion to Dependants residing outside theCommonwealth of Australia should be limited to thoso count.ries where a reciprocal legislation exists.

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SEOTION O.

(1) Increase the maximum liability of the employer for compenaat.lon to an injured worker from .£760to £1,250 where total and permanent incapacity or disablement results £1'Q111 the injury, and where death 1'0­

sulta from injury to £1,000, with the addition of £25 for each dependent child 01' step-child nuder 16 years ofage, payable at the direction of the Board. Arnaud Clause 1 (a) of First Schedule accordingly.

(ii) Delete the words" by accident" appearing in Subclause (I) and make necessary conaequent.ialalterations throughout the Act and Regulations thereunder, and inser-t a definition of" injury" under Section4. For- this pUqlOSO see deflnit.ion as contained in New Sout.h 'Vf\lcs and. Queensland Acta.

(iii) Subject to necessary safeguards, that compensat.ion be provided for workers injured whilst. t.rnvel,ling to and from emplovment.. See New South Wales and Queensland Acta.

SECTION 7.

Delete the words " 12 months" appearing therein and subst.itute " 10 :,\'81'\1':'1 " in t.he cnsc of Silicosisin the Mining Industrv and "3 venrs " for other diseases.

SECTION 10.

If is recommended that prodsion be made in this Section to make it obligat.orv for approved insurersto provide policies of insurance on application by an employer.

SECTION 17.

Amend t.his Section to pr-ovide for appoint.menb and remuncrnt.ion of medical referees and membersof a medical board to be undertaken by t.he proposed Administrat.ive Board,

SECTION 24.

The Medical Register Commit.tee constituted under 'thia Section will not. be necessary if the recommendn­t.ion of the Commission for the appointment of an Administ.rnt.ivc Boord is given effect to, and the powersof the Medical Register Committee vested in the Board.

HERNIA.

Separate provisions should be included to define tho circumstances under which a worker's incapncit.yresult.ing from Hernia shall be deemed to be incapacity resu lting from injury fll'iAing out of or in t.he courseof his emplovrnent..

Provisions of this description appear to be desirable and generally are of the t.ypo hereunder :-

I. For the purposes of this Act, a worker's incapacity rcsult.ing from hernia shall be deemed to beincapacit.y resulting from injury arising out. of or in tho COUl~e of his employment. if the followingconditions exist, namely :-

(a) The hernia is :-

{i} Clinical hernia of disabling chnrneter appearing to have recently occurred for thefirst time; OJ'

(ii) an aggravat.ion or strangulation of a pre-cxietent hernia resulting in immediate painand disabloment j and

(b) the onset of the hernia was immediately preceded by a strain or other injury arising out ofor in the course of the employment j and

(e) the worker reported his condition to his employer immediately after the occurrence of the strain01' other injury, 01' ceased work at the time of t.hc strain or other injury and reported his con­dit.icn to his employer within seventy-two hours thereafter.

2, "Thero the Administrative Board is satisfied that it is reasonable to do so, it may order thata worker's right to compensat.ion for this condition shall cease on a date to he specified, being nottess than foul' (4) weeks after the date of t.he order unless t.he woi-ket- undergoes a surgical operationI'llI' the cure of the hernia.

3. \Vhere such an order is made, the following provisions apply :-

(a) If the worker does not submit himself to the operation before the: date so specifiedor before such later date as the Administ.rut.ive Board may specify in any subsequentorder the weekly payments of compensat.ion payable to t.he worker shall cease onthat date or later date as tho case may be.

(b) If the worker submits himself for the operat.ion, tho weekly payments of compensat.ionpayable to him shall continue for the period of 12 weeks from the date of the opera­tion and shall then cease; provided that if the worker is not wholly recovered atthe end of that period, the Administrative Board may extend his right to receiveweekly payments of compensation for such further period or periods as it thinksfit.

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4. The failure of the 'worker to make any report to his employer in pursuance of the foregoingprovisions shall not deprive the worker of aUj' compensation to which he may be otherwise entitledin respect of hernia, if the Administrative Board considers that the failure was excusable.

FIRST SCHEDULE.Clause 1 (b).

It is recommended that weekly payments be lllCI'C[';3Cd as follows :-

Adult Worker: £4 per week, with the additdou of £1 per weck in respect of dependent wife01' pOI'30n standing in loco parentis, and lOs. per week in respect of each dependent child under 10years of age. The maximum weekly payment not to exceed the average weekly earnings of £6per week, whichever is the lesser.

Infant Workor: £3 pOl' week, with the additions as in the case of adult workers. Basicpayment to be increased to £4 pel' week on attaining 21 years of age. The maximum weekly paymentnot to exceed the average weekly earnings of £5 per week, whichever is the lesser.

Clause 1 (e).Increase the amount payable as funeral exponses {rom Twenty to Thirty Pounds. Other al­

lowances under this Subclause should remain as at present, but provision should bo made for theAdminist.rat.ive Board to be given power to review accounts and allocate payrnente as deemedequitable in the cirourustauces. The Board should also be given power to increase the amountof £100 up to £150 where, in its opinion, special circumstances justify such increase.

The Commissioner's recommendation for the establishment of an Administrative Board if adoptedwill affect a number of machinery clauses of tho Act including the Schedules. It will therefore be necessaryto make consequential alterations thereto.

Clause 18.The word" other" appears to have been omitted from tho flrst line of sub-clause {ii}. The

addition of this word would result in the sub-clause commencing thus " In any other case," etc.

SECOND SCHEDULE.

In view of the anomalies existing in the present Schedule and the recommended increase in the ratesof compensation and maximum liability, tho Commission is of the opinion that an amended schedule us setout hereunder bo adopted :-

Injury.

Total loss of the sight of hath eyesTotal loss of the sight. of an only eyeLoss of hath hands . .Loss of hath feetLoss of a hand and n footTotal and incurable Ices of menial Towers involving inability to workTotal and incurable paralysis of the Hu-bs or of mental 11OW81'STotal loss of the right. ann or of the greater I art of tho right. armTot a l loss of the left nr iu (;1' of the greater jat-t of the left. armTotal loss of the right hand or of five fingers of the right hand, or of tho lower j-nrt of the

right atomTotal loss of the sa me for the left hand and armTotal loss of a legTotal loss of a foot 01' the lower t.art. of the legTotal loss of the sight, of one eye, together with the serious diminution of the sight of the

other eyeToLal loss of hearing ...Complete deefuess of one carTotal loss of the sight of one eyoLoss of binocular visionTotal los s of the thumb of the right hand'I'otnl lo.'s of the thumb of the left, handTotal loss of the forefinger of the right handTotal loss of the forefinger of the left. handTotal loss of a joint of the thumbTotal loss of the first joint of the forefinger of either handTotal loss of the middle fluger of the handTotal loss of the little or ring finger of the handTotal loss of the great. toe of either foot ...Total lo~s of a joint of the great. toe of either footTotal loss of any other too or of a joint of a fingerTotal loss of fl ioint of nnv other toePartial loss of the sight of both eyes

lartial loss of the sight of one eyo

Amount of Ccmpensn.UOI1 Paveble.

£'1,2501,2501.2501,2501,2501,2501,2501,000

937

875812fl37no

03775025050050G37532ri250200200lOO150en2501257525

Such j-crccntege of n,250as is equal to the percent­IIge of the diminution ofsight measured withoutthe aid of a correctinglens.

Such percentage of -£500 asis equal to the percentageof the diminution of thesight mensured withoutthe aid of a correctinglens.

19

For t.he purposes of this Schedule r-c-

(a) the tota.lloas of a limb, hand, foot, finger, thumb, toe or joint or any part thereof shall be deemedto include MlO permanent total loss of tho use of such limb, hand, foot, finger. thumb, too jointor part; and

(b) where a worker habitually US83 his left hand and a-m to perform wor-k nsu.tllv performed lJ:,;, worker with his right hand and ann the compensat.ion payable for the I.) ~'i of KIWll left HI'll1

crbhe greater-parb of th s ..arm or fa: tin tote.l loas of tIn la::t ill. 1.10.' of five fi 1 p~'{ Mn.'1} if 1)1' orthe lower part of that ann or of a finger of the left hand shall be such muount V8 wo-tl.I havebeen payable for a similar loss in respect of his right arm or the part or parts t.hoeoof »ut. thecompensation for the loss of the right arm or of the greater part of that, arm. 01' for the total 10.3'1

of the right hand or of five fingers thereof or of the lower part of that ann or of a fingor or partof a finger of the right hand shall be such amount a's would have been payable for n similurloss in respect of his left arm or the part or parts thereof if he did not, habit.ually u se his lefthand and arm to perform work usually performed by l'b worker with his right hand and ann.

(0) where a worker suffers by the same accident mora than one of the injuries mentioned in thisSchedule he shall not in any case be entitled to receive more than One thou sand two hunch-edand fifty pounds.

2. "There a worker suffers any injury :-

(a) which as to tho major part thereof consists of an injury for which oomponsation is pn;-."n1, lcunder tho sa-id Schedule; or

(b) which consists of a lessor but substantial degree of any injury for which compensation is payableunder tho said Schedule-

the injury shall, subject to the following provisions of this section, be regarded as aninjury for which compensation based on the said Schedule shall be payable, and the Boardmay award as compensnt.ion such amounts as, having regard to tho provisions of the saidSchedule, appears to be just and proportionate to the degree of injury suffered.

3. N othing in the foregoing provisions of this section 01' in the said Schedule shall limit the amountof compensation payable for any injury during any period of incapacity due to illness resulting from thatinjury, and the amount of compensat.ion payable pursuant to the foregoing provisions of this section and thesaid Schedule shall be payable in addibion to any weekly payments payable in respect ot incapacity due tothat Illness.

4. Where a worker has suffered an injury for which compensation would, but for the provisions of t.hissub-sect.ion, be payable under the foregoing provisions of this section, and it appeal'S to the Board :.-

(a) that. the amount of compensation which would be so payable would be substantially less thanthe amount of compensation which would be payable under the provisions of the First Sched­ule of this Act, if compensation were assessable under that Schedule; and

(b) that, because of the special circumstances of the worker (including, without limiting thogenerality of the foregoing, the nature of his injury in relation to the nature of his formerusual employment.,} the amount of compensation under the foregoing provisions of this sectionwould be inadequate;

then the Board may award compensation pursuant to the provisions of the First Schedule without regardto the foregoing provisions of this section and the said Schedule.

THIRD SCHEDULE.

Amend t.his Schedule by removing Pneumonoconiosis and Miner'a Phthisis so far as t.hey relate to theMining Industry.

FOURTH SCHEDULE.

If the recommendabiona for the amendment of Sections (} and 7 with necessary consequential amend.merits are given effect to, it would appear that tho Fourth Schedule is no longer required.

20

PART V.

SILICOSIS IN THE MINING INDUSTRY.

Your Commission is of the opinion that the payment of compensation [or Silicosis in relation to metal­liferous mining should be removed from the operation of the Workers, Compensation Act and special legls­Iation introduced to deal with this class of disease.

At present there are three (3) Acts of Parliament covering compensat.icn and monetary assistanceto such sufferers, viz:-

1. The Mine Workers' Relief Act, with which has been incorporated the Voluntary )lin8 Wcrkore'Relief Fund.

2. The Miner's Phthisis Act.

3. The \\Torkers l Compensation Act. and the Third Schedule thereof in so far as t.hey relate toSilicosis in tho Mining Industry,

and in OlLI' opinion t,!1CSC should he consolidated into one Act, with amending provisions as outlined hereafter.

The evidence given before your Commission leaves lit.t.le doubt that workers in metalliferous minesare subject to this disease. This intimate contact, with a risk of a special character is recognised in thethree (3) Statutes previously referred to.

There is no doubt that the risk can be reduced by improved ventilation in the mines. In manymines this has been 01' is being done, but in others the life of the mine and the precarious existence of thecompany would not, justify the expenditure. The alternative is to close the mine.

In recommending the consolidation of the existing Acts, we suggest for the time being a continuanceof the existing basis of income, viz :-

1. The employers in bhe l\Iining Induet.ry should continue to pay premium as already imposedfor the purposes of indemnity under the Third. Schedule of the Vi'orkers' Compensation Act.

2. That the triparbite payment of Is. Gel. pel' fortnight pel' worker made under the Mine 'Varkel'S'Rel~ef Fund should be continued by workers, employers, and the Government..

3. An annual amount equivalent to payments now being made from Consolidated Revenue Ftuiclunder the :Mu;er's Phthisis Act.

The evidence of Dr. Out.lu-ed, Medical Officer, Commonwealth Health Laboratory, Kalgocrlic, whois an outstanding authority on Silicosis was most helpful. He said :-

" In the particular type of fibrosis which characterises Silicosis, 'the lungs become thickly studdedwith small nodules or lumps, whoso size and number gradually increase. These act mechanicallyby taking up more and more space within the chest, therefore the main symptom of Silicosis isan increasing shortness of breath which in time interferes with tho capacity of the subject for workand eventually incapacitates him." (Page 692.)

Dr. Outhred said there were three stages to Silicosis, viz :-Antepl'imat-y, early and advanced.

The percentages of disability at tho various stages would be :-_.-

Anteprimary . about 25 to 30%.

Early from 40 to 60 or 70%.

Advanced 80% or more. (Page 727).

In the COlU'Se of his evidence he made the following observnt.ions :-

" All men at the "early stage' should leave the Industry unloss the dust hazard can bereduced." (Page 711).

" All cases at tho "early stago' should be compensated out of the Industry and work withintheir capabilities found for them." (Page 722.)

"No man with Silicosis should bo permitted to return to underground work, while the dusthazard remains inadequately controlled, i.e., bhe re-admission certificate should be eliminatedfor UlOpresent.." (Page 722.)

" It will be necessary to budget for an annual average of 75 industrial disease claims overthe next 5 years." (Page 723.)

H All lump sums (compensation) should be abolished, except in the case of death by accidentand a permanent pension should be paid for permanent disability." (Page 724.)

" )lore interest should be taken in prevention, treatment and research of aspects Silicosis,and some funds should be allocated for the purpose." (Page 724.)

"The Medical Officer of the Commonwealth Health Laboratory, Ke.lgoorlie,member of all Medical Boards, having to do with Industrial Diseases of the lungs."

should be a(Page 725.)

21

" There arc a large number of men within the Industry showing evidence of early fibrosis.These men are likely to benefit to the extent of prevention of further progression of the diseaseby the introduction of Aluminium Therapy." (Page 725.)

Some anomalies hnve come under not.ice.

1. Some ruiners have left the Industry wit.h a ccrt.iflcd 10% Silicosis and have drawn the maxi­mum compensat.ion of £750 UIHl'-,r the 'Varkel's' Compensation Act.. Later they have appliedfor re-admission and submitted a fur-ther medical cer-tificate as required by the Mines Regu­lnt.ion Act.. A re-admission cert.iflcate could not be refused by the Commonwealth HealthLaboratory if the disability wa'..; under 70%. On re-employment in tho industry such workerimmediately becomes a potential claimant for additional oompensat.ion. Under the 'YOTkers'Compensation Act a worker is entitled to draw weekly compon..snt.ion for six (6) monthsand then demand the balance in a. lump sum.

Y OLU' Commission recommends that steps should be immediately taken to :-'--

(a) Refuse a certificate permitting re-employment in the mining industry to anyperson already compensated to the maximum prescribed in the Act.

(b) Provide thnt., except as authorised by the Board, lump sums should not. be paidin redemption of weekly payments.

2. Although the disease has in a number of cases taken rnore than 10 years to develop, minersleaving the Industry because of becoming dusted, who do not make a claim for compensation,are only protecteel :-

(a) Under the 'Varkel's' Compensation Act for 12 months thereafter.

(b) Under the Xline ,Vol'-1eo,s' Relief Act for 2 years, which is the period of durationof a medical certificate to work on it mine. Provision, however, is made for suchworkers to continue their contributions to tho Mine 'Yorkers' Relief Fund andthus continue their membership, and eligibility for benefits.

Your Commission has studied the conditions existing in the Eastern States.

In New South 'Vales there are two Acts covering Silicosis, one embracing mining at BrokenHill, and the other a general Silicosis Act which embraces all mining (except Broken Hill and. CoalMines) and also includes industry generally.

For tile pLU'P0ses of financing UlO latter Act, all inclusbry throughout the State is taxed. Aspecial rating is determined by the Insurance Premiums Committee and charged on all wages.This rating commences at 10d. % and ranges up to as high as £6% according to the degree of risk.The Government makes an annual eontc-ibut.ion to keep the fund solvent. 'Yorkers suffering fromthe disease, are paid a weekly amount., based on the percentage of disability, with the right to arevision should t.he percentage increase over the years. The payments go on for life.

In Victoria. where there is little mining most.. cases come from other industries and are dealtwith under the Workers' Compensation Act.

In Queensland, where a monopoly exist..s in 'Yorkers' Cornpensution Insurance, these cases aredealt with under Section 14B of the "Tmkers' Compensation Act which covers mining or quarryingor stone crushing. The payments are in tho form of a life pension. They are lower than thoseunder the ., Injur:r" sections of the Act, but have been designed to allow the incapacitatedminer and his wife to draw the Commonwealth Invalid Pension.

The payments are:-

(a) For Total 01' par-tial incapacity for work :­

To the worker

To tho wife of the worker, if she is totally or mainlydependent on his earnings

For each child under the age of 16

Maximum 'weekly payment is £3 23. GLl. per week.

£1 pel' week.

£1 per week.

lOs. pel' week.

The following table shows the weekly payments of compensation and CommonwealthPension.

Compensation. Pension. Total.

£ s. d. £ e. d. £ s. d.Single Man 1 0 0 1 17 6 2 17 6

Man and wife 2 0 0 2 17 6 4 17 6

~Ian, ,Vife and 1 child 2 10 0 3 2 6 5 12 6

~1an, 'Vife and 2 children 3 0 0 3 2 6 6 2 6

:\Ian, \Vife and 3 children 3 2 6 3 2 6 6 5 0

£ s. d.1 5 01 5 0

0 7 61 5 0

1 0 0

0 7 61 10 01 0 0

0 7 6o 10 0

0 7 6

(b) In the ca-se of death ;-

Funeral allowance not exceeding £20.

To the widow .£1 per week. For each child under] 6, tho sum of 10.,;. pOl' 'week until thoage of 16 years is reached.

Maximum weekly payment, 55s. These weekly payments cease when maximumof £1,000 is reached.

These payments are made out of the Miners' Phthisis Fund. To keep the fund solvent appro·priabion of £362,698 has been made out of the ordinary "'Yorkers' Compensation ACCOtUlt over thepast 30 years.

In Wostom Australia the following benefits are paid from the :JllllO 'Yorkers' Relief Fund :.,­

Prohibited and notified mine workers and their dependents who have exhausted their corn­pcnsat.ion under the 'Yorkers' Compensation Act and/or the sum of Seven hundred and fiftypounds under the" l\Iine 'Vorkers' Relief Act, 1932 " shall be entitled to the following benefits :-

Single Man",Yiclower

Additional payment in respect to each child under 16 years ofage and dependent on widower

Married 1\IanAdditional payment in respect of:­

(a) Wife(b) Each child under 16 years of age and dependent on mar­

ried man'Vidow-Under 60 years of age until re-marriage

60 years and over, until re-marriageAdditional payment in respect to each child under 16 years of

age who was at time of death of deceased mine worker, de­pendent upon such deceased mine worker

Mother dependent on sonGuardian of each child under 16 years of age of a mine worker who

was at the time of his death dependent on such mine worker

Provided that :-

(1) The maximum weekly payment shall not exceed £3 l Os.

(2) In the case of widowers, the additional payment in respect of any child under 16j'ears may be paid to any other person or institution direct as the Board in itsdiscretion think fit,

(3) A married man shall not be entitled to any allowance for his wife and childrenunless they are bing supported by him.

(4) The additional payment in respect of a wife may be paid to the wife or any otherperson or instdtution direct" as the Board may in its discretion think fit.

(5) In the case of widows, benefits in respect of children under 16 years of ago shallcease on re-marriage of widow.

(6) The benefit of £1 lOs. per week for a widow under 60 years of age shall be reducedto £1 pOI' week on such widow attaining the age of 60 years.

(7) A11J-' beneficiary who is residing in a foreign country or who leaves Australia toreside in a foreign country shall not be entitled to receive any greater benefitsthan those in force under Scale 1 of the Regulations under the Mine 'Varkel'S'Relief Act on the 1st February, 1933.

Provided further that :-

(1) If in the opinion of the Board any widow under 60 years of age is eligible to applyfor the Commonwealth Invalid Pension, such widow shall not be entitled toreceive any benefit out of the Fund unt.il she has made application for such pensionin the prescribed form under the Commonwealth Invalid and Old Age PensionsAct. and such pension has been granted or refused.

(2) Any widow, 60 years and oyer, who is not eligible for the Commonwealth Old AgePension solely on the ground that she has not been residing in Australia con­tinuously for at least 20 years shall be ent.it.led to receive out of the Fund anadditional payment of 17s. 6el. per week until such time as she has been residingin Australia continuously for 20 years.

(3) If, in the opinion of the Board, any wife is eligible to apply for tho CommonwealthInvalid and Old Age Pension, such wife shall not be entitled to receive any bene­fit out of the Fund until she has made application for such pension in the pre­scribed form under the Commonwealth Invalid and Olel Age Pensions Act andsuch pension has been granted or refused.

Regulation 45 of the Mine 'Varkel's' Relief Act provides that if in the opinion of the Board an:r mine'worker or his dependent is eligible to apply for the Commonwealth Old Age, Invalid or Widow's Pension,no benefit shall be paid by the Fund unt.il application is made and such pension is granted or refused. Intho event of the Commonwealth Old Age, Invalid or 'Vidmy's Pension being granted this is taken into con­sideration by the Board when granting benefits under Scale 1, Second Schedule, as aforemcnt.ioncd and theBoard is empowered to pay from the Fund the difference between the Commonwealth Pension and the maxi­mum income allowed under the Commonwealt.h Act. The maximum income allowed above a pension underthe Commonwealth Act is now 203. pel' week pm pensioner and this is the amount usually granted by theBoard to each husband and wife, single beneficiary or widow as the case may be. 'Vhere the CommonwealthPension does not apply, tho full benefits under Scale 1, Second Schedule, are payable.

Your Commission Recommends that :-

(1) The legislation referred to early in this Part be consolidated.

(2) The administ.rat.ion of the New Act. be vested in the proposed Administrative Board.

(3) Premituns from employers in the mining industry as now charged for cover under the 'Yorkers'Compensation Act, (Third Sohedule.) payments of Is. 6d. pel' fortnight by the workers, employ­ers and the Goverrunont as now operate under the Mine 'Yorkers' Relief Act, and an annualamount by the Government. equivalent to payments now being made by the Treasury fromConsolidated Revenue Fund under the l\lillers' Phthisis Act" be continued towards the crea­tion nne! maintenance of a FlU1d under the proposed consolidation.

(4) All existing Funds be amalgamated, the collection of promituns and contributions, the paymentof claims fwd the recording of statistics be vested in the Manager of the State Government.Insurance Office under the jurisdiction of the proposed Administrative Board.

(5) The control and investment of tho Fund be vested in the proposed Administrative Board.

(6) As soon as practicable an actuarial valuation be undertaken by the State Government for thepm'pose of estimating the liabilities of the FlU1d and adjusting the rate of premium levy accord­ingly, and that such valuation be made quinquennially

(7) Any deficiency in the Fund should be made good from Consolidated Revenue.

(8) In view of the importance and value of the gold mining Industry to M1e Cornmonwee.lt.h, anapproach he made to the Connnonwealt.h Government for financial assistance.

(0) The scale of benefits operating in Queensland be adopted in this State. 'Yorkers already com­pen..sated under the Workers' Compensat.ion Act to have the payments already made assessedunder the Scale, to determine tho date upon which they shall commence to draw benefits underthe New Act.

(10) Whoro appropriate, the provisions of the 'Yorkers' Compensation Act relating to definitions;medical, funeral and other general benefits should be incorporated in the new Act.

(II) Subject to the right of appeal to the Administ.rat.ive Board, the certificate of the Chief MedicalOfficer, Commonwealth Health Laboratory, Kalgoorlie, shall be the deciding factor as to anyquestion regarding :-

(a) tho extent and degree of incapacity of any worker suffering from Silicosis ;

(b) his ability or inability to earn full wages at the work in which he was employed;

(c) whether 01' not the disease is, or was, due to the nature of his employment.

(12) 'Yorkers diagnosed by the Chief Medical Officer, Commonwealth Health Laboratory, Kalgoor­lie as suffering from" early Silicosis" be compelled to leave tho industry.

(13) Similar provisions as contained in Section 10 of the 'VOl'kers' Compensation Act should be in­corporated to ensure the compulsory protection of all workers in the Industry.

24

PART VI.GENERAL.

GOVEHNMENT INSURANOE,

The State Insurance Office curries out tho work of insuring State Officers, but tho whole of tho premiumsIt1'O pnid into a Fund at the Treasury, and from U1Ut Fund pnymente of Compensation are made. ,Vhen theFund exceeds £50,000 the excess amount is paid into Consoli: latcd Revenue. Actuallv the State Office carr-iesout the work without receiving any rcmunerat.ion for its secvioes. .

This policy also has the clisadvnnt.agc of excluding the prerniuma received and the oompensat.ion paid£1'0111 tho published figures of the Government Statistician. This is the only State in which such an anomalyoxists.

Your Commission favours the policy followed by the Queensland Government.. In that State, t.he StateInsurance Office deale with all compcnsat.iou payments on behalf of Government. workers and claim. fromthe Department concerned the actual outlay made by them, plus 5 pOI' cent.. to CO\"OI' administration. Thoresulting payment is credited to U18 State Government. Insurance Fund and dealt. wit.h by them as a premiumreceipt.

This course is recommended for adoption in this state,

~MONOPOLY.

\Vhilst we recognise that insurers generally have endeavoured to carry out the main insurance provisionsof the Act, there is cause for dissatisfaction in the methods adopted by some of them in its administeat.ion.This in our opinion is due largely to the lade of any provisions in the Act for administrative cont.rol.

Having in view the above comments, we do not consider that a monopoly is necessary, provided theother recommendations W8 have made are given effect to. Should it be decided not to proceed with thoestablishment of an Administrative Board as recommended, we are of the opinion that a monopoly is the onlyalternative.

l\IEDICAL ATTENTION.

The most general complaint. made to the Commission by Insurers was the unreasonable att.itude of anumber of doctors in assessing their charges for services rendered on compcnsrrtion ca-ses. On the other handmany medical men were giving excellent service and their charges were quite reasonable.

We are of the opinion that a medical officer should be available to the Board for advice. Any in­surer dissatisfied Wit.11 the claim made hy a doctor should be permitted to submit the case to the Board forfinal decision on that phase of the case only and without prejudice to the Insurer's negotiation for set.t.lo­ment of compensation with the injured worker.

CLINIC.

The Chairman, when visiting the Eastern States, was asked to investigate and report on establishedclinics.

In New South 'Vales an insurance office which appears to do something over 40 per cent. of the worker'scompensation insurance in that State has established a clinic located in their head Office. It. employs :­

5 Doctors

2 Nurses

4 ;\Iasseurs

I X-Ray Technician

E\'81'Y new case that comes in is X-Rayed.

Benefits claimed for tho clinic are :--

Expeditions treatment

Quicker return to work -of patients

Xcrays averaging so pel' day

About 100 patients dealt with dn.ily

General sat.isfaot.ion to injured workers.

VOl"y serious cases are sent, to specialists, and these do not, come to the clinic un less for after-treatment.

Twelve workers who were being treated at the clinic expressed to the Chairman, ent.ire sat.isfact.ionwith the treatment received and progress made.

In Victoria, an insurance company has made arrangements with a fully qualified nurse who has aclinic to undertake the treatment of injured workers. This clinic is located in a building where 18 doctorsare situated, and arrangements have been made by roster for one 01' more of these doctors to be alwaysavailable. The nurse's accounts are met by the insurance company, and she is at liberty to call in anymedical advice necessary. The clinic deals with other accident. cases in addition to those of the companyreferred to.

This mut ter is reported on Lccuusc evidence "y,H suhmit tr«l regarding complninta :-.

(I) ill nlituiniug t.rent incut. for injured workers which could be attended to ill a clinic,thus avoiding return vieits to doctors for such treatments;

(2) in obtniuiug a quick return of patients to work;

(3) of the absence of X-l'tl,y facilit.ies without heavy cost;

(4) of unnecessary hospita..lisation because of the absence of a suitable clinic.

REKlliILITATION.

Evidence and available data showed that generally the development of Workers' Compensation laws,although directed towards increased benefits for the injured worker, had been undertaken with a moreintensive study of accident prevention aIHI rehabilitation, as it is realised that the earliest possible returnof the injured worker to the production aphcro is of personal and national importance.

The whole question is one which may shortly be under-taken by the Commonwealth Government, whichhas intimated that the existing scheme [01' the rehabilitat.ion of ex-service men and WOIlleH may be extendedto apply to the civilian populat.ion. Until some definite decision is arrived at, the fur-ther considerationof this most important, phase of industrial insurance '311OUld be left in abeyance. If, however, the Common­wealth Government decides not to take any action the mnt.ter should be further ivestigated by the proposedAdminista-ativc Board with a view to inat.it.ut.ing some scheme.

Of the suggestions placed before t.he Commission, the following seem worthy of consideration :-

(i) Establishment of an industrial accident and disease hospital with provision for specialhand and back clinic.'> for tho rehabilitation of injured workers; and

(ii) Full investigation into the matter to arrive at the most suitable method to achieverehahilitut.iou under conditions obtaining in this State. For this purpose a.recognisedexpert should be engaged to report fully on the most practical method of implementingan appropriate scheme.

For real benefit. to be derived from any such scheme t,110 co-operation of both workers and the om­plcyers is essential.

As an initial step pending the Iurther consideration of rehabilitation, your Commission recommendsthe inclusion in the Act of provisions regarding partial Incapacity anti the re-employment of partially in­capacitated workers similar to those appearing in t,\18 New South \Vales Act (Part II., Sections 11 and 12)to place the onus on an employer to pt'oye to the snt.isfuct.ion of t,110 Administrative Board his inability tore-employ his partially incapacitated worker.

CONCLUDING l-U~:HAHK;-).

In view of the extensive nature of the recommendations contained in this Report the Commissionis of the opinion that the Bills to be intoduccd should be of a consolidating nature.

If amending legislation is introduced on the lines of 'this Report" it, .is submitted that such legislationshould come into effect from the da.tc to be proclaimed to permit of the constitution and establishment of theAdministrative Board.

It is suggested, however, that the provisions relating to t.he appointment and functions of tho Pre­miume Committee should be operative from the date of enactment to enable the Committee to report tothe Minister prior to proclamation, as to what increases, if any, in premiums would be necessary to coverthe increased benefits.

Yom' Ccnunissiou desires to thank t.he (jovorrunenb for permitting the Chairman to proceed to theEastern States to make the enquiries so much needed by tho members. Tho information obtained hasbeen of great help in framing this Report, and has enabled your Commission to approach many aspectswith a definite knowledge of working conditions and pur-ticulurly administrabive problems. \Va also desireto express our thanks and appreciation to 'those gentlemen who assisted tho Chairman by discussion of theproblems he placed before them.

Finally we desire to record our thanks and appreciation of the very efficient services rendered to theCommission by the Secretary, ~Ir. E. L. '-Vilson.

"TO have the honour to be,

Your Excellency's Obedient Servants,

GEO. "\'7. SIMPSON, Chairman.

J. I. ~IAl\TN, Member,

\V. S. ANDHE\V, Member.

\V. HODSDON, Assessor.

\Y. A. HUTCHINSON, Assessor.E. L. \VILSON, Secretary.

Parliament House, Perth,15th April, 1948.

Kames.

Barnett, ,r. A.Bellchambers, A. C.Bown, 'Y". f:l.Brisbane, E. E.Carter, L. L.Carter, W. L.Clare, A. E.Clare, L.Clarke, Dr. F. ,J.Cook, Dr. II. L.Cooper, G. H. . ..Copping, De. D. EoCrawcour, 1.Faulkner, R. ~I.

Forsaith, IL A.Foxall, .J, S.Golding, C. H....Gray, 'Yo V.Hagan, N. G. ...Hardouiu, F. H.Hart, L.Hart.roy, T. A....Hassell, 1.Irs. T. 1.I. O.Hutcley, A. Eo ...Hawke, A. R. G. (~LL.A.)

Henzcll, L.Hewitt, A. Eo ...Hislop, Dr ..J. G. pLL.C.}Hughen, ,J. .J.....lenninge, G. U.,Jolle:y,.R. T..Iury, Dr. L. R.King, H. w.Kingston, H. T.Lennox, G. H ....Lo Souef, Dr. L. E.Livcreedge, '1'....Meagher, Sir '1'. W.Muirson, C. R ....:;\[eBeatb, C. L.:;\IcCulloch, H. A.~fcDonuld, A. J.~'\[cKissock, G. EoNeville, A. O. ...Newman, J. F.Odgers, E. P. . ..Oldha JU, R. A.Oliver, C. T.Outhred, Dr. K. G.Owen, T. E.Paton, J. L.Plunkett, C. H.Pottinger, Dr. G. W.Price, J. P.Reeve, C. A.Reid, A..J.Hilchol', 13.Rosc, A. C.Shannon, J. J .Shadley, A. C ..Stark, L.Sweeney, H. 1.f.Thomas, J.Thomson, J.'I'ownelng, K. J.Tyson, J. W.Verran, J. H. ...'Warman, }1~. W.White, J. G.

26

APPENDIX.

INDEX TO WI'l'l\"'ESSES.

Titles.

Secretary, rtline Workers' Relief Fund, KalgoorlleRetired Miner ...Manager, Stato Oovennnent Insurance OfficeAssistant State Mining Engineer, Mines Depart-ment.Secretary, Employers' Federation... ...Chairman, Fire & Accident. Underwriters' AssociationPrincipal Architect, Public Works Department ...Representing Chamber of Mannfacturere Insurance, Ltd.Representing British Medical Association ...Representing British Medical AssociationRepresenting Govenuncnt StntlsticlanHopresenting British Medical AssociationBusiness :;\IanagerRepresenting Commissioner of RailwaysManager Director, Harvey Trindor (Aust.), Ltd.State Mining Engineer, Mines DepartmentSecretary, Australian 'Vorkers UnionDeputy Registrar of Friendly SocietiesGeneral Secretary, Civil Service Association [Iuc.]Secretary, Australasian Steam Ship Owners' Federation, FremantlcSecretary, Hospital Benefit Fund of \\'.1\.Solicitor, KnlgoorlieSecretary, 'Yest Australian Kurscs' AssociationSecretar-..., United Friendly Societies Voluntary Hospital FundMember of ParliamentDirector, Tuberculosis Branch, Public Health DepartmentSecretary, Federated Moulders (Metnle) Union of WorkersConsultant Physician, Perth ...Executive Member, Timber Workers' UnionGeneral Secretary Ohamber of Mines, W.A. ... ...Manager, General Accident, Fire aud Life Assurance Corp. Ltd" PerthMedical Practitioner '" ..Representing Department of Social Services (Unemployment and Sick.

ness Benefits) '" •.. ... •..Acting Secretary, Locomotive Engine Drivers' and Firemen's Union...Director, Edward Lumley & Sons (W.A.) PtJ'., Ltd.Representing British Medical Association ...Formerly Machine Miner '"Vice President, National Safety Council of W.A.Acting Deputy Government StatisticianActing Commissioner of Native Affairs ...... ... . ..Secretary, Eastern Goldfields District Council of Australian Labour PartyDistrict Inspector under Timber Regulation Act, Forests Depart-mentManager for W.A. Underwriting and Insurance Co. PtJ' ., Ltd. ...Formerly Commissioner of Native Affairs ...Representing Amalgamated Engineering Unionwages Clerk, Metropolitan Water Supply Department .. ,Business Manager ...Secretary, Mtning Division Australian 'Yorkcr,<;' Union ...Chief Medical Officer, Commonwealth Health Laboratory, KalgocrlleManager, State Shipping Service .:JIanaging Director, Edward Lumley & fk'1ls (W.A.), Ltd.Business Manager ...Medical Officer, State Govcnunent Insurance OfficeSecretary, W.A. Fil'c Brigades BoardSecretary for Labour ...Under TreasurerPresident, Civilian Muimod & Limbless Ae-cciattonManager, Bankers' Health Society (W.A. Brunch]Secretary Collie :;\1iners' UnionDeputy Conservator of Forestsrt[anager for Victoria Underwriters and Insurance Co. Pty., Ltd. ...General Secretory, "'.A. 'Ifuiber workers' Union GS."'. Lund Division)Superintendent, :;\Iille 'Yorkers' Relief Act, ~Iilles DepartmentGeneral Manager, 'Veshaliau Farmers' Co-operativeInspector, Public Service Commissioner's Office ...Representing the Friendly Societies COlUlCi! of 'W.A,Senior Inspector of Mines, KalgoorlieChief Inspector of Factories '"Secretary, Operative Painters' Union

By Authot-ltv : \\'ILL}.,,:'-[ n. \\'L\TT, noverumeut Pr-iuter-, Perth.

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