South Australia’s WorkCover scheme is to get a new board and CEO in what is called a “key element” of the Rann Government’s plan to improve the organisation’s financial position. 

It could also be called yet another step in state governments’ continuing efforts to maintain inefficient and expensive schemes that are subject to constant tinkering. The SA scheme, under which a small group of insurers are permitted to act as agents, is undergoing the makeover to undo what Industrial Relations Minister Michael Wright says is “damage done to WorkCover by the previous Liberal Government”.

Five months ago, when WorkCover announced an increase in the average levy rate, the state Government said problems would be addressed through changes to the board, a change in management culture, improvements in the governance structure, safer workplaces and better rehabilitation and return to work.

Mr Wright says the scheme’s problems were compounded by the former government’s decision to cut the levy rate and pay a rebate in the lead-up to the election.

The board will be chaired by Ferrier Hodgson senior partner Bruce Carter, who is also the President of the Insolvency Practitioners Association of Australia.

One of the board’s first priorities will be to appoint a new CEO who Mr Wright says “will drive the necessary change in culture”.