The purpose of this circular is to advise agencies of the progress of the Government's initiative to improve occupational health, safety and rehabilitation performance across the NSW public sector.

As you are aware, the NSW Government has a strong commitment to working with public sector agencies and unions to reduce the social, economic and financial costs of work-related injury. The cost of workers' compensation premiums has spiralled in recent years, far outstripping increases in wages. Savings on premiums are a potential source of funding for agency level initiatives to improve services to the public. Leading agencies have demonstrated that considerable savings can be achieved by the effective management of occupational health, safety, rehabilitation and claims administration.

The Government has recently approved a series of strategies to reduce workers' compensation costs throughout the public sector. These strategies include the targeting of agencies with high workers' compensation premiums. My staff and representatives of the NSW Treasury and the Treasury Managed Fund will be visiting these agencies over the next few weeks to negotiate improvement strategies.

Agreement has been reached with the Public Service Association of NSW to work together to improve occupational health, safety and rehabilitation performance across the sector and, by doing so, to decrease workers' compensations costs. This agreement will be reflected in a Memorandum of Understanding which includes targeting agencies for improvement.

Your cooperation in reviewing your agency's performance is required. A sector-wide policy and guidelines to underpin a three year improvement plan is currently being finalised and will be circulated shortly.

Please direct any enquiries to Wendy Barrett on telephone number 9228 3568 or Valerie Corbett on 9228 3569.

C. Gellatly
Director-General

John Pierce
Secretary
The Treasury