The NSW Government is committed to improving the safety of all workplaces in NSW. A key strategy in realising this commitment is the WorkCover campaign 'Let's Get Serious About Safety', launched by the Minister for Industrial Relations in August 1998. Consistent with this strategy, the NSW Government is requiring all public sector agencies to improve their workplace safety.

The direct cost of workers' compensation premiums for agencies in the TMF has increased from $230 million in 1992/93 to $372 million in 1998/99, which is more than double the increase in wages for the same period. The indirect costs associated with workplace illness and injury have been conservatively estimated by the Industry Commission Inquiry into Occupational Health and Safety (1995) at three times the direct cost, and include loss of skills and expertise for agencies, and loss or reduction in career opportunities for employees.

These costs have become a significant budgetary pressure for many agencies, and divert resources that could otherwise be used on core business activities and service delivery. The NSW Government is therefore committed to achieving significant improvements in public sector occupational health and safety (OHS) management over the next three years as part of its Corporate Services Reform Initiative.

To support this outcome, Ministers of all agencies are to ensure that a commitment to improve agency OHS management and workers' compensation performance is included in all Chief Executive Officer (CEO) Performance Agreements. Specific improvement targets have been negotiated with a number of agencies by the Premier's Department and these targets should be included in the CEO Performance Agreements for these agencies.

All Ministers are to monitor the workers' compensation performance of agencies in their portfolio, including progress against improvement targets where appropriate.

I ask that you give this matter your earliest attention, and ensure that OHS is given the commitment it requires. Reports on agency OHS management and workers' compensation performance will be prepared for the Budget Committee of Cabinet on a regular basis, including progress against specific improvement targets.

Bob Carr
Premier 
 
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Related to M2005-14