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Case Studies of Reform

November 4, 2011

Speaking to Canberra public servants today I discussed three case studies of reform from 1995-2005 in NSW state government. They were: turning the NSW police force from a poorly performing, corruption-prone police force into a professionally-performing, corruption-resistant police force; wiping out the rorts of plaintiff lawyers in tort law to increase payments to the injured; and restructuring forestry to secure jobs in a reformed timber industry and also declare 350 new national parks.

The toughest part of the police reforms was giving the Police Commissioner power to dismiss an officer in whom he had lost confidence. It was accompanied by the establishment of a Police Integrity Commission and the introduction of random alcohol and drug testing.

The result was a change in police culture but it involved a battle with the Police Association and in the Labor caucus before the Commissioner received the increased power over non-performing and corrupt officers.

The second case study was Labor’s reforms to workers’ compensation and tort law. WorkCover New South Wales had a deficit $3.2 billion, set to rise to $6 billion by June 2007. Even with these ballooning costs, the benefit for the most severely injured had remained static. Our reforms in 2001 achieved three main objectives: the maximum benefit for the permanently impaired was increased from $171,000 to $250,000; two-thirds of injured workers received medical and financial support within seven days; and the WorkCover deficit was cut by half, saving the scheme from bankruptcy. Similar reforms saw the average cost of greenslips drop from $532 in 1999 to $335 in 2005, a reduction of $198.

My government’s forestry reforms succeeded with the same basic principles being applied in four areas over three terms. The South-East Forest, South Coast, North East Forest icons and the Pilliga all saw big new national parks. At the same time we made wood supply agreements with industry, providing for reduced allocations in return for longer contract periods to allow for long-term planning, as well as industry assistance to timber mills and workers leaving the industry. From 1994 to 2006, the number of national parks rose from 328 to 770, covering 6,600,000 hectares. The overall acreage of protected wilderness grew from 650,000 ha to 2,000,000 ha.

  1. TerjeP permalink
    November 4, 2011 4:48 pm

    Forestry is something that we should privatise. It is basically just a form of farming with a long cropping cycle. There is no good reason for government ownership.

    It is nice to have National Parks but we should provide greater levels of recreational access and stop treating them like wilderness reserves. I’d prefer to see them looked after by competing private trusts rather than government.

  2. November 4, 2011 6:53 pm

    Commissioner Ryan visited Stannies some time when I was there in 1996-7. I dimly recall being quite impressed with his presentation.

  3. Richie Gun permalink
    November 12, 2011 9:39 pm

    Perhaps you should come and talk to WorkCover in SA. We tried reforms that we thought would emulate NSW and Victoria in turning a large WorkCover deficit into a surplus, but it hasn’t made any difference. What was the secret? And what are greenslips?

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