'Of The People, By The People, For The People' Workers' Compensation in Queensland: The Rise and Fall of a Policy Community Author Cowan, Paula Published 2005 Thesis Type Thesis (PhD Doctorate) School Griffith Business School DOI https://doi.org/10.25904/1912/615 Copyright Statement The author owns the copyright in this thesis, unless stated otherwise. Downloaded from http://hdl.handle.net/10072/365385 Griffith Research Online https://research-repository.griffith.edu.au “OF THE PEOPLE, BY THE PEOPLE, FOR THE PEOPLE”1 WORKERS’ COMPENSATION IN QUEENSLAND: THE RISE AND FALL OF A POLICY COMMUNITY Paula Cowan B.Com. (Hons) Griffith University Department of Politics and Public Policy Griffith Business School Griffith University A thesis submitted in the fulfilment of the requirements for the degree of Doctor of Philosophy December 2004 1 Although this is not an original phrase, it was the motto adopted by the State Government Insurance Office when it commenced business. ABSTRACT The central question posed in this thesis is why has the Queensland model of workers' compensation been so enduring? The legislation remained largely intact from 1916 until 2001, with the exception of the years from 1996 to 1998. This was so despite the fact the central feature of a state-controlled monopoly that underpinned this model was always potentially divisive in line with the variances between liberal-conservative traditions and social-democratic ideals that subsisted in broader political culture. In addressing this question of longevity, this thesis explores the capacity of an initially contentious piece of legislation to draw strong support from former opponents, and the argument is put forward that it is best explained through the development and operation of a policy community that fostered a shared set of core values relative to broad workers' compensation policy preferences. These core values were compulsory state monopoly, no fault insurance and full access to common law. Thus, the longevity of the legislation is attributed to the continued support by key stakeholders of these core values. The thesis also demonstrates that policy community relations deteriorated during the 1990s as governments responded to broader political pressures precipitated by reform agendas. Inconsistencies in core values and policy outcomes for each stakeholder emerged as governments attempted to assert unprecedented control over the direction of workers' compensation in order to meet broader political goals. The legislation was threatened as relations within the policy community proved unsustainable when existing core values were contested. STATEMENT OF ORIGINALITY The material in this thesis has not been previously submitted for a degree or diploma in any University. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made in the thesis itself. _________________________________ TABLE OF CONTENTS CH. 1 — INTRODUCTION 1 Context 3 Argument 6 Methodology 7 Sources 9 Chapter Outline 13 CH. 2 — WORKERS’ COMPENSATION, GOVERNMENT AND POLICY-MAKING 18 Workers’ Compensation Policy 20 Public Policy Processes 22 Pluralism 23 Corporatism 27 Policy Networks and Policy Communities 31 Longevity of Policy Communities 37 Conclusion 39 CH. 3 — QUEENSLAND’S HERITAGE 41 Origins of the Legislation 44 Australia 45 Queensland 47 Queensland’s Progress 51 The Labor Party agenda for Workers’ Compensation 57 State Government Insurance Office 62 Discussion 63 Conclusion 68 CH. 4 — “…EVEN IF A PACK OF FOOLS WERE IN CHARGE THE INSTITUTION COULD HARDLY HAVE SUCCEEDED LESS WELL” 71 T.J. Ryan Government 1915-1919 75 Legislative Amendments 75 E.G. Theodore Government 1919-1925 84 Legislative Amendments 85 A.E. Moore Government 1929-1932 92 W. Forgan-Smith Government 1932-1940 94 Summation of 24 years of operation of the Workers’ Compensation Act 1916 99 Economic Progress of the Fund 101 The Role of the Commissioner 111 Development of Cooperation 121 Discussion 127 Conclusion 134 CH. 5 — THE LEGISLATION FROM THE 1960s TO 1980s — “…A KIND OF BASTARDISED SOCIAL SERVICE SCHEME” 138 The Australian Labor Party 144 The Nicklin Government 1957-1968 147 Workers’ Compensation Fund 149 Legislative Amendments 152 The Bjelke-Petersen Government 1968-1987 162 Changes to the SGIO 168 The Workers’ Compensation Board of Queensland 178 Legislative Amendments of the Bjelke-Petersen Government 181 Compulsory Government Monopoly 191 The Ahern Government 1987-1989 196 Discussion 199 Conclusion 207 CH. 6 — A TIME OF CHANGE – THE GOSS & BORBIDGE GOVERNMENTS 210 ALP Reforms – 1980s 218 New Governance Ideals 220 Workers’ Compensation Amendments 223 Changes Between 1991-1993 228 Changes - 1995 235 The Borbidge Government 1995-1998 241 The Kennedy Report 242 Introduction of the WorkCover Queensland Act 1996 251 Discussion 257 Conclusion 264 CH. 7 — RE-INVENTING THE WHEEL – THE BEATTIE GOVERNMENT 267 Beattie Government – 1998 271 Amendments to WorkCover legislation – 1999 274 National Competition Policy 279 Amendments to WorkCover legislation 2000 – 2001 284 Discussion 289 Conclusion 296 CH. 8 — CONCLUSION 298 BIBLIOGRAPHY 311 ACKNOWLEDGEMENTS Only engage, and then the mind grows heated – Begin it, and then the work will be completed! Johann Wolfgang von Goethe (1749-1832) This thesis is the result of a long journey during which I often recounted the above quote, and even more often doubted its wisdom. Throughout this journey I have met many people who have provided support and inspiration. First my thanks to my supervisors Professor Patrick Weller and Dr. Robyn Hollander who both provided supervision that went far beyond the call of duty. Pat, I could not have completed the thesis without your continued support and your great ability to see the ‘big picture’ each time I was carried away with detail. Your generosity has been immense and I am deeply grateful. Thanks to Dr. Robyn Hollander for her spirited suggestions and critical analysis in relation to this thesis. Robyn, your ability to maintain serious facial expressions when confronted with some of my initial chapter drafts and to extract something positive out of each, has been remarkable. I also wish to thank Dr. Glenda Maconachie for her friendship, willingness to offer advice whenever sought and for her great editing skills. My thanks also to members of the Department of Politics and Public Policy, the Key Centre for Ethics, Law, Justice and Governance, and the PPP Postgraduate group for their support and friendship. In particular I wish to thank Dr. Giorel Curran whose friendship and support have been a joy. Thanks also to my ‘roomie’ May McPhail for her support, unending good humour and her uncanny ability to know when chocolate was needed. My sincere thanks also go to Carmel Connors for her expertise and assistance in the formatting and layout of this thesis. I must also thank former supervisors, Professor Arthur Brownlea, Dr. Claire Mayhew and Dr. Jenny Fleming. I owe a deep debt of gratitude to my children Ben, Scott and Alana for their continued support and the many distractions (joyful and otherwise) each provided that enabled me to maintain some perspective. Also I want to thank my parents Fred and Joan Flynn for their unfailing support. Finally, I want to thank Roxie who, from the outset, never failed take up her position under my desk whenever the laptop was switched on. Her presence brightened many long days and nights when it felt like I was the only person ever to face such an arduous task. And von Goethe was right. ABBREVIATIONS AA Australian Archives ACTU Australian Council of Trade Unions AEU Amalgamated Engineering Union ALP Australian Labor Party AMA Australian Medical Association ARU Australian Railways Union AWA Australian Workers’ Association AWU Australian Workers’ Union BWIU Building Workers’ Industrial Union CEPU Communications, Electrical and Plumbing Union CFMEU Construction, Forestry, Mining and Energy Union CSR Colonial Sugar Refinery EARC Electoral and Administrative Review Commission ETU Electrical Trades Union FCU Federated Clerks’ Union IWW International Workers of the World MIM Mount Isa Mines Holdings Ltd MTIA Metal Trades Industry Association NAA National Archives of Australia NCP National Competition Policy PAYE Pay as You Earn PLP Parliamentary Labor Party POA Professional Officers Association PSGOA Public Service General Officers Association QCE Queensland Central Executive QCU Queensland Council of Unions QICAR Queensland Independent Tribunal of Administrative Review QLP Queensland Labor Party QPD Queensland Parliamentary Debates QSA Queensland State Archives QTC Queensland Treasury Corporation SEQEB South East Queensland Electricity Board SGIO State Government Insurance Office TLC Trades and Labour Council WCBQ Workers’ Compensation Board of Queensland WWF Waterside Workers’ Federation CHAPTER ONE INTRODUCTION In developed countries workers’ compensation is recognised as a right provided to those who sustain an injury or contract an illness/disease as a result of their employment. However, this right was not always accepted. Its ultimate acknowledgement resulted from long and bitter struggles that involved different interests and power relations in different jurisdictions, not the least of which was embedded in the struggle between the extent of economic recompense and moral values relative to the worth of a human life. The struggle over workers’ compensation can also be posited within the broader territories of Australian political