WEDNESDAY, MARCH 25, 1987
19
AD HOC GROUP REVEALS GOVERNMENT DEFICIENCIES
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A NUMBER OF DEFICIENCIES WITHIN GOVERNMENT ADMINISTRATION HAVE BEEN REVEALED BY A LEGISLATIVE COUNCIL AD HOC GROUP STUDYING THE MOTOR VEHICLES (THIRD PARTY RISKS) (AMENDMENT) BILL 1986, DR THE HON HENRIETTA IP SAID TODAY (WEDNESDAY).
SPEAKING AS CONVENER OF THE GROUP DURING THE RESUMED DEBATE ON THE BILL, DR IP SAID THE OVERRIDING REASON FOR THE BILL WAS TO REPEAL A PREVIOUS SCHEME WHICH WAS BASED ON FAULTY PRINCIPLE.
SHE RECALLED THAT MEMBERS' FIRST REACTION TO THE BILL WAS THAT IT APPEARED WRONG IN PRINCIPLE TO SUBSIDISE INSURANCE COMPANIES WHICH UNDER EXISTING LEGISLATION WERE REQUIRED TO PAY EXPENSES INCURRED BY NON-PROFIT MAKING HOSPITALS IN TREATING PEOPLE INJURED BY THE INSURED VEHICLES.
SHE SAID THE AD HOC GROUP INITIALLY FOCUSSED ATTENTION ON WAYS TO IMPROVE THE RECOVERY SCHEME INSTEAD OF ABANDONING IT BECAUSE THE GOVERNMENT'S MAIN ARGUMENT FOR THE BILL WAS IN THE ADMINISTRATIVE DIFFICULTIES ARISING FROM THE SCHEME.
SHE STRESSED THAT MEMBERS CONSIDERED THAT ADMINISTRATIVE AND FINANCIAL DIFFICULTIES SHOULD NOT STAND IN THE WAY OF THE EXECUTION OF FAIR AND JUST LEGISLATION.
HOWEVER, AFTER A SERIES OF MEETINGS, THE ADMINISTRATION BROUGHT OUT THE SECONDARY ARGUMENT THAT THERE WAS NO JUSTIFICATION FOR MOTORISTS TO BEAR THE FULL COST OF TREATING PERSONS INJURED, DR IP SAID.
DR IP OUTLINED THE DEFICIENCIES WHICH WERE REVEALED BY THE AD HOC GROUP IN THE COURSE OF ITS DELIBERATIONS OF THE BILL.
FIRSTLY IT TOOK THE GOVERNMENT 27 YEARS AFTER THE ENACTMENT OF THE ORDINANCE TO INSTITUTE ARRANGEMENTS TO RECOVER HOSPITAL EXPENSES FROM INSURANCE COMPANIES,
SECONDLY, THE MANAGEMENT SERVICE DIVISION WAS BROUGHT IN TO ASSIST WHEN ADMINISTRATIVE DIFFICULTIES AROSE ONE YEAR AFTER THE IMPLEMENTATION OF THE RECOVERY SCHEME BUT NONE OF ITS SIX RECOMMENDATIONS WERE ADOPTED AFTER EIGHT YEARS,
THIRDLY, THE GOVERNMENT HAD NO LEGAL AUTHORITY TO SUSPEND THE SCHEME IN 1981
FOURTHLY, IT TOOK THE GOVERNMENT SIX YEARS TO BRING THE PROBLEM TO THE ATTENTION OF THE EXECUTIVE COUNCIL AND THE LEGISLATIVE COUNCIL, AND
FIFTHLY, THE PRIME REASON GIVEN BY THE GOVERNMENT FOR REPEALING THE SCHEME WAS WRONG.
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