WorkCover $1 billion blowout – worker pain for no gain

23/02/09 11:00 am

Greens MLC Mark Parnell has called for the shelving of plans to cut employer WorkCover premiums, in response to the admission this morning by CEO Julia Davison that WorkCover’s unfunded liabilities will top $1 billion.

“Despite the slashing of injured workers’ benefits last year, WorkCover has delivered the worst performance in its history,” said Greens MLC Mark Parnell.

“The Rann Government’s vicious attack on some of the most vulnerable people in our community has been for nothing. Instead, this result clearly and comprehensively shows that blaming injured workers for the unfunded liability was wrong,” he said.

Alongside the cutting of worker benefits, last year the Government signalled they would reduce premiums for employers from July 2009.

“With the news that WorkCover’s unfunded liabilities have topped $1 billion; the Government must now shelve its plans to cut employer premiums.

“Labor roundly condemned the Olsen Liberal Government for trying to cut premiums in 2002, as the WorkCover Corporation at that time wasn’t fully funded. Yet, now the Corporation has the worst funding ratio in its history, by far.

“To slash WorkCover Corporation’s major income stream at this time would be economic vandalism and would only inflame WorkCover’s already shaky financial situation.

“Labor’s plan last year was to reduce WorkCover’s unfunded liability by slashing injured workers’ benefits so that premiums for employers could fall.

“Now that the unfunded liability has instead dramatically increased, its time to re-think reducing employer premiums, and instead start focusing on improving return to work rates and retraining of injured workers,” he said.

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