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Labor Council fears Workers Compensation Cuts09 June 2000The NSW Government has announced its intention to again defer the transfer of the WorkCover insurance scheme to the private insurers. This was a recommendation of the Workers Compensation Advisory Council. There are some who would have the Government abolish or significantly downgrade the role of the Workers Compensation Advisory Council. This Council is made up of employer and union representatives and was set up by the government on the recommendations of the Richard Grellman Inquiry into workers compensation. The Workers Compensation Advisory Council was set up in 1998 when the scheme was costing around 3.4% of wages. As a result of the Advisory Council's initiatives, costs have been pruned to about 2.8% - the break-even premium rate for the 1999/2000 premium year. According to the Council's Actuary, David Zaman, this will continue. David Zaman said "the scheme is continuing to improve and the rate is down from what was expected and is below 2.8%". Zaman further stated, "that an independent firm of actuaries has reviewed these figures and has confirmed these results". Ian West, LHMU representative on the Advisory Council, said the Council has delivered real results and stability to the workers compensation system, which in the past has been a very volatile issue, and has had the union movement protesting in the streets. Ian further stated that he "found it quite an insult to the Advisory Council that the Government intended to set up an expert group". Ian said that the Advisory Council has this expertise but where they need highly specialised information, they consult with the experts. Ian further stated "it would be very detrimental, and a backward step to the scheme, if this mechanism is lost or downgraded." Garry Brack, Chief Executive Officer of the Employers' Federation and employer representative on the Council said: "the only reason that the scheme has delivered positive results is that the Council has had capacity to formulate policies that would work and the good fortune to have a Minister, Jeff Shaw, who was prepared to positively evaluate and implement those policies. The outcomes speak for themselves. Brack further said "scheme costs have dropped dramatically. Workers benefits have not been attacked and the average premium cost has been held down - We've all been winners! Brack further said: "Much more needs to be done and the Advisory Council is right in the middle of further fundamental initiatives and ensuring we add to the gains already made and the only way that we can continue to achieve positive outcomes is through the endless process of monitoring, fine tuning and reform which the Advisory Council has carried out to date.
Greg Patterson of Australian Business Ltd, another employer
This process appears to have taken a long time and has been more difficult than any would have anticipated. However, it is clear that there are no quick fix solutions. All quick fixes require either increased premiums or substantial changes to benefits. The Minister needs to be mindful of what has been achieved by the Council and in contemplating his next steps needs to take this into account. In other words, don't throw the baby out with the bathwater." Charles Vandervord, the Law Society's representative stated "the establishment of the Council has resulted in stability and cost effective initiatives being introduced to what had been an unstable and costly workcover scheme and the lawyers endorse the initiatives and have cooperated in their implementation".
It seems that the Advisory Council is the real driving force and is delivering positive results which has the full support of the stakeholders.
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