[Greens-Media] Media release: Savaging of workers compensation benefits was not required – WorkCover’s own actuary reports

[David Shoebridge MLC]

*Media Release **17 May 2014 *

*Savaging of workers compensation benefits was not required – WorkCover’s
own actuary reports *



A report by the WorkCover Authority’s scheme actuary, Price Waterhouse
Coopers, shows that the Coalition Government’s brutal 2012 cuts to workers
compensation benefits were not required. The Coalition used a notional $4
billion deficit in the scheme as at December 2011 to make the case for the
slashing of workers compensation benefits.  However the PWC actuarial
report tabled in a parliamentary committee this week shows that the scheme
was not in a chronic deficit situation and was on track to return to
surplus without the savage amendments pushed through in 2012.


 See report in the SMH
here<http://www.smh.com.au/nsw/report-challenges-plan-to-cut-injured-workers-benefits-20140516-38f0k.html>
.


The figures which the Government used to support their scheme cuts were the
result of three years of unusually low return on investment following the
GFC. With long term investment returns increasing to the historical norm
the notional $4 billion deficit in December 2011 was projected to reduce to
$2 billion by June 2014, $0.5 billion in June 2018 and back to surplus by
2021 without any benefit cuts being required.


Greens MP and Industrial Relations spokesperson David Shoebridge said:


“This report shows the Coalition’s cuts to workers compensation were in
fact an ideological attack on working people’s rights, masquerading as
economic necessity.


“This is a classic Coalition strategy which we are seeing used by the
current Abbott government, of creating a false financial crisis and then
using that to attack the most vulnerable in our community.


“As at December 2011 the $11 billion that WorkCover had put aside to meet
future claims was receiving historically low rates of return due to the
ongoing fall out of the Global Financial Crisis and produced this notional
$4 billion scheme deficit.


“As any competent government would have known in 2011, investment returns
have now bounced back and WorkCover’s own actuary is saying it was on track
to return to surplus without any of the brutal; cuts imposed on injured
workers in 2012.


“The 2012 changes have seen thousands of injured workers lose their
benefits for medical expenses including prosthetics like artificial limbs
and hearing aids.


“Conservative Governments regularly claim deficits as justification for
savaging the rights of ordinary people, and this report shows that for the
lie that it is.


“The Parliament must urgently consider legislation to return lost benefits
to injured workers who have been unfairly forced to shoulder the costs of
simply going to work and being injured.


“These cuts have seen many workers across the state no longer receiving
income support or medical benefits despite ongoing need.


“Injured workers and their families will be furious to discover the flimsy
rationale for the cuts that have so affected their ability to live with
dignity after a work injury,” Mr Shoebridge said.



*Media contact: 0408 113 952*


*-- David ShoebridgeGreens MP in the NSW Legislative Council P: (02) 9230
3030 |Media: 0408 113 952|T: @ShoebridgeMLC
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