Presented by Robert Clark MP		www.robertclark.net

WorkCover: Premium increases to hit confidence, jobs

News Release - 23 February 2000

Victorian businesses face WorkCover premium increases of 15% or more under the Labor Government's proposals to reintroduce so-called "common law" legal actions.

The Shadow Minister for WorkCover, Robert Clark, said the premium increases would impose a cost burden of at least $150 million on Victorian businesses and would seriously undermine their competitiveness and ability to provide jobs.

He said the premium increase was a further blow to Victorians because Labor hid any mention of an increase throughout the election despite its promise to be open and accountable. Premiums could increase even further if the costs of legal actions exceed actuarial estimates, as they have consistently done in the past.

"These proposed increases come on top of the damage done to business confidence by the Labor Government's mishandling of the industrial disputes in the electricity and construction industries, the loss of major projects at the Docklands and the failure to win the Virgin Airlines headquarters," Mr Clark said.

Mr Clark said the premium hike would further remove Victoria's edge in attracting investment and job creation.

"The argument that Victoria can remain competitive if it moves to the national average premium is an illusion.

"Queensland's WorkCover average premium is only 1.85%, and Queensland has already shown recently that it can win business, investment and jobs off Victoria.

"The fact is, we are giving up a significant competitive advantage for Victoria if we increase WorkCover premiums, and that will inevitably cost business and jobs."

Mr Clark said the Labor Government's drive to reintroduce common law legal actions was due to an opportunistic policy adopted while in Opposition, coupled with an unwillingness to stand up to union and Labor lawyer demands.

"Traditionally, it has been the Labor Party which has led the move to eliminate so-called 'common law' legal actions.

"The Hawke Labor Government sought to eliminate 'common law' legal actions from Commonwealth workers compensation legislation in 1988.

"John Brumby himself voted for the total elimination of such legal actions when he was a Federal Member of Parliament.

"The South Australian Labor Government totally eliminated 'common law' legal actions in that State in 1992.

"Yet the Victorian Labor Opposition did an opportunistic backflip in 1997 in order to oppose the Kennett government's elimination of 'common law' legal actions.

"Victorians are now likely to pay with their jobs for the failure now of Labor in government to stand up to the unions and make clear that massive increases in WorkCover premiums are not on," Mr Clark said.

Mr Clark rejected claims that the reintroduction of 'common law' legal actions was needed because the current statutory scheme was unfair to workers.

"The benefits available to workers under WorkCover compare favourably with the benefits available under schemes in other States."

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