Victorian Political News		www.robertclark.net

WORKCOVER: GOVERNMENT BACKDOWN MUST LEAD TO RESULTS

News Release - Wednesday, 9th August 2000

The last minute intervention by the Premier over the Government's bungled handling of WorkCover premium increases is a clear admission that the changes are hurting Victorian businesses and service providers.

It is also raises serious doubts about the Premier's confidence in the Minister for WorkCover, Bob Cameron, who was responsible for the failed premium increase model.

Mr Cameron was not included in the talks between the Premier and VECCI even though he has been heavily involved in defending the Government's decisions in the media.

However, the concessions the Premier has made to VECCI haven't actually solved the problem, they have merely bought the Government some time to come up with a solution.

The Shadow Minister for WorkCover, Robert Clark, said the Government must use the next week and the discussions it has promised to hold with VECCI and other business groups to actually deliver such a solution.

"What it has conceded to date remains a very temporary reprieve for employers," Mr Clark said.

"The Government needs to rethink the way it has imposed the premium increases, and look at extended deferral, or even waiver, of part or all of the increases.

"The Government also needs to release all the information and calculations behind its premium increase model, so employers and the public can judge for themselves whether the numbers add up.

"To date the Government has still failed to provide any explanation of how the average increase in premium rate can be only 17% when industry rates for 275 of 518 industry classifications have been increased by over 20%, with 200 unchanged and only 43 reduced.

"On our calculations, most small and medium size employers in industries covering some 44 per cent of Victorian payroll are facing premium rate increases of close to 40 per cent (plus GST), with many large employers, or employers who have had modest payroll growth, facing even higher increases in their bills.

"If the numbers don't add up, this clearly gives scope for a major redesign of the failed model which the Government has imposed on Victorian employers and which is damaging confidence, costing jobs and cutting services to the community."