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GOVERNMENT DISARRAY ON WORKCOVER PREMIUM FUNDING

News Release - Thursday, 5th October 2000

After more than three months of turmoil inflicted on Government departments and Government funded bodies as a result of massive WorkCover premium increases, the Premier has revealed in Parliament today that extra funds will be provided to Government departments to help meet their increased WorkCover bills.

The Premier's statement leaves unanswered the question of whether non-government organisations such as community health centres and disability service organisations funded by Government will receive additional grants to cover their increased WorkCover premiums.

The Shadow Minister for WorkCover, Robert Clark, said that the manner and timing of the Government's announcement on this funding confirmed the extraordinary mismanagement of the premium increase issue by the Government.

"The WorkCover premium increases were officially published on 22 June. For weeks the Opposition has been highlighting inside and outside of Parliament the damage these increases have caused to bodies such as community health centres, disability service organisations, the Metropolitan Fire and Emergency Services Brigade and the Country Fire Authority.

"Regional and local newspapers have carried numerous reports of such organisations having to cut services such as excursions for intellectually disabled clients.

"The Government's actions have thrown the budgets and plans of these organisations into turmoil and caused distress to thousands of people who rely on the services these organisations provide.

"In all this time the Government has been completely silent about providing any additional funding.

"Now the Premier casually tells Parliament, in response to an Opposition question about an $18 million increase in the police force's WorkCover premium, that Government departments will receive extra funding to help pay their WorkCover bills.

"Yet the Government has still left Government funded community organisations in the dark. They do not know whether or not the Premier's announcement means they will receive extra funds to pay their WorkCover bills.

"This is extraordinary mismanagement by Government. The Government should have made a decision and an announcement on additional funding before the WorkCover bills went out, rather than making decisions on the run in response to the damage they have caused - damage the Government seems to have completely failed to anticipate or provide for.

"The Premier claimed in his answer today that the additional funding is in line with usual government policy. However, if this additional funding is in line with usual government policy, it makes it even more extraordinary that it has taken the Government more than three months to decide and announce it."