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PARLIAMENTARY REPORT SHOWS BUDGET HIT BY WORKCOVER RISES

News Release - Thursday, 30th November 2000

A Public Accounts and Estimates Committee report tabled in Parliament today has revealed that many Government departments and agencies have been hard hit by increases in WorkCover premiums.

The report and transcripts of evidence given to the Committee also show that the Minister for Community Services, Christine Campbell, has urged the Government to recognise the impact of premium increases on non-government agencies such as disability service organisations. However, to date the Government has not provided any additional funding for such organisations.

Details of the premium increases are contained in a minority report by Opposition Committee members Louise Asher, Gordon Rich-Phillips and David Davis.

Among the increases set out in the report are:

• Department of State and Regional Development - up $94,849 or 103%
• Department of Education, Employment and Training - up $10,864,808 or 41%
• Metropolitan Ambulance Service - up $801,314 or 69%
• Alpine Resorts Management Boards - up $81,746 or 69%
• Environment Protection Authority - up $68,551 or 52%
• Parks Victoria - up $317,635 or 77%
• Victorian Catchment Management Authorities - up $114,041 or 51%
• Zoological Parks & Gardens Board - up $120,975 or 36%.

Transcripts of evidence given to the Committee show that on 8 August the Minister for Community Services, Christine Campbell, told the Committee:

We are aware of the impact on the non-government sector. The Department of Treasury and Finance is currently formulating a position on Workcover premiums. It is anticipated that that will be discussed this month, and agencies will be informed by the Treasurer when the decision has been made. The Department of Human Services has been liaising with Treasury and Finance and Workcover on this issue, and we will fund Human Services agencies based on the Treasurer's advice to us. We will be making representations.

In response to a question as to whether the Minister would be seeking a restoration of funding for non-government groups, the Minister said:

I will be putting to Treasury and Finance strongly that Workcover premiums are having an impact on the budgets of the non-government sector - and you can read into that whatever you like.

"This latest evidence highlights the turmoil within Government over the handling of WorkCover premium increases. The Minister for Community Services recognises the enormous difficulties which these increases have caused for disability service providers and other community organisations. However, while the Government has provided extra funding to its own departments, it has simply left these organisations in the dark about extra funding, and facing the need to cut staff and services to clients," the Shadow Minister for WorkCover, Robert Clark, said.