Setback for Minns government as controversial workers' compensation bill sent to inquiry

The Guardian

2 days ago

A controversial bill to curtail workers' compensation claims for psychological injuries incurred by New South Wales workers will be sent to a parliamentary inquiry, after cross benchers and the Coalition banded together to force the inquiry.
The independent Mark Latham moved for a relatively swift inquiry, with the date of reporting to be set by the chair of the inquiry, once the scope of evidence is known.
The move is a setback for the Minns Labor government, which released the workers' compensation bill a week ago, insisting it was extremely urgent and needed to be passed this week.
The state treasurer, Daniel Mookhey, who opposed the inquiry, said NSW's compensation scheme was running a $5m deficit every day.
The full impact of growth in claims for psychological injury by public sector workers will be evident on 24 June when the state budget is delivered.
Mookhey said this week there had been a $2bn deterioration in the Treasury managed fund which pays for public servants' claims. He's also warned that premiums for business will need to rise by 36% in the next three years.
'No employers should have to worry about the sustainability of the scheme,' he said. 'If we delay further the task gets harder.'
The government's bill would lift the threshold for whole of person impairment from 20% to 30%, limiting their compensation to payments to 2.5 years.
It has been heavily criticised by the union movement and medical and legal experts who say that the threshold is too high, and will leave workers who are unable to function without the financial support they need.
The opposition wants the threshold left as it is, but offered amendments to definitions of bullying and other aspects of the bill, which it said would deliver more modest savings.
Greens MLC Abigail Boyd, who is chair of the public accounts committee, said the government had committed 'a complete breach of trust' by blurring the impact on various government accounts and failing to produce the modelling that would allow members to assess the impact of the scheme.
'I don't like being misled,' Boyd said. 'The treasurer has deliberately confused the nominal fund and the Treasury managed fund,' she said. She accused Mookhey of being driven by concerns over the state's AAA rating at the expense of injured workers.
'It is not melodramatic to talk about life and death.' Five people committed suicide after the 2012 changes that were later reversed, she said.
'These are the most cruel and dangerous of reforms. If you think as I do that this will cost lives, then I urge you to support an inquiry,' she said.
The inquiry is expected to begin as soon as possible, with Mookhey indicating he wants to pass the bill in the budget sittings of parliament.
The committee will meet next week, will be chaired by Boyd and include
Latham, and Coalition MLCs Damien Tudehope, Sarah Mitchell. The government will nominate three members.
The Treasurer has publicly indicated his willingness to cooperate.