Coalition gave icare bureaucrats go ahead for $75k world trip prior to election

Two senior bureaucrats from the insurer icare were given the green light by the former Coalition government to embark on a round-the-world trip costing NSW taxpayers about $75,000.

Two senior bureaucrats from the scandal-plagued insurer icare were given the green light by the former Coalition government to embark on a round-the-world trip costing taxpayers about $75,000.

The trip was signed off on by former finance minister Damien Tudehope two months before the March state election, with the approval given ahead of the agency requesting the new Minns government to allow it to raise employer premiums by 22 per cent – a move it claimed was necessary to “break even”, or remain financially viable.

The two bureaucrats will depart Australia on Monday for London, before heading to the “insurance hubs” of Bermuda and New York for a series of face-to-face meetings.

The Sunday Telegraph was told the original trip cost was higher, with the original itinerary having the two bureaucrats in London at the same time as the King’s Coronation.

While there is no suggestion the bureaucrats were planning to attend any Coronation events, the cost of a hotel in London at that time was estimated to be about $800-a-night.

Then employee relations minister Damien Tudehope signed off in January on two icare bureaucrats taking a round-the-world trip at taxpayers’ expense. Picture: NCA NewsWire/Flavio Brancaleone

The itinerary was late amended, with icare pushing back the departure date from last Wednesday to this Monday so that the bureaucrats would arrive in London after the Coronation, when hotel costs were lower.

The change coincided with the office of Industrial Relations Minister Sophie Cotsis instructing the agency to “take immediate steps” to reduce the cost of the trip.

Industrial Relations Minister Sophie Cotsis, with Premier Chris Minns, told icare to reduce the cost of the trip. Picture: Via NCA NewsWire

The trip is now expected to cost closer to $65,000.

Set up by the former State government in 2015 to replace the old WorkCover scheme, icare has been subject to intense scrutiny since it was found to be mismanaged and on the verge of collapse.

Last week, the Minns government knocked back icare’s bid to raise employer premiums a staggering 22 per cent to remain financially viable.

The request – which would have hit 330,000 employers – resulted in Ms Cotsis firing off a formal directive to the agency, in which she described the state of the agency as “dismal” and “deeply disappointing”.

Former NSW Labor leader John Robertson is chair of icare. Picture: Dylan Robinson

An icare spokesman said the purpose of the trip was to ensure the Treasury Management Fund (TMF) reinsurance program for the coming financial year.

The premium increase related to the NSW workers’ compensation scheme known as the Nominal Insurer, and not to reinsurance cover for the Treasury Managed Fund, he said.

Asked why the representatives could not participate in the meetings via Zoom, the spokesman said icare would not get access to the number and quality of reinsurers if meetings were held virtually.

Travel for the TMF reinsurance program had also been approved every year since 2004, except for the Covid pandemic in 2021, he said

“Icare’s face-to-face presence at meetings, presentations and negotiations with reinsurers ensures NSW can secure the necessary reinsurance capacity at an appropriate cost in a difficult market.

Mr Tudehope said he signed off on the trip on the recommendation of the icare board headed by former Labor leader John Robertson.

“Mr Robertson personally vouched for the trip which icare advised was purely business and necessary to get the best possible deal on reinsurance and deliver savings for the scheme,” he said.