NSW Opposition rejects ‘proxy’ claim despite unlikely alliance with unions, Greens over workers compo

A showdown has been set over Labor’s controversial plan to reform workers compensation in one Australian state.

NSW Opposition Leader Mark Speakman has rejected the claim the Coalition is acting as a “proxy” for the unions or the Greens, despite joining hands to oppose Labor’s workers comp reform.

A revised plan to reform workers compensation passed a second reading in the lower house late on Tuesday night despite stiff opposition.

The NSW Liberals, Nationals, and the Greens voted against the Bill and proposed amendments that were one-by-one voted down by Labor MPs.

The bizarre coalition against the Bill was described as a “divorce” for Labor and the Greens, the latter joining the Liberals and the state’s unions in opposing the Bill.

Mr Speakman on Wednesday afternoon admitted there was an “overlap” between his party’s policy and the unions’ and the Greens’.

“But, we are not a proxy for the unions and we are certainly not a proxy for the Greens,” Mr Speakman said.

The Coalition will on Thursday morning seek to immediately refer the workers compensation bill to a committee for inquiry.

The inquiry, which they say will run for two months, will come as the Liberals seek to move the same amendments which were shot down on Wednesday.

“If there is some need to legislate now, the government should accept our amendments, have an inquiry, and come back with further legislation if it wants to prosecute this case of rising WPI to 31 per cent or some other percentage,” Mr Speakman said in reference to one of the bill most controversial components.

NSW Treasurer Daniel Mookhey has accused the Coalition of seeking to delay controversial workers compensation reforms. Picture: NewsWire/ Gaye Gerard

“If it wants savings, there are savings now on the table that have offered with our proposed amendments. If the government is serious about workers compensation reform and getting it done quickly, it should put those savings now and move on with any other suggestions at a later date.”

Treasurer Daniel Mookhey earlier accused the Coalition of seeking to have the Bill pushed back until August, well past the end of financial year and this year’s budget.

“Obviously, we think that the Bill needs to be considered straight away,” the Treasurer said.

“The system is continuing to fail, the system is continuing to fall into weakness.

“It’s continuing to fail employers, and it’s not doing anything for the state as well.”

Mr Mookhey claimed every day of delay would cost the scheme and in turn injured workers and businesses facing rising premiums through the state’s nominal insurer.

On the forthcoming budget, Mr Mookhey said the Bill’s failure had already been accounted for after the Coalition claimed it was being rushed before the budget.

Mr Mookhey said Labor would continue to engage with the opposition, whose reforms he claimed would add $1.9bn in “additional financial pressure” over four years.

The opposition has called for the state government to stay plans to lift the proposed threshold for permanent whole-person impairment (WPI).

Asked if the Liberal Party was “on the side of the unions”, shadow treasurer Daniel Tudehope said it was a “bad way of characterising” their opposition to the Bill.
“We’re on the on the side of good legislation,” Mr Tudehope told Sky News.

Shadow treasurer Damien Tudehope says the opposition is ‘on the side of good legislation’. Picture: NewsWire/ Gaye Gerard

“The legislation which has been put before us is seeking to drive down the cost of workers compensation in NSW because of psychological injuries.

“A lot of the legislation we agree with … but there are some flash points in that legislation that we don’t agree with, and it so happens that the unions agree with us.”

Under the proposal, a person with a permanent whole-person impairment would be required to meet a 30 per cent threshold – up from 21 per cent – to receive lifelong support.

Mr Tudehope said those people would be deprived of a “better tomorrow” and the Coalition would seek to have the Bill subjected to a parliamentary inquiry.

For their part, Mr Mookhey and Industrial Relations Minister Sophie Cotsis claim the Bill with instil a “culture of prevention” and address the beleaguered state self-insurer.

Mr Mookhey told an earlier parliamentary inquiry into the reforms that he would not authorise further cash injections to the Treasury Managed Fund, the state self-insurer.

Private businesses and charities are also facing a rise in premiums, which the Coalition says has been set at 8 per cent for next financial year.

Detractors, including NSW’s unions, claim the changes to WPI would lock many psychologically injured workers out of support.

Mr Mookhey said those workers would instead have better access to a lump-sum payment that would keep them out of the workers compensation scheme long term.