Ex-ALP minister to run embattled compo scheme

A former senior Labor minister will be the new chairman of Victoria’s troubled workers compensation scheme.

Victorian Minister for Workplace Safety Ingrid Stitt. Picture: NCA NewsWire / Andrew Henshaw

A former senior Labor government minister will become chairman of Victoria’s embattled workers compensation scheme amid angst over soaring costs that sparked a $450m bailout last fin­ancial year.

Bob Cameron held a range of senior portfolios during the Bracks and Brumby governments, including WorkCover and police and emergency services, where some of the biggest claim increases have occurred relating to trauma.

Mr Cameron is replacing former chairman John Merritt, who left the post amid internal calls for workers compensation premiums to rise to help cover significant budgetary pressures that required government bailouts.

The government said it had appointed Mr Cameron, 59, to the WorkSafe position because of his significant experience in government, legislative reform, board management and stakeholder and community engagement.

When ratified, the appointment will mean the two most significant positions at WorkSafe are held by prominent former Labor figures.

WorkSafe’s chief executive Colin Radford is a former press secretary to then opposition leader John Brumby and premier Steve Bracks.

The opposition has been critical of the handling of WorkSafe, which is battling headwinds caused by rising mental health claims, a sharp rise in claims from the public sector and volatility in international markets.

Victorian Minister for Workplace Safety Ingrid Stitt said the role was important in the drive to help assist injured workers. “Mr Cameron brings a wealth of experience, which will ensure that the WorkSafe board has the right leadership and guidance in place to keep supporting Victorian workers, employers and the wider community,” she said.

Ms Stitt said Mr Cameron was joining WorkSafe at a time when it sought to support businesses recovering from the impacts of the Covid-19 pandemic, manage rising mental injury claims, overhaul the management of complex claims and address sexual harassment in workplaces.

The government was forced to tip money into WorkSafe after years of poor performance and growing uncertainty over the ­impact of mental health claims, which are forecast to rise.

WorkSafe also has experienced a sharp increase in public administration and safety sector claims – up 17 per cent on last year – leading the body to work closely with Victoria Police and other government entities to improve return-to-work outcomes.

Mental injury issues accounted for 38 per cent of all public administration claims last financial year. Overall, mental injury claims accounted for 15.1 per cent of new claims in 2021-22, up two percentage points on the previous year.

The $450m government “grant” was significantly higher than the $300m initial payment ­expected to be paid by the ­Andrews administration in the middle of this year and it is quite possible bailouts will continue for several years and into the future. Some critics believe the bailouts will cost billions unless reforms are made to the way mental health claims are dealt with.

The Community and Public Sector Union has joined the fight against growing claim numbers, with its state secretary, Karen Batt, flagging new measures to help deal with vicarious trauma.