New $2bn ‘rescue’ for worker comp fund icare

Struggling NSW worker compensation scheme icare has required another $1.9bn bailout from taxpayers to prop up the ­organisation, Treasurer Matt Kean says.

NSW Treasurer Matt Kean. Picture: NCA NewsWire / Gary Ramage

Struggling NSW worker compensation scheme icare has required another $1.9bn bailout from taxpayers to prop up the ­organisation, Treasurer Matt Kean has revealed during a parliamentary hearing.

During a spiteful first day of the state’s budget estimates, Mr Kean faced accusations of ­engaging in a “juvenile display”, as he used his time to attack Labor for the ongoing industrial action being undertaken by the Rail Train and Buses Union.

Refusing to answer questions from Labor’s Legislative Council members, Mr Kean instead tried to connect the opposition to the widespread cancellation of train services across Sydney on Monday morning.

He was forced to ­acknowledge that Treasury had kicked in ­almost $2bn for the scandal-­ridden government agency set up by then treasurer and now Premier Dominic Perrottet in 2015, taking the total paid to the embattled agency to $3.9bn since 2019.

In 2021, icare apologised for underpaying 53,000 workers to the tune of $38m.

“How much money have you had to authorise to bail out the Treasury-managed fund after it underpaid thousands of injured workers?” opposition Treasury spokesman Daniel Mookhey said.

“I’ve injected $1.9bn in June this year to support injured workers, Mr Mookhey,” Mr Kean ­responded.

“With regard to the distribution of those contributions, that’s a matter for (Finance Minister Damien) Tudehope. “We need to make sure that there is money available for those injured workers. I responded to that request from icare.”

Offered an opportunity by Mr Mookhey to say icare had done a “superb job”, Mr Kean declined, instead saying the government should be ensuring all public “agencies are working in the best interest of their stakeholders”.

Asked by Mr Mookhey whether he anticipated any ­further bailouts, Mr Kean ­responded: “I anticipate that we will always stand by injured workers.”

NSW Treasury deputy secretary San Midha explained the bailout as being driven by an “increase in liabilities” and “adverse trends in psychological worker compensation”.

At a press conference afterwards, Mr Mookhey attacked the bailout as being the consequence of icare’s mismanagement, and removing taxpayer dollars that otherwise would have gone towards critical social infrastructure. “Just as troubling was news of another secret $2bn bailout of the Treasury-managed fund as icare continues to run into the ground,” he said.