Mark Latham tells workers’ compensation inquiry mental health science ‘uninformed’

Embattled former Labor leader Mark Latham has claimed at an inquiry into proposed workers’ compensation reforms that one science is “still uninformed”.

Embattled former Labor leader Mark Latham has told an inquiry into the NSW government’s proposed workers’ compensation reform that “medical science” in the area of mental health was “still uninformed”.

After a bruising few weeks of controversy, the independent MLC appeared via video link at the second hearing of the state upper house committee’s inquiry into Labor’s proposed reforms.

Mr Latham, a member of the committee, in June helped send back the potential reforms for further inquiry.

Asking about psychological claims, Mr Latham told NSW Auditor-General Bola Oyetunji “we’ve got no X-rays for the brain” and claimed there was “industrial scale” defrauding of psychological claims.

He claimed people were “coaching themselves” on how to reach a certain whole person impairment (WPI) threshold, changes to which are a major sticking point for opponents of the proposed reforms.

The state government says the reforms are integral to ensuring the workers’ compensation scheme is financially viable and will protect workers, while opponents claim it will abandon the most vulnerable.

Mark Latham has become embroiled in further controversy. Picture: NewsWire/ Jeremy Piper.

NSW Bar Association Common Law chair David Hooke SC agreed with assertions from shadow treasurer Damien Tudehope that changes to a worker’s right to a negligence claim were a “massively significant removal of workers’ rights”.

The inquiry was told Labor’s proposed reforms would remove the ability for a psychologically injured worker to make a claim of negligence against their employer over their handling of a complaint unless they were above a 31 per cent WPI.

People rated at such a level are generally considered to not be fit to work again.

“One can take it to extremes without being overly rhetorical about it because the effect of it would be that an employer could have numerous reports of the bullying or harassing conduct, do absolutely nothing about it, have the injury develop, have the injury continue to deteriorate in severity, and have no liability for common law damages unless the WPI was at least 31 per cent,” Mr Hooke said.

A range of legal experts, including from the Law Society of NSW and the Australian Lawyers Alliance, gave evidence on Tuesday, telling the inquiry they had not seen evidence of lawyers or doctors gaming the workers’ compensation system through “coaching”.

The committee has previously heard evidence that the biggest drivers of the deterioration of the scheme were “ever-rising WPI assessments” and a rising number of new psychological claims.

Mr Oyetunji, whose role is independent from the government, told the committee on Tuesday that in terms of psychological claims the focus should be on claims management and addressing “root causes”.

“A review of relevant audit office reports to the NSW parliament over the past 15 years shows that there have long been concerns about the financial sustainability of workers’ compensation schemes,” he said.

Mr Oyetunji quoted a 2011 report by the NSW Audit Office that warned the scheme was deteriorating, with “liabilities increasing significantly”, and that it may not be able to “sustain long-term funding”.

The hearing comes as Mr Latham faces a series of troubling scandals, including allegations he abused his former partner.

Mr Latham has repeatedly denied the allegations, which are untested and part of an application for a private apprehended violence order filed with the Local Court by his ex-partner, Nathalie Matthews.

Mr Latham has not been charged with any criminal offence.

The Liberal Party has accused the state government of attempting to “discredit” amendments to Labor’s reforms, put forward by Mr Latham and the opposition, “on the basis that Mr Latham’s name is attached to them”.

NSW Treasurer Daniel Mookhey has so far rejected the proposed amendments. Picture: NewsWire/ Gaye Gerard

Mr Tudehope condemned Mr Latham’s behaviour but noted the amendments were put forward before the allegations were made and defended talks with Mr Latham on the amendments.

“Mark Latham is an elected member of parliament,” Mr Tudehope said.

“The dynamic of the manner in which the upper house operates is that I’ve got to deal with all people in the upper house, notwithstanding that they do and say things that I don’t agree with and would never endorse.

“But, at the same time, I need to, in fact, occupy my position as the leader of the opposition in the upper house and achieve outcomes which I think deliver better results for legislation throughout.”

Mr Tudehope said Mr Latham had “tainted the whole of this process by what has occurred in relation to a whole lot of other issues”, in regard to the proposed amendments.

Greens MLC Abigail Boyd told the ABC her party had not made “agreements or amendments with Mr Latham of any kind”, and criticised Premier Chris Minns for singling out Mr Latham’s role in the amendments.

“It’s really telling that the moment that these particular revelations came out, the first thing they (Labor) did was call on the Coalition and the Greens to no longer ‘work with Mark Latham on a particular Bill’,” she said.

NSW shadow treasurer Damien Tudehope said the opposition’s amendments would save ‘marginally less’ than Labor’s. Picture: NewsWire / Nikki Short

Ms Boyd told ABC 702 host Hamish Macdonald that Mr Latham had been “very unfairly attacking” her for a long time, and assertions that she was now working with the former Labor leader were “very offensive”.

Treasurer Daniel Mookhey has so far rejected the proposed amendments, telling reporters on Friday that modelling from iCare of some of the amendments would “punish workers” and increase premiums.

“My message is clear to the Liberal Party: side with small business, side with victims of sexual harassment. Don’t side with Mark Latham,” he said.

The modelling reportedly found the proposed amendments put the burden on victims of sexual and racial harassment, as well as bullying, by requiring that they prove the perpetrator intended to harm them.

Mr Tudehope said the opposition’s own modelling showed the amendments would achieve savings “marginally less” than those the government claims it will deliver.

The government said the proposed legislation will address a “lack of focus on preventing psychological injury” at work, adding: “Just 50 per cent of workers with psychological claims are back at work within a year. For physical injuries, the rate is 95 per cent.”

The hearing will continue on Tuesday.