Minns, Mookhey urge business to pressure Coalition over workers compensation reform

Premier Chris Minns and Treasurer Daniel Mookhey are pleading with business leaders to lobby the Coalition, warning of crippling premium hikes unless urgent workers compensation reforms are passed before July 1.

With the insurance scheme going $5 million further into debt every day, Premier Chris Minns (right) and Treasurer Daniel Mookhey are pleading with business leaders, asking them to lobby the Coalition in support of a workers compensation overhaul.

Premier Chris Minns and Treasurer Daniel Mookhey pleaded with business leaders, asking them to lobby the Coalition in support of a workers compensation overhaul.

It comes after Opposition Leader Mark Speakman sided with top Union leaders to delay reforms designed to curb a blowout in compensation payments made for psychological injuries.

Premier Chris Minns appealed directly to top business leaders to lobby to get the legislation passed . Picture credit: NewsWire/ Gaye Gerard

Speaking at a Business NSW breakfast on Tuesday, both the Premier and his Treasurer appealed directly to top business leaders asking for their help in getting legislation passed before the end of the financial year.

With the insurance scheme going $5 million further into debt every day, thousands of businesses are facing a 36 per cent hike to their compensation premiums if the system is not overhauled.

Mr Minns urged businesses “facing skyrocketing increases to workers comp bills” to lobby Coalition MPs in favour of the changes.

“It will make a difference,” he told the Business NSW breakfast.

The Opposition succeeded last week in pushing reforms to a parliamentary committee for further examination.

The government hopes the committee reports back within two weeks, giving parliament time to vote on the legislation before the new financial year.

“I hope that the people (here) do speak to their Coalition friends,” Mr Mookhey told the breakfast.

“Parliament should get the right to have a vote on the legislation, yay or nay.”

Mr Mookhey said the insurance schemes would be “revalued” on July 1.

“What happens at that point of revaluation will, again, just shed further light into how big the problem is growing left without reform,” he said.

Mr Speakman and Opposition Treasury spokesman Damien Tudehope sparked outrage in the business community last week by siding with unions over small businesses struggling under the weight of skyrocketing insurance premiums.

NSW Leader of the Opposition Mark Speakman said the reforms were complex and needed to be examined by inquiry. Photo: NewsWire/ Gaye Gerard

SPEAKMAN ON THE REFORMS

Mr Speakman said that the reforms needed to go to inquiry to test the government’s calculations on the cost of the scheme.

He said should the government have wanted to rush the reforms through parliament, they should have accepted Coalition amendments scrapping changes to the “whole person impairment “ WPI threshold.

The government attempted to raise the WPI threshold for psychological injuries to 31 per cent, which would cut more workers off compensation payments after Two-and-a-half years.

“What do we say to the business lobby: get on the phone to the government and tell the government to pass amended legislation and we can sort WPI out later,” Mr Speakman said.

“We’d be happy to recall parliament at any time if there’s a consensus on that.

“This delay, this problem falls at the feet of Chris Minns and Daniel Mookhey.”

NOT-FOR-PROFIT SECTOR STRUGGLING

The business lobby are not the only one hoping for swift action on workers compensation reforms. The not-for-profit sector as also been struggling with rapidly rising premiums.

The Mental Health Coordinating Council, which looks after services across the state that deliver community mental health support had their premiums rise by 20.5 per cent in the last financial year despite having only $3 million to run the business with.

MHCC chief executive Evelyne Tadros said while is was crucial to support people with legitimate psychological injuries, rising premiums would cause some services to cut their offerings.

“We’re a largely government funded organisation and our funding is not going up 20.5 per cent,” she said.

“We have one organisation whose claim has gone up 25 per cent to a premium of $2 million per year. They’re a mental health organisation with funding of around $90 million.

“The shortfall would eventually have to come by reducing staff, which means the needs of more vulnerable clients are not met.”

Originally published as Minns, Mookhey urge business to pressure Coalition over workers compensation reform