In December 2011 the Victorian Liberal Government announced the removal of almost $A500 million from WorkCover funds to be placed in general revenue over the next four years. Some unions were outraged and began a protest petition. Labor politicians were similarly outraged.
The removal of the funds sounds odd as it is understood that these funds are originally generated through the workers compensation insurance premiums required to be paid by most Victorian businesses. The funds are then invested to provide a healthy return with the intention that the pool of WorkCover funds is used to support the OHS functions of WorkSafe and its inspectorate and to provide funds to assist in the rehabilitation of injured workers. Logically, the more funds available, the better the rehabilitation services and the better the prospect of people returning to work.
In this context, how come such a large amount can be removed without affecting the level of inspectorate and rehabilitation services? Does the current success of Australia’s economy really justify this move, even though a large part of that economic health is from States other than Victoria? Continue reading “Questions raised about the Victorian Government’s transparency on WorkCover”