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Daniel Andrews’ WorkCover mismanagement hurts workers, businesses and taxpayers

Victorian employees’ safety and protections continue to be placed at risk as a result of Daniel Andrews’ continued mismanagement of WorkCover.

The WorkSafe scheme has haemorrhaged funds over the last two financial years and the problems appear set to continue with Daniel Andrews ignoring advice to improve the scheme’s performance.

The mismanagement of WorkSafe by Daniel Andrews and Labor began well before COVID, leaving WorkSafe with deep failings and issues that have been allowed to drift, putting the scheme’s financial sustainability at risk and necessitating a $500 million injection of taxpayers’ money.

Labor’s injections of huge swathes of taxpayers’ money, most recently another $300 million, are nothing more than a bandaid solution.

WorkCover’s own minutes make it clear that these patch-up jobs only partially stem the haemorrhage, noting the WorkSafe board has stated (25 October 2021) “ongoing capital contributions from government are likely to be required to underwrite the scheme”.

Labor’s blundering mismanagement of WorkSafe has put at risk three things: the essential support of injured employees; the competitiveness of the Victorian economy through the ongoing premium pressure and the risk of rises, and; the state budget already deep in deficit is being called on to prop up an ailing and unsustainable WorkSafe.

Labor’s financial mismanagement of WorkSafe is lead in the saddlebags of the Victorian economy and Victorian businesses as they strive to recover. It is clear WorkSafe wanted repeatedly to take actions to ensure the system is sustainable. These have been repeatedly blocked by the Minister for Workplace Safety and the Expenditure Review Committee of Cabinet.

Shadow Treasurer, David Davis said that Labor’s mismanagement of WorkCover is a huge risk to the Victorian budget and is putting workers at risk.

“Labor’s disastrous mismanagement of the scheme puts employees, Victorian businesses, the economy and the state budget all at risk.”

“With Victorian net state debt heading towards $170 billion, Victoria can ill afford to have a scheme of this scale so poorly mismanaged.”

“Daniel Andrews and Treasurer Tim Pallas need to come clean on the terrible state of WorkSafe and the risks it poses to the Victorian economy and budget.”

Shadow Minister for Industrial Relations and Workplace Safety, Nick Wakeling said Labor’s mismanagement means worse conditions for employees and higher costs for businesses.

“Labor’s blundering on this scheme has employers very concerned, as it should have, because they know premiums can’t be brought down in difficult economic times with the scheme out of control.”

“Employees deserve a stable, properly funded and properly run scheme to provide them with the security and assistance they deserve if they are injured.”

David Davis MP Nick Wakeling MP

Shadow Treasurer Shadow Minister for Industrial Relations

and Workplace Safety

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