Fiona Simpson MP

Work Cover going Broke

Thursday, 4 March 2010

Work Cover is accumulating $9 billion worth of state debt.

It has been revealed that the Minister for Industrial Relations has failed to adequately oversee Queensland’s Work Cover scheme, leading to an enormous program deficit. Due to mismanagement by the Minister, the scheme has been allowed approve unprecedented numbers of worker compensation claims since the introduction of the 2003 Workers Compensation and Rehabilitation Act.

The Bligh Government has been unwilling to admit to the deficit crisis, attempting to conceal the extent of the debt that the ailing program has racked up.   Laurence Springborg, LNP spokesperson for Industrial Relations, said that the level of the debt was serious.

Mr Springborg said that if the crisis is not resolved, “Work Cover’s net debt will be one-fifth of the entire Queensland State budget,” that is $9 billion within eight years.

Fiona Simpson is concerned about the implications the mismanagement of work cover will have for Queenslanders: “if Work Cover is left to collapse due to debt, Queenslanders will have no avenue for compensation for work-related injuries,” Ms Simpson said.

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