NSW WorkCover overhaul to rein in deficit blow-out
The NSW Minister for Finance & Services, Greg Pearce, has stated that the Government will fast track reforms to WorkCover and the Compensation Authorities following the resignations of the Chairman, Greg McCarthy and CEO Lisa Hunt. The reforms will be aimed at checking WorkCover’s deficit, which in the six months to June 30 the deficit had blown out from $994 million to $2360 million.
"I have made it clear that the WorkCover scheme in its current form is untenable - the deficit is growing and WorkCover must be reformed to get it back in the black," Mr Pearce said.
"Both Mr McCarthy and Ms Hunt agreed there was a need to reform WorkCover and the government will now move to press ahead with the reforms under a new leadership team," he said.
"The reforms will be fast-tracked with Deputy Chair, Nicholas Whitlam, acting as Chair and current Chief Financial Officer, Julie Newman, acting as CEO until replacements are appointed.
"One of the possible reform options, developed by Mr McCarthy, includes merging WorkCover and the four other compensation authorities - the Motor Accidents Authority, Dust and Diseases Tribunal, Sporting Injuries Committee and Lifetime Care and Support Authority to achieve savings.
Mr McCarthy has been a member of the Board of WorkCover since 2002, including the position of Chair since 2005, and was in the process of developing the reforms to turn the scheme around.
Ms Hunt has been CEO since 2010 and was instrumental in driving change in the workplace including the implementation of the new Work, Health and Safety regime.