Another Cabinet Leak Embarrasses Weatherill
Wednesday, 19 April 2017
Treasurer Rob Lucas said today another leak of a confidential Weatherill
Government Cabinet document was a major embarrassment for Mr Weatherill.
latest leak relates to a decision taken by Cabinet on 31 October 2016 to
transfer the management of all new workers compensation claims from 1 July 2017
controversial decision is being strongly opposed by many stakeholders including
the Public Service Association (PSA) and Self Insurers of SA (SISA) and affects
the jobs of up to 200 people (139 FTE).
copy of the confidential report presented to Cabinet entitled ‘Review of the
Management of Work Injuries within the SA Government’ (Phillip Bentley and
Chris Latham, 21 June 2016) has been leaked to the State Liberals.
report raises very serious questions about the reasons for the Weatherill
Government decisions and casts doubt over some of the supposed benefits.
conclusions of the report include the following:
the point remains that there is no evidence in the comparisons that suggest the
SA Crown Workers Compensation, taken in its entirety, has been poorly managed
in a financial sense.”
general conclusion is that the Crown as a whole has performed well in terms of
maintaining control of claims costs. There are no obvious signs of major
fact the report also concludes that RTWSA costs of managing workers
compensation claims are 39 per cent of claims costs and are much higher than
the existing arrangements which are only 28 per cent of claims costs.
is now clear why Mr Weatherill has been so desperate to keep this report hidden
and has refused to release it to key stakeholders.
senior Treasury source has confirmed that the Weatherill Government did not
complete a comprehensive business case before making its decision last year.
Government also had not calculated what the premiums to be charged by RTWSA
would be and therefore there was no way of knowing what the actual costs would
be and the impact on the budget.
given this by the Commissioner for Public Sector Employment Ms Ranieri to the
Budget and Finance Committee confirmed this information. She agreed that the
Government still had not calculated what the premium to be charged to
Departments would be and therefore final costs under the new policy could not
details of this report are a damning indictment of the way the Weatherill
Government has mismanaged this issue. Whilst up to 200 people do not know if
they will have a job after 1 July 2017 the Government is implementing a policy
for which they have no idea what the final cost impact will be on the budget.
is now time for the Weatherill Government to start answering the many questions
and concerns that have been raised about this new policy.