MPs in WorkCover revolt

The State Government is facing a backbench revolt on its controversial WorkCover laws following a secret meeting yesterday of up to 12 Labor MPs.

As WorkCover released its half-year report showing its unfunded liability has blown out by another $68 million in just six months, the MPs - a majority of the party's Left faction - met in Old Parliament House to discuss their opposition to the Bill.

There is widespread speculation that some MPs are considering to cross the floor of Parliament.

A Labor source has revealed that a motion was passed by the Left faction at a meeting last Friday that the legislation should be withdrawn.

The motion said if it were not withdrawn nor not negotiated, there should be a special state conference of the party to discuss the legislation.

"Everyone knows if there was a special state conference, the leadership would be rolled," a Labor source said. Another party source said: "It is obviously an uncomfortable issue - there is no doubt about that."

WorkCover's latest huge loss has been partly blamed on a decline in world investment markets. But WorkCover CEO Julia Davison said a poor return-to-work rate for injured workers was a major problem. The unfunded liability is now $911 million.

A spokesman for Industrial Relations Michael Wright yesterday said he was aware of the meeting but had no comment.

Independent MP Kris Hanna, who has proposed 91 amendments to the Bill, said there was little support within Labor. "The cracks in the Government are getting deeper," he said.

"There are only four people in the ALP who want this Bill - Mike Rann, Kevin Foley, Michael Atkinson and Patrick Conlon."

In what was a deliberate tactic to ensure Labor backbenchers were forced to reveal their position on the issue, Liberal backbencher Graham Gunn yesterday voted against the Bill. In order for the Liberals to force a vote on the Bill, two MPs must vote against it. Mr Gunn joined Mr Hanna, who opposes the changes.

"He didn't cross the floor, we asked him to stay there," Opposition Leader Martin Hamilton-Smith said.

"We did it so all those marginal seat members in the Labor Party who claim they are standing up for working families, can be seen voting for the WorkCover Bill."

All Labor backbenchers in the Lower House supported the Bill yesterday.

Source: Nick Henderson and Greg Kelton, The Advertiser