Smoke and mirrors !

There are ominous signs that all is not well with WorkCover, the workers compensation scheme that reimburses injured workers in this state.    WorkCover chairman, Greg McCarthy has resigned and it seems that this major insurer is heading for a five billion dollar deficit.

Rumour has it that this drop in finance can be traced back to both a drop in investment value as a result of the GFC, and incompetence by ministers holding it's reigns during the last state government.   Urgent action is needed and the traditional remedy would be to increase premiums or reduce benefits - or perhaps a bit of both.

Fixing monetary problems is dangerous territory for any government.   The art of politics is often referred to as a " smoke and mirrors " approach.    What you see - and what you get - are often two entirely different things.

There are indications that a merger of certain authorities is in the offing, and no doubt these will be promoted to the public as a means of achieving economies of scale by reducing overheads and creating new efficiencies.   If their resources are pooled - it will also serve to effectively mask a deficiency by submerging that in a bigger pool of money.

This merger is likely to combine the Motor Accidents Authority, the Dust and Diseases Tribunal,  the Sporting Injuries Committee, and the Lifetime Care and Support Authority.

The one most people should be interested in is the Motor Accident Authority.   Way back in the dim, dark past there was a growing deficit in the funds collected through motor vehicle registrations to reimburse the victims of road accidents.   The government at that time slapped a new charge on registering vehicles - and so the " Green Slip " insurance scheme was born.  A " Green Slip " is added to a general pool of money  and the annual charge has been steadily increasing ever since.

If  " Green Slip " is added to a common money pool that also includes WorkCover the way is open to cover that deficit by simply raising Green Slip premiums.   After all,   Treasury has motorists by the short and curlies - because without that piece of paper you can not legally register your vehicle.

Perhaps that is why politics is so often described as " smoke and mirrors".    When a major problem seems likely to get the voters all riled up, muddy up the waters - and create an illusion !

And it is a fact of life that good politicians are also good magicians !