Cullen's Promises No Match for ACC Evidence

Thursday 2nd Mar 2000
Ken Shirley
Media Release -- Economy

Promises from Dr Cullen that a state monopoly ACC will perform are no match for the legacy of the past 25 years of chaos under ACC, according to ACT's ACC spokesman Hon Ken Shirley.

Ahead of the Government's ACC Bill being reported back to Parliament today, Ken Shirley released documents showing the savings being made in the public sector and the reductions in accidents and deaths since ACC was opened up to competition.

"There is still no justification and no evidence from Dr Cullen to counter these facts. All we have had from him is blind ideology and promises.

"After 25 years of ACC chaos why would we go back to a state monopoly based on the promises from Dr Cullen that it will be better?

"The gains from the competitive model have delivered with startling results. Evidence before the Select Committee showed that the competitive market has resulted in 40% reduction in accident incidents and claims, a 50% reduction in workplace fatality claims and a 50% improvement in return to work rates (better rehabilitation) and an 85 % reduction in disputes.

"There is no reason to believe that a return to the State monopoly will retain these advantages. All historic evidence suggests that we will either see a hike in premiums, an increasing un-funded tail or meaner benefits for injured workers in genuine need when Dr Cullen turns back the clock.

"The staggering amount of taxpayers money being saved by the public sector alone should be enough to persuade Dr Cullen the he is making an extremely costly and damaging mistake," said Hon Ken Shirley. ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© Scoop Media