Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

ACC price hikes unstoppable

 
 

 ACC price hikes unstoppable

 

Pain at the pumps is set to continue, with ACC levies increasing by 2.1 cents per litre.  Your car registration costs are also going up to cover increased ACC costs.  Things are set to become even harder for families already struggling in today’s tough conditions.

National has opposed these increases since they were first proposed, and we made submissions against them during ACC’s consultation process.  Our submission went unacknowledged.  The Labour Government sneakily announced these changes  right before Christmas and they went largely unnoticed in the festive season. 

Our opposition to the increases was because ACC gave little information as to why they were so big.  It smacks of arrogance that we are still waiting to know why we have to pay so much more. 

The Department of Labour (DoL), which oversees ACC, raised serious concerns about the corporation in a recent review, saying it is  worried about the lack of a strategic planning focus on the legal requirement that ACC is to fully fund its future claims liability by 2014.

With the release of the recent Budget, select committees had the chance to grill Ministers on departmental planned spending for the forthcoming year, and  I took the opportunity to ask ACC Minister Maryan Street what ACC was doing to address the concerns around lack of strategy.  Not surprisingly, I am still waiting for an answer.

Currently, ACC’s unfunded liability is around $4 billion.  In its review, DoL says there is a limited amount of detailed data on claimant analysis to help plan for future claims liability.  The review also reveals there is an emerging trend that cost and claim management, particularly for serious injuries, is not

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

This has not put the Minister off introducing further costs to ACC despite the major holes revealed by DoL.  Last night, a bill was passed which introduces new cover for mental injury arising from traumatic events in the workplace.  During the debate on this bill, the Minister admitted that neither she nor ACC had any idea as to how much the new provisions will cost, and was more focused on her assertion that New Zealand was leading the way in providing this type of cover. 

The estimated costs of covering this sort of mental injury range between $7.6 million and $72.2 million a year and even then that that’s taking a wild guess.  While Ms Street is unable to give a better estimate to taxpayers, she seems sure there won’t be too many claims.  The Employers and Manufacturers Union (Northern) has pointed out that under the new law, the son of the late Joanne Wang, who saw his mother run over in a hit-and-run, would not be covered, but witnesses working in nearby businesses would be. The Labour Government has excluded ‘non-earners’ because it would be too expensive to cover them – yet they expect employers to cover workers.
 

The bill also includes provisions to cover self-inflicted injuries and suicide.  The Labour Government is effectively sending a message that this sort of behaviour is okay.  While they are more than happy to get rid of tuck shops, ban unhealthy food, and stamp out smoking, they think it’s okay for people to harm themselves.  This seems bizarre given that one of ACC’s objectives is to reduce injuries, not encourage them.

While the bill for taxpayers grows larger, the corporation is being led by a Minister who doesn’t care and is more than happy to pass into law ill-conceived policies.  Where does the buck stop?


Pansy Wong
 
www.pansywong.co.nz
www.national.org.nz  

ends


 
 
 
 
 

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.