Smith admits cuts coming to ACC entitlements

2 July 2009
Media Statement

Smith admits cuts coming to ACC entitlements

ACC Minister Nick Smith today confirmed to the Transport and Industrial Relations Select Committee that a bill he intends to introduce by the end of this year will cut ACC entitlements to workers, says Labour MP Darien Fenton.

Associate labour spokesperson Darien Fenton said she asked the Minister what changes he proposed in a bill that he said would “review unfunded scheme extensions.

“In his reply, the Minister indicated that some 18 entitlements enacted last year by Labour could be on the chopping block.

“This is very bad news for the 400,000 seasonal and casual workers whose long-term weekly compensation was changed last year so it is based on their seasonal earnings, rather than only on their recent earnings,” Darien Fenton said.

“This will be a return to the unjust situation where around a quarter of the New Zealand workforce are at risk of receiving inadequate or no weekly compensation for injury simply because their working arrangements differ to those of other workers.”

Another change enacted by Labour last year added mental trauma to the definition of injury arising out of a workplace accident, such as a train driver witnessing a person being killed by the train they are driving, or a bank worker being involved in an armed robbery, Darien Fenton said..

“I’m appalled that this important advance may be rolled back, and that once again workers who find themselves in these awful situations will not be entitled to counselling or weekly earnings compensation while off work.

“Once again they will have to suffer without help the on-going mental injury caused by witnessing the death or maiming of another person.”

ENDS