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Kiwis still paying too much for ACC

Iain LEES-GALLOWAY

ACC Spokesperson
21 April 2014
MEDIA STATEMENT

Kiwis still paying too much for ACC

Kiwis are still paying too much for ACC so that the National Government can balance its books, Labour’s ACC spokesperson Iain Lees-Galloway says.

“ACC Minister Judith Collins told Cabinet levies were too high but ACC’s proposed cuts would impact the Government’s plans to return to surplus, a key aim of the upcoming budget.

“In a Cabinet paper outlining the options, Judith Collins ordered more modest cuts, noting ‘reductions to ACC levies impact on the Government’s fiscal strategy to balance the books’.

“Labour has repeatedly pointed out that ACC levies are too high and the only reason National is keeping them so high is to help it reach a surplus in the coming financial year. It appears Judith Collins agrees with us.

“Even under ACC’s proposals, the levy demand is excessive. The Work Account funded by the employers’ levy is forecast to be nearly 140 per cent funded, while the Earners’ Account funded by the employees’ levy is forecast to be 130 per cent funded.

“That compares with targets of around 118 per cent for the Work Account and 116 per cent for the Earners’ Account.

“Labour questions why ACC, as a Government-underwritten provider of treatment and compensation, needs such a large excess of funds. ACC is acting like a private insurance company building up a sizable asset that could be very enticing should National ever re-visit its plans to privatise the corporation.

“Under National, ACC has over-charged and under-delivered. It has repeatedly breached privacy and has adopted policies that are unlawful.

“Labour is focussed on restoring faith in ACC’s ability to deliver fair treatment and fair compensation in return for a fair levy,” Iain Lees-Galloway says.

ENDS

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