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

 


Alliance commits to pay-as-you-go public ACC model

Laila Harre With a single public ACC scheme there is no reason to continue with the inefficient fully funded system which simply protects the interest of private insurance companies, Alliance spokesperson for ACC Laila Harre said today in a speech at the Rebuilding ACC Beyond 2000 conference in Wellington.

A Labour Alliance government would return to a single public ACC scheme, and the Alliance is committed to the more cost-effective and flexible system of pay-as-you-go.

'The private insurance companies wanted to get out of the business of accident compensation in the 1970s.

Now this government has seduced only seven of them back in under false pretences.

'The fully funded system of collecting revenue to pay for any future accidents is only necessary under a private system.

Fusion Insurance for example doesn't know if its customers this year will be its customers next year.

Therefore they have to collect and save enough this year to fund any accidents that might happen in the future! .

They can't go back in a years time to raise more money from clients.

'By privatising ACC Mrs Shipley's government has just made it impossible to improve entitlements, ever.

Who would pay the extra costs? Again insurance companies can't back-date their premiums when suddenly they are required to pay the cost of all GP visits of injured employees, for example.

'A fully funded system simply allows insurance companies to do what they do best: invest that lump sum of money to increase their profits.

Would n't it be better to have a pay-as-you-go scheme, which is only possible under a single public ACC scheme? 'Pay-as-you-go means that you only pay the actual costs as they occur, and in the meantime the money that you may need next year or the year after to fund compensation is kept circulating in the economy until needed.

'Switching over from a fully funded scheme to a pay-as-you-go scheme is likely to create a reduction in premiums, because there won't be a need to b! uild the massive reserves of cash to support the fully fund! ed scheme.

Some of that cost reduction will be used to increase entitlements.

'The single public ACC system was set up for a reason: because everything else was a mess.

The New Zealand public gave away their right to sue, for an equivalent right, which was no fault compensation.

'It is extremely unlikely that New Zealanders would have traded their common law lotto ticket for a system managed by private insurance companies, paying 80% of earnings only until a person was judged, by the insurer, fit to return to an inferior or lower paid position, or line up in front of Christine Rankin for the dole,' said Laila Harre.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news