Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

CTU Evidence To Select Commitee Misleading

INSURANCE COUNCIL
Internet: http://www.icnz.org.nz
MEDIA RELEASE
16 February 2000

COUNCIL OF TRADE UNIONS EVIDENCE TO SELECT COMMITTEE MISLEADING

Evidence provided to the Select Committee on Accident Insurance by the Council of Trade Unions was misleading says the Insurance Council.

The claim by President Ross Wilson that 99% of all employers are paying higher premiums than they would have under ACC is preposterous and clearly unsupported by the evidence of a significant majority of the thousand submissions to the Select Committee.

Mr Wilson claims that only the largest 1% of employers have received benefits from premium reductions in the competitive market.

His interpretation of the Accident Insurance Regulator’s official data released in December has been examined by an independent actuary and found to be significantly flawed.

Firstly, he is basing his figures on a notional premium level that ACC might have charged, but which is highly challengeable and secondly, it ignores the fact that most of New Zealand’s largest organisations are in the service sector and are considered low risk in the setting of premiums. (Editor – please refer to paragraph 6 and Annexure E in attached material from Peter Davies, independent actuary).

Mr Wilson also challenged the assertion by the Insurance Council of a substantial reduction in workplace fatalities with the advent of a competitive insurance market. He used statistics supplied by the Occupational Safety and Health Division of the Department of Labour. These statistics are totally inappropriate for making comparisons and Mr Wilson should have known better than to quote them.



Again independent actuarial advice indicates that taking even the most conservative view, the reduction of fatalities has been at least 25%. The Council asserted in its submission, on the basis of ACC data, that the reduction could be as much as 50%.

Mr Wilson also quoted a Canadian study by Professors Burton and Thomason, asserting that costs may increase by shifting from a monopoly provision of accident insurance to a competitive market model. We have checked this reference with Professor Thomason and he confirms that the quote is out of context and misleading.

Professor Thomason says, “I do not believe our results clearly indicate that public funds are more necessarily more cost efficient than private insurance.” He goes on to say that the Canadian data is from only two provinces and that rates in Ontario at least, may not reflect the true cost of workers’ compensation. He also points out that costs in Washington State, an example of a state monopoly that is often heralded as a success story, are higher than average.

Professor Thomason goes on to say that there is substantial variation in the performance of monopolistic public funds relative to private insurance. This was a point highlighted by a US expert, Greg Krohm who was recently in New Zealand and appeared before the select committee. (Editor – e-mail from Professor Thomason attached)

There is enough doubt around key points in the CTU’s submission to cast significant doubt on its whole credibility. It is more a statement of ideology than of fact, says the Council.


For further information: Chris Ryan
Chief Executive
Insurance Council of New Zealand
025 441-767

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Trump’s Open White Nationalism

At one level, this has been the week that the Republican Party of Abraham Lincoln – which once led a civil war that ended the slave economy of the South – has now defined itself openly as being the party of white nationalism.

By telling those four elected, American born and/or raised women of colour to “go home”, US President Donald Trump’s racist agenda has come out of the shadows. More>>

 

RNZ: Trades Hall Bombing Case Re-Opened, Evidence Released

The cold case has been reopened and the police have recently revealed more details about the bomb's components - including that it was wrapped in a 1977 edition of The Evening Post. More>>

Safety: Govt Targets Fewer Deaths On The Road

“Most roads deaths and serious injuries are preventable and too many New Zealanders have lost their lives or been seriously injured in crashes that could have been prevented by road safety upgrades,” said Associate Transport Minister Julie Anne Genter. More>>

ALSO:

Pay Rise Delay: Teachers Unions Plan Legal Action Against Novopay

Both of the teachers unions - NZEI and the PPTA - have confirmed they will be taking legal action against Novopay. More>>

ALSO:

Emission Statement: 'Consensus Reached' On Agriculture

Today the Government launched a consultation document, informed by the work of the Interim Climate Change Committee (ICCC), on how to bring agriculture into the emissions trading scheme, a key part of the Government’s plan to tackle climate change and reduce New Zealand’s emissions. More>>

ALSO:

Gordon Campbell: On What’s Wrong With Wellington

For many Wellingtonians, it hasn’t been the normal hardships – the workings of central government and the lousy weather – that have recently pushed their tolerance into the red zone. It has been the inability of local government to maintain even the basics. More>>

ALSO:

$1m Compensation Paid: First Gun Ban Event In Christchurch

The Police Minister says the first ever firearms collection event in Christchurch over the weekend was a huge success. But Stuart Nash had concerns about whether the participation reflected the number of weapons in the region. More>>

ALSO:

The Kids: Youth Parliament 2019 Event Kicks Off

120 Youth MPs and 20 Youth Press Gallery members have gathered in Wellington to attend the two-day Youth Parliament event ... More>>

ALSO:

Friends Like These: Foreign Minister To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. today for talks with senior members of the US Administration, and to attend the Ministerial to Advance Religious Freedom. More>>

ALSO:

Gordon Campbell: On The Aussie Banks’ Latest Fee Hike Excuse

When the Reserve Bank sought feedback on its plans to require the country’s major banks to raise their capital reserves then you might have expected the banks to whine and complain. And so they have. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels