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


Labour Party Accused of Loss-Leading

The Labour Party has been accused of loss-leading in its spending promises.

Accident insurers say Labour has under-priced the cost of its election promises by $1 billion.

Accident insurers say Labour's plans to nationalise accident insurance will be made up by the following contribution from taxpayers:

1 reintroducing lump-sums - an additional $145 million
2 ACC cover for illness - an additional $572 million
3 reintroducing pay as you go - an additional $300m,
4 and in addition loss of set-up costs for private insurers of $100m

Insurers have repeatedly confirmed that safe work places for workers reduced accidents and better health care for injured workers will be the key to succeeding not price.

The Insurance Council of New Zealand is surprised the Labour Party has failed to account for the cost of nationalising accident insurance in its alternative budget released yesterday.

"We expected Labour to have worked the nearly $1 billion cost of restoring nationalised accident insurance into its spending calculations", Chris Ryan, Chief Executive of the Insurance Council, said today.

"If Labour intends to nationalise accident insurance, which it has been saying it will do, it is very disturbing that this hefty expense has been omitted from the alternative budget. Adding $1 billion to Labour's $4.35 billion spending pledges will affect its ability to implement election proposals", Mr Ryan said

"If Labour has chosen not to factor the cost of nationalising accident insurance into its calculations, it must be because it does not intend to do it, and that is a policy change all workers, employers and insurers should applaud", Mr Ryan added.

"The introduction of the new accident insurance environment in July released $300m of employers' funds that would have otherwise been committed to ACC payments under the old scheme", Mr Ryan said.

"In addition to the major long-term benefits of the employers' account - fewer work place accidents and better rehabilitation for injured employees, reduced premiums for conscientious employers will result in the savings being invested in the New Zealand economy", Mr Ryan said.

"Privatising accident insurance cover must surely rate as one of the largest investments in industry, particularly in small and medium sized enterprises, that a government has ever made", Mr Ryan said.

"The size of this investment in the New Zealand economy has meant current and potential investors have watched the development of the accident insurance environment very carefully", Mr Ryan said.

"We must continue to remind New Zealanders that the $100m cost of establishing private accident insurance in New Zealand was largely covered by international investors", Mr Ryan

"There has been overwhelming support for the new accident insurance environment from policyholders, and that cannot be ignored", Mr Ryan said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


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>>


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>>


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>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news