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Private companies have poor record says ACC
Media Release 7 October 2009
The ACC Futures Coalition is concerned that ACC plans to call in private third party administrators to handle up to 1500 long-term accident compensation claimants.
“This group of
people receiving accident compensation face major challenges
in returning to work,” said ACC Futures Coalition
spokesperson Hazel Armstrong.
“The private
operators ACC are planning to bring in are administrators,
not rehabilitation and treatment providers, and have a poor
track record in getting long term claimants back to
work.”
“When the private sector was last involved
in this area in the late 1990s they moved almost a quarter
of the long term claimants onto welfare benefits. We don’t
see that as progress.”
“Recent research has also
indicated that outcomes from ACC managed clients are
generally better than those managed by private third party
administrators engaged under the accredited employers
programme.”
“This move could be the thin edge of
the wedge for the privatisation of ACC.”
“The
Corporation has the capacity and capability to provide a
quality service in this area and it should not allow itself
to be stampeded by the Government into an ideologically
driven decision.”
The ACC Futures Coalition is also
deeply concerned by recent reports that the Government is
planning to introduce legislation under urgency to introduce
cutbacks to accident compensation. The targeting of
work-related gradual process disease is of particular
concern.
“Occupational illness is a work injury,”
said Ms Armstrong. “More people die from occupational
illness than from traumatic injury in the workplace in New
Zealand and that is why the 2007 changes were introduced.”
“It would be profoundly undemocratic and against
the intentions of current accident compensation law if
cutbacks are made under urgency.”
“The ACC Futures
Coalition does not accept that ACC has a massive unfunded
liability.”
“A political decision was made by the
previous government to introduce a fully funded scheme by
2014 and we support moves to push this out to 2019 or even
beyond.”
“The Government could even explore
shifting to a pay as you go funding arrangement,” said Ms
Armstrong.
ENDS
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