ACC cuts undermine fairness of compensation scheme

CTU media release
18 January 2010

ACC cuts undermine fairness of compensation scheme

Information that ACC is targeting “high-cost” clients with a view to reducing costs of the scheme is a worrying prospect for all present and future claimants, said CTU President Helen Kelly. It is something that is also likely to increase if the proposed ACC Bill is passed into law.

“So-called ‘high cost’ clients are the most likely to have suffered very serious injuries,” said Kelly. “Instead of targeting them simply on the basis of cost, ACC should be developing its services to ensure these accident victims get the best support to rehabilitate them and return them to work. Reports that many of those moved off ACC are simply being shifted to the Unemployment Benefit shows that real rehabilitation has not taken place. The ACC promise is that the injured will have access to complete rehabilitation and compensation to assist them back to a normal life in exchange for losing the right to sue. If ACC starts treating these people as a cost rather than a responsibility then the essence of the scheme is lost.”

“The regime of cost cutting and over-zealous pruning of entitlements has been going on since this government came into power,” said Kelly. “It is driven by a desperation to paint a picture of an organisation in ‘crisis’ through the misleading focus on actuarial liabilities. For the sake of a better bottom line people are being thrown off of ACC onto benefits.”

“I suspect the Government is also cynically trying to turn public opinion against the corporation and the scheme itself by forcing it to take these unpopular and unprincipled actions. People must know that it is the Government driving these unfair cutbacks. It is also obvious that plans to privatise ACC require the cuts to be made now to make the prospects of buying into ACC more enticing for insurance companies.”

“All New Zealand citizens rely on ACC for themselves and their families when an accident occurs. Many people will be very worried about these latest revelations.”

ENDS

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