31 January 2000

Report badly flawed - Cullen

"The report to the Insurance Council attacking the re-nationalisation of workplace injury compensation is a hodge-podge of inaccurate assumptions" Accident Insurance Minister Michael Cullen said today.

"It does not compare like with like. ACC is proposing that the Government return to a fully funded rather than a pay as you go scheme - the report presumes the opposite. Historically as well the report ignores the political meddling that has undermined the overall performance of ACC for almost all its 25 year history."

Dr Cullen said "The report assumes ACC will have reduced its scheme costs by ten percent. In fact savings of between 30% and 40% have already been achieved. This includes a 48 % reduction in tail costs (the cost of long term ACC claimants).

"ACC is a vastly different organisation to that of only a few years ago. This is why we can confidently predict that average levies will be no higher under the new regime than they are now."

Dr Cullen also expressed surprise and disappointment that the media had been briefed on the report a whole day before it was scheduled to be released. He said "It is hard not to feel as if we have been ambushed by a political force rather than being asked to respond to an independent report."

ENDS

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