Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

ACC blow-out sparks Ministerial Inquiry

Hon John Key Prime Minister

02 December 2008


ACC blow-out sparks Ministerial Inquiry

The previous Labour government underfunded ACC to the tune of about $1 billion over the next three years, Prime Minister John Key has revealed.

"This is a significant and serious hole in the Government accounts, so today I am signalling the Government's intention to conduct a Ministerial Inquiry to determine how this happened, and why the information was not included in the pre-election opening of the books."

Mr Key says the terms for the Ministerial Inquiry will be firmed up over the coming days.

"But my top priority is to offer an assurance to those who rely on ACC that their services will be maintained, despite warnings that the Non-Earners Account will run out of money by March.

The National-led Government has been told by officials that ACC is seeking $297 million in extra funding for the Non Earners' Account in the 2007/08 year and a similar increase for out years.

"The previous Government knew of the seriousness of the situation, but did not disclose this information prior to the election.

"Officials have told the Government that they became aware of the serious funding issues in the Non-Earner account as early as May, and previous Ministers were also made aware of the problem. However, the funding shortfall was not mentioned in the pre-election opening of the books.

"There are serious questions to be answered about this very large ticking time-bomb. In light of this, I have determined that a Ministerial Inquiry needs to run alongside any internal ACC review."

Mr Key says the Government signalled in the election campaign that ACC would be subject to a full review, so the shape of the accounts can be properly and publicly assessed.

The National Government was elected on a platform that includes, a full stock-take of the various components of the ACC scheme, an evaluation of progress to full funding, identifying areas of cross-subsidy or cost-shifting and underfunding of newly-legislated entitlements.

The Government has sought further information from ACC, and expects to have another paper in front of Cabinet before Christmas.

National supports a comprehensive, 24/7, no-fault accident insurance scheme that delivers certainty of coverage for all New Zealanders.

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The Rivals For The Covid Saliva Testing Dollar

If you want a good insight into what the limits of tiny, barely discernible steps to reduce poverty actually look like, delve into the latest Statistics Department figures on poverty in New Zealand Most of the nine measures utilised reveal little or no progress in combatting poverty over the 21 months to March 2020... More>>


 

Government: Reserve Bank To Take Account Of Housing In Decision Making

The Reserve Bank is now required to consider the impact on housing when making monetary and financial policy decisions, Grant Robertson announced today. Changes have been made to the Bank’s Monetary Policy Committee’s remit requiring it to take into ... More>>

ALSO:


RNZ: Alert Levels Remain

There are no new community cases of Covid-19 today, the Ministry of Health has confirmed.
Covid-19 Response Minister Chris Hipkins says at least half of the Papatoetoe High School community have been tested and the results that have come through so far have all been negative... More>>

ALSO:

Stats NZ: Latest Release Of Child Poverty Statistics

All measures of child poverty were trending downwards, prior to the COVID-19 lockdown, across the two years since year ended June 2018, Stats NZ said today. The COVID-19 lockdown in late March 2020 affected Stats NZ’s ability to collect data from households ... More>>

ALSO:


NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>

The Dig: An Illogical Ideological Struggle

Dig beneath all the trade wars and the arguments to the effect that the USA should not permit China to achieve economic and technological superiority, or even parity, and you find the real reason behind the conflict... More>>

Travel: Government Eases Visa Restrictions For Visitors In New Zealand

Visitor visa holders will be able to stay in New Zealand a little longer as the Government eases restrictions for those still here, the Minister of Immigration has announced. More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels