ACC Shortfall: Tariana Turia

The National Business Review called the shortfall of ACC funding an ‘A grade scandal’.

The scandal is not a new one - but it is a scandal which this House has heard once too often – the scandal of the failure to disclose.

Previous parliaments have been stigmatized by the illegal use of parliamentary funding to purchase pledge cards; the improper use of the broadcasting spend and the subsequent legislation to validate unlawful spending.

And so here we go again. The billion dollar blowout at ACC should concern this House on many levels.

And the questions around the breach of the Public Finance Act requirements need to be resolved quickly.

But my particular concern is around the compounding errors that threaten the capacity of the state to provide good government and fiscal stability.

The shortfall in the non-earners account was known to ACC, the Department of Labour and Treasury. And today we hear the officials are being blamed by the previous Government.

I will read from the statement of responsibility which states:

“I accept overall responsibility for the integrity of the disclosures contained in this update and the consistency and completeness of the update information in accordance with the requirements of the Public Finance Act 1989”. I understand that the Hon Dr Michael Cullen signed that statement.

Last week, the Government’s Job Summit agreed to a key recommendation that we must ensure that “Government services to Maori deliver effective results”.

We know that in regard to current Government services of accident compensation to Maori, all the data available to the ACC shows that Maori are currently not receiving the entitlements to care, rehabilitation and compensation at a level comparable to the proportion of Maori in the population, despite the Greens describing the accident compensation scheme as a quality service.

That’s an A grade scandal on its own. The Ministerial Inquiry report now adds another layer again to these long standing problems – describing the risks to the Crown that arose from the failure of relevant Ministers and agencies to disclose the funding shortfall in the economic and fiscal updates.

If ACC was a Maori provider, it would have been closed down by now.

The concepts of accountability, transparency and integrity are central to the trust and confidence te iwi Maori place in others. We must carry these same values across every sphere of Government. Public monies should be treated with respect.

The lessons are clear. The billion dollar breach impacts on us all. Tell the truth is the right catch cry.