Cuts to ACC unfair and unnecessary

The legislation to undermine ACC that is before the house today is both unfair and unnecessary, said the Green Party.

The Injury Prevention, Rehabilitation, and Compensation Amendment Bill is back before Parliament today.

“It’s only fair that accident victims get the help they need. We will fight cutting support to part-time workers, sexual abuse victims and people suffering hearing loss and all the other vulnerable groups that John Key’s Government is targeting,” said Kevin Hague, Green Party ACC spokesperson.

“ACC is bringing in more money than it is spending. The Government’s whole charade that ACC is in crisis is based on the flawed full-funding model.

“The Green Party does not agree with funding ACC like an insurance company. Massive levy increases and cuts to ACC services are neither fair nor necessary.

“John Key’s Government needs to start listening to the ACC Futures Coalition, the unions and all the experts who told the Select Committee that ACC should be funded on an annual basis,” said Mr Hague.

This year ACC’s revenue was $4.5 billion, which is $1.5 billion more than it spent on claims.

The full-funding model assumes that ACC must have cash reserves to cover the entire lifetime cost of an accident at the time it happens. This model is not used in provision for social services such as health and education.

“Going back to the pay-as-you-go model where funding is designed to meet annual costs would remove any justification for the proposed levy increases and cuts to ACC,” said Mr Hague.

For more information

Earlier Green Party Press release on ACC –http://www.greens.org.nz/press-releases/massive-levy-increases-will-undermine-acc

Select Committee report that includes Green Party Minority report (pg 14-15) - http://www.parliament.nz/en-NZ/PB/SC/Documents/Reports/e/6/4/49DBSCH_SCR4607_1-Injury-Prevention-Rehabilitation-and-Compensation.htm