National continues attack on ACC

new-zealand-labour-party

Mon Mar 09 2009 13:00:00 GMT+1300 (New Zealand Daylight Time)

National continues attack on ACC

Monday, 9 March 2009, 4:31 pm
Press Release: New Zealand Labour Party

9 March 2009
Media Statement

The Government’s besmirching of ACC board members is unjustified and it should come clean on the real political motives behind its decision to sack them, says Labour ACC spokesman David Parker.

“The real agenda behind today’s sackings is the Government’s now well-signalled desire to make major changes to the scheme. It wants a new board which is willing to carry out its biddings, and today’s announcement would have more credibility if it was upfront about this.

Instead it has embarked on an orchestrated campaign designed to mislead the public into thinking its plan to slash ACC cover is justified,” David Parker said.

“The Government first tried to accuse former Labour ministers of deliberately leaving ‘nasty surprises’ behind regarding a so-called ACC ‘blow-out’. Its own ministerial inquiry debunked that and now ACC Minister Nick Smith and Prime Minister John Key have turned their guns on the ACC board.

“This is the same board in charge of a scheme described by an independent PricewaterhouseCoopers report last year as: the most comprehensive in the world; one which performs ‘as well as or better than most other structures’ and is often considered to be ‘best practice’. It also found ACC’s employer and motor vehicle levies were typically markedly lower than across the Tasman.

“The pressure on ACC’s levies, largely due to reduced rates of overseas investment return, was fully disclosed during the public levy consultation process run by ACC last year. Labour outlined a solution to ease the burden, which was to push out the date for fully-funding the scheme.

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“Dr Smith failed to act in time to do that and reduce increases to this year’s levies. The global economic downturn has now applied further pressure on the levies – compounding the seriousness of Dr Smith’s inaction,” David Parker said.

“He now appears determined to turn the board members into scapegoats for the increased motor vehicle levy – which he’s due to announce – and to justify his wider goal of dismantling the world-renown ACC scheme.

“Given Health Minister Tony Ryall’s recent sacking of Otago District Health Board chairman Richard Thompson, it’s not hard to suspect the vilification of ACC chairman Ross Wilson and other members has additional political motives.

“Ross Wilson has earned tremendous respect for his highly competent leadership of ACC in many sectors and his understanding of workplace safety issues is invaluable. The Government’s treatment of Mr Wilson and his board reflects poorly on Dr Smith,” David Parker said.

ENDS

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