Continued cuts in ACC compensation payments

new-zealand-council-of-trade-unions

Fri May 07 2010 12:00:00 GMT+1200 (New Zealand Standard Time)

Continued cuts in ACC compensation payments

Friday, 7 May 2010, 11:46 am
Press Release: New Zealand Council of Trade Unions

Continued cuts in ACC compensation payments revealed in government accounts

The Government financial statements for the 9 months to 31 March show that ACC compensation payouts were $242m lower than expected because of “lower claims costs”, says the CTU.

“This appears to be confirmation of the cuts in entitlements from government and administrative actions,” said CTU Economist and Policy Director Bill Rosenberg. “It confirms reports of more ACC claims being turned down. This is despite the increases in ACC levies, driven mainly by the full cost recovery model.”

“On the other hand, the ACC and New Zealand Superannuation investment funds continue to contribute to the Government’s operating balance, increasing by $466m and $891m above forecast respectively. The deficit in the Operating Balance is $2.0 billion lower than forecast.”

Tax revenue was down due to continued lowered company profits and wage and salary income, indicating the lingering recession. This was more than offset by higher GST receipts and government agencies spending below forecast. Part of the $809m in lower spending was due to Treaty settlements of $385 million being delayed until the next financial year, but a large part of the difference to forecast was due to “individually small items (all less than $30m) across a number of departments”. The pressure on government departments to cut spending appears to be working.

Gross debt is $2.4 billion lower than forecast at $50.4 billion or 27.2 percent of GDP and net debt (excluding the New Zealand Super Fund and advances such as student loans) is close to forecast at $25.6 billion and 13.8 percent of GDP. Net debt including all crown assets is actually negative (that is, a net asset) at $320 million.

ENDS

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