5 March 2009 Media Statement

Nats’ ACC cuts hit elderly, poor and farmers

National’s cuts to ACC and privatisation will mean vicious price hikes and service cuts for the elderly, beneficiaries and farmers, Wigram’s progressive MP Jim Anderton says.

He says new charges for some ACC services will mean low income people can’t afford treatment. Competing ACC providers will mean higher premiums for farmers. And many working people will be left without cover when private providers fail.

“If National charges for some ACC treatment, some low income people won’t be able to afford to pay. That means working people on lower wages, and especially beneficiaries and superannuitants, won’t be able to get treatment if they are hurt in an accident.

“National’s plans mean no rehabilitation for your elderly mum if she falls over in a shop unless someone can cough up for the costs of treatment.

“It is disgusting for the government to save ACC costs by blocking physio and rehabilitation services for elderly New Zealanders. How would a pensioner afford a $50 a week physio fee? Most of them paid their premiums for much of their working lives and national is contemplating increasing their costs at the same time it is cutting tax for the most affluent New Zealanders.

“National’s plans to bring in competition and privatise ACC will put up prices. A report from the previous National-Liberal Government in Australia, comparing accident compensation in Australia and New Zealand in 2004, showed levies in Australia’s competitive market were twice as expensive as those in New Zealand for the primary sector.

“A competitive scheme could result in a levy hike of as much as 250 per cent for rural people like farmers.

“Our ACC administration cost is about a third of Australian schemes.

“In Victoria – where two companies competed so seriously they ran each other out of business – they competed by underfunding the tail. In other words, in a competitive system, companies can go broke and leave liabilities for long term claims unpaid. What happens to people needing long term care for their accidents when the provider goes broke?”

ENDS

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