Alliance Party: ACC not interested in levy hike views after sham consultation

Alliance Party Media Release – FOR IMMEDIATE RELEASE – Tuesday, December 1st, 2009

The Alliance Party is unsurprised that the Accident Compensation Corporation (ACC) has left levy rate hike proposals unchanged following their recent sham public consultation.

“This is confirmation that ACC is not interested in the public’s views on these hikes, which are largely negative,” says Alliance ACC spokesperson Chris Ford.

The Alliance believes that the consultation on the hikes was a mere sham designed to smother legitimate public fears. Mr Ford says the corporation is being sized up for privatisation and that the so-called ACC crisis is just a manufactured sham.

“Just like the Fourth Labour Government’s devaluation crisis and the Bolger National Government’s BNZ bailout crisis, this is a politically generated crisis.”

He says the fiscal gap that ACC claims in terms of long-term claimants doesn’t really exist.

“After all, ACC has recorded a surplus in the last two financial years where revenue (from levies and investments) exceeded claims paid. Furthermore, ACC’s investment portfolio has recently reported increased returns due to the global economic recovery.”

Mr Ford says any problems are due to a pre-funded instead of pay-as-you go regime for ACC.

“It seems strange that other taxpayer funded social services like health and education are funded on a year-by-year basis whereas for ACC this rule now doesn’t apply. After all, it once used to. This change initiated by the previous Labour Government should not have been made as it has just served as an excuse for this National Government to begin a renewed attack on the corporation.”

The Alliance Party is committed to a fully funded, pay-as-you-go ACC system based on the Woodhouse principles of 24 hour, seven day a week, no fault cover.

In Parliament, the Alliance would actively push for ACC to reverse its present levy hikes and restore full cover for those to whom it will soon not apply.

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