20th August 2012

For Immediate Release

New ACC home support funding questioned

The Public Service Association says questions need to be asked about new funding arrangements between ACC and home support service providers which could line the pockets of large companies at the expense of frontline workers.

ACC has reorganised the way it funds home support for its clients.

It used to directly fund more than 80 home support providers but it has rationalised those to about six. Those six providers include several large overseas companies which will manage the funding and some will sub-contract services out – for a significant fee.

PSA National Secretary Richard Wagstaff says ACC is allowing these corporate providers to keep around 10 per cent of the funding as a type of handling fee for managing the contracts.

“That’s a lot of money going straight into these companies’ pockets. It will serve to squeeze the funding available to the sub-contractors who will then find it difficult to properly deliver on their contract and pay decent wages to frontline staff.”

“It doesn’t make sense in a sector where frontline workers are earning minimum wages and their pay is dependent on funding levels rather than the skill, complexity or responsibility of their work,” Mr Wagstaff says.

ACC is effectively taking a more hands off approach to managing its home support clients and adding a corporate layer.

Mr Wagstaff says “ACC should not be palming off its public responsibilities to the private sector and prioritising big business profit ahead of quality frontline service delivery.”

ENDS

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