1. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister for ACC
Has she received any recent reports concerning ACC levy rates?
Hon RUTH DYSON (Minister for ACC) Link to this
Yes, I have. I have seen a report recently in which the National Party leader, John Key, claims that accident compensation levies are “rising rapidly” and “going through the roof”. Despite that claim being demonstrably wrong and deliberately misleading, Mr Key used it to justify his plans to return to the flawed policies of the 1990s and privatise accident compensation.
The levy for the average self-employed person has come down by 6 percent, the earners rate has reduced by 7 percent, and the average employers’ levy has dropped by a massive 43 percent, since National’s costly privatisation experiment.
Has the Minister seen any reports that explain why the current accident compensation scheme is so much more affordable than private schemes?
Yes, I have. I have seen a report that lists some of the higher expenses of private insurers, including marketing costs, agents’ commissions, profit loadings, and the cost of an industry regulator, all of which means that about only 60 percent of what is collected from premiums is available to meet claims, compared with nearly 90 percent under the accident compensation scheme. That leaves me wondering why National wants to go there, unless it is simply a payback to its financial backers in the insurance industry—as demonstrated by the leaked email from the Insurance Council prior to the last election.
Peter BrownIn terms of reports, is the Minister aware of the Law Commission’s report that expresses concern about the accident compensation regime that physiotherapists work under; if she is aware of it, is she pleased that Labour and New Zealand First are working together to have an independent review to address such issues?