12. GRANT ROBERTSON (Labour—Wellington Central) Link to this
to the Minister for ACC
Does he stand by all the comments he made during the debate on the financial review of ACC last Tuesday, 26 May 2009?
Hon Dr NICK SMITH (Minister for ACC) Link to this
Yes. I particularly stand by my statement that during Labour’s final 3 years in Government, Accident Compensation Corporation (ACC)’s liabilities increased by $10.5 billion, equivalent to an additional debt of $5,000 for every household. I stand by it because it is a strong reminder of how financially irresponsible Labour was and why its members would never again be trusted with the Treasury benches.
Will the Minister apologise to staff at ACC and the chief executive for pre-empting the announcement of the loss of 70 jobs at ACC’s corporate office in his speech during the financial review debate?
Hon Dr NICK SMITH Link to this
Members opposite demand that Ministers be open and transparent. I was of the understanding that staff were informed on Tuesday prior to the debate. I subsequently found out that only senior staff had been informed. I think the apology should be from Labour that allowed a huge expansion of ACC’s head office that now means that this Government has to deal with the mess it left us.
How does the Minister think that, by pre-emptively announcing the loss of 70 jobs, and now refusing to apologise for doing so, he upholds his Government’s promise to “Promote an environment of professionalism and mutual respect.” in the Public Service.?
Hon Dr NICK SMITH Link to this
Nowhere in the statement I made in the House did I mention 70 staff. What I did say was that this Government’s policy is to focus public services on the front line. I make no apologies for that. The apology that is owed is to this Parliament and to the people of New Zealand, and it should come from Labour. It left the accident compensation scheme in a huge mess, which has required these sorts of difficult decisions.
I seek leave to table an email from the chief executive of ACC to all staff at ACC that apologises for Dr Nick Smith’s comments in the financial review debate.
Michael Woodhouse Link to this
Did the head office of ACC expand excessively, as occurred in most Government head offices, during the Labour Government’s tenure?
Hon Dr NICK SMITH Link to this
The head office of ACC expanded by 30 percent, including over 100 additional staff, during the last 5 years. It seems that the Labour members are far more—
Hon Darren Hughes Link to this
I raise a point of order, Mr Speaker. I am struggling to see the ministerial responsibility for this Minister in the answer he is giving, and for how on the earth the question could have been in order.
Hon Dr NICK SMITH Link to this
Mr Woodhouse’s question was about the number of staff and the degree to which the head office had expanded over the last 3 years. I think that is eminently sensible in a debate around the changes—[ Interruption] I thought points of order were meant to be heard in silence.
Hon Dr NICK SMITH Link to this
The question from the member was about the degree to which the head office of ACC had expanded in recent years. That is eminently relevant to a debate about the changes that the Government is currently having to make.
I think it is an interesting point of order that the Hon Darren Hughes has raised, but there is an informational responsibility that the Minister has in terms of what he has inherited from the previous administration. The issue around the question was in many ways based on the insertion of an assertion into the question. I ask members to forgive me, but so many questions do that; they insert a political statement into the question. If I, as Speaker, were to rule out all the questions that contained an allegation or a statement I do not think we would get very far. I realise some of these things are a bit marginal, but I think the point made by the Hon Dr Nick Smith is also valid, so I ask him to answer the question.
Hon Dr NICK SMITH Link to this
The corporate office of ACC expanded from 377 staff to 490 staff over the last 5 years. This is an increase of 30 percent. At the same time the debt or liabilities of the accident compensation scheme increased by over $10.5 billion. That is a legacy that the previous Government should be ashamed of.