2. CHRIS TREMAIN (National—Napier) Link to this
to the Minister for ACC
What reports has he received on “shonky figures” in ACC?
Hon Dr NICK SMITH (Minister for ACC) Link to this
Mr Speaker—[ Interruption] I raise a point of order, Mr Speaker. I have not so much as said a word and I face a barracking of voices from the Opposition.
Mr SPEAKERI am sure the honourable Minister is perfectly capable of dealing with that. It was clearly a fairly political question.
Hon Dr NICK SMITH Link to this
Labour’s describing the PricewaterhouseCoopers report on the Accident Compensation Corporation (ACC) as “shonky” is a bit rich in the very week in which it has been confirmed that Labour’s Pre-election Economic and Fiscal Update 2008 hid $1.5 billion in liabilities in a breach of the Public Finance Act.
Hon Dr NICK SMITH Link to this
The signed statement by Labour in the Pre-election Economic and Fiscal Update 2008 says: “I accept overall responsibility for the integrity of the disclosures … in accordance with the requirements of the Public Finance Act 1989.”, and that all material fiscal implications have been disclosed. They were not. Labour now refuses to accept any responsibilities, despite at least two of its former Ministers knowing of that $1.5 billion of liability—the largest breach on record of the Public Finance Act.
Hon David ParkerDoes the Minister intend to proceed with accident compensation levy increases that would cost the average family $2,400 per annum, as he said to the House yesterday, or was that alarmist talk to soften up people to the need for unnecessary cuts to entitlements?
Hon Dr NICK SMITH Link to this
No. This Government is not going to proceed with levy increases of that size; they are untenable. They are untenable, but they are the legacy that Labour left through its poor management of accident compensation. We have the job of fixing it and saving accident compensation, and we are up to that challenge.
Hon Dr NICK SMITH Link to this
If we adopted the approach that members opposite adopt to the challenges we face at the ACC, I am advised that the solvency ratios would decline all the way to zero within a period of 7 years. That is untenable, and that is why simply changing the full funding date is not enough; we will have to have a more comprehensive package of change to secure the future of accident compensation.