9. MICHAEL WOODHOUSE (National) Link to this
to the Minister for ACC
What action is he taking to fix ACC’s financial problems?
Hon Dr NICK SMITH (Minister for ACC) Link to this
This afternoon I announced the reconfigured Accident Compensation Corporation (ACC) board. I have put strong emphasis on actuarial, investment, and financial governance skills to better equip the corporation with the skills to address the scheme’s financial problems in these challenging economic times.
Michael Woodhouse Link to this
Why has the Minister determined that change in the ACC board was necessary?
Hon Dr NICK SMITH Link to this
First, the Government’s new direction for the accident compensation scheme requires a focus on cost control in order to avoid unaffordable levy increases. Second, the changed economic environment requires top-flight investment and actuarial skills to oversee the scheme’s very large liability and investment portfolio.
Hon David ParkerDoes the Minister agree that replacing more than half of the ACC board, including Ross Wilson and Wayne Butson, will make it easier for the Government to reduce the scope of accident compensation cover and to privatise the earners account, which currently covers all workplace accidents?
Hon Dr NICK SMITH Link to this
No, it will enable us to ensure that the board members will have the top-flight governance skills that are needed to run a very large organisation and to provide New Zealanders with 24/7 care but, at the same time, ensure that the levies are affordable for ordinary New Zealanders.
Michael Woodhouse Link to this
What reports has the Minister received on briefings and timeliness of responses?
Hon Dr NICK SMITH Link to this
I was amused to note that the deputy leader of the Labour Party said there were some 600 briefings. In fact, there was one. I note that an important briefing was provided on 14 August last year, noting a requirement for $1.56 billion. The matter was not included in the Pre-election Economic and Fiscal Update because Treasury officials said it was not being considered by Ministers. The billion-dollar question is why a problem of that size was not being considered by Ministers.