10. Hon DAVID PARKER (Labour) Link to this
to the Minister for ACC
Is a focus of the ACC scheme still to support the needs of injured New Zealanders?
Hon PANSY WONG (Associate Minister for ACC) Link to this
Yes. However, I note that a scheme needs to be financially sustainable to achieve this focus, which it was not under the previous Labour Government, extending entitlements and including—
Mr SPEAKERThe question asked was whether a focus of the ACC scheme is still to support the needs of injured New Zealanders. It did not need an attack on the questioner. I am sure there will be plenty of opportunity in the supplementary questions to get back at the previous Government, but not in a simple primary like that. I think we got the answer; I think it was yes.
Is the Minister aware that the number of injured New Zealanders whose accident compensation cover has been wrongly denied by ACC but overturned on review is set to double from 897 cases in 2008 to an unprecedented 2,000 cases this year?
As far as I am concerned, every individual who has been turned down by ACC rightly can seek a review, and if ACC is found to be wrong it will correct that mistake. But also I say that for the year June 2009 to July 2010, even though the request for elective surgery decreased by 5 percent the approval rate went up by 2 percent.
Does the Minister agree with claimants and surgeons that ACC’s deliberate policy of unfair refusal of treatment to thousands of New Zealanders each year is causing unnecessary distress to injured New Zealanders as well as causing a blowout in legal costs for both claimants and ACC?
As I have just said, although the claims for surgery have decreased by 5 percent, the approval rate has gone up by 2 percent. ACC reviews what happened as a result of the review decisions. It has its procedures; what ACC has to do is prescribed by legislation. Under the previous Labour Government there was a huge blowout in ACC’s performance, with losses of $2.4 billion followed by losses of $4.8 billion, and that is not sustainable.
What steps has the Minister taken to ensure that ACC complies with review decisions that go against it, given the Dominion Post article yesterday showing that ACC is refusing to abide by review decisions and is acting above the law even when proven wrong?
The Minister for ACC and I expect a high level of performance from ACC, and on that particular case we are waiting for a full report.
Allan PeacheyThe Accident Compensation Corporation’s annual report shows a marked turn-round, enabling the corporation to reduce its net liability by $2.5 billion in the year ended 30 June 2010. This has been achieved with a marked improvement in rehabilitation rates—just 1 percent improvement would reduce liability by $500 million—and also is helped by a strong recovery in the investment markets.