5. Hon DAVID PARKER (Labour) Link to this
to the Minister for ACC
Does his recent admission that ACC has handled the issue of counselling for sexual abuse victims badly give him cause to question whether ACC has also treated victims of hearing loss badly?
Hon Dr NICK SMITH (Minister for ACC) Link to this
No. The issue of sensitive claims was about best clinical practice, and with the assistance of the independent clinical reviews supported by the Accident Compensation Corporation (ACC), it has resulted in a good outcome. The issue of hearing loss is about policy and regulation, and arises from a Cabinet decision last year that ACC should, as per its legislation, be responsible only for injury-related hearing loss and not for that caused by other factors such as age. In short, age is not an accident.
Does the Minister still assert that he had no responsibility, nor blame properly attached to him, for the mistakes made in relation to the withdrawal of accident compensation counselling for victims of sexual crimes; if so, why do we bother with question time, where he was repeatedly warned about his folly?
Hon Dr NICK SMITH Link to this
Of course I am responsible; I am the Minister for ACC. But my response to the issues that were raised was to seek an independent clinical review. Members opposite have been misleading when they have asserted that decisions made by clinicians in respect of sensitive claims were made by either me or Ministers.
Given the Minister’s earlier assertions that he relies on expert advice, why has he ignored the evidence from Professor Thorne and Dr Welch of the department of audiology at the University of Auckland who said: “The introduction of a percentage handicap threshold for [noise-induced hearing loss] appears to be a reaction to the cost of claims and is apparently not based on an understanding of the real [noise-induced hearing loss] situation in New Zealand.”?
Hon Dr NICK SMITH Link to this
The member is making reference to the accident compensation amendment legislation that introduced the 6 percent threshold. That decision was made finally by Parliament but with my strong support as the Minister. I note that every workers’ compensation scheme in Australia has a threshold—
Grant RobertsonHon Dr NICK SMITH Link to this
Well, yes, we are. But I also say that as a consequence of the multibillion-dollar losses that the previous Government passed on to us in the area of accident compensation, we have had to be very careful about ensuring cost-effectiveness of the scheme’s expenditure.
Michael Woodhouse Link to this
What discussions has the Minister had with his colleague the Minister of Health to ensure that ACC’s systems properly respond to any changes to ensure that people are able to secure health support for any age-related hearing loss?
Hon Dr NICK SMITH Link to this
I have had very close discussions with the Minister of Health, and officials from our respective agencies have been working closely together. The current rule is that if any support for hearing loss is provided through the accident compensation scheme, then the claimant is ineligible for any support from the Ministry of Health. This has led people in the sector to assume a lack of any support from the Ministry of Health where a person has industrial hearing loss as well as age-related hearing loss. The Government is working through the options and considering the submissions that have been made. We are confident that we can come to an answer between ACC and the Ministry of Health that will be fair and will work for those who require hearing assistance.
Has the Minister seen the latest issue of the National Foundation for the Deaf’s magazine, which contains a report about people on whom his decisions are impacting—like Les Slattery, who is reported to have repaired chainsaws in the 1970s without earmuffs, and if it were not for that job he would not need hearing aids, but now at age 72 he faces cuts to his accident compensation cover for his work-related hearing loss?
Hon Dr NICK SMITH Link to this
Let me make the issue absolutely plain: the scheme will meet its full obligations for hearing loss that has occurred as a consequence of industrial hearing loss. We have made that absolutely plain. As I have said, I am working closely with the Minister of Health to ensure that where a person has a mix of both industrial and age-related hearing loss, the total package is one that works well for New Zealanders.
Michael Woodhouse Link to this
Can the Minister confirm the facts of the audited accounts of ACC, which show losses of $7.2 billion in 2007 and 2008; if so, has he received any calls for a full and independent inquiry into those losses?
Hon Dr NICK SMITH Link to this
Yes. The audited ACC accounts show a loss of $2.4 billion in 2007-08 and $4.8 billion in 2008-09. This total of $7.2 billion exceeds that of the expected losses from all of the 61 failed finance companies. The cost of ACC’s loss to the public purse exceeds by a factor of 10 the cost of the deposit guarantee scheme. I have not received any calls from the Opposition for a full public inquiry into those losses, although I note that the inquiry into the failure to disclose the losses in the non-earners account shows that it was a breach of the Public Finance Act.
Why would older New Zealanders not see his refusal to provide proper accident compensation cover for work-related hearing loss as just part of National’s campaign to target the elderly for cost-cutting, with other examples being cuts to home support, to the falls prevention programme, and to orthopaedic operations for older workers who have suffered shoulder injuries?
Hon Dr NICK SMITH Link to this
This Government is very committed to providing proper support for older New Zealanders—for instance, tax changes will come into effect on 1 October, and the average superannuitant will be significantly better off with those changes. We need to look only at the biggest-ever increase in elective surgery, which my colleague Tony Ryall has delivered, or at the very good work that my colleague John Carter is doing as the Minister for Senior Citizens to realise that older New Zealanders are so much better off with the leadership from this Government.