2. SUE MORONEY (Labour) Link to this
to the Minister of Agriculture
What reports has he received on the importance of ACC to farmers and other agriculture and forestry workers?
Hon JIM ANDERTON (Minister of Agriculture) Link to this
The Accident Compensation Corporation (ACC) provides not just weekly compensation but also ambulance and emergency services, ongoing medical care and home help, physical rehabilitation, lump-sum payments, and modification to homes and cars. In the case of a major industry, ACC provides those benefits to rural families, sometimes for life. This is important to rural people who work in the most dangerous areas of our country, and to their families. The Ministry of Agriculture and Forestry reports to me that up to 25 agricultural work fatalities and up to 16 forestry deaths occur each year. The loss of ACC would mean much higher insurance costs for rural families and much reduced cover and security.
What reports has the Minister seen about possible alternative schemes; and what would the specific effects be for rural families and other agricultural workers?
I have seen a report that the National Party has a policy of ripping ACC protection from rural families and replacing it with a privatised scheme. When a similar scheme was introduced in Australia a report by the previous Australian Liberal-National Government found levies in Australia’s competitive market were twice as expensive as those for New Zealand’s primary sector. This research was backed up by an independent PricewaterhouseCoopers report last year. One can see what is in National’s policy for Australian-owned insurance companies that donate to National, but one cannot see what is in it for farmers or anyone in our primary rural communities.
ACC offers an initiative for self-employed people and employers of fewer than 20 staff with good safety performances, so that safe workplaces can be recognised with levy discounts. It offers programmes to improve safety in the rural sector, such as farm bike safety equipment and the FarmSafe programme. The alternative scheme promoted by the National Party offers premiums up to 250 percent higher, reduced coverage, and less security for rural New Zealanders.
This is an interesting question. If it were a State-owned enterprise it would be on the list of assets National says it will not privatise in its first term, but because it is not a State-owned enterprise, National is not ruling out selling it. ACC would be privatised by National. For the same reason, we can expect that anything else owned by the people of New Zealand and not a State-owned enterprise would be sold, including Air New Zealand, Television New Zealand, the Superannuation Fund, the roads, the hospitals, and even the schools.