It was with both sadness and anger that I saw the Injury Prevention, Rehabilitation, and Compensation Amendment Bill pass it’s first reading today. Labour, Progressive and the Greens voted against.
I don’t believe there are many New Zealanders who see this as the full extent of the Government’s agenda. It is a starting point. The Government’s actions, both with this Bill and other changes will see increased costs and reduced entitlements. This is a cost shifting exercise and it will be New Zealanders who will pay. The costs do not vanish, they are shifted to the injured person or their family. The treatment of ACC as an insurance scheme will increase and there will be significant privatisation.
There has been a cynical exercise in manipulation and scaremongering to set the scene to make the changes National want to make – a manufactured crisis. ACC is insolvent and going down the gurgler said the Minister.
People are worried about what the Government’s plans are. Everywhere I went over the weekend people asked me about ACC. John Key promised an honest conversation about ACC but significant reforms are already in train and there is no sign of the conversation.
We have a world leading no fault scheme, enacted in 1974 in a climate of bipartisan cooperation. Most of us are proud of the scheme, many of us have only known the no fault protection it provides. The underlying principles are still valid today: community responsibility, comprehensive entitlement, complete rehabilitation, compensation for the whole period of incapacity at 80% of earnings and administrative simplicity. Let’s measure any changes against these principles. I recommend a very clear article by Tapu Misa in the New Zealand Herald link here
In relation to some of the specifics in the Bill. Ruth Dyson highlighted two important provisions – reduced access to coverage for those suffering gradual process injuries and for those with work related hearing loss. In relation to the former the Bill’s Explanatory Note makes it clear that the intention is to reduce the number of people receiving cover. Lets be clear what this means – many women, Maori and Pacific workers are likely to be impacted on by this change in areas like checkout scanning, fish and meat processing, production line workers and those using keyboards.
Labour will be working with others who wish to retain a comprehensive, no fault accident compensation scheme. I believe that the Government underestimates the level of anger and opposition they will face as they cut entitlements, increase costs and move to greater privatisation. Motor bike owners are currently leading the charge!
This is something that works, and works well. Why can’t they just leave it alone?
If they privatise it, does that mean that lawyers will be able to engage in tort actions again too? What percentage of ACC funding is going to go towards legal fees? In many places it is customary for an attorney to collect 1/3 of the recovery.
Why do we seem to be doing the opposite to America at the moment? Do we miss Bush and the neo cons that much?
I expressed my horror on another thread while watching that mess live (sorry Trevor I was only trying to express my disgust and show a little support). I fail to see how they can justify getting people back to work sooner, surely these people must need their ACC since they’re hurt. I thought they’d at least wait until their second term before doing this. I feel for those injured people!
Sounds like the ACC onslaught is leading to slaughter !
These proposed changes to ACC are appalling. Yesterday was a black day in the history of our social democracy. Each day’s news arrives and National announces yet another cut to ACC provisions. We must fight back with everything we have, not just as a party but as individuals. As a client of ACC’s sensitive claims unit (itself the subject of cruel slashes), I am personally affected, but I feel so much for other New Zealanders from all walks of life who face rising costs and inadequate treatment. National is taking ACC apart piece by piece and their only goal is privatisation. MPs – please do all you can in Wellington and make sure to report back often and tell us what we can do to fight these changes most effectively.
National should just leave ACC alone.
It was a sad day to watch this bill being passed. Disappointing from the Maori Party especially. These changes are just the beginning, with the ACC Stocktake group being steered by the Insurance Council we will see the end of any resemblance to the Woodhouse Principles.
Save ACC: http://www.facebook.com/group.php?gid=192093729551&ref=nf
Carol – good on you and Labour for standing up for our ACC scheme.
But I have a question or two:
Why did Labour continue with the idea of fully pre-funding the scheme when you say you agree with the Woodhouse principles and agree that it is not an insurance scheme?
That is a legacy of National’s last privatisation exercise of the late 1990s, and the commitment to fully pre-fund the scheme was continued by Labour and is a large part of the reason National has been able to do a smoke and mirrors exercise with its finances to manufacture a “crisis” in an attempt to undermine ACC and prepare it for privatisation.
We don’t fully pre-fund health or education. What’s different about ACC?