Earlier this week the National government was once again caught fudging figures about ACC. When they took office, they manufactured a financial crisis in ACC in order to justify hiking levies and carving it up for privatisation. The cynical nature of their crisis beat-up was highlighted when just a few months out from an election they suddenly decided ACC was in great shape and the levies should be cut again.
Now it’s been revealled that this year’s Budget, the one in which Nick Smith heralded ACC’s dramatic turnaround, over-stated the savings ACC is supposed to be making. Documents obtained by Radio NZ under the OIA show that the Government ignored warnings from the Labour Department before the Budget that Treasury figures on proposed savings from ACC were too optimistic. The Labour Department predicted savings of $400 million over the next three years, but Treasury said $580 million would be saved.
Nick Smith has been all over the place on ACC figures. One minute it’s having a financial crisis the next he is ignoring Labour Department advice in order to make the Government’s financial position look better than it otherwise might. Nick Smith and National simply cannot be believed when it comes to ACC. There was never a crisis. ACC is an excellent scheme and National should stop trying to sabotage it so that they can make bigger profits for the Aussie insurance industry.