Government working hard to save ACC for Kiwis

A press release from the National Government by Nick Smith

The Government's reforms of ACC are all about ensuring the scheme is affordable and sustainable for future generations, ACC Minister Nick Smith says.
"The protest today led by the unions, the Labour Party and the Green Party claimed to be about saving ACC," Dr Smith said. "What they fail to realise is that this is exactly what the Government is doing through its ACC Reform Bill.
"Labour and the unions are in denial about the mess the previous government left ACC in. They are being hypocrites in now crying foul over those trying to save our no-fault insurance scheme.
"Labour's claim the cost-saving measures are all about business totally misses the point that it is families that pay the bulk of ACC levies. The Government's reforms are about avoiding extra levy increases for hard working New Zealanders.
"ACC's financial reports under Labour showed an increase in unfunded liabilities in their last term from $4 billion to $13 billion and a loss in the 2007/08 year of $2.4 billion. After this record loss, Labour recklessly extended the scheme to include suicide, self harm, seasonal workers and superannuitants while promising cuts in levies.
"It is a fact that ACC's claims costs over the past four years have risen by 57% - five times the rate of inflation - and to pretend that this can occur without impacting on levies is a fantasy.
"Saving ACC is what the Government is doing. The choices are putting up levies or cutting back on entitlements and the Government's approach is a balanced mix of both. The changes we are making will halve the levy increases this year and help secure the future of ACC for all New Zealanders."

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