27 June 2012

Question to the Prime Minister

12. KEVIN HAGUE (Green) to the Prime Minister: Does he stand by his reported comments regarding ACC that he “backed the corporation’s harder stance, saying it should continue and there was no evidence legitimate claimants were missing out”?


Rt Hon JOHN KEY (Prime Minister): I think the member might find that that was poetic licence taken by the *New Zealand Herald. I stand by my actual statement in response to a question, which asked whether I had any concerns that ACC is prioritising its bottom line over entitlements for claimants, to which I responded that I had not seen any real evidence of that. I also said that what has got to be carefully monitored is that we are not throwing people off the tail, or their support from ACC, if it is neither legally correct nor fair.
Kevin Hague: How can he be sure that legitimate claimants are not missing out when almost half of those long-term claimants who have appealed ACC’s decision to exit them in 2012 are found by *Dispute Resolution Services to have been wrongly kicked off?
Rt Hon JOHN KEY: There can and will be isolated cases where someone has not been treated fairly, and that is against what I think is appropriate, which is why I said on Monday that it had to be legal and fair. I would point also to the advice that I have in relation to *Dispute Resolution Services that over the past 6 years the average percentage of disputed decisions found in the corporation’s favour is 71.8 percent.
Kevin Hague: How can he be sure that legitimate claimants are not missing out when, of those decisions of ACC upheld by Dispute Resolution Services that are subsequently appealed at the District Court, around half of those are overturned?
Rt Hon JOHN KEY: As I said earlier, I cannot be sure in every case, which is why I said earlier in the week that it is very important that the corporation deals with people in a way that is both
legally correct and fair. It is also important that people have an avenue to test their rights, if they believe they have not been fairly treated, and people do. The Government separated Dispute Resolution Services from ACC, to emphasise its independence. As I said in answer to the last question, in terms of disputed decisions, 71.8 percent are found in the corporation’s favour.
Kevin Hague: Is he aware that a core competency required in ACC case manager job descriptions is that case managers “can decide and act without having the total picture”, and does he agree that the full picture is needed if the numbers of cases overturned on appeal are to be reduced?
Rt Hon JOHN KEY: No; that is an operational matter that should be put to the chief executive, or at the very least the *Minister for ACC.
Kevin Hague: Can the Prime Minister confirm that the average over 6 years of decisions by ACC that have been upheld under review in fact masks a trend whereby, in the last 3 years, those decisions have been below the 70 percent target that the Government has set, whereas in the preceding 3 years they were above it?
Rt Hon JOHN KEY: No. What I can say, as I said in response to earlier questions, is that over the past 6 years the average percentage of disputed decisions that are found in the corporation’s favour is 71.8 percent. The average percentage of elective surgery decisions found in the corporation’s favour is 64.6 percent. In the year to date the percentage of elective surgical decisions found in the corporation’s favour is higher than the rate under a Labour Government. But can I make this one point, and that is that the corporation deals, to the best of my knowledge, with about 1.5 million claimants a year. There are some very technical and difficult cases for everybody in amongst that. But for the most part we should be congratulating the corporation, because I think that for the most part it does a good job for New Zealanders.
Kevin Hague: What action, if any at all, has the Government taken to improve the quality of ACC’s decisions, given the increasing number of decisions that are being taken to review, and ACC’s repeated failure over the past 3 years to meet its contracted target of having at least 70 percent of its decisions about long-term claimants upheld at review?
Rt Hon JOHN KEY: As I said earlier, Dispute Resolution Services was made independent from the corporation to help in that regard. In terms of the success rate in favour of the corporation, it is very high, as I have been saying. There will always be individual cases, but for the member to make the case that, because a few cases go against the corporation, everything is broken there, is just simply incorrect.
Kevin Hague: I seek leave to table an ACC document. It is the job description for a case manager in claims management.
Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection. Document, by leave, laid on the Table of the House.

http://www.scoop.co.nz/stories/PA1206/S00419/questions-and-answers-june-27.htm

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