Question to Minister

4. DAVID BENNETT (National—Hamilton East) to the Minister for ACC: What are the findings of reports released today by the Privacy Commissioner and the Auditor-General about a privacy breach and governance at ACC?



Hon JUDITH COLLINS (Minister for ACC): The independent report released by the Privacy Commissioner focused on ACC’s culture, policies, and practices around privacy and security of information. It found that these were not up to 21st century standards. The Auditor-General focused on governance of the corporation, and found that senior board members involved and management failed to recognise the systems of systemic failure around privacy and security information, and did not take the appropriate steps. I agree with all the findings.
David Bennett: What specific concerns did the independent report and the Auditor-General raise, and what is ACC doing to address these?
Hon JUDITH COLLINS: The independent report released by the Privacy Commissioner noted systemic weaknesses, including a variable culture around the importance of handling private information carefully and a lack of accountability for addressing privacy issues. ACC will undertake a significant programme of work to address concerns raised by both the independent report and the Auditor-General. A timetable for this programme of work is included in the report from the Privacy Commissioner, and I expect ACC to make the required changes as a priority.
Andrew Little: In view of the findings in today’s reports, both released at 2 p.m., that ACC board members, which her Government appointed, were too inexperienced to appreciate the gravity of Bronwyn Pullar’s complaints, and that the corporation took a cavalier attitude to protecting claimant privacy, what steps is she taking to fill the multiple board and senior management vacancies with people who understand ACC and the importance of utmost public confidence in it?
Hon JUDITH COLLINS: The question is not quite correct in one of the assumptions. I will deal with that first and then deal with the substance of the question. In fact, the board members who were named in the reports as having not appreciated the seriousness of the situation were its longest-serving board members—the chair and deputy chair. In relation to the filling of the board positions, I can tell the member that there is a very thorough process that is ongoing. Interviews are being undertaken and I am putting a great deal of thought into making sure we get the right combination of board members with the right skills, the right character, and the right experience.
David Bennett: What expectations has she set for ACC to improve public trust and confidence in how it operates?
Hon JUDITH COLLINS: Earlier this year I signed a letter of expectations and a service and purchase agreement with ACC outlining my priorities for the board. I expect the ACC board to improve public trust and confidence, improve the management and security of private information, maintain a focus on levy stability and financial sustainability, ensure early resolution of disputes, and provide high-quality service for clients. The Auditor-General noted that “this approach will lead to a more balanced and comprehensive approach to the governance and operation of ACC.”
Hon Trevor Mallard: In light of the Privacy Commissioner’s comment that the ACC culture change has to start at the top, what action has she taken to plug the leaks from her office?
Hon JUDITH COLLINS: There are no leaks from my office, as that member well knows.

http://www.scoop.co.nz/stories/PA1208/S00350/questions-and-answers-august-23.htm