Smith Nick: Estimates Debate — In CommitteeText is incorporated into the Bound VolumeSmith Nick: Estimates Debate — In Committee[Sitting date: 04 August 2011. Volume:674;Page:20373. Text is incorporated into the Bound Volume.]Hon Dr NICK SMITH (Minister for ACC): It is a great pleasure to be standing before the Committee of the whole House for the estimates debate on Vote ACC in far stronger circumstances. In other years in which I have been before the Committee I have had to acknowledge huge multibillion-dollar losses. I have had to acknowledge that there has been—Hon Steve Chadwick: Created.Hon Dr NICK SMITH: The member interjects “Created.” Righty-o she needs to explain this point for me. ACC had a loss of $2.4 billion in 2007-08.Sue Moroney: Oh that’s rubbish.Hon Dr NICK SMITH: The member says it is rubbish. Whose signature is on the annual report showing a $2.4 billion loss? It is that of the Labour Minister of the time Maryan Street. So for Sue Moroney and Steve Chadwick to say that what I said is not true is to say that Maryan Street signed false accounts. That is what they are asserting and I think that is a very serious charge for which they should perhaps go to the Serious Fraud Office. To say that someone signed a set of accounts that was false is a very serious accusation which they are making against Maryan Street and I ask them to reflect on that.The fact is that ACC claims costs between 2005 and 2008 went up by 50 percent. Claims costs were up by 50 percent. It was out of control. It was financially reckless. The previous Government breached the Public Finance Act. It did not disclose the size of the problems in the pre-election update and this Government has had a hard job to sort out that mess.The great news for New Zealand households this year is that we are able to have substantive levy reductions for households and for businesses at a time when they are under real financial pressure. Let me tell members how much it means. It means that workers on the average wage next year will receive a 17 percent reduction in their earners levies which will put 10 bucks a week into the hands of the average Kiwi household. Ten bucks a week for the average Kiwi household—I think that is a great thing and I commend the work of the board and the staff of ACC.Even better we are able to reduce business costs. There is a 22 percent reduction in the levies for businesses. The people who have achieved that have to be encouraged and congratulated.Sue Moroney: I thought you said it was broke.Hon Dr NICK SMITH: Exactly; it was when we had reckless financial management. Let me tell members how bad it was. When Labour was in charge ACC lost $4.8 billion in just 1 year.Sue Moroney: An investment.Hon Dr NICK SMITH: The member interjects “investments”. I am happy to bet her the best bottle of Nelson wine that of that $4.8 billion loss—do members know how much was lost in investments?Dr Cam Calder: Zero?Hon Dr NICK SMITH: Zero. Not one penny. That is absolutely the truth and I challenge the member who is interjecting to show me in those financial accounts from when she was in the Government what part of that $4.8 billion loss was in investments because it was not a dollar. It was not a dollar. That is in the accounts audited by the Auditor-General.Hon Steve Chadwick: I raise a point of order Mr Chairperson. This is all very interesting from the Minister but I thought we were in the estimates debate which is about this year not the term of the previous Government.The CHAIRPERSON (Eric Roy): The member is correct but the Minister in the chair the Minister for ACC is responding to interjections. It is rather hard to curtail him when he has been somewhat induced to respond to a series of interjections. If members want him to stay on track I suggest they curtail the interjections somewhat.Hon Clayton Cosgrove: I raise a point of order Mr Chairperson. With respect I think if you review the tape you will find that before any interjections occurred the Minister opened his speech by recasting history rather than dealing with the estimates then interjections followed after that. The Minister broke the Standing Orders immediately he spoke and I ask you to bring him back to the estimates.The CHAIRPERSON (Eric Roy): I think that is also a fair comment so I would ask the Minister to address the estimates.Hon Dr NICK SMITH: These estimates provide for the ongoing huge improvements in rehabilitation within ACC. If we are to make progress the real key is to make sure that we get people back to work as quickly as possible. Stunning results are shown by programmes like Better at Work which are supported in these estimates. Although Labour feels far more comfortable with people sitting on welfare and people sitting on accident compensation we in the Government want to work on people being able to focus on what they can do. Programmes like Better at Work which aresupported in these estimates are the way in which we can rightly deliver accident compensation in New Zealand.There is a further very important change and it is welcomed. This year we are introducing experience rating and a no-claims bonus for small businesses. There are 290000 small businesses right now receiving no-claims bonuses for their improved workplace safety. I think it is a good thing to reward workplaces that have better safety practices and are able to avoid claims. The experience rating is an equally important reform.Vote agreed to.