Moroney Sue: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeMoroney Sue: Oral Questions — Questions to Ministers[Sitting date: 12 March 2015. Volume:703;Page:2214. Text is incorporated into the Bound Volume.]11.SUE MORONEY (Labour) to the Minister for ACC: Does she have confidence in the ACC Board?Hon NIKKI KAYE (Minister for ACC): Yes.Sue Moroney: Was ACC’s recommendation to reduce levies in the work and earners accounts ignored by the Government in 2013 and then again in 2015 in order to help the Government’s books into surplus as the Prime Minister confirmed in Parliament on Tuesday when he said it was a factor in that decision?Hon NIKKI KAYE: The Government has been very consistent in what we have said about this. We have said that a range of factors are taken into account. Surplus may be one factor but also a number of other factors are taken into account. Long-term view in terms of claimants our current costs around the scheme the discount rate—a range of things are taken into account.Sue Moroney: Will she seek an urgent reconsideration of the Government’s levy rates in light of ACC’s advice to the select committee this morning that its work account and earners account have already reached the top end of their funding bands—that is the work account has reached 140 percent of what it needs to fully fund the lifetime costs of accidents and injuries in December—Hon NIKKI KAYE: No that is just not true.Sue Moroney: —that is what the ACC board told the select committee this morning—while the earners account reached 130 percent of what it requires at the same time?Hon NIKKI KAYE: I think the member needs to listen at the select committee hearing. What I understand the chair told the select committee today—Sue Moroney: You weren’t there.Hon NIKKI KAYE: —from National members who were there—was that there has been a $4 billion shift in January around the overall claims liability. That swung back by $2 billion in February but what that demonstrates is the Government’s very fiscally prudent approach to take a long-term view in terms of ACC.Sue Moroney: Is the Minister denying that in December last year the earners account achieved 140 percent of its funding ratio and is she denying that the work account achieved 130 percent of its funding ratio?Hon NIKKI KAYE: In terms of the work account I would encourage her to understand ACC a bit better and to understand gradual process because when you take into account—Sue Moroney: I raise a point of order Mr Speaker.Hon NIKKI KAYE: —gradual process it is not—Mr SPEAKER: Order! We do have a point of order.Sue Moroney: It was a very specific and direct question—Mr SPEAKER: Order! There is a lot of noise in the House today. Would the member please just repeat the question for the Minister to answer.Sue Moroney: I cannot read it specifically but I will relate it. [Interruption] I will relate it—Mr SPEAKER: Order!Sue Moroney: —because it is not written down. Is the Minister denying that the work account has achieved 140 percent of its funding ratio as at December last year and that the earners account has achieved 130 percent as at December last year?Hon NIKKI KAYE: With regard to the work account as I said she has not taken into account gradual process—and that is what she continues to fail to do—which means that the solvency rates come down as a result of that. But the second point that I would make—and this is the main point here—is that you can take these accounts at a point in time but if you do that you end up in the situation that we had of having a $5 billion deficit in ACC because you need to take a long-term view because of the significant shifts in the account. The Labour Party needs to understand that what businesses need is certainty and stability around levies not the yo-yo effect of what it is proposing.Sue Moroney: Given that ACC takes into account all of those factors she just mentioned before it makes recommendations to the Government will she stop just making a different excuse every other day about why she will not return ACC levies to the right amount and stop overcharging businesses and workers for—Mr SPEAKER: Order! Now the question is going on for too long.Hon NIKKI KAYE: Let me make a couple of points. The first point is as I have said before we need to take a long-term view because otherwise we will end up in the situation where we have a $5 billion hole. The second point that I would make to the member is that under our Government we have gone from the $5 billion hole to essentially a fully funded scheme. But what businesses do not need is a yo-yo effect which is what the Labour Party is promoting. The other point that I would make is that there has been $1.5 billion worth of reductions under this Government. It is money back.Sue Moroney: Is she aware that section 6 of the Accident Compensation Act which she referred to in Parliament on Tuesday is in fact the interpretation section of the Act which just tells us what various words mean and can she explain how that section of the Act gives her the legal authority to use ACC levies which are supposed to be gathered to pay for injuries and accidents to achieve a surplus in the Government’s books instead?Mr SPEAKER: Well there are two question there.Hon NIKKI KAYE: Yes I am aware that section 6 is the interpretation section but she needs to read it in the context of both section 330 and section 331(5) and I will read that out for her—Mr SPEAKER: Order! No no—[Interruption] Order! That will not be necessary. The Minister was asked the question “Is she aware …” and she has answered it.