Bennett David: Estimates Debate — In CommitteeText is incorporated into the Bound VolumeBennett David: Estimates Debate — In Committee[Sitting date: 01 July 2014. Volume:700;Page:19081. Text is incorporated into the Bound Volume.]DAVID BENNETT (Chairperson of the Transport and Industrial Relations Committee):It is a pleasure to take this call on Vote ACC. I know that other members of the Transport and Industrial Relations Committee will also take a call on this vote—and very fine members they are as well with a special interest in ACC—so they may be able to delve into a little more detail and go through some of the further issues.Essentially one of the big things we need to look at is the indication that there is further room for ACC levy cuts. That is something that Budget 2014 indicated. The Accident Compensation Corporation is on track to provide further levy cuts for New Zealanders of around $480 million in 2015-16. That is because of the great results that ACC has had but it is also a result of the Minister for ACC and the Government sticking to the funding package that could have been thrown away 3 or 4 years ago if we had listened to what the Green Party and the Labour Party said which was to have a non - fully funded Accident Compensation Corporation and one that was paid for by taxpayers’ funding. That is what the Greens and Labour have promoted in the last term or so of this Government. Imagine if that had been the case. Not only would you not be able to deliver levy reductions but you would have put New Zealand in a situation where it would be constantly funding accident compensation through its tax funding. It would have led to higher taxes on New Zealanders if this Government had followed the approach taken by the Opposition parties.The Labour Party to be fair was actually quite reasonable about that for a certain period of time but then it gave in to the Greens as we normally see it do and decided that it would follow the Green Party policy of not seeking the full funding. This was a disappointment from the Labour Party but really shows that it is not willing to be constructive and take into account the New Zealand industry going forward.Hon Annette King: The biggest lies told about ACC.DAVID BENNETT: Did you have something to say there Ms King?Hon Annette King: Yes I’ve plenty to say. Just wait—give me a chance.DAVID BENNETT: Yes OK all right. Eventually there will be another turn-round from that member because I am sure that she will be coming in here and saying: “Although we were all in favour of fully funding and all those things”—which is not the case because they gave in to the Green Party. Just remember that. Just remember your press release when you gave in to the Green Party.Hon Annette King: Who’s “you” Mr Assistant Speaker?DAVID BENNETT: You see the member has to go to technicalities because she cannot handle the pressure of it but that is the nature of that member.OK when we look at it that $480 million is a lot of money and it is money going into New Zealanders’ pockets from the good economic management of this country by this Government. If we remember what we came into when we came into Government and see the checklist of things that this Government had to deal with—look at the way that New Zealand was in recession before the rest of the world when Labour was in control.Moana Mackey: Because we had a drought.DAVID BENNETT: It was not because of the drought. We have had two droughts since then and we have not had a recession of that nature have we? So that member there would have no idea. We were in recession because of poor economic management. That is the reality of it. Food prices were up 10.9 percent in the last year under Labour and were up 1.5 percent under this Government. House prices went up 96 percent over the 9 years of Labour and went up 28 percent under this Government. Electricity prices went up 72 percent under Labour—Simon O’Connor: How much?DAVID BENNETT: —72 percent under Labour. That is how much electricity prices went up. The current account deficit—this is the Greens’ mantra of economic management. They keep on referring to the current account deficit. It was at 7.9 percent—7.9 percent—and it is at 3.4 percent under this Government. Maybe the most telling of those signs was the number of New Zealanders leaving to go to Australia. We in this Government turned round those economic indicators and by turning round those economic indicators organisations like ACC were able to deliver these levy cuts going forward.That is the nature of good economic management. It is making the right decisions at the right time and building a strong economy so that we can go forward and deliver those results. The decision on how that $480 million will be attributed is going through a process at the moment but you can anticipate that the bulk of it will be in motor vehicle levies along with possibly a levy reduction for employers and the self-employed.