Parker David: Questions for Oral Answer — Questions to Ministers Questions to Members 
Text is incorporated into the Bound Volume 
Parker David: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Sitting date: 20 October 2009. Volume:658;Page:7313. Text is incorporated into the Bound Volume.] 
8. 
Hon DAVID PARKER (Labour) 
 to the  
Minister for ACC 
: Does he agree with the Employers and Manufacturers Association which says employers are wary about any move to reintroduce an open competitive market for ACC because the last time there was a private market for ACC it turned into a “bunfight” between insurers? 
Hon Dr NICK SMITH (Minister for ACC) 
: 
 There is a range of views amongst employers in business. I note for instance that Business New Zealand takes a different view and favours competition. The member also selectively quotes the Employers and Manufacturers Association (Northern) statement. It proposes competition in workplace accident treatment and rehabilitation it criticises unfunded extensions to the scheme by the previous Government and it supports the reform proposals in the Government’s bill. 
Hon David Parker 
: Does the Minister agree with PricewaterhouseCoopers which says that New Zealanders at present pay less and get more and why does he think it is clever to privatise parts of the accident compensation scheme so that New Zealanders pay more and get less? 
Hon Dr NICK SMITH 
: The first point I make in response is that when making comparisons with Australia members need to be quite careful. For instance if someone has an accident in a motor vehicle in Australia it is considered to be a work accident. In New Zealand it is managed in a different account. I further point out to the member that PricewaterhouseCoopers is the very organisation that he has been constantly criticising for the actuary assessments of the liabilities of the scheme. 
Michael Woodhouse 
: Does the Minister agree with the strong statement by the Employers and Manufacturers Association (Northern) about the importance of reintroducing experience rating to the scheme to provide stronger incentives for workplaces? 
Hon Dr NICK SMITH 
: Yes I do. I was interested that Labour members opposite are very supportive of the Employers and Manufacturers Association (Northern) and they make very plain their strong support for experience rating to be introduced. I hope Labour will take the advice of the Employers and Manufacturers Association (Northern) and support the Government’s bill so that we can have stronger incentives for safe workplaces. 
Hon David Parker 
: Does the Minister agree with the Maori Party that Maori are overrepresented in primary industry where work is often casual seasonal or part-time and therefore that proposed changes will disproportionately affect Maori workers? 
Hon Dr NICK SMITH 
: I have had very constructive discussions with the Maori Party about a number of provisions including that but I think there is broad agreement that it does not make sense for a person receiving accident compensation to be receiving more income per year than they were in work. That was never what Sir Owen Woodhouse proposed yet that is what the changes— 
Hon Maryan Street 
: That’s nonsense! 
Hon Dr NICK SMITH 
: The member says that it is not true. Let me explain it very simply. If a person receives 80 percent of his or her earnings for the last 4 weeks for ever and works only for 3 months of the year we have created an incentive for that person to stay on the scheme which I accept is consistent with Labour’s overall philosophy of keeping people dependent on the State. 
Carol Beaumont 
: Does he stand by comments made to me in the Transport and Industrial Relations Committee on 2 July that “it is not intended that that stocktake group will do investigation into introducing competition into the work account because quite frankly it’s not a priority. It’s not the area where the scheme needs attention.”? 
Hon Dr NICK SMITH 
: The terms of reference for the stocktake that have been approved by Cabinet do not include at this stage competition on the work account. Just as members opposite would know when one is a minority Government there are agreements that are reached with support parties and priorities change. 
John Boscawen 
: Has he had representations from any insurance companies indicating that they look forward to the introduction of a competitive model that will offer choice and allow the development of innovative ways of reducing injuries and managing claims? 
Hon Dr NICK SMITH 
: I have had only a couple of discussions and I think a letter or two from members of the insurance industry. Some have advocated the position that the member has raised. I have also had a position from some insurance companies that have noted that with the state of the global financial markets there is some resistance to it at this time simply because of not having the strength in their balance sheets to make the investment to enter into a competitive market.