Fenton Darien: Injury Prevention Rehabilitation and Compensation Amendment Bill — In Committee 
Text is incorporated into the Bound Volume 
Fenton Darien: Injury Prevention Rehabilitation and Compensation Amendment Bill — In Committee 
[Sitting date: 27 February 2007. Volume:637;Page:7692. Text is incorporated into the Bound Volume.] 
DARIEN FENTON (Labour) 
: 
 It is a great pleasure to rise in the Committee stage of the Injury Prevention Rehabilitation and Compensation Amendment Bill. The part we are discussing Part 1 is the core of the bill really. It is all about making Accident Compensation Corporation (ACC) levy rates fairer for the self-employed and the employed. I did notice in the last member’s speech that there was no mention of the people who actually do the work. He did talk an awful lot about employers and business but there was no mention of the workers. 
I think it is very interesting actually because I noticed in one of the many hysterical press releases put out by Paul Hutchison the former National Party spokesperson on ACC one particular quote that David Bennett has just repeated: “It is unfortunate that under Labour people in New Zealand do not have a choice of insurer when it comes to cover for personal injury. Instead the Labour Government and their union mates heavily influence a monopoly model that attempts to socialise insurance rather than apply basic principles.” Do members know what is interesting? The National leader John Key is meeting with the Council of Trade Unions next week. What will he be saying? He is seeking to be mates with the unions as well! I think that is just hilarious. Will he own up to them that the plan of the National Party is to re-privatise accident compensation? 
Getting back to the bill we see that it enables the merger of the ACC’s self-employed work account and its employers’ account which makes practical sense and creates a fair and sustainable accident compensation scheme that emphasises injury prevention while at the same time minimises the social and personal impact of injuries. As others have said the only reason the accounts were separated originally was privatisation. The self-employed work account was established to support the creation of the private insurance market for employer and self-employed workplace injury cover in 1999. 
I saw firsthand that failed experiment. As everybody knows I was a workers’ representative and I am very proud of that. There is nothing about the work I have done and the path I have chosen in the past that I am not proud of. I saw firsthand the impact on workers of that failed experiment. That is why it concerns me that the Opposition never ever talks about the workers in this situation. The National Government created a shambles and it created a situation whereby the only driver of the insurance scheme was profit for the private sector. It is no wonder really. Of course when Labour came into power it had to pick up the pieces. This Government has ensured that privatisation is not on the agenda any more and I thank this House for it. 
The privatisation of accident compensation did not work. It did not mean a better service. It did not work for workers and it did not work for employers. This bill builds on the changes the Government has made since it was elected in 1999. We have returned accident compensation to a full social insurance scheme—and we are proud to say those words “social insurance scheme”. [ 
Interruption 
] David Bennett should learn to spell them. We are rejecting the costly private insurance model introduced by National. 
 We have kept ACC levies down built a robust financial scheme and reintroduced lump-sum payments for permanent impairment. This Government has improved rehabilitation and launched partnership programmes with approved employers. It has rewarded employers with levy discounts for good injury-prevention practices and improved access to compensation for seasonal and casual workers and for people on paid parental leave. 
It is fascinating to me that in this debate the National members are showing so much concern for workplace injuries. When they had a chance to do something about workplace injuries they abolished workplace health and safety representatives and they changed the whole health and safety system so that the number of injuries went through the roof. Yes they are concerned today but what would they do? Everybody knows that if National ever got the chance it would privatise accident compensation throw health and safety to the market and throw workers to the wolves. 
Evidence now shows—and it is the reason for this bill—that self-employment as a business structure in and of itself does not have a significant bearing on risk when one compares like with like for example self-employed farmers with employee farmers. However I must say that I have never ever heard of a self-employed All Black or rugby player as a member referred to formerly. Self-employed injury claims tend to be similar to that of small and medium-sized enterprises. Under the current system levy payers are allocated to the work accounts on the basis of business structure which may result in differing levy rates for businesses carrying out similar activities that entail similar risks. 
Small businesses have often cited levy instability as creating problems in their business cost planning. The Labour-led Government has acknowledged this unfairness and the bill removes this inequity. Merging the accounts will ensure that ACC levies paid by businesses are fairer as they are based on injury risk associated with the activity undertaken rather than the business structure. It will remove the arbitrary distinction and corresponding levy differentials between self-employed people and employees in the levy risk group level. Merger will also allow greater focus on reducing the risk of injury based on industry and occupational type rather than on the business structure. It will provide a much clearer focus across industries and enterprises for injury prevention and health protection. 
This bill is consistent with the principles of fairness. It provides a more equitable system and a better focus on injury minimisation. Merging the accounts will also improve levy stability particularly for self-employed people as the cost of injuries will be spread over a larger and more stable earnings pool. This is a good bill and as a member of the Transport and Industrial Relations Committee I am proud it has come back to the House.