Parker David: Questions for Oral Answer — Questions to Ministers 
Parker David: Questions for Oral Answer — Questions to Ministers 
[Volume:658;Page:6924] 
7.  
Hon DAVID PARKER (Labour) 
 to the  
Minister for ACC 
: Does he agree with the reported statement from the Prime Minister which says “the public needed to tell the Government how much they wanted to pay in increased levies compared with an extension of the scheme”? 
Hon Dr NICK SMITH (Minister for ACC) 
: 
 Yes. I am advised by the Accident Compensation Corporation (ACC) board that increases in levies of the order of 50 percent or more would be required to fully fund the scheme based on the current law and entitlements. Such levy increases are not tenable for families or businesses so we are going to make changes to the law to the regulations and to the operations of the accident compensation scheme to make it affordable. There will be public consultation on the levies and on the legislative changes to entitlements. 
Hon David Parker 
: Why should New Zealanders have faith in that promised consultation process when restrictions on access to counselling for victims of serious sexual crimes cuts to orthopaedic surgery and cuts to home-based care are already being implemented in advance of any such consultation? 
Hon Dr NICK SMITH 
: The consultation process on the sensitive claims in respect of counselling actually started over 2 years ago and was launched by Steve Maharey as a member in the previous Government. In respect of the changes in surgery I would note that the amount of surgery funded by the accident compensation scheme being provided this year is higher than last year. The Government is committed to consulting with New Zealanders openly and honestly about the very difficult balance that we need to make between levy costs and in terms of entitlements. 
Michael Woodhouse 
: What response does he have to the claim by Labour Party President Andrew Little that the board’s financial statements are false that Mr John Judge’s statements about ACC’s financial difficulties are misleading and that changes to the scheme are not required? 
Hon Dr NICK SMITH 
: I would firstly note that ACC’s books last year under Council of Trade Unions President Ross Wilson and the previous Labour Government showed a loss of $2.4 billion. ACC’s claimed liabilities this year were calculated by PricewaterhouseCoopers the same actuaries as for the year before. The numbers were then checked by the Department of Labour’s actuaries Finity Consultants Pty Ltd. I also note that the $23.8 billion liability and the $4.8 billion loss have been signed off by the Auditor-General. Is Labour now telling the House that it distrusts PricewaterhouseCoopers and Finity Consultants and also rejects the view of the Auditor-General? The real problem for the Labour Party is that it mismanaged ACC that it is in a serious financial pickle and this Government is trying to get it on to a sustainable financial path. 
Hon David Parker 
: Does the Minister agree that cutting accident compensation entitlements and the scope of cover does not magically make those costs disappear but rather passes them to injured New Zealanders and to the health system and in some cases in the future to the criminal justice system? 
Hon Dr NICK SMITH 
: Can I give the example of physiotherapists where the previous Government made it free. It was not free. It resulted in a fivefold increase in the cost of physiotherapy. The point the member seems to miss is this: if physiotherapists are free— 
Hon Ruth Dyson 
: It’s the same cost. Who paid it? 
Hon Dr NICK SMITH 
: Ruth Dyson is the member who put it in place and it was a mess. Ruth Dyson said that the physiotherapy changes were going to cost $10 million; they cost $100 million. Officials have advised me that there is absolutely no record to show there has been any improvement in the rehabilitation rates as a consequence. The simple answer I say to Mr Parker is that when there is a part charge it is my expectation that the growth rate in the use of physiotherapists will drop off. 
Hon David Parker 
: What steps has ACC taken to reduce home support costs for seriously injured New Zealanders as was reported in the  
Dominion Post  
last week and how does he reconcile that step already taken with John Key’s promise to have a transparent conversation with New Zealanders before significantly reducing cover? 
Hon Dr NICK SMITH 
: I think New Zealanders do understand that when ACC has made a loss of $4.8 billion in the last year when its liabilities that are unfunded in just 4 years have grown by $13 billion any responsible Government would be taking a more disciplined approach to its spending. Let me be very plain. Under the last Government ACC’s costs were growing at five times the rate of inflation. This Government does not believe that that is financially sustainable. 
Hon David Parker 
: I seek leave to table a transcript of an interview between John Key and Larry Williams where Mr Key says that there needs to be a conversation with New Zealanders before cutting— 
Mr SPEAKER 
: What date is this? 
Hon David Parker 
: It is dated yesterday I think—12 October. 
Mr SPEAKER 
: A radio transcript is it? 
Hon David Parker 
: Yes a transcript of a radio interview. 
Mr SPEAKER 
: Leave is sought to table a radio transcript of 12 October. Is there any objection to that document being tabled? There is none. 
Document by leave laid on the Table of the House.