Fully Funded ACC Outrage

Fully Funded ACC Outrage

Employment Law Experts, a leading ACC and employment relations firm, today released a press statement condemning the government’s insistence on fully funding ACC.

Employment Law Experts says that, “The fully funded mentality contributes to the harshness with which claimants are handled and it is unnecessary.” They also say that, “A fully funded ACC means that the broken and the poor are subsidising tax cuts for the wealthy.”

• Full funding is when ACC holds enough funds now to satisfy the lifetime cost of claims. For example, if someone has an accident that will require 30 years of ACC help, ACC hold enough money in its reserves now, to cover the full 30 years of costs, not just the projected costs for this year.
• In 2009 Nick Smith used the fully funded excuse as justification to cut claimants’ entitlements and increase levies.
• The huge funds retained by ACC were used to cover up the shortfall in the government’s accounts from the tax cuts granted to higher income earners in 2008.
• Evidence that ACC has lost its way can be seen from its own admission that it is one of the largest investors in NZ companies through its nearly $2 billion in reserves.

Employment Law Experts says, “Refocusing the Corporation is long overdue, but what hope is there of any convincing change when so much money is at stake?”

www.employmentlawexperts.co.nz

ENDS

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