MEDIA RELEASE
24 JUNE 1999
Education Minister Nick Smith today announced huge savings for education from the Government's ACC reforms that allow
choice in the provision of workers' accident insurance.
"The savings are startling. Last year the ACC levy for schools and the Ministry of Education was $25.4 million. A
contract has been concluded with MMI General Insurance (N.Z.) Limited for $5.8 million. There will be a further cost of
$9 million to cover the cost of the residual tail from ACC, and a further $2.25 million for health and safety audits.
The net saving to the education sector is $8.2 million per year."
Key stakeholders from the school sector were involved in the selection process including The New Zealand School Trustees
Association, PPTA, NZEI, New Zealand Food and Service Workers Union, New Zealand Principals' Federation, New Zealand
Secondary Schools Executive Officers' Association and Self Managed Payroll Schools.
"Choice in ACC is not just benefiting New Zealand businesses, but our social services. The saving equates to an
additional 150 teachers, early childhood education places for 7,500 pre-schoolers or an additional 3,000 computers in
schools. Decisions are yet to be made about how the savings will be reinvested in education, but children will be the
winners. Why the Labour Alliance bloc wants to scrap choice in ACC has me flummoxed."
Mr Smith said the savings were possible with a far greater focus on reducing accidents, safety audits and training, and
the more effective management of the rehabilitation of injured employees.
"The school sector has historically had a low accident rate and the new policy ensures the sector gets the benefit of
its good safety record." ENDS