Major staff cuts at ACC offices around the country call into question the corporation's ability to provide an acceptable level of service to the public, Labour ACC spokesperson Ruth Dyson said today.

"The corporation's branch network has been established as a separate company called Catalyst. I understand that 165 staff are to lose their jobs. Current positions will be disestablished, a smaller number of new ones created and the currently employed Claims Officers will have to reapply for those positions.

"Next month staff will find out whether they've been successful in keeping a job. The unlucky ones will be sacked just before Christmas.

"Provincial areas of New Zealand - the likes of Wanganui, Blenheim and New Plymouth - are once again being hard hit by the policies of the National Government.

"In addition to the job losses, the public will have reduced access to services and already overburdened staff will see their caseloads increase.

"The ACC must be constantly examining its cost structure. But sacking the staff who are there to help members of the public who are seeking assistance, appears to be a questionable course of action," Ruth Dyson said.

"These cuts are not designed to provide a more efficient service, but a cheaper one."

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