CTU Media release
9 March 2009

Anonymous Government misinformation destabilising ACC

Anonymous government spokespeople are deliberately undermining ACC while it appears that the Board Chair has been stopped by the Minister from making any public comment, CTU Secretary Peter Conway said today.

“These anonymous untruths leaked to selected media are damaging to ACC staff and morale, and to the reputations of ACC Board members who have done a diligent job,” said Conway.

“It is claimed that ACC has suffered major investment losses. In fact the ACC investment performance is better than any other fund manager, public or private.”

“It is claimed that ACC Board members will be sacked for failing to force Labour Ministers Cullen and Street to disclose in the Pre-Election Fiscal Update the expected additional funds required for the ACC Non-Earners Account. In fact the Mills Inquiry only last week found Treasury at fault and the Labour Ministers and the ACC Board were exonerated.”  

 “ACC has been hit by lower interest rates and reduced returns on investments but has performed very well as a fund despite this. However, other requirements such as the new International Financial Reporting requirements mean greater provision must be made for a future call on funds. ACC consulted on levies in October 2008 and all the pressures about which the Government is expressing surprise were made public at that time.”

“It is true that medical costs have risen: pay rates for carers needed to rise, and there have been increased claims. But these issues cannot be blamed on how ACC has managed the scheme.”

“The CTU supports extending the deadline for full funding of pre-1999 claims from 2014 to 2019 and this would relieve some pressure.”

”It is vital that a worker/union perspective remains on the Board, and that Board members are able to publicly discuss the challenges facing ACC and provide the correct facts on why costs etc are increasing.”

Peter Conway said, “We urge the Government to take extreme care in its deliberations on ACC. This scheme has been built up over decades and we do not want it destabilised. There is always room for improvement in any scheme and the Government should recognise the social contract basis of the scheme and work with social partners on issues.”

www.union.org.nz

ENDS

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