Second push on ACC bill

BY COLIN ESPINER

LATEST: The Government will make a second attempt to get controversial changes to the ACC scheme through its first reading in Parliament.

Prime Minister John Key said yesterday that the Government would move the House into urgency from today to push through changes to the "boy-racer" legislation and the victim levy bill.

National is negotiating with ACT and the Maori Party for the votes to pass its ACC changes after being forced to shelve the first reading of the proposed legislation last week through lack of support.

"We're in negotiations with our partners. Progress is being made, but it's a little too early to tell whether it will be this week," Key said.

ACC Minister Nick Smith has unveiled a range of levy increases and changes to entitlements, and a move to shift the full funding of the scheme out to 2019.

Motorcyclists bear the brunt of the levy increases, but all motorists, and most workers, will pay more from next year.

The Government will need to get the legislation sent to a parliamentary select committee soon if it is to have any hope of making the changes law by February. If it does not, the ACC's even steeper levy increases will take effect.

The Maori Party is pushing for tougher criteria proposed for disability payments to be dropped in return for its support, while ACT wants the Government to investigate part-privatisation.

Mr Key met with Act leader Rodney Hide last night seeking support for the ACC bill.

ACT had said it would look at supporting the bill and had put its policy to introduce competition into work place accident insurance on the table.

It is National Party policy to investigate opening up the part of the scheme that covers work-related personal injuries to private competition, and ACT was likely to push for that.

Mr Key said while his party was not philosophically opposed to competition, it would have to be the best option for the public.

Medical practitioners faced confusion with different forms and systems under different providers last time it was tried, he said.

"We're not going to leave our medical practitioners having to fumble their way through a bureaucratic nightmare if we were to open up that account to greater competition."

Dr Smith would not disclose details of discussions with ACT or the Maori Party but said the talks were progressing "relatively constructively".

"I'm quite confident we are going to come through with some pretty sensible ways forward for ACC.

"We are a minority government and policy has to adapt to the positions of other parties and that's why we're having discussions with Act and the Maori Party."

There could be policy changes depending on an agreement with either party - "otherwise why would you have the discussions?".

"It is very important for me to get that legislation through, every week that we are delayed makes it more difficult for the public to have a say on those things," Dr Smith said.

It was "no surprise" that Act had brought up privatisation, he said.

Although it was National Party policy to open ACC's work account up to private competition it had not been a priority, Dr Smith told reporters.

He said the work account was more complex which may be why it was appealing to private companies.

He would not confirm it was because it was the most profitable.

Dr Smith said he was happy with how he had handled negotiations over the "complex" and sensitive ACC system.

"The nature of this issue is very challenging. I've got a good constructive relationship with both the Maori and the ACT Party, but these are complex issues. They're going to take a little while to work through."

LABOUR OFFERS SUPPORT

Meanwhile, Labour said it would support the Government if it put up legislation to do nothing but extend the date that ACC has to be fully funded by - when the corporation will have enough money to cover future costs of claims on its books.

Labour leader Phil Goff said he wrote to Mr Key with Labour's offer and said changing the date would give breathing room before other changes were considered.

"Our offer to date is limited to extending out the full funding period. That gives us time, it puts the issue away from imposing costs on families who are struggling in the recession."

The extra time may see changes to investment returns which would negate the need for the planned cuts, Mr Goff told reporters.

Labour opposed cutting entitlements.

Mr Goff said the issue had been mishandled.

"The management of ACC has been a shambles as everybody is aware, but now it looks like it is turning into a Trojan horse for privatisation.

"This process has been a real mess. Labour is prepared to help the Government out."

PROTEST AGAINST CHANGES

Anger over the Government's plans continued yesterday, with protests in the main centres over proposed cuts to entitlements.

Victims of sexual abuse are angry that they would need to prove they had suffered mental trauma as a result of sexual abuse before getting ACC-funded treatment.

Motorcylists facing levy increases of up to $500 a year are planning a rally at Parliament.

The New Zealand Audiological Society yesterday accused the Government of turning its back on thousands of people whose hearing has been damaged at work.

The ACC proposals include a threshold of a 6 per cent hearing loss before a person is entitled for assistance for hearing aids.

Society president Lesley Hindmarsh said thousands of people with occupational hearing loss, who were previously entitled to ACC help for their hearing aids, may no longer be eligible.

"People with hearing loss have significant needs," she said. "The Government is sending these people a message that their needs aren't worth anything."

Key said the changes to the sexual-abuse compensation rules were based on clinical decisions, not financial, and the Government could not get involved.

He said changes might be made to the level of increases for motorcylists.

"There's always a possibility there will be changes there. These are the proposed levies from ACC, not the ones that have been adopted by the Government."

Key said the ACC had advised him that there was still a high degree of cross-subsidisation from car drivers to motorcyclists.

"There is a natural tradeoff here between increases in levies and containment of the generosity of the scheme, and I realise that is something that will cause some anxiety to New Zealanders," he said. "We are trying to work through what we think is the fairest and most balanced response, but all of this is up for debate, both with our political parties and ultimately with the New Zealand public."

Key said the Government was not philosophically opposed to opening the ACC's work-related injuries account to competition, as ACT wanted. "We would need to be convinced that there were benefits both to the Government and the private sector."

He said an "excess" charge of $50 or $100 for accident victims had not been considered by the Cabinet.

- with NZPA

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