Phil Goff hits out at ACC cuts

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ACC's higher than forcecast investment return has exposed the Government's "scaremongering" about the corporation's financial situation, Labour leader Phil Goff says.

Levies are going to be raised and some entitlements cut because the Government says ACC isn't in a viable state to continue the way it is.

But Mr Goff, citing the latest Treasury figures, said today ACC's investment funds had returned $500 million in the four months to October 31, which was higher than forecast.

He also said the figures showed the New Zealand Superannuation Fund had performed well, with returns bouncing back to $1.3 billion during the same period.

The Government has suspended payments into the fund until budgets are back in surplus, which could take 10 years.

"The budget decision to suspend contributions to the Super Fund, with National saying it was losing money, was stupid," Mr Goff said.

"The time to invest is when prices are low but National squandered the opportunity by suspending the payments which jeopardises the future pensions of all New Zealanders."

Mr Goff said the situation was the same with ACC.

"(Prime Minister) John Key and National used the lower returns from the ACC investment funds to justify huge levy hikes and cutting of entitlements," he said.

"National's changes to ACC and Super funding made no sense at the time. They make even less sense now."

- NZPA