Humbug at bottom of changes to ACC

OPINION: I think it is time that the ACC Minister Dr Nick Smith had a visit from the ghost of Christmas Future, so he is able to see how the Government's proposed changes to ACC are going to negatively impact New Zealanders, writes David Parker (Labour) in this week's From the Beehive.

Last week in select committee we heard how the new ACC bill discriminates against young people, those on low incomes, people with work-related hearing loss and several other exposed groups.

The Human Rights Commission (HRC) told the select committee that the bill now before the House had "the potential to derogate from basic human rights principles" relating to rehabilitation and, together with the Christian Council of Social Services (CCSS), said it discriminated against low-income people.

The HRC said it believed the bill breached the Human Rights Act. It opposed plans to deny New Zealanders the equivalent of the minimum wage if they were injured before they turned 18 and were studying or not yet working at that point. This unfair provision applies even if the young person can never work again.

Do you think if fair that your son or daughter would not even get the minimum wage – ever?

They were also opposed to Bill's plans to reduce income compensation for 400,000 casual and part-time workers, which as several submittors pointed out are typically lower-income workers.

The move to include holiday pay as earnings, and therefore deduct it from ACC income compensation if a worker's employment is terminated as a result of injury, was also opposed as being unfair.

So, too, is the ability to declare people fit for work if they can work 30 hours a week, and to allow ACC to disregard pre-accident earnings when they used to work 40. In effect you could have a work accident and be forced to accept earnings of over a third less than in your pre-accident job.

Is that fair? No it's not. Nor is it needed.

New Zealand's ACC levies for employers are already substantially lower than the more expensive private premiums paid in Australia. So where is the justification?

Other serious concerns about the bill, which many submittors believe will fundamentally undermine the ACC scheme, were also raised.

And so what would Dr Smith have to say to New Zealanders' who will be getting less ACC coverage when they have an accident?

Bah humbug!

» David Parker is a Roxburgh-born Labour list MP.

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