Monday, June 18, 2012

Greens believe ACC change could free up $15 billion...

English: Kevin Hague in Cathedral Square at th...
English: Kevin Hague in Cathedral Square at the campaign closing event for the 2008 election campaign. (Photo credit: Wikipedia)
AUCKLAND, NEW ZEALAND - MARCH 30:  Minister of...
AUCKLAND, NEW ZEALAND - MARCH 30: Minister of Corrections Judith Collins opens the new Mt Eden Corrections Facility on March 30, 2011 in Auckland, New Zealand. The new multi-storey prison replaces the 120-year old Mt. Eden Prison and cost the government more than NZD200 million to build. Its design and construction faced harsh criticism last year because of its prime Auckland city and harbour-view location and its architectural design. (Image credit: Getty Images via @daylife)


The Green Party believes a change in the way ACC is funded could free up about $15 billion for the Government to spend elsewhere.
The Greens' ACC spokesperson Kevin Hague says returning to a pay-as-you-go scheme would mean ACC would not need to hold as much money in reserve as it now does.
Such a scheme would mean the corporation would only need to collect the money necessary to cover compensation costs in each year rather than putting money aside to cover the long-term costs of injuries.
Mr Hague says ACC has about $20 billion in reserve but a pay-as-you-go scheme would only need about $5 billion.
ACC Minister Judith Collins has not ruled out the Government adopting the pay-as-you-go approach.

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