Minister rejects pay-as-you-go ACC
Thu, 21 Jun 2012 5:37a.m.
ACC won't be turned into a pay-as-you-go scheme because it would leave future generations picking up the cost of accident cover, the government says.
The Green Party this week sent ACC Minister Judith Collins a "rehabilitation plan" for the corporation and suggested pay-as-you-go would be better than the current system which funds it for the future through levies.
Ms Collins says some claimants remain with ACC for anywhere up to 80 years.
"While pay-as-you-go funding may look attractive in the short term, in the long run it becomes more expensive as future levy payers are required to pay more and more to cover a backlog of injuries," she said.
"It would be irresponsible to leave future generations of New Zealanders to pay for claims that happen today as well as the cost of their own injuries."
Ms Collins says the Government is reviewing ACC funding policy and the reasons for the fluctuations in projections of its accounts.
"The Government will examine the stability of the scheme, good process for levy setting, and the impact on the economy," she said.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
21/06/2012 10:47:23 a.m.
Well done greens, you get the wooden spoon award for excellence in absolute stupidity. You are about the next generation being environmentally conscientious not the next generation being poor.
Viewers overwhelming voted yes to decriminalising soft drugs during TV3's nation...
A petition boasting more than 37,000 signatures against the use of animal testin...
A report by New Zealand's police watchdog into the Urewera terror raids has foun...
Calls are growing for the Auckland Council to rethink its plans for more intensi...
The Nation reporter Torben Akel took a close look at her background and asked so...
Copyright © 2013 MediaWorks TV. All Rights Reserved.