Monday, October 19, 2009

The Great ACC Coverup (Or: Fattening for Slaughter)

As aggrieved motorcyclists are no doubt already aware, ACC levies are on the increase due to an alleged new budgeting shortfall. Now, leaving aside my own serious doubts as to the veracity of the figures indicating the last "crisis", and taking the available evidence as-is rather than with a handful of the salt no doubt about to be rubbed into the wounds of the Woodhouse Report; things still seems mightily odd.

The root of the present "shortfall" and corresponding levy increase appears to have been a decision to increase the forecasts for costs (even going so far as to add a "future cabinet and regulated rate increases" category), apparently in an attempt to increase ACC reserves beyond their already impressive projected 3.5 years. In other words, the Government is attempting to inject enough money for it to be more self-sufficient for at least another election cycle. Indeed, The Listener estimates that 8.3 years worth of reserves would render the scheme entirely pre-fundable.

To put it bluntly, the Government is inexorably pushing ACC toward financial independance, probably as part of yet another bid to inject privatisation into this element of the insurance market - either by re-allowing private competition, or by wholly or partially privatising the scheme. National's refusal to genuinely confirm ACC's future, and pointed ambiguity as to the prospects of privatisations in their second term certainly do nothing to disprove this.

No comments:

Post a Comment