Nick Smith defends calling ACC insolvent

Nick Smith defends calling ACC insolvent

"Hon DAVID PARKER (Labour) to the Minister for ACC: Does he stand by his statements that "if ACC was an insurance company, it would be insolvent,", and that "we need to get costs back under control."? Hon Dr NICK SMITH (Minister for ACC) : Yes, I do. The dictionary defines insolvency as "liabilities exceeding assets". The Accident Compensation Corporation (ACC) has liabilities of $22 billion and assets of $10 billion. ACC's costs have more than doubled, from $1.5 billion a year in 2000 to $3.2 billion this year.

Hon David Parker: Has the Minister seen reports from Brian Fallow that the Government's "shrill scaremongering and scapegoating is gratuitous", and from Rod Oram that "there is a huge gap between the rhetoric of John Key and Smith and reality", and will he now concede that his exaggerations around ACC were irresponsible? Hon Dr NICK SMITH: I note that there have been other commentators who have been very critical of the financial state of ACC. I simply say to members opposite that if all is well with ACC, why did the Government need to bail it out for $300 million this financial year?" - Parliament TV

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