1 00:00:00,080 --> 00:00:03,280 Speaker 1: Now ACC is going to get much tighter with its 2 00:00:03,320 --> 00:00:06,440 Speaker 1: claims payouts in an attempt to reign in its massive deficit. 3 00:00:06,640 --> 00:00:09,440 Speaker 1: It's committed to what it says are highly ambitious targets 4 00:00:09,640 --> 00:00:12,440 Speaker 1: of reducing the number it supports via that weekly compensation. 5 00:00:12,520 --> 00:00:15,640 Speaker 1: Deny tib Traney is The Herald's Wellington Business editor and 6 00:00:15,640 --> 00:00:19,840 Speaker 1: with us elo Janey, when we say highly ambitious, how ambitious? 7 00:00:20,520 --> 00:00:23,560 Speaker 2: Quite ambitious. I've just looked through a long report that 8 00:00:23,880 --> 00:00:28,280 Speaker 2: ACC is put together. Basically, it aims to have the 9 00:00:28,320 --> 00:00:32,559 Speaker 2: growth rate of the pool of people it supports for 10 00:00:32,600 --> 00:00:36,360 Speaker 2: more than a year, so that at the moment that 11 00:00:36,520 --> 00:00:39,640 Speaker 2: is increasing by thirteen percent a year. It wants that 12 00:00:39,680 --> 00:00:44,479 Speaker 2: to increase by only six point six percent. Also, the 13 00:00:45,040 --> 00:00:48,400 Speaker 2: number of claims that ACC receives has been growing at 14 00:00:48,400 --> 00:00:52,120 Speaker 2: a faster rate than the population, so it wants to 15 00:00:52,200 --> 00:00:56,400 Speaker 2: stop that and actually bring it down below the population 16 00:00:56,920 --> 00:01:00,160 Speaker 2: growth rate. So I'm actually shocked by how large the 17 00:01:00,200 --> 00:01:05,720 Speaker 2: ACC scheme is. In the past year, It's it's dealt 18 00:01:05,760 --> 00:01:08,200 Speaker 2: with about two million claims. You know, it's a lot 19 00:01:08,200 --> 00:01:10,920 Speaker 2: of claims for a small country like New Zealand. So 20 00:01:11,440 --> 00:01:15,080 Speaker 2: I guess ACC is committing to really tightening its ship, 21 00:01:15,680 --> 00:01:18,039 Speaker 2: and that is because the government is putting pressure on 22 00:01:18,120 --> 00:01:22,080 Speaker 2: it to reiin in its costs and reduce the size 23 00:01:22,080 --> 00:01:22,800 Speaker 2: of its deficit. 24 00:01:23,440 --> 00:01:25,319 Speaker 1: I mean, is the suggestion here that there are people 25 00:01:25,319 --> 00:01:28,319 Speaker 1: who are getting this weekly pay compensation who actually shouldn't 26 00:01:28,360 --> 00:01:28,840 Speaker 1: be getting it. 27 00:01:30,040 --> 00:01:34,960 Speaker 2: There really is because for ACC to you know, reach 28 00:01:35,080 --> 00:01:38,280 Speaker 2: these targets that it's put down in this report. You 29 00:01:38,319 --> 00:01:42,520 Speaker 2: would imagine that if it was already operating really tightly, 30 00:01:42,600 --> 00:01:44,440 Speaker 2: then it wouldn't be able to do that because you know, 31 00:01:44,720 --> 00:01:46,800 Speaker 2: it needs to pay people in line with the law. 32 00:01:47,280 --> 00:01:49,840 Speaker 2: So without a law change, how does it cut its 33 00:01:49,880 --> 00:01:52,800 Speaker 2: cost this much? So you would imagine that there are 34 00:01:52,920 --> 00:01:57,800 Speaker 2: people receiving ACC who perhaps don't need to be I 35 00:01:57,800 --> 00:02:00,440 Speaker 2: think the government is really worried about people getting on 36 00:02:00,520 --> 00:02:05,160 Speaker 2: ACC and not coming off and staying on for a 37 00:02:05,160 --> 00:02:08,880 Speaker 2: long time. That's the group that it's really eyeing now. 38 00:02:09,000 --> 00:02:11,160 Speaker 2: ACC and the government they haven't gone so fast to say, 39 00:02:11,400 --> 00:02:14,040 Speaker 2: you know, people are ripping off the system, or that 40 00:02:14,160 --> 00:02:17,200 Speaker 2: ACC is not managing the system well enough and enabling 41 00:02:17,280 --> 00:02:19,519 Speaker 2: people to rip it off. But they have said a 42 00:02:19,560 --> 00:02:22,120 Speaker 2: few things like, you know, they want to make sure 43 00:02:22,200 --> 00:02:26,480 Speaker 2: that people are only receiving what they're entitled to so 44 00:02:26,840 --> 00:02:28,960 Speaker 2: the fact that it's pointing this out and this report 45 00:02:29,160 --> 00:02:33,320 Speaker 2: suggests that it's not being that well run. Also, they 46 00:02:33,440 --> 00:02:38,520 Speaker 2: want to look into increasing sanctions on people who don't 47 00:02:38,560 --> 00:02:39,360 Speaker 2: follow the rules. 48 00:02:40,160 --> 00:02:42,720 Speaker 1: Jinay, Now, you and I know that this is going 49 00:02:42,760 --> 00:02:45,600 Speaker 1: to get controversial, right because undoubtedly if you're kicking people 50 00:02:45,600 --> 00:02:47,120 Speaker 1: off who aren't supposed to be there, you're going to 51 00:02:47,120 --> 00:02:48,640 Speaker 1: make a few mistakes, and you're going to kick people 52 00:02:48,639 --> 00:02:50,360 Speaker 1: off who are supposed to be there, who've got amazing 53 00:02:50,360 --> 00:02:52,399 Speaker 1: SOB stories, who are going to go to the newspapers 54 00:02:52,440 --> 00:02:54,079 Speaker 1: about it, and it's going to be on the front page, right, 55 00:02:54,360 --> 00:02:57,080 Speaker 1: And so you need a minister handling this who is 56 00:02:57,360 --> 00:02:59,639 Speaker 1: nimble and able to be compassionate and do it properly. 57 00:03:00,080 --> 00:03:03,680 Speaker 2: Simson, that guy, Oh that's a that's a big question. 58 00:03:04,040 --> 00:03:06,200 Speaker 2: Scott Simson hasn't been in the role for that long, 59 00:03:06,320 --> 00:03:12,600 Speaker 2: so I won't pass judgment yet. He is due to 60 00:03:12,680 --> 00:03:17,440 Speaker 2: receive a couple of reports that his predecessor commissioned. So 61 00:03:18,160 --> 00:03:20,320 Speaker 2: and these reports, you know, there's are external reviews that 62 00:03:20,360 --> 00:03:24,880 Speaker 2: look into culture and claims, management and so on, So 63 00:03:25,040 --> 00:03:29,240 Speaker 2: that should inform you know, this turnaround plan that he's 64 00:03:29,280 --> 00:03:32,200 Speaker 2: working on. So while acc has all these targets. Scott 65 00:03:32,240 --> 00:03:34,160 Speaker 2: Simson in the coming months is due to release what 66 00:03:34,320 --> 00:03:37,240 Speaker 2: he's going to call a turnaround plan for ACC, So 67 00:03:37,360 --> 00:03:40,800 Speaker 2: I think we can look at that plan and judge, 68 00:03:41,720 --> 00:03:43,560 Speaker 2: you know, and judge him from there. I think this 69 00:03:43,920 --> 00:03:45,640 Speaker 2: will be a really major test for him. 70 00:03:45,720 --> 00:03:47,800 Speaker 1: Yeah, might well be gin. Thank you so much, as 71 00:03:47,880 --> 00:03:50,640 Speaker 1: per our generative. Charaney, the Herald's Wellington business editor. 72 00:03:51,400 --> 00:03:54,560 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 73 00:03:54,640 --> 00:03:57,680 Speaker 2: news talks that'd be from four pm weekdays, or follow 74 00:03:57,720 --> 00:03:59,440 Speaker 2: the podcast on iHeartRadio.