Why did Key express confidence in Smith after reading the 2nd letter that is the supposed reason for him going? Why did he really resign, what are they trying to distract us from? How did it happen that the woman who Smith resigned over also is the person who got the largest ACC leak in history? What deal did Smith get to stay in Parliament avoiding a risky by-election?
Even 1 year ago, there would be no doubt what would happen next. He would have sacked Smith without hesitation. Has Key lost those instincts already?
Updates: won’t comment now but will this afternoon. Needs time to make some backroom deals so that skeletons stay in closets? Smith was been summoned to Wellington. Press conference at 1.45. And He’s gone. They’re trying to downplay the reasons. What a disgrace. Full video of Key offloading Nick Smith
Nick Smith, while Minister for ACC wrote a letter in support of the claims of, um, close personal contact Bronwyn Pullar last year after Pullar threatened to embarrass him and ACC. He says, this was in his personal capacity, even though it was on parliamentary ministerial letterhead. And what kind of coincidence is it that the largest accidental leak by ACC in history went to Pullar?
National has backed down from privatising ACC’s work account. To make it work, they were going to have to pump up ACC levies and make it pay a dividend to the Crown to make prices high enough for the private sector to compete. A sign of how weak the government is that they couldn’t push this through. Problem is, the same logic applies to asset sales.
Government documents from last year reveal a plan to make ACC boost its levies and pay the government a dividend so that private insurers can compete. But that wasn’t enough. Now, the plan seems to be to exclude ACC from workplace injury insurance altogether. Private insurers just can’t offer cover as cheap as ACC can. So that Nats’ solution is to deny us access to ACC workplace cover.
Private sector competition brings market disciplines and efficiencies to bloated publicly-owned monopolies. That’s the mantra, eh? That’s the indisputable truth… right? So, how come the Nats are planning to make ACC raise its levies and pay a dividend – for the first time ever – so that private insurers can compete? And how does that benefit NZ?
Just after Irish has discussed how little it takes to jump from the violent language of the NZ Right to the violent actions of Anders Breivik (and an ‘expert’ had said it can’t happen here), we learn of a rightwinger who planned a van-bomb attack on ACC. The striking thing is that his online rants are unremarkable within the Right’s discourse.
After coming to office, National cried ‘crisis at ACC’ as an excuse for raising levies, cutting cover, and privatisation. Suddenly, the ‘crisis’ has disappeared and good ol’ National is cutting your ACC levies, back to where they were before National raised them. Now, just forget who put them up in the first place, and tick the blue box in November.
National has announced plans to privatise ACC’s work account. Currently, they don’t have the numbers to get it through the House. ACT won’t vote for it because its not completely rabid and the Maori Party won’t vote for privatisation. So, this becomes another election issue: another bloody good reason to vote National out.
Labour’s Chris Hipkins has the inside word: On Wednesday this week, Nick Smith is going to announce what amounts to the effective privatisation of a large part of ACC. You won’t hear the word privatisation uttered from his lips, he’ll use all sorts of other words like ‘competition’ and ‘market discipline’, but privatisation it will be.
‘Twas the week before Christmas, and all through the House,
Nats announced policies, they’re usually scared to espouse.
Journos on holiday, Key out of reach on his Hawaiian vacation,
It was the time to let slip, their plan for ACC privatisation.
The disastrous experiment of competition for ACC from the 1990s is to be repeated. Businesses will be allowed to chose a private firm to cover their workplace injuries. Workers won’t get to choose their level of cover of course, they’re just the ones who get injured or killed – why should they have a say.
The Government is planning to reduce ACC cover and portray it as a cost saving for levy-payers. You would get less income coverage when injured and have to endure a longer wait time of three weeks until your coverage would begin. Levies would be personalised on the private model. This is privatising ACC on bite at a time with no actual cost savings.
National is developing an agenda for privatisation. It’s crazy. State owned assets are generating some rare bright spots in an otherwise dismal sea of poor economic news. So why would any rational government sell ACC (or other state owned assets)? Why would any rational government be cutting back on the Cullen Fund? Why are the Nats determined to kill the golden geese?
A headline on Newsroom caught my eye a couple of days back: “Deficit Falls Further”. Good news, so, well done the Nats? Turns out no, not so much…
National’s hysteria around ACC last year was focused on creating an air of crisis. Now they’re going to ‘do something’. That something is privatisation of ACC. It won’t work, it won’t save money. The costs of injuries will still exist. Privatisation will put more of that cost on the injured. Added ligation and profits will mean worse cover for more cost.
There’s a demo at Parliament today to protest against the Government’s ACC bill, which raises levies, cuts Kiwis’ entitlements and paves the way for privatisation. If you’re in the CBD make sure you head down in your lunch break.
MARCH AND RALLY FOR ACC
TODAY 16TH February
12.30pm – Parliament
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Hat tip: Labour.
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