GOONR
18th November 2009, 15:59
Extracted from here (http://pacific.scoop.co.nz/2009/11/questions-and-answers-17-nov-2009/)
Questions to Ministers 17 Nov 2009
Accident Compensation—Claims for Motorcycle Accidents
DAVID BENNETT (National—Hamilton East) to the Minister for ACC: How many accident compensation claims have been made for motorcycle accidents in the last full year and how does this compare with a decade ago?
Hon Dr NICK SMITH (Minister for ACC): There were 5,044 accident compensation claims for motorcycle accidents in 2008. This compares with 871 in 1998. This is an almost fivefold increase, it is the single greatest increase in claims for accident compensation, and it cannot be ignored.
David Bennett: What data does the Minister have—noting the large increase in motorcycle accident claims—on the number of fatal accidents today and historically?
Hon Dr NICK SMITH: In 2008, 46 motorcyclists, or almost 1 motorcyclist per week, were killed on New Zealand roads. This was the highest number in the last decade, over which there had been a steady increase of 21 percent. I note that over the same period there had been a 27 percent decline in the overall road toll.
David Bennett: Why is the Accident Compensation Corporation (ACC) board proposing that the levies differentiate by motorcycle size?
Hon Dr NICK SMITH: There has been a significant social shift in motorcycle ownership in recent years. Ownership of small, or 125cc-type, bikes has declined, and the number of injuries and fatalities amongst young people has been in decline. There has been a massive increase in large bikes owned by an older age group of riders. This is reflected in the accident data and in the costs of those accidents.
Hon David Parker: Why does the Minister persist in misrepresenting accident figures for motorcyclists by quoting the number of accidents rather than the rate of accidents per 10,000 onroad motorcyclists?
Hon Dr NICK SMITH: Motorcycle numbers have increase by 60 percent over the last decade, from 60,000 to 97,000, but that is insufficient to explain a fivefold increase in the number of accident compensation claims. To put it another way for the member, in 1998 there was one claim per 69 bikes registered; last year there was one claim per 19 bikes registered.
Hon David Parker: Is the Minister aware that the section of an ACC report headed “Motorcycle Casualties and Crashes” states that crashes have decreased from 511 per 10,000 on-road motorcycles in 1973, to 142 crashes per 10,000 on-road motorcycles in 2008, a decrease of more than two-thirds?
Hon Dr NICK SMITH: It is true that in the 1970s there were horrific numbers of both motorcycle and car accidents, and it is also true that, in terms of the number of car accidents, we have consistently been able to improve road safety and reduce the road toll. But the fact is that over the last decade the number of motorcycle fatalities increased each and every single year that members opposite were in Government, and they did nothing.
Hon David Parker: Is the Minister aware that in respect of the latest period— the difference between 2007 and 2008—the number of accidents per 10,000 on-road motorcycles decreased from 152 per 10,000 to 142 per 10,000?
Hon Dr NICK SMITH: In 2006 there were 4,265 accident compensation claims and 38 fatalities; last year there were 5,044 claims and 46 fatalities. I say again that more people died in motorcycle accidents in 2008 than in any of the last 10 years, and that should concern every member of this House.
Hon David Parker: I seek leave to table section 4 of the Accident Compensation Corporation’s own report, which is headed “Motorcycle Casualties and Crashes”; it shows that the rate of motorcycle accidents has decreased quite markedly.
Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.
Document, by leave, laid on the Table of the House.
Hon Dr NICK SMITH: I seek leave to table motorcycle accident statistics for 1998-2008, which list the number of claims made by motorcyclists and the number of fatal injuries over the last decade.
Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.
Document, by leave, laid on the Table of the House.
Accident Compensation—Role of Accident Compensation Corporation
Hon DAVID PARKER (Labour) to the Minister for ACC: Does he stand by his statement: “this Government is committed to the core concept of ACC being a 24/7 no-fault insurer for New Zealanders at work, at play, and on the road.”?
Hon Dr NICK SMITH (Minister for ACC): Despite the fact that this Government inherited the accident compensation scheme in a financial mess, yes. The annual accounts signed by Maryan Street—
Mr SPEAKER: I invite the Minister to resume his seat. If the member looks at the question he has just been asked, he will see it was very simple. It did not ask why he stood by his statement; it just asked: “Does he stand by his statement …”. I do not think the House needs all that. Could the Minister answer the question.
Hon Dr NICK SMITH: The fact is yes, but it is also true that the previous Government left this Government—
Mr SPEAKER: The question did not ask why. If the member had wanted an explanation, he could have asked why in his question. It is a question on notice.
Hon Dr NICK SMITH: So we have to—
Mr SPEAKER: I am on my feet. The question on notice simply asks the Minister: “Does he stand by his statement …”. I think the Minister has answered: “Yes”.
Hon David Parker: Does the Minister now agree that proposed increases in motorcycle levies are unfair and undermine the no-fault principle behind the accident compensation scheme?
Hon Dr NICK SMITH: Accident compensation has long been established on different risk ratings for different groups. For instance, in the work account there are over 400 distinct classifications. All employers do not pay the same, but rather pay a different risk rating. In respect of the motor vehicle account, it has long been the practice that there are different levies based on the different risk rating of different vehicles. The fact is that there has been a substantial increase in the number of motorcycle accidents, and the pity is that for the 9 years of the last Labour Government, the number of motorcycle accidents increased every year and Labour did nothing.
Hon David Parker: Does the Minister regret exaggerating the accident compensation scheme’s woes, and does he expect gratitude from motorcyclists when he puts up their levies by a lesser amount?
Hon Dr NICK SMITH: There has been no need to exaggerate the woes of the scheme, because the numbers speak for themselves: a $2.4 billion loss in the annual report signed by Maryan Street and a $4.8 billion loss audited by the Auditor-General for the last year. I think—
Hon Phil Goff: Nobody believes that!
Hon Dr NICK SMITH: Mr Goff says he does not believe it. I ask the member why Maryan Street signed the annual audited accounts saying the scheme lost $2.4 billion.
Hon David Parker: Which other group will the Minister’s Government target next? For example, has he dropped his plan to charge drivers of older cars higher levies than drivers of newer cars?
Hon Dr NICK SMITH: This Government has a very sensible plan to get the accident compensation scheme back to financial sustainability. That will have to involve some levy increases. It will also involve pulling back on some of the entitlements that the previous Government provided. I am confident, with the changes this Government is advancing to the accident compensation scheme, that we can make some savings and that the scale of the increases proposed by the Accident Compensation Corporation board will not need to be advanced.
Question to be asked today
Hon DAVID PARKER to the Minister for ACC: Does he stand by his statement “the scale of the increases proposed by the Accident Compensation Corporation board will not need to be advanced”?
Questions to Ministers 17 Nov 2009
Accident Compensation—Claims for Motorcycle Accidents
DAVID BENNETT (National—Hamilton East) to the Minister for ACC: How many accident compensation claims have been made for motorcycle accidents in the last full year and how does this compare with a decade ago?
Hon Dr NICK SMITH (Minister for ACC): There were 5,044 accident compensation claims for motorcycle accidents in 2008. This compares with 871 in 1998. This is an almost fivefold increase, it is the single greatest increase in claims for accident compensation, and it cannot be ignored.
David Bennett: What data does the Minister have—noting the large increase in motorcycle accident claims—on the number of fatal accidents today and historically?
Hon Dr NICK SMITH: In 2008, 46 motorcyclists, or almost 1 motorcyclist per week, were killed on New Zealand roads. This was the highest number in the last decade, over which there had been a steady increase of 21 percent. I note that over the same period there had been a 27 percent decline in the overall road toll.
David Bennett: Why is the Accident Compensation Corporation (ACC) board proposing that the levies differentiate by motorcycle size?
Hon Dr NICK SMITH: There has been a significant social shift in motorcycle ownership in recent years. Ownership of small, or 125cc-type, bikes has declined, and the number of injuries and fatalities amongst young people has been in decline. There has been a massive increase in large bikes owned by an older age group of riders. This is reflected in the accident data and in the costs of those accidents.
Hon David Parker: Why does the Minister persist in misrepresenting accident figures for motorcyclists by quoting the number of accidents rather than the rate of accidents per 10,000 onroad motorcyclists?
Hon Dr NICK SMITH: Motorcycle numbers have increase by 60 percent over the last decade, from 60,000 to 97,000, but that is insufficient to explain a fivefold increase in the number of accident compensation claims. To put it another way for the member, in 1998 there was one claim per 69 bikes registered; last year there was one claim per 19 bikes registered.
Hon David Parker: Is the Minister aware that the section of an ACC report headed “Motorcycle Casualties and Crashes” states that crashes have decreased from 511 per 10,000 on-road motorcycles in 1973, to 142 crashes per 10,000 on-road motorcycles in 2008, a decrease of more than two-thirds?
Hon Dr NICK SMITH: It is true that in the 1970s there were horrific numbers of both motorcycle and car accidents, and it is also true that, in terms of the number of car accidents, we have consistently been able to improve road safety and reduce the road toll. But the fact is that over the last decade the number of motorcycle fatalities increased each and every single year that members opposite were in Government, and they did nothing.
Hon David Parker: Is the Minister aware that in respect of the latest period— the difference between 2007 and 2008—the number of accidents per 10,000 on-road motorcycles decreased from 152 per 10,000 to 142 per 10,000?
Hon Dr NICK SMITH: In 2006 there were 4,265 accident compensation claims and 38 fatalities; last year there were 5,044 claims and 46 fatalities. I say again that more people died in motorcycle accidents in 2008 than in any of the last 10 years, and that should concern every member of this House.
Hon David Parker: I seek leave to table section 4 of the Accident Compensation Corporation’s own report, which is headed “Motorcycle Casualties and Crashes”; it shows that the rate of motorcycle accidents has decreased quite markedly.
Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.
Document, by leave, laid on the Table of the House.
Hon Dr NICK SMITH: I seek leave to table motorcycle accident statistics for 1998-2008, which list the number of claims made by motorcyclists and the number of fatal injuries over the last decade.
Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.
Document, by leave, laid on the Table of the House.
Accident Compensation—Role of Accident Compensation Corporation
Hon DAVID PARKER (Labour) to the Minister for ACC: Does he stand by his statement: “this Government is committed to the core concept of ACC being a 24/7 no-fault insurer for New Zealanders at work, at play, and on the road.”?
Hon Dr NICK SMITH (Minister for ACC): Despite the fact that this Government inherited the accident compensation scheme in a financial mess, yes. The annual accounts signed by Maryan Street—
Mr SPEAKER: I invite the Minister to resume his seat. If the member looks at the question he has just been asked, he will see it was very simple. It did not ask why he stood by his statement; it just asked: “Does he stand by his statement …”. I do not think the House needs all that. Could the Minister answer the question.
Hon Dr NICK SMITH: The fact is yes, but it is also true that the previous Government left this Government—
Mr SPEAKER: The question did not ask why. If the member had wanted an explanation, he could have asked why in his question. It is a question on notice.
Hon Dr NICK SMITH: So we have to—
Mr SPEAKER: I am on my feet. The question on notice simply asks the Minister: “Does he stand by his statement …”. I think the Minister has answered: “Yes”.
Hon David Parker: Does the Minister now agree that proposed increases in motorcycle levies are unfair and undermine the no-fault principle behind the accident compensation scheme?
Hon Dr NICK SMITH: Accident compensation has long been established on different risk ratings for different groups. For instance, in the work account there are over 400 distinct classifications. All employers do not pay the same, but rather pay a different risk rating. In respect of the motor vehicle account, it has long been the practice that there are different levies based on the different risk rating of different vehicles. The fact is that there has been a substantial increase in the number of motorcycle accidents, and the pity is that for the 9 years of the last Labour Government, the number of motorcycle accidents increased every year and Labour did nothing.
Hon David Parker: Does the Minister regret exaggerating the accident compensation scheme’s woes, and does he expect gratitude from motorcyclists when he puts up their levies by a lesser amount?
Hon Dr NICK SMITH: There has been no need to exaggerate the woes of the scheme, because the numbers speak for themselves: a $2.4 billion loss in the annual report signed by Maryan Street and a $4.8 billion loss audited by the Auditor-General for the last year. I think—
Hon Phil Goff: Nobody believes that!
Hon Dr NICK SMITH: Mr Goff says he does not believe it. I ask the member why Maryan Street signed the annual audited accounts saying the scheme lost $2.4 billion.
Hon David Parker: Which other group will the Minister’s Government target next? For example, has he dropped his plan to charge drivers of older cars higher levies than drivers of newer cars?
Hon Dr NICK SMITH: This Government has a very sensible plan to get the accident compensation scheme back to financial sustainability. That will have to involve some levy increases. It will also involve pulling back on some of the entitlements that the previous Government provided. I am confident, with the changes this Government is advancing to the accident compensation scheme, that we can make some savings and that the scale of the increases proposed by the Accident Compensation Corporation board will not need to be advanced.
Question to be asked today
Hon DAVID PARKER to the Minister for ACC: Does he stand by his statement “the scale of the increases proposed by the Accident Compensation Corporation board will not need to be advanced”?