Salient. Official Newspaper of the Victoria University Students' Association. Vol 44 No. 9. May 4 1981

Accident Compensation Faces Heavy Cuts

Accident Compensation Faces Heavy Cuts

Proposed cuts to the Accident Compensation scheme have been heavily criticised and even condemned by many groups who say they are unnecessary and extremely harmful, and could have serious consequences for students.

The Accident Compensation Amendment Bill (no.2) has been condemned by the Combined State Unions (CSU) and the Federation of Labour (FoL). The Labour Party, doctors, lawyers, NZUSA and people involved in accident compensation have criticised the Bill's provisions.

The ACC scheme was set up in 1972 as an agreement between the government and the unions. This agreement meant workers exchanged their rights to take legal action on compensation and common law claims for benefits in the new scheme.

In this respect, the FoL and CSU say the cuts proposed in the Bill break the contract made eight years ago.

The Bill, drawn up by a Caucus Committee chaired by Derek Quigley, proposes that compensation for the first week of injury will be reduced from 100 percent of normal wages to 80 percent. People injured outside work would get no compensation in the first two weeks off work, as opposed to the first week as at present. Accident victims would have to pay for their first two visits to the doctor. Those injured at work could claim the cost back from the employer - though if the employer refused it would be difficult and expensive to force them to do so.

This cut could also have the effect of discouraging accident victims to seek proper medical help.