John MacDonald: Is it time to end the ACC freeride for tourists?

This is not the first time I’ve said this, but we are the people’s republic of pushovers, aren’t we? The way we give overseas visitors free ACC cover. 

Even more so when you consider the news that ACC wants to increase its levies by two or three times the rate of inflation over the next three years because it's taking longer and costing more for people to recover from their injuries. 

It's got a massive hole in its budget and your levies are going up, mine are going up, but your mate from the States who comes here and hurts themselves doing something gets free cover. And it has to stop. 

Especially, when you consider that there are only two countries that do the same for us: Australia and the UK.  

But, you know, the argument against making people from overseas pay their way more will probably be similar to the argument against increasing the international visitor levy. That, if you make tourists pay for their own treatment if they injure themselves, they won’t come here. Which is just nonsense. 

ACC Minister Matt Doocey is trotting-out the Government’s usual line about expecting ACC to “look at existing costs within the scheme to ensure that any levy increase is absolutely justified before final decisions are made. 

“The Government's expectation has been made clear to ACC that it must deliver greater value for the funds it receives. I am monitoring this very closely and will be ensuring ACC is improving its financial performance." 

Which ACC is already doing. It’s been cutting staff numbers. Back in May, it announced plans to cut more than 300 jobs – about 10 percent of its workforce. 

So ACC is already doing the cost-cutting the Government wants, but it also wants to charge more in levies. 

And my view is that if those of us who live here in New Zealand are going to have to pay more, then we should have a re-think about how generous we are when it comes to people who don’t live here. 

And I think we need to back ourselves and make visitors pay their way more. 

The two approaches I think we could use are either effectively charging non-residents at the door when they need treatment. So they break a leg, head to the emergency department and, once they’ve got the plaster on and they’re ready to leave, they get the credit card out. Or we make it mandatory for anyone visiting New Zealand to have travel insurance. Because it isn’t at the moment. 

If you’ve been overseas yourself, I bet you haven’t gone without travel insurance. That’s because we kind of expect or assume, don’t we, that if we need medical care while we’re away, it’s not going to be on the house. Unless it’s Australia or the UK that we’re visiting. 

When I went to the UK three months ago, I still took out travel insurance. But I know that if I had had an accident while I was there, my insurance company would have made me take as much free stuff as possible before paying for anything. 

And the same for people coming here from overseas. If they’ve got travel insurance, do you think their insurers will say “we'll pay for everything”? Of course not. They’ll say, ‘take the free stuff then come back to us if you need more’. 

And that free stuff is what you and I pay for. And what ACC wants us to pay even more for. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Morning's Podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:12):
This is not the first time that I've said this,
but we are the People's Republic of pushovers, aren't we.
Remember when we were talking it was last week about
the government increasing the levee that people overseas or people
from overseas pay when they visit New Zealand. Remember that,
and one person mentioned how visitors get free ACC cover

(00:37):
push ivers. Even more so when you consider the news
today that ACC wants to increase its levees by two
or three times the rate of inflation over the next
three years. Reason being it's big increases. Reason being that
it's taken longer and costing more for people to recover
from their injuries. So what it's doing, it's proposing rises

(00:58):
of more than seven percent for motorists and more than
four percent for employers and workers. So they've got this
massive whole of the budget and so your levies are
going to go up. My levees are going to go up.
But you know you're old. You mate from the States,
you mate from the States from California comes here, hurts

(01:21):
themselves doing something free ACC and it has to stop,
especially when you consider that there are only two countries
that do the same for US, Australia and the UK.
But you know you can hear it now, can't you.
The argument against making people from overseas pay their way

(01:41):
more will probably be similar to the argument against increasing
the international visitor levy. You know, Oh, look, if you
make tourists pay for their own treatment, if they injure themselves,
they won't come here. It's just nonsense, sorry, nonsense. Of
course they'll still come here. I see that ACC minster
Matt Doucy is trotting up the government's usual line about

(02:04):
expecting ACC to quote look at existing costs within the
scheme to ensure that any levy increase is absolutely justified
before final decisions are made. Matt Deucey says the current
cost of living pressures will be considered before any final
decisions are made. That's nonsense, says it. But that won't

(02:25):
be factored in. And that quote is Matt Doocy quote.
The Government's expectation has been made clear at ACC that
it must deliver greater value for the funds it receives.
I am monitoring this very closely and will be ensuring
ACC is improving its financial performance, which ACC is already doing.

(02:45):
Maybe not the performance side of it, but it's trying
to do what it can. It's been cutting staff numbers.
Back in May, it announced plans to cut more than
three hundred jobs, which was about ten percent of its workforce.
So yes, ACC is already doing the cost cutting the
government wants, but it also wants to charge more in levies.
In my view is that if those of us who

(03:06):
live here in New Zealand are going to have to
pay more than we should have a rethink about how
generous we are when it comes to people who don't
live here. And I think we need to back ourselves,
and I think we need to make visitors pay their way. Now,
the two approaches, I think we could use one at
one of which either effectively charging non residents at the

(03:31):
door when they need treatment. So let's say they break
a leg out doing the bank's manpular track and they
get into the emergency department of christ at the hospital
and once we've got the plaster on and they're ready
to leave, get the credit card out. That's one way
of doing it. Or we make it mandatory for anyone
visiting New Zealand to have travel insurance because it isn't
mandatory at the moment. And if you've been overseas yourself,

(03:55):
I bet you have not gone without travel insurance. It's
because it's because we can't of expect or assume, don't
we that if we need care while we're away, it's
not going to be on the house unless it's Australia
or the UK that we're visiting. Even then, you know,
when I went to the UK, what three months ago,

(04:16):
I still took about travel insurance because I knew that
if I had an accident while I was there, my
insurance company would have made me take as much free
stuff as possible before paying for anything. And the same
for people coming here from overseas if they've got travel insurance.
Do you think their insurers are going to say, and
if they injure themselves, do you think their insurers are
going to say, we'll pay for the lot. Of course not.

(04:39):
I'll say, take the free stuff and then come back
to us if you need more. And that free stuff
is what you and I pay for, and what acc
wants you and I to pay even more for, which
is why I'm saying today, but that we need to
get Real.

Speaker 1 (04:57):
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