Scott Simpson: ACC Minister on the insurer's growing deficit

The ACC Minister's confident the insurer's growing deficit is on track to be brought under control. 

The scheme's recorded a net deficit of $1.5 billion, blowing the total out to $13.8 billion.

Minister Scott Simpson told Ryan Bridge the net deficit is still a lot better than last year's $7.2 billion shortfall. 

He says good work has already started, but there's still a lot to do. 

Simpson says this involves doing the basic stuff consistently well.

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Episode Transcript

Speaker 1 (00:00):
What are we going to do In the meantime with ACC,
they've reported yet another deficit one and a half billion
for the past financial year. This takes the struggling agency
nearly fourteen billion in the red. Scot Simpson is the
ACC Minister, live this morning. Scott, good morning, Good morning.
Ryan Sons, the Finance Minister, says, this is underperforming. You
obviously agree with that. I know you've got to turn around. Plan.

(00:20):
When does that see us getting out of deficit?

Speaker 2 (00:24):
Well, not immediately, so some years away. But the good
news Ryan is even though this one point five billion
dollar deficit over the last twelve months is a big number,
it's an awful lot better than the seven point two
billion deficit the previous year. So some good work has
already commenced at ACC in terms of getting the entity

(00:48):
back on track. But there's a lot of work yet
to do, and most of that reflected in actually just
doing the basic stuff really well, doing it consistently, and
doing it over and over again on behalf of New
Zealanders who need to get rehabilitated and back to independence
much faster.

Speaker 1 (01:05):
You're looking at cutting the ability of some claims like
mental health claims apparently. Can you give us an example
of what exactly that would mean or change potentially.

Speaker 2 (01:15):
No, I'm not considering that at all. That's not correct
at all. I want to have happened is for the
ACC scheme and the good people who are making sometimes
difficult decisions every day on behalf of the scheme and
all New Zealanders. I want them to get back to
doing the basic stuff really well, to focus on their

(01:36):
core business, which is ensuring that New Zealanders when they
do have an accident are rehabilitated and getting back to
being fully participating members of society.

Speaker 1 (01:46):
So no claims that absolutely nothing changing with claims because
you're reported this is from stuff he had. This is
you previously questioned where the ACC might need to offload
responsibility for some mental health claims to a different agency
to ensure the en parent scheme is sustainable.

Speaker 2 (02:02):
Look, that was a comment that I made some time ago.
But as I say, now into the role far more
closely than I was when I made those statements. I'm
very happy that ACC is focused on the work that's done.
We've got a new chair, just appointed a new chair,
Jan Dawson. I'll be working very closely and we won't.

Speaker 1 (02:24):
Cut There'll be no change to claims, no criteria will change.

Speaker 2 (02:29):
Look, the ACC legislation is there for a purpose. It
has boundaries, it has rules, and ACC personnel work within
those all day, every day to ensure that will change,
forming better. I'm not planning any changes in that regard.

Speaker 1 (02:44):
All right, very good, So a couple of years we'll
be back in La you reckon.

Speaker 2 (02:48):
Well, we've got a lot of work to do. But
that will mean that there needs to be a focus
on doing the core basic work of ACC well regularly
and consistently, just.

Speaker 1 (02:59):
On that working from home. I was shocked to see
a couple of weeks ago that they're still working from home,
a lot of staff only coming into the office two
days a week. I think now they've agreed, begrudgingly to
come in three days a week. What's going on here?

Speaker 2 (03:15):
Well, though, that is one part of what will need
to be a turnaround. I mean, ACC staff have had
some very generous working from home arrangements, and I was
pleased to see that the Chief Executive, Megan Maine, has
decided to bring them back for at least three days.

Speaker 1 (03:32):
A week, three days.

Speaker 2 (03:35):
I think there's still more work yet, to be done
on that one.

Speaker 1 (03:38):
Right, people will be looking at this and looking at
the size of this deficit and the hours worked in
the office and bethinking, hmm, get you. I mean when
you guys said it was a year ago you see
to get back to the.

Speaker 2 (03:50):
Office, was it exactly? So? As I say, there's still
a lot of work yet to be done at ACC.

Speaker 1 (03:57):
Okay, I to appreciate your time, Scott Simpson, who's minister
responsible for that. Lock for more from Early Edition with
Ryan Bridge.

Speaker 2 (04:04):
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