NZ National Party
November 30, 2000
Cullen Opens Floodgates For Mental Injury ACC Payouts
Press Release by Gerry Brownlee
"The ACC Minister's claims employers won't pay more
for his new lump sum scheme are laughable," National ACC spokesperson
Gerry Brownlee said today.
"Dr Cullen has opened the floodgates for lump sum payouts under the
category "mental injury". It is not credible for him to say the
policy will only cost $60million a year and ACC levies won't increase.
"This is another bonanza for lawyers with all manner of outrageous and
inventive reasons being accepted for lump sum payments and Dr Cullen knows
it.
"Just four months ago he ruled out lump sums for mental injury because
of the high costs. His backtrack today is a win for the Alliance and will be alarming for business.
"Almost any injury is now likely to receive a lump sum for the injury
and another for the mental injury.
"Under the scheme announced today someone could get a $5,000 pay out for
losing a finger and $100,000 for the mental injury.
"Just like the matrimonial property changes this is a paradise for the
litigious.
"We will need a great deal of convincing that the Independence Allowance
should be scrapped.
"Under this Bill a person losing sight in both eyes would received
$85,000 for their injury and probably a similar amount for the mental injury
that results, but is left to fend for themselves for the rest of their lives.
"The Independence Allowance was a commitment to ongoing support. What
long-term support arrangements are going to be available now?" Mr
Brownlee said.
Inquiries: Gerry Brownlee 04 4719 899 or 025 983 506
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