A City Possessed: the Christchurch Civic Crèche case
Chapter 3.1, Pages 88-94.
Lynley Hood



Lynley Hood : Author of A City Possessed

Lynley Hood, A City Possessed: The Christchurch Civic Creche Case,

Longacre, Dunedin, 2001

672 pages, Format: 230 x 150mm HB

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A City Possessed

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The aim of the 1974 ACC Act was to provide prompt and effective treatment for all accident victims. But, during the passage of the Bill through parliament, two provisions for lump-sum compensation were added (one for physical disability, the other for ‘pain and mental suffering' and ‘the loss of capacity for enjoying life’) as trade-offs for the abolition of the right to sue.

 

As with all accident-compensation schemes, ACC carried the risk of inadvertently encouraging its beneficiaries to maximise their agony in order to maximise their gain. Opportunists (like the man who sought compensation for having a cottonbud lodged in his ear, even though the bud was quickly removed and no injury was suffered) could be relatively easily identified. Claimants suffering from compensation neurosis posed a greater problem. After relatively trivial accidents, such claimants develop disabling symptoms which are unresponsive to medical treatment, but which improve dramatically once money changes hands. In his book on the ACC Act, Judge Blair observed:

It must be expected that the introduction of the Accident Compensation Act will increase the incidence of compensation neurosis. The Act gives the right of compensation for accidents to persons who previously had no such rights, e.g. housewives and sportspersons... It accordingly must be accepted that accident or litigation neurosis will become more common. [29]

 

The original Act provided cover for ‘the physical and mental consequences’ of ‘personal injury by accident’. Sexual assaults were covered by the legislation, subject to the Corporation being satisfied that an assault had taken place and an injury had been suffered. However, in response to concerns that rape victims could be denied ACC-funded treatment if they showed lithe or no evidence of ‘actual bodily harm’ the definition of ‘actual bodily harm’ was extended to include ‘pregnancy and mental or nervous shock’ where these occurred as a result of ‘rape’ (or, after 1985, ‘sexual violation’), ‘sexual intercourse with a girl under twelve’ or ‘infection with a disease’. Other sex crimes, like attempted sexual violation and indecent assault were not itemised in the ACC legislation until 1992. Nonetheless, as a result of precedents established when rejected ACC claims were appealed, the range of sexual abuse claims accepted by ACC at the time the Civic Creche case arose in 1991 far exceeded those itemised in the legislation.

 

Claimants had to satisfy ACC that they were genuinely injured (and not malingering), and that the injury was caused by an accident (and not by disease, infection or aging). In rape claims the ‘actual bodily harm’ was usually in the form of ‘mental or nervous shock’. So the ACC assessor had to determine whether the claimant really did suffer from ‘mental or nervous shock’, and whether the shock really was the result of rape.

 

A further complication was that ACC was, in theory, a no-fault scheme, so the rights and wrongs of claims were not usually investigated. However, with claims involving sex crimes or medical error, even if ACC was satisfied that the event had occurred (sexual intercourse in the case of a rape claim, medical intervention in the case of a medical error claim), the claimant was not eligible for compensation if the intercourse was consensual or if the medical intervention was appropriate but had failed to achieve the desired result. In both cases, ACC had to be satisfied that the perpetrator was at fault before compensation would be paid.

 

Interestingly, ACC has always handled medical error claims and sexual assault claims very differently. This difference reflects the influence of two very different groups of treatment providers. In terms of feminist stereotypes, the medical treatment providers could be characterised as powerful, wealthy, white, middle-class and male, while sexual abuse treatment providers could be characterised as powerless, poor, oppressed and female. If this is indeed the case (and the stereotypes undoubtedly have some validity) then a comparison of the outcomes of medical error and sexual abuse claims suggests that the allegedly powerful providers have had less influence on the policies and practices of ACC than the allegedly powerless ones.

 

To understand the relative influence of these two groups we need to first understand what is meant by `natural justice'. Legal textbooks describe the principles of natural justice as minimum standards of fair decision-making imposed by common law. Over centuries of legal precedents these principles have been refined into two cardinal rules: that no person shall be condemned unless he/she has been given notice of the allegations against him/her and a fair opportunity to respond, and that the decision-maker shall have no material interest (by way of gain or detriment) in the outcome. Centuries of legal precedents have also established that the principles apply to any administrative decision (and not just to court proceedings) in which a person may be adversely affected. [30]

 

From the inception of ACC, whenever a medical error claim was received the alleged perpetrator was notified and invited to comment, all relevant evidence was considered and independent advice on the claim's validity was sought. According to Lynda Angus, head of ACC's Medical Misadventure Unit (MMU), the unit receives around 2,500 claims per year. When the claim involves no more than one person's word against another it is normally rejected. This approach embodies two elemental concepts of justice: the first is that anyone accused of an offence should be presumed innocent until proven guilty; the second is that, in the absence of corroborating evidence, it is often impossible to determine whether or not an offence has occurred. In all, about 40 percent of claims are accepted, but most of these are for medical mishap (i.e. for a serious, rare and unforseen complication of a medical procedure for which the health professional is not to blame, but which is deemed to be an `accident' and therefore eligible for ACC assistance). Only 15 percent of claims accepted by the MMU are for medical error.[31]

 

Accurate statistics for sexual abuse claims are not available because the Sensitive Claims Unit (SCU) does not have an effective recording system, but, according to Lynda Angus (who heads both the SCU and the MMU), the SCU receives around 12,000 claims per year. 'Working on feel and anecdotal evidence we think we accept around 85 percent. The only claims we decline are those that clearly don't fit the Schedule [the list of sexual offences covered by the 1992 ACC Act] or those for which we never get enough information,’ she told me .[32]

 

The believe-the-victim philosophy that underpins this high acceptance rate means that, in relation to sexual offences, ACC has effectively replaced the presumption of innocence with the presumption of guilt. This approach makes sexual assault claims easy to administer. When you believe the victim, you don't need any input from the alleged perpetrator (in fact he is never invited to comment, or even advised that a claim has been lodged). You don't need to investigate the claim. You don't need independent advice on its validity. You just need an ACC assessor to accept it. Lynda Angus explained:

We don't go around questioning whether people have been sexually abused or not... We occasionally get people who have been named - or think they've been named - as perpetrators who ring up and say, `I believe so and so has lodged a claim and it's all false'. We don't actively pursue that because we feel that a person who has gone to the lengths of going to a doctor and saving, `I want to lodge a claim,' and going to a counsellor and going through the whole story, must have some psychological need, and that we should help them deal with it.[33]

 

It was not always so. Throughout the ‘70s, decisions on ACC cover for rape were largely left to the courts. If the alleged offender was found not guilty, it was ACC policy to reject the claim. Then, in 1980, a landmark ACC Appeal Authority decision changed everything.

 

It seemed like a clear-cut case of rape. The man admitted that the woman had struggled during the assault. But the woman was a teenager who had spent the day in the pub before going off with a gang member, and the unsympathetic Christchurch jury probably felt that it served her right. As a result of the not-guilty verdict, ACC rejected her claim, but the decision was overturned on appeal. Judge Blair ruled:

The phrase `within the description of [in the ACC Act], where it applies to rape, means that a complainant... does not have the onus on her... to prove beyond reasonable doubt that rape had been committed. She need go no further than to satisfy the Commission that what happened has the ingredients of rape. These ingredients are penetration of the female by the male without her consent.[34]

 

Over the following decade, Judge Blair's phrase ‘the ingredients of rape’ was used to argue that non-penetrative indecencies should be covered by ACC, even though his decision shows that he had a much narrower definition of ‘the ingredients of rape’ in mind.

 

Following that landmark judgment, verdicts in criminal cases were disregarded by ACC, and the burden of proof required for the acceptance of sexual assault claims went from ‘beyond reasonable doubt’ to ‘the Corporation must feel an actual persuasion that entitlement exists’.[35]

 

By 1987, the range of sexual assault claims acceptable to the Corporation included: ‘. . . any sexual or intended sexual act, or experience, which is forced onto an adult or child without their consent . . . providing the assault happened after 1 April 1974.’ [36]

 

Sexual assault victims could claim counselling costs, compensation for loss of earnings, medical and dental fees, transport costs, payment for damaged clothing and lump sum awards of up to $17,000 for ‘permanent damage to bodily functions’ and up to $10,000 for ‘loss of enjoyment of life’. In practice, most sexual abuse claims were for counselling costs and `loss of enjoyment of life'.

 

As a matter of policy, ACC required treatment providers to be professionally qualified. Among those providing counselling, general practitioners, psychiatrists and psychologists had statutory registration, and members of the New Zealand Association of Psychotherapists, and the New Zealand Association of Child Psychotherapists, were bound by the standards, ethics and disciplinary procedures of their professional bodies. These practitioners were paid a fee for service by ACC.

 

By contrast, most sexual abuse counsellors had had no formal training and were not registered practitioners or members of a recognised professional body. But most of them worked for sexual abuse treatment centres like Help (in Auckland and Wellington) or START (in Christchurch), and each centre had at least one qualified professional on its management team. On that basis, the treatment centres, rather than their individual counsellors, were accepted as ACC treatment providers and reimbursed for fees claimed on behalf of their counsellors. Between the 1986-87 financial year, and the 1988-89 financial year, total ACC payments to counsellors escalated from $147,308 to $1,205,677. Seventy percent of those payments went to counsellors working for sexual assault treatment centres.[37]

 

Lump sum payments for ‘loss of enjoyment of life’ showed a similar increase. In the 1987-88 financial year, 700 lump sum payments were made to sexual assault victims. By the following year the number had risen to over 1,500, and most recipients were paid the full $10,000. At the same time, more than a million dollars of ACC funding was poured into sexual abuse education, research and prevention programmes. In summary, by 1989, sexual abuse services were costing ACC over 17 million dollars a year.[38]

 

In December 1988, with a budget blowout looming, the ACC board decided to stop payments for all paramedical treatments from the end of the month. Word of the change leaked out on 19 December and was confirmed on 20 December. That day, for osteopaths, chiropractors, podiatrists, occupational therapists, acupuncturists and counsellors, the ACC gravy train jolted to a sudden stop. Then, in a dramatic illustration of the power of ‘the sex abuse industry’ to bend the government to its will, on 23 December the Ministers of ACC, Women's Affairs, and Social Welfare announced that, as an interim measure, ACC would ‘continue to pay for counselling services under an administrative delegation from the director-general of social welfare’.[39]

 

Funding for the interim measure was appropriated under the Disabled Persons Community Welfare Act. As ACC Managing Director Jeff Chapman observed, using the Act to fund sexual abuse counselling required a liberal interpretation of the statute, ‘but it has been in no-one’s interest to question the legal basis.’ [40]

 

At the same time, all sexual abuse counsellors were given provisional ACC registration on an individual basis. This arrangement was supposed to last six months. But every six months or so it was rolled over for another six months or so while debate raged over who should pay for, and who should provide, sexual abuse counselling.[41] Jeff Chapman noted:

Many persons offering sexual abuse counselling services are largely untrained. Ultimately it has to be accepted that untrained persons should not be paid by the Government or the Corporation to counsel people in psychological and emotional distress... The reaction of some groups which employ unqualified counsellors is likely to be vocal and negative with widespread media coverage. These groups are unlikely to be appeased by a grandparenting clause which enables time to obtain basic qualifications and training.[42]

 

In 1989 and 1990 regulations were passed to allow ACC-funded treatments by psychiatrists, psychologists, psychotherapists, general practitioners, chiropractors, acupuncturists, occupational therapists, osteopaths, physiotherapists, and podiatrists to resume. But lay sexual abuse counsellors had no registration boards, no professional organisations, and no established procedures for monitoring their skills and competence. So, strictly speaking, they were not eligible for ACC funding. This was not a problem as long as their funding was provided under the Disabled Persons Community Welfare Act. In fact, it still wasn't a problem when responsibility for sexual abuse counselling funding returned to ACC in 1992 because, at that point, everyone providing sexual abuse counselling under the existing scheme was given extended interim registration under the new scheme.

 

In summary, the procedural changes to sexual abuse counselling funding between 1988 and 1992 ensured that, by the time the Christchurch Civic Creche case erupted in 1991, the majority of sexual abuse counsellors were as poorly trained and poorly supervised as they had always been. This is not to suggest that more training and supervision per se would have produced better counsellors. As the research into therapeutic effectiveness cited earlier in this chapter shows, empathetic individuals with good communication skills can become effective counsellors with a minimum of training and supervision. The problem was that sexual abuse counselling attracted women with authoritarian feminist impulses who were trained by authoritarian feminists in authoritarian feminist methods. So instead of swelling the ranks of compassionate and effective counsellors, training and supervision on this model just produced more, well-trained, authoritarian feminists.



 

[29] Grahame Aldous and John Alder, Applications for Judicial Review (London: Butterworths, 1985). Michael Supperstone and James Goudie, Judicial Review (London: Butterworths, 1992).

 

[30] Grahame Aldous and John Alder, Applications for Judicial Review (London: Butterworths, 1985). Michael Supperstone and James Goudie, Judicial Review (London: Butterworths, 1992).

 

[31] Accident Rehabilitation and Compensation Insurance Act 1992, s. 5 (10) (a). Lynda Angus, interview, ACC, 13 March 1997.

 

[32] Lynda Angus, audiotaped interview, ACC, 26 November 1996.

 

[33] ibid.

 

[34] H v ACC (1980) ACC report, Nov-Dec 1980.

 

[35] Susan Andrews, ‘Accident Compensation’, YWCA Rape and SexualAssault of Women and Children' Conference Report (Wellington: YWCA, 1983).

 

[36] ‘Survivors of Sexual Assault’ (pamphlet) (Wellington: ACC, 1987).

 

[37] Working Party on the Funding of Sexual Abuse Counselling Services: Phase One Report (Wellington: Interdepartmental Working Party on the Funding of Sexual Abuse Services, July 1989).

 

[38] ACC reports, 1985-1992.

 

[39] Working Party on the Funding of Sexual Abuse Counselling Services: Phase One Report (Wellington: Interdepartmental Working Party on the Funding of Sexual Abuse Services, July 1989). ‘Outrage as ACC Axes Payments’, Dominion, 23 December 188. DSAC Newsletter, February 1989.

 

[40] Jeff Chapman, ‘Accident Rehabilitation and Compensation Insurance Regulations: Counselling Services’. A submission to the Cabinet Committee on the Implementation of Social Assistance Reforms, 11 September 1992.

 

[41] L. Briggs, National President NZAWS, letter to Michael Cullen, Minister of Social Welfare, 8 March 1990; J. Dugdale, Council Chairperson, NZCCP, letter to Helen Clark, Minister of Health and others, 4 December 1989; R. Hewland, Southern Regional Specialist Services Unit, DSW, letter to A. Dixon, Working Party on Funding Sexual Abuse Counselling, 12 December 1989.

 

[42] Jeff Chapman, ‘Accident Rehabilitation and Compensation Insurance Regulations: Counselling Services’. A submission to the Cabinet Committee on the Implementation of Social Assistance Reforms, 11 September 1992.