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Letter to the Editor - Australian Accident Compensation

Posted on 30 Jul 2004

So the Premier is considering a "No Fault" Compensation system similar to NZ! This confirms that Dr Gallop, like all pollies (particularly Labour pollies), does suffer from OPMS (Other Peoples Money Syndrome).

Michael Begovich (letters 28/7) supports this idea for altruistic reasons, but fails to consider the cost in both economic and social terms. Accident Compensation (the NZ model) is a millstone around the NZ taxpayer's neck and is a significant contributor to the NZ economies poor performance over the last decade. It hampers business; effects job growth and create State dependency. The Shipley National Government endeavoured to wind back some of the negative aspects of Accident Compensation in 1999 prior to that year's general Election. The Clarke Labour Government (a minority government) immediately wound back those changes after only 8 months in force and re-introduced entitlements that had been scraped for years, such as lump sum payouts.  Once again desperate Kiwis are maiming themselves for a lump sum. With a projected economy growth rate of just 2% NZ is no longer Godzone.

Dr Gallop and others, who empathise with the victims of accident that battle for compensation, consider what service have you done when you socialise the liability cost of insurance. The victims get a reduced level of support as more claim compensation, state dependency increases as victims strive to maintain their "rights" and business' fail or cease to trade as the cost of compensation is slated home to the "user". If the taxpayer is directly taxed to support this policy then families will suffer as disposable income is reduced. The only benefactors are the insurance companies that are able to offload an otherwise difficult and un-profitable aspect of the insurance industry.

Wake up Dr Gallop and smell the coffee. 

Andrew Power