Cosy deal continuing to end of year

The Taxpayers’ Union blew the whistle on the $19m wasted on contracts for workplace safety training:

Material released by the Taxpayers’ Union show a cosy deal between Business New Zealand, the Council of Trade Unions (“CTU”) and ACC has cost ACC-levy payers $19 million since 2003.

The documents, available and summarised below show ACC knew that millions paid to Business NZ and the CTU to provide health and safety training did little, if anything, to reduce workplace accidents.

Recent ACC analysis concludes that, even with optimistic assumptions, for every dollar spent on the training 84 cents is wasted. 

A 2013 briefing to the Minister for ACC, Judith Collins, states that the CTU has found it “challenging” to meet its performance obligations even though it has been contracted for service since 2003. 

The documents show that Business NZ and the CTU worked together with ACC to create the venture and doubts about the value of the scheme have existed since at least 2008.

It appears that Business NZ and the CTU have created a nice little earner for themselves. But we think it’s a disgraceful example of big corporate and union welfare chewing through taxpayer cash. We think members of Business NZ and the CTU should be asking hard questions of their respective management teams.

Even the report in 2008 shows that that whole scheme was achieving little more than ‘engagement’. While ACC, Business NZ and the CTU must have known the scheme was worthless, they all allowed further millions to be spent.

This is the worst example of government waste the Taxpayers’ Union has seen to date. It involves two quasi-political organisations from the left and the right complacent in receiving taxpayer funds, likely knowing that the benefit was a small fraction of the amount being spent.

The Taxpayers’ Union is calling on Ms Collins to put an end to this hand out to Business NZ and the CTU.

ACC Minister Judith Collins says this has all the markings of a taxpayer rort:

. . . Ms Collins told Radio New Zealand’s Summer Report programme on Wednesday the scheme is clearly not working and she does not intend to waste more money on it by taking further action, since the contracts are unlikely to be renewed.

The minister said the programme looked like a very cosy deal set up in 2003, leaving the people it aimed to help with nothing.

“I think it’s pretty clear what happened and the review that’s been undertaken by ACC has already shown that it has been a waste of money,” she said.

“I actually think it has all the hallmarks of a rort.” . . .

There’s nothing new in cosy deals which give unions public funds for programmes which may or may not be value for money.

Business New Zealand members should be asking very serious questions of the organisation to find out why it too has been wasting money in this way.

Yesterday it looked like ACC was canning the scheme but today the Taxpayers’ Union says the schemes have been extended to the end of this year.

Despite the ACC telling media yesterday that it decided ‘late last year’ to can the programme, we learned this morning that the contracts were renewed in December. The end date is now 31 December 2014.

It appears that ACC only changed its tune since the Taxpayers’ Union publicly exposed the rort.

Remember, it’s not the Taxpayers’ Union who labelled the training scheme a waste of money, it’s ACC’s own experts. Telling the public that they will scrap the scheme but waiting for the new contracts to expire is not good enough. They conveniently failed to mention that the contracts have just been renewed…

The Taxpayers’ Union is also backing the Minister for ACC’s reported comments that Business NZ and the CTU should pay the wasted money back to ACC. With such clear evidence that the money did little if anything to improve workplace safety, we think Business NZ and the CTU are morally obliged to stop wasting this money and compensate ACC levy payers.

ACC fees are being reduced for most workers and businesses.

If it wasn’t wasting money on useless training it might be able to make further cuts.

Workplace safety is a serious business, it shouldn’t be a vehicle for a rort by unions and the group which is supposed to work in businesses’ best interests.

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