The Government was warned that proposed changes to accident compensation would end up costing the Crown more than was saved.
The Treasury advice is contained in papers obtained by Radio New Zealand[ under the Official Information Act.
In a paper prepared for the Cabinet Social Policy Committee, the Treasury said the proposed changes would save the Accident Compensation Corporation $50 million per year.
But it warned only $3 million of this would accrue to the Crown and the money might not fully offset increased health and benefit spending.
Treasury said the remaining $47 million would make little difference to levy rates.
Labour says the advice brings into question the Government's justification for the moves.
ACC spokesperson David Parker says it confirms the changes will lead to increased costs for health and welfare.
