Proposed changes to ACC are necessary and sensible:
Reform of ACC is needed to improve incentives for workplace safety, improve services for claimants and keep levies affordable both now and in the future, ACC Minister Nick Smith announced today.
“This Government’s initial work on ACC was about stopping ACC haemorrhaging after $7.2 billion in losses. These next steps outline our long-term plan for ACC,” Dr Smith said in releasing the Stocktake and Financial Condition Reports.
Key decisions announced today include:
• No increase in workplace, motor vehicle or earner levies for 2011
• Introduction of experience rating in the Work Account
• Extension of the Accredited Employers’ Programme (AEP)
• Greater independence of the Disputes Resolution Service
• Decision in principle for introduction of choice in the Work Account
The current system has no reward for safe workplaces and no sanctions for unsafe ones. The experience rating in the Work Account will provide a no-claims discount programme for small employers and an experience rating for larger ones.
This will give employers a financial incentive to prevent injuries, encourage appropriate return-to-work programmes and make levies fairer so that low-risk employers aren’t subsidising high-risk ones.
The result should be safer workplaces and lower costs.
Introducing choice is the Work Account is being described as privatisation. It isn’t, nothing is being sold. It will merely allow people to choose between the government scheme and private providers.
Nick Smith has come up with sensible and moderate changes. They will ensure accident victims get the care, rehabilitation and compensation they need while lowering costs to levy payers and reducing the risk of a future blow-out in the ACC account which would put the whole system at risk.
Homepaddock 