Agreement moves ACC along right track

Media statement Thursday, October 22, 2009

Agreement moves ACC along right track

The agreement announced today between National and ACT for ACC to be opened to competition, subject to further study, is a positive move, and employers will welcome the prospect of lower ACC costs, the Northern Employers & Manufacturers Association says.

"For the future of ACC its important to draw the distinction between competition and privatization," said Alasdair Thompson, EMA's chief executive.

"The top priority is to introduce competition in the management of ACC claims.

"We note Treasury agrees that lower costs would flow from this, but adds: 'it's not clear whether such gains would flow from making underwriting also contestable.'

"The news that a group is to be charged with a stock take of ACC is all good, provided they work closely with business if its decided to privatise underwriting as well.

"This is because our surveys have shown smaller and medium sized and some large employers are concerned about the instability associated with further changes to ACC.

"Change is inevitable because ACC cost increases over recent years are untenable. The feedback overall is that employers want:

1. Better workplace safety outcomes and more manageable premium levels
2. Competition, especially in the provision of rehabilitation as the key way forward
3. The immediate priority is to achieve competition in claims management

4. Further discussion on the potential for ACC's overall insurance function to be opened up for competition by private sector insurers
5. To avoid the disruption of the changes to ACC policy during 1998-2000

6. Improved incentives for workplace safety with premium levels reflecting each individual workplace's safety record."

ENDS

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