Hon Dr Nick Smith
Minister for ACC
31 March 2009

Reconfigured ACC Board announced

ACC Minister Nick Smith today announced a reconfigured ACC board with the appointment of four new board members in addition to the new chair, John Judge.

“The changes in the Board are part of setting a new direction for ACC to address the significant and serious deterioration in its financial position.

“My priority has been getting top-flight governance skills with actuarial, cost control and investment management expertise. I have also endeavoured to provide for sufficient continuity to ensure a smooth transition to the Government’s new direction.”

The reconfigured Board of ACC is:

• John Judge (Chair)
• Peter Neilson (Deputy Chair)
• Marie Bismark
• Philippa Dunphy
• Rob Campbell (new member)
• Murray Hilder (new member)
• Jane Huria (new member)
• John McCliskie (new member)

“The new Board will need to work hard to get on top of ACC’s escalating costs that risk flowing through into unaffordable levy increases.

“I will be working with the new Board on administrative, policy and legislative changes to ensure we deliver an efficient 24/7 accident insurance scheme that is affordable for New Zealand families and businesses.”

ENDS

New Directors CVs and questions and answers attached below

New ACC Board Members:

Rob Campbell is an investment director for the private investment and custodial business firm Tappenden Holdings Ltd. Mr Campbell has more than 20 years experience managing global portfolio and direct investments. His governance experience includes directorship to public and private sector organisations, including being Chairman of the Government Printing Office, Deputy Chairman of the Bank of New Zealand and being on the Establishment Board of New Zealand Post. Mr Campbell is a former Secretary of the Distribution Workers Federation, and a former member of the National Executive of the Federation of Labour.

Murray Hilder has 30 years experience as an actuarial consultant. He is an experienced commercial manager with strategic, financial, company taxation, human resource management, ICT project management and marketing skills gained from running diverse businesses. Mr Hilder is a former president of the New Zealand Society of Actuaries and a fellow of the New Zealand, Australian and United Kingdom Actuary societies.

Jane Huria is a director of HSR Governance Ltd which provides corporate governance and shareholder advisory services both nationally and internationally. She is of Ngai Tahu descent, and has served on various Ngai Tahu commercial boards, including the Ngai Tahu Holdings Corporation for six years. Ms Huria has governance level experience in stakeholder and shareholder relationship management where the Crown is a shareholder, including Transpower, and SPARC. She is a member of the Advisory Group to the Secretary for the Treasury and is a lay member of the Health Practitioners Disciplinary Tribunal.

John McCliskie is an experienced company director who has been involved in a range of small and medium enterprises, co-operatives and both corporate and government entities. Mr McCliskie has a strong understanding of financial and accounting principles and practices including foreign exchange management, and also has a background in international marketing. He has wide ranging experience in governance that spans 20 years, including 10 years as a Director of the Apple and Pear Marketing Board. He is a Director of Nelson Electricity Ltd, Network Tasman Ltd, Alliance Group Ltd, Alandale Orchards Ltd, and Chairman of Heartland Group (NZ) Ltd. He was a director of TVNZ from 1999 to 2002.

New Chair (announced on 9 March 2009):

John Judge is a former Chief Executive of Ernst & Young leading the company in New Zealand for 13 years. An experienced board director, Mr Judge is chair of the Board of the Museum of New Zealand Te Papa Tongarewa, chair of the Auckland Art Gallery Foundation, a member of the Board of Advisors to the University of Otago School of Business, a member of the Auckland Business School Advisory Board (University of Auckland), and a member of the Board of NZ Tennis Inc.

Questions & Answers

Q What is the term of appointment for the new board members?
A The new board members (John McCliskie, Jane Huria, Rob Campbell, and Murray Hilder) have been appointed for a term of three years from 1 April 2009 until 31 March 2012.

The terms of the other board members are: John Judge (until 10 March 2012), Peter Neilson (until 22 November 2010), Philippa Dunphy (until 12 December 2009), Marie Bismark (until 1 March 2010)

The new board members announced today replace Ross Wilson, Wayne Butson, Sara Lunam and Ngaruma Karaitiana. Mr Karaitiana offered his resignation on 11 March, which the Minister accepted.

Q What happened to Dr Don Turkington, a previous ACC board member?
A Dr Turkington’s term expired on 11 December last year and he advised the Minister prior to his reconfiguration of the Board that he did not wish to be reconsidered for reappointment.

Q Why did the Minister reconfigure the Board?
A First, the Government’s new direction for ACC requires a different skill set with a strong focus on cost control. This new direction is required to avoid unaffordable levy increases arising from high compound rates of growth in claim costs over recent years.

Secondly, changed economic times and turbulent global markets require that ACC has top-flight investment and actuary skills to oversee ACC’s very large investment and liability portfolios.

Thirdly, there is an issue of accountability and confidence. The previous Board knew of the large blowout in the Non-Earners’ Account and that an urgent injection of $300 million of taxpayer funds was required by Christmas. However, it failed to mention this significant problem in the Briefing to the Incoming Minister that was approved by the board.

Q What process has the Minister followed in reconfiguring the Board?

A The Minister wrote to all Board Members on 3 March 2009 (copy below) outlining his concerns and noting his intention to reconfigure the Board. He sought a response by 9 March, which the Minister received and considered.

On 9 March the Minister announced the appointment of John Judge as the new chair to replace Ross Wilson.

The new chair then interviewed existing and prospective Board members and made recommendations to the Minister. The appointments today reflect those recommendations.

original board letter: PDF

ENDS

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