BusinessNZ welcomes greater transparency in ACC levy setting

BusinessNZ welcomes greater transparency in ACC levy setting

BusinessNZ is pleased that action is being taken to ensure that ACC levies are set in a much more transparent manner than in the past.

Phil O'Reilly, Chief Executive of BusinessNZ, said " While BusinessNZ welcomes the $500 million proposed cuts in premiums to be announced in the Budget 2015, which is positive for businesses, employees and motor vehicle owners, the more important issue is the proposed new ACC Financial Responsibility and Transparency Amendment Bill. This will ensure levies reflect sound insurance principles, and is a major breakthrough towards ensuring public trust in ACC is maintained and the Government of the day is held to account.

"While BusinessNZ would prefer levies to be set by the ACC Board, given that they are accountable for the sound functioning of the ACC scheme, the new focus on greater transparency is very welcome and a big step forward. It should reduce ad hoc decision-making. For too long now, the levy process has been unclear, which can lay itself open to accusations of political manipulation without thought to the impact on premium payers or the wider economy. The proposed regime will ensure a sound framework in which levy payers can have a degree of confidence.

"BusinessNZ has been calling for this type of change for many years. It's good to see the Government has responded to business concerns in this area. We will be examining the Bill closely when it is introduced, to ensure it meets the degree of rigour outlined by the Minister in her statement today.

"Moreover, BusinessNZ hopes the Bill will receive cross-party support as it proceeds through Parliament, to ensure the public has faith in the principles of the ACC scheme."

ENDS

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