ACC transparency strongly supported

23 July 2015

ACC transparency strongly supported

More transparent management of ACC levies is strongly supported, says BusinessNZ.

Speaking to the Transport and Industrial Relations Select Committee today BusinessNZ economist John Pask said the ACC amendment Bill* would help prevent political manipulation.

Mr Pask said BusinessNZ had for many years made submissions pointing out the deficiencies of the annual ACC levy consultation round, and it was pleasing that the Bill addressing those deficiencies had finally made it to Parliament.

“There has been a tendency over the years for ACC Ministers of different Governments to tinker with the ACC Board’s recommendations and the proposed legislation will reduce the risk of this in future.”

Mr Pask said BusinessNZ recommends further changes to the Bill, including requiring:

· that the Government’s fiscal position not be a consideration when setting ACC levies;

· independent reviews of ACC Ministerial policy statements;

· any cross-subsidies within ACC accounts to be made transparent;

· that the need for levy stability must not override the need for true price signals; and

· discontinuing residual claims levies in ACC accounts that are fully funded.

*Accident Compensation (Financial Responsibility and Transparency) Amendment Bill

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