ACC Review Timely

BusinessNZ welcomes the announcement of an independent review of ACC.

The announcement comes at the same time as disclosure of increased costs in ACC services and resulting increased levies.

BusinessNZ Chief Executive Katherine Rich says all businesses and households will bear the burden of the significant levy increases.

"Businesses and households deserve better cost management and more transparency and accountability from ACC. It is hoped that an independent review will help achieve that.

"I am pleased the Government has considered BusinessNZ’s submission that raised serious concerns about rehabilitation rates and the funding policies of ACC.

"We are concerned at the trend of claim volumes rising faster than population growth and believe ACC should improve its systems for accepting, managing, and monitoring claims.

"A comprehensive review of ACC’s funding policy is also needed. We pointed out that some ACC Accounts are currently underfunded, which will become very costly for future levy-payers. The Earners Account is currently only 90% funded, with a shortfall of $1.6 billion.

"The Accident Compensation Act requires all Accounts to be fully funded to ensure they can meet the lifetime cost of current claims, but we believe the spirit of the Act is currently not being met.

"We welcome the coming independent review of ACC on behalf of all businesses, workers and vehicle owners paying ACC levies who need assurance that the Scheme is being operated according to its statutory requirements," Mrs Rich said.

Note:

The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

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