Govt delays ACC reform - yet again
Details on the government's troubled plans to make accident compensation more competitive are on hold – again.
Details on the government's troubled plans to make accident compensation more competitive are on hold – again.
Details of just how the National-led government intends to open up the workplace ACC account to competition were to have been announced in February, but incoming ACC Minister Judith Collins told the NBR at the time she had been over the issues over the Christmas break "and I came to a view there was another way through".
Just what that way through involves is being kept under wraps.
She indicated at the time an announcement of details of any change would probably be made by April, and she is to make a speech to the Northern Employers and Manufacturers Association on Thursday morning.
However, a spokeswoman for Ms Collins said Thursday's speech would not include any changes and also that any details on the government's plans "could be a couple of months away".
National campaigned on opening up workplace accident cover to competition in the 2011 election and also indicated it would examine opening up the motor vehicle account as well.
That is all now up in the air. The decision by the government to cut ACC levies before the election have effectively scuppered the policy, for several reasons.
First, it was a surprise, particularly after the then-minister Nick Smith had talked about the difficult financial straits the ACC Corporation was in.
Second, as the ACC would be competing with private insurers, it cut out any profit margin those private insurers wed have expected to make.
Third, the lower levies meant there was less political pressure from businesses to open the scheme to competition.
Business New Zealand has urged the government to consider extending the existing accredited employer scheme, which allows more than 130 of the country's larger businesses to effectively self-insure, as a way of introducing competition in ACC coverage.
Mrs Collins has not ruled this option out.
Rob Hosking
Tue, 17 Apr 2012
Tue, 17 Apr 2012
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Govt delays ACC reform - yet again
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