Independent body for ACC disputes announced

ACC disputes will be handled by an independent body from July, the Government announced today.

Disputes Resolution Services, which reviews up to 10,000 applications from ACC claimants each year, is currently owned by ACC, but from July 1 will become a separate crown company.

In a speech to a Reviewing ACC conference in Wellington today, ACC Minister Nick Smith said the move would allow for more independence and prevent ACC from assuming a "judge and jury" role.

"To make its independence explicit, from July 1 this year, Disputes Resolutions Limited will be a stand alone crown-owned company." The shareholders will be the Ministers of Finance and ACC.

The disputes service had grown significantly and making it an independent body was a logical step, Dr Smith told NZPA.

"There is a clear perception and a lot of complaints that people don't think that the reviews of their claims are being independently considered," he said.

"That will be an improvement for claimants being absolutely sure that the people undertaking the reviews on their claimant disputes with ACC are being managed independently, and will also give the capacity for that quite innovative company to expand its work."

There were no plans to change the operation of the Christchurch-based company, which employes about 100 staff. Future changes would be decided by the company's new board.

"It will continue to offer the same dispute resolution services as it does now. Reviews already in progress will not be affected by the change," Dr Smith said.

The separation of the company also worked in with the Government's plans to allow private insurers to compete with ACC in the workplace insurance market.

"An efficient disputes resolution process will be needed for alternative workplace insurance providers."

Dr Smith said a discussion document outlining two sets of proposals for the broader ACC reform would be released within the next two months.

"We want to discuss how to introduce choice in the work account, and want views on how we can extend participation in the accredited employers' programme."

Introducing legislation for the planned work account changes was unlikely to happen until March or April next year.

Dr Smith also indicated spending on injury prevention programmes would become more targeted.

"I do have concerns that some aspects of the programmes for injury prevention have not stacked up, if you look at the detail of scale of investment and the actual improvements that were being achieved," he said.

"Yes, injury prevention, but not as some PC exercise, but about one that will actually deliver real results."

Labour, the Greens and unions have all opposed the plans to open up work accounts, saying it will result in reduced support for accident victims, and will end up costing the taxpayer more.

In a statement today, Green ACC spokesman Kevin Hague called for an independent review of the changes to ACC.

"Part-privatisation of ACC will cut support to vulnerable accident victims," he said.

"It will result in unfair and uneven support for accident victims. This decision is a result of National's ideological commitment to privatisation and it will make the system worse."

Mr Hague also opposed any plans for cut funding for injury prevention, saying the Government's approach was all about cost cutting.

"The Minister has already cut the very highly regarded falls prevention programme for older people. Cutting ACC injury prevention programmes will be a disaster unless they are properly funded from elsewhere."