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Government Should Accept ACC Board’s Advice
ACC Levies - Government Should Accept ACC Board’s Advice
The Accident Compensation Corporation recommendation to government that ACC levies be reduced between 6% and 28% for the 2001-2002 years “should be accepted in full” and passed on to business with a strong, encouraging congratulatory message to “do better”.
Michael Barnett, Chief Executive of the Auckland Regional Chamber of Commerce, described as “unacceptable” suggestions from Finance Minister Michael Cullen that he would follow the pattern of the previous government and be “somewhat more conservative” than recommended by the ACC Board, following advice from Treasury.
The lower premiums worked out by the Corporation have only been possible because the work done by business under the former competitive model to put in place accident prevention regimes has achieved lower accident rates reducing the scheme’s overall costs.
“Government should trust business and the Corporation Board’s recommendations to hold the gains. Instead of setting artificial premium levels, Mr Cullen would be better advised to action the Board’s recommendations in full with a strong encouraging message to business to continue to improve accident prevention and seek still further premium reductions based on performance.”
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