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ACC Finally Admits It Is Double Dipping

14 February 2001

PR 14/2001

ACC Finally Admits It Is Double Dipping

"ACC has finally publicly admitted that it has double charged employers. The next step is for ACC or the Government to do something about it" said Federated Farmers President Alistair Polson.

Appearing before the Transport and Industrial Relations Select Committee today, ACC finally conceded that its actions were resulting in some people paying twice for the same service.

Federated Farmers first raised this issue of double dipping with ACC and the Minister in June last year. At that time Federated Farmers clearly identified that in the processing of closing off the old ACC Employers' Account on 1 July 1999 that ACC had required some businesses to effectively pay twice for the 1998/1999 year.

In a September 2000 letter, recently obtained by Federated Farmers, ACC told the Minister for ACC, Hon Dr Michael Cullen, that current practices were resulting in overcharging in the order of $60-$100 million. Federated Farmers considers that the amount could be much higher.

Despite being confronted with the evidence, ACC has refused to change its practices and Dr Cullen has refused to intervene.

"Again I call on the Minister for ACC to intervene to ensure that no business is required to pay ACC twice for the same year" said Mr Polson. I cannot understand why the Minister is refusing to rectify something that was not of his making. To not intervene means that his Government becomes party to the crime", said Mr Polson.

No private sector company would be able to charge a client twice for the same service. Only a statutory monopoly could carry out such a practice.

Federated Farmers is the only organisation that is fighting this issue on behalf of its members and all employers.

ENDS

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