Labour takes ACC forward to the future

Minister for ACC Ruth Dyson today praised ACC's world-leading no fault compensation scheme and the way it sets its levies.

"Public consultation on the 2007/08 ACC levies took place this year as it does every year. The process was open and transparent and anyone can go to ACC's website to see what was consulted on and when," says Ruth Dyson.

The government has announced its intention to amend the ACC legislation to merge the Self-Employed Work and Employers' Accounts before public consultation started. This information and indicative levy rates under a merged account was included as part of this year's public consultation documents.

"The reason the accounts were separated in the first place was due to privatisation ? that is not on the agenda anymore. This Labour-led government is committed to a fair and simple ACC scheme," Ruth Dyson said.

"National MP Paul Hutchison should be aware that with the merger of accounts, employers will be in line for substantial rebates on their ACC levies over the next two years" Ruth Dyson said.

"The account merger will ensure that ACC levies paid by businesses are fairer, as they will be based on injury risk rather than business structure. It will also ensure that the levies are more stable, for both self-employed and employers.

"The proposed law change will allow a greater focus on reducing the risk of injury based on industry and occupational type rather than on business structure, and encourage industries to better co-ordinate health and safety across their workplaces," said Ruth Dyson.

"Since this government returned ACC to being a fully public scheme, the average self-employed levy has come down by 6%, the earners' rate has reduced by 7%, and the average employers' levy has dropped by a massive 43%. This is the sort of result you can expect when you don't have privatisation of ACC on your mind."

The National Party tried to privatise ACC in the 1990s and failed. Together with private insurance companies it planned to do so again if it got into power at the last election.

This is what National is planning for New Zealanders ? a return to the failed policies of the past.

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