Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Next steps on ACC announced

Hon Dr Nick Smith

Minister for ACC

21 December 2010 Media Statement
Next steps on ACC announced

Reform of ACC is needed to improve incentives for workplace safety, improve services for claimants and keep levies affordable both now and in the future, ACC Minister Nick Smith announced today.

“This Government’s initial work on ACC was about stopping ACC haemorrhaging after $7.2 billion in losses. These next steps outline our long-term plan for ACC,” Dr Smith said in releasing the Stocktake and Financial Condition Reports.

Key decisions announced today include:

• No increase in workplace, motor vehicle or earner levies for 2011

• Introduction of experience rating in the Work Account

• Extension of the Accredited Employers’ Programme (AEP)

• Greater independence of the Disputes Resolution Service

• Decision in principle for introduction of choice in the Work Account

“We have declined ACC’s recommendations for further levy increases next year,” Dr Smith said. “We do not wish to add to the financial pressures on households and businesses while a fragile economic recovery is under way. We are also encouraged by the huge improvement in ACC’s finances and want to keep maximum pressure on the Corporation to continue to improve its performance rather than just passing additional costs onto levy payers.

“The direction of these reforms is towards greater choice and contestability, but we are advancing these in a pragmatic and considered way. Employers will be able to choose their workplace insurer but ACC will still be a provider. We will be consulting on the important policy detail next year and final decisions will occur after the 2011 election.

“These next steps on ACC are carefully timed and interconnected. ACC needs to move to experience rating and to provide risk sharing options like the AEP for it to be able to compete in a more open workplace insurance market. The system of disputes resolution also needs to be made more independent with provision for other insurance providers. The avoidance of levy increases is connected to the decisions on choice that will increase the pressure on ACC to contain costs.

“National is proud of its heritage in creating the original ACC scheme with its underlying principles of universal and no-fault cover. These next steps are consistent with National’s 2008 election commitments to a stocktake, investigation of competition in the Work Account and increased independence in dispute resolution.

“These reforms provide a fair and balanced way forward where accident claimants get proper care, rehabilitation and compensation, while minimising the costs to levy payers and fiscal risks for the Government.”



1. Questions & Answers on five key decisions






2. Minister’s media conference statement



1. Stocktake of ACC Accounts

2. Financial Condition Report on ACC

3. Review of Employer-managed Workplace Injury Claims: Final Report (MartinJenkins / Melville Jessup Weaver)

4. Next Steps on ACC (Cabinet paper)

5. 2011/12 ACC Levies and experience rating (Cabinet paper)

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why France Could Become Our Closest Ally In Europe

As PM Jacinda Ardern returns from a triumphant tour to Britain and the capitals of Europe, her officials have probably begun to assess what the more substantive gains from the trip might have been. Most of the chatter has been about potential trade deals – so lets just assume for the moment that bilateral trade deals between big and small countries are a good thing, despite the perils they pose to the smaller party. Currently, Britain is so involved with its Brexit nightmare that there seems little prospect of any substantive early progress on an FTA with Britain. In any case, New Zealand should be wary of being the first cab off that particular rank. ... More>>


HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>


Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>


Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>


PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>


Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>





Featured InfoPages