MEDIA RELEASE

Thursday 23 December 1999

GOVERNMENT ACC PLAN NEEDS EXPLANATION

"Business is at a complete loss as to why the Government is so determined to return workplace accident insurance to a single government monopoly", New Zealand Employers' Federation Deputy CEO, Anne Knowles said today.

"Last year's reforms have changed the incentives that have operated for the last 25 years in the accident insurance area. They have meant better workplace safety, more emphasis on the rehabilitation of those who do get injured, choice, and greater innovation.

"And with a more "pro-competitive stance", the sort Dr Cullen talked of in his first speech as Minister of Finance, costs have also reduced.

"Business deserves some explanation as to why government wishes to reverse these successful reforms of July 1 this year.

"There is absolutely no evidence that this change is needed or that it will be beneficial to anyone - employer, employee or the Government", Ms Knowles concluded.

Contact: Anne Knowles, Deputy CEO Conor English, Manager Corporate Communications,

Ph 499 4111

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