Employer levies higher than necessary
Media release 3 December 2001
Employer levies higher than necessary - Business NZ
Business New Zealand says it's good news that ACC employer levies will not rise next year, but they still don't accurately reflect the state of the accident insurance market.
Business NZ Executive Director Anne Knowles says the levy announced by Government today - while unchanged at 90 cents per $100 of payroll - is still much higher than needed.
"The rates just announced build in a substantial margin which, given fewer workplace accidents, cannot be fully justified. The ACC itself recommended an average premium rate of 85 cents which already included a 15% margin to take account of risk.
"The Minister for Accident Insurance has justified the 90 cent rate saying it's to give employers some stability in levy rates from year to year, as well as to build up reserves.
"But employers would prefer transparent costs at lower rates, rather than stable, inflated costs that are not transparent. And employers are rightly suspicious of reserves - by building up reserves now, the Government may well be able to add to the scheme's cost in the future without appearing to do so."
Contact: Anne Knowles ph 04 4966553 or Kathryn Asare ph 021 555744 for more information