Cheers greet ACC safety incentives concept

17 September, 2004

Cheers greet ACC safety incentives concept for SMEs

Acceptance by the Accident Compensation Corporation of the view that small and medium businesses should be given a financial incentive to demonstrate acceptable hazard management practices deserves a cheer, says John Pfahlert, Chairman of the NZ Construction Industry Council.

“We are very supportive of this concept, especially as it can apply to self employed. It can work well to encourage safer work places and sites.

“The key element will be the extent to which businesses see real value in the incentive offered when compared against the time and cost required to meet qualification criteria.

“These criteria must be clear and must be applied consistently once adopted. Then it becomes a question of setting the incentive discount offered on ACC payments at a level that represents value against the cost of identifying hazards, implementing safety control procedures and perhaps involvement in physical audits.

“There is some debate as to whether a lump sum of $100 is appropriate or whether a figure of 10 percent on premiums paid would be more realistic against costs involved. Our view is simply that the incentive must be considered worth the effort of qualifying to receive it.

“Overall, ACC is worth a cheer for taking up the concept that more can be achieved in this area through incentives than through penalties. We look forward to engagement with them on developing the incentive programme” –

ENDS

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