Press release
7th December

The University of Auckland’s ACC Group and AUT’s Centre for Occupational Health and Safety Research

The future of ACC in Jeopardy

New Zealand is in grave danger of losing both what is best about the ACC scheme and a coveted place as a world leader in accident compensation with the Confidence and Supply Agreement announced this week, two expert watchdogs says.

The University of Auckland’s ACC Group and AUT’s Centre for Occupational Health and Safety Research say the need to accommodate ACT MP John Banks within the new Government line-up has provided the opportunity to advance the introduction of competition in the work account of the ACC scheme.

Associate Professor Susan St John of the University ACC Group says the National Government had promised, pre-election, ACC would remain as the default provider when private insurance companies were introduced for work accidents.

It was clear to observers, however, that keeping ACC as default provider meant that privatisation would not work, and that firms would largely opt for the status quo, she says.

It was inevitable, therefore, that post-election National would find some way to remove this impediment.

“Conveniently the need to accommodate John Banks has provided this opportunity,” Dr St John says. “Now National acknowledges there is a problem if ACC remains a competitor for Work Account business.”

“In opening up to private insurers, New Zealand in grave danger of losing both what is best about the ACC scheme and our place as a world leader in accident compensation.”

The University of Auckland’s ACC Group and AUT’s Centre for Occupational Health and Safety Research have recently authored a critical review of National’s experience rating scheme. In August a conference was held with the ACC futures coalition that outlined the dangers that the ACC scheme faced.

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