ACC reform

Yay – some very good announcements from Nick Smith:

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

No increase in levies will be welcome, however the changes made by Labour added so much extra costs, further increases may be inevitable.

Experience rating is excellent. It rewards safer workplaces. It means employers get a carrot, not just a stick, to be safer.

But best of all is the decision in principle to restore choice for workplace accident insurance. This was flagged in the 2008 manifesto and it is not privatisation. It is allowing other providers of workplace insurance to compete with ACC.

National was looking hestitant on bringing back competition, but this is where it is useful to have ACT in Parliament. They put the pressure on for choice and competition to occur in the work account, as an unofficial quid pro quo for the previous levy increases.