Business requires more ACC transparency

Changes to achieve a more sustainable ACC are overdue, according to Business NZ. Chief Executive Phil O’Reilly says the scheme has become less transparent as claim costs have escalated over recent years.

“Reducing incentives for workplace safety, smoothing premiums, extending the payment period for residual claims and blurring the boundaries between ACC accounts and between injuries and diseases have all contributed to the blow-out in costs.

“The government’s decision to take action to rectify this situation will hopefully lead to a more transparent and less wasteful system.

“The scheme’s complexity and lack of transparency have led to a great deal of confusion and misinformation.

“ACC needs to be refocused towards its proper function as an insurance-based risk management scheme, and not allowed to drift towards becoming another overlapping social welfare scheme.”