ACC costs increase blamed on rising costs, slow rehab, and new 'workplace conditions'

Rising costs of medical treatment and slow rehabilitation rates after accidents plus new conditions covered by ACC are to blame for the increases to the scheme announced today, the Northern Employers and Manufacturers Association says.

“The increases in ACC rates for the Work and the Self employed accounts for 2010/11 are better than earlier proposed but will still come as a blow to many employers,” said Paul Jarvie, EMA’s Manager of Occupational Health and Safety.

“Originally the increase was going to be unacceptably high at an average 44 per cent, but the 12.2 per cent increase on liable payroll as announced will still hurt,” Mr Jarvie said.

“In reality this equates to a 12.2 per cent increase in overheads for employers at a time when business is difficult.

“Companies with vehicle fleets will be hit twice as hard as the increase for motor vehicles is an average 17.8 per cent.

“We think the increases could be much less if ACC were to act on introducing competition to rehabilitation services and remove coverage of the new conditions introduced by the previous government.

“Recently implemented changes to the scheme are welcome and will assist in lessening the total costs for the Work account.

“Most importantly we have been pressing government to return urgently to experience rating of employers to reward them for good safety and rehabilitation practices.

“We see many opportunities to save money while at the same time improving services.

“There are a number of models under investigation that would facilitate competition for providing services and deliver better outcomes.

“What must not be forgotten is that workplace accidents are preventable and costs only arise once an accident occurs, so it behoves all employers and employees to find safer systems of work.”