Employer representatives yesterday welcomed changes to workplace accident compensation announced as a discussion document by ACC Minister Nick Smith.
The Government is set to partially privatise workplace accident compensation if it gets re-elected on November 26.
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Submissions close on July 15 and by October 1, 2012, employers will have a choice of buying work-related personal injury insurance from either ACC or a private insurer.
Otago-Southland Employers Association chief executive John Scandrett said that, for a lengthy period, the ACC-based monopoly meant employers had viewed the necessary contributions as another tax on running a business.
Besides the expected employer benefits, it was important to note that employees would - as the document clearly stated - retain the full range of treatment, compensation and rehabilitation rights now in place.
"We think the new steps will drive best practice across, making workplaces safer, and there are likely to be improved rehabilitation processes introduced, all on reduced cost platforms," he said.
From the country's perspective, particularly in the current tight economic times, any forward steps taken to drive better management of ACC should be welcomed.
"We feel more competition will deliver those positive results," Mr Scandrett said.
Business New Zealand chief executive Phil O'Reilly said providing choice and competition in the work account would allow insurance and rehabilitation packages to better meet the needs of workplaces and employees.
The Government did not have to be a monopoly service provider to meet its social and economic objectives.
"The ability for the private sector to take part in the workplace accident insurance market will help bring more resources and innovation to the sector, to the benefit of employees."
Business NZ also welcomed the extension of the accredited employer scheme, which allowed firms to manage their claims and achieve better safety outcomes, he said.
Dr Smith said about 15% of the New Zealand workforce was in the accredited employer scheme, but he wanted to increase that proportion.
One way to make the programme more accessible was to provide more flexibility and a greater range or risk-sharing options.
"Employers who are confident and experienced at risk-management can keep managing claims for longer. Alternatively, employers can choose a shorter period if that works for them."
The Government was also proposing more flexibility for employers to purchase high-cost claims cover and stop-loss cover, he said.
They were forms of re-insurance, limiting the employer's exposure.
Currently, employers were able to purchase that type of cover, with strict limits, from ACC. The Government was proposing employers should be able to choose how much cover they wanted to purchase and whether they purchased it from ACC or a private insurer.
"We are also proposing more flexibility over when and how claims management is handed back to ACC," he said.
Not surprisingly, trade unions and Opposition political parties derided the proposals.
Council of Trade Unions secretary Peter Conway said the changes were not about increasing choice; they were about selling off the work account.
There was no evidence the changes would have either cost savings or better safety outcomes. ACC was proven to have cheaper administration costs, lower levies and fewer disputes than the Australian system, along with better rehabilitation results for clients, he said.
Labour ACC spokesman Chris Hipkins said that since National went into office, it had deliberately talked up a crisis in ACC and had done its best to erode public confidence in what should be a world-leading scheme.
"Its agenda all along has been to soften Kiwis up to privatising ACC."
There were big risks in privatising ACC and the Christchurch earthquakes had highlighted two of them, he said.
After the quake, the Government directed ACC to provide income compensation for the first week of injury for those unable to work as a result of injury. Normally, that cost would fall on the employer and the Government would not have been able to take that step if ACC cover had already been privatised.
The second risk for the taxpayer related to provider failure and ultimately a collapse of an insurer, Mr Hipkins said.
At a glance
• Submissions on changes close on July 15
• Competition introduced to ACC on October 1, 2012
• Accredited Employers Programme to receive more focus
• Central register of which private insurers are covering which workers
• Insurers to provide at least the minimum level of current cover
