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ACC report recommends overhaul - report

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, July 2 NZPA - Entitlements offered under the ACC scheme will have to be cut and levies raised, even if part of the scheme is opened up to competition, a report by the Stocktake Steering Group is believed to recommend.

The report was delivered to ACC Minister Nick Smith on Wednesday, but he has not commented on it publicly.

However, the National Business Review today reported the group said ACC was burdened with unsustainable cost pressures.

They were caused by rising expectations and underfunding of extended coverage implemented by the previous Labour government.

The report said ACC needed to be restructured and levies would rise regardless of whether it was opened to competition or not.

It suggested opening the work account to private insurers and looking at opening the motor vehicle and non-work accounts to either private insurers or self-insurance.

The massive restructure needed was likely to lead to reduced entitlements, the report said.

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