KEY POINTS:
A group representing business interests is asking for an urgent review of proposed ACC levy rates for next year.
Draft Levies for 2008/2009, announced today, would see employers paying an average levy of $1.25 per $100 of earnings.
Business NZ economist John Pask says he is disappointed his organisation's concerns about the levy-setting process have not been accepted by the ACC Board.
"We disagree with some of the fundamental assumptions behind how the premiums are set, because they continue to distort the real costs of the ACC scheme to business.
Mr Pask said he expected the ACC's accounts would inevitably become grossly over-funded, and create "excessive reserves".
Businesses need to know the ACC scheme's real running costs, claimed Mr Pask.
Business NZ have asked for an independent assessment of the assumptions the levies are based on, taking account of the fact that ACC is a state monopoly insurer and not subject to normal commercial disciplines many other insurers face.
Mr Pask says this would help instil employer confidence in the long-term viability of the scheme.
