Green support no guarantee on ACC

By RICHARD BRADDELL

WELLINGTON - The Government cannot take for granted Green Party support on all elements of the bill reinstating ACC's monopoly on workplace insurance.

Although the Greens supported the bill's introduction, the party's ACC spokeswoman, Sue Bradford, said they were very aware that privatisation had brought some benefits to employers and workers.

"It is still our policy but we are ... taking on board the submissions on previous experience," she said.

Given a minority Government, Green support could be critical. Ms Bradford said that they would look closely at the detail of a comprehensive bill to be introduced mid-year which would probably include lump-sum payments and plans for a new accredited employers' scheme.

The Insurance Council, which opposes the Labour-led renationalisation of ACC, hopes for a softening of support in the ranks of the Greens and the Alliance.

Both parties include several members who own small businesses, farms or other enterprises which have enjoyed lower premiums since the ACC market was privatised last year by the previous Government.

Despite being trenchantly opposed to the renationalisation, the council said it had not orchestrated employers to come out against the Government's reform, although it had encouraged them through advertisements and other means to express their views.

It appears the campaign was successful, given the strong tide of opinion against the bill and support for a competitive insurance market. A survey of members recently released by the Auckland Regional Chamber of Commerce found that nearly 87 per cent had got lower premiums.

Data released by the Labour Department's regulator show an average premium of $1.21 per $100 of wages in the privatised market, compared with $1.70 in the last year ACC was in the market.

But last week, ACC argued that it could do the job for $1.08 in the coming year for cover on the same basis as at present.

"My reaction would be if they can do it next year, why couldn't they do it last year?" Paul Buckrell, the managing director of telecommunications company Consultel Associates, told the parliamentary select committee last week.

The answer apparently lies in the major restructuring ACC has undergone in the past three years.

It has trimmed 150 jobs, but has also become more proactive in adopting private sector-like ways of handling claims and is using third party management to help get people back to work more quickly.

"We won't be reverting on July 1 to the status quo," chairman David Caygill said last week. "There will be at least 3000 fewer claims under management, and another 2000 under third party management."

ACC believes increased use of electronic filing by health providers will help it to keep rates low.

A deluge of submissions is hitting the parliamentary select committee looking into the reversal of the previous Government's privatisation of workplace accident insurance.

The committee's clerk said numerous submissions had been received, and it is thought they could top 300 before closing time tonight.

The committee has already decided to sit in Auckland on February 14 to hear them and it may travel to other centres as well.