Widen exemption to ACC work cover: committee

By RICHARD BRADDELL

WELLINGTON - Parliament's ACC select committee has asked the Government to take account of submissions calling for entry to the accredited employers' programme to be extended beyond just the top 100 employers.

The scheme will be reinstated from July 1 when workplace accident insurance is returned to ACC's monopoly.

But while many of the 1057 submissions addressed the accredited employers' programme, its operations will be determined by regulation rather than statute.

Sharp divisions on the merits of re-nationalising workplace accident insurance led to frequent testy exchanges in the committee, which has just reported to Parliament.

In one of two dissenting views to the majority report, National members were concerned about an ACC claim that the accredited employers' programme could potentially cover half the workforce and could force up premiums for small employers.

National also said the concept of 100 per cent risk assumption for up to five years by employers under the accredited programme could undermine the concept of a single public fund, particularly since an employer might go to a private insurer and take out an offsetting contract.

National was also concerned that ACC might not be able to get an accredited employers' scheme up and running in time.

Nevertheless, National was pleased that the committee was recommending individual risk ratings for businesses.

In an amendment to the bill, the committee has backed setting individual premiums according to an employer's safety practices.

The clause also has provisions for audits.

Labour has expressed concern that the present safety-record rating encourages employers to disguise accidents and unfairly penalises them when their employees suffer a serious accident despite the employer taking all reasonable precautions.

National's dissenting opinion said: "We will be interested to see if ACC are able to develop risk-rating methods as sophisticated and diverse as in the private sector."

The majority opinion said the marked drop in workplace accidents since 1994 was due to Occupational Safety & Health legislation rather than the introduction of safety-record ratings.