Wilson's axing makes way for new man to head ACC

Ross Wilson has been dismissed as the chairman of the ACC board and will be replaced by former Ernst & Young chief executive John Judge, ACC Minister Nick Smith announced yesterday.

ACC needed a fresh start to face up to its serious funding issues, said Dr Smith.

"I am not satisfied that the current board has the right skills to navigate this very large enterprise out of financial trouble and I intend to make further changes to strengthen ACC's governance and lead it in a new strategic direction.

"I am considering in consultation with the new chair issues of board continuity and I am leaving open the option of some of the current board members being reappointed."

The new board would be in place by the end of the month.

Dr Smith said the Government was committed to securing the future of ACC and the no-fault insurance model.

"Strengthening the board is the first step - changes to legislation and policy will also be required."

Labour's ACC spokesman, David Parker, said the sacking was politically motivated to ensure ACC had a board that was willing to slash ACC cover.

Prime Minister John Key did not agree the sacking was politically motivated. He said ACC faced significant issues and Dr Smith believed he needed a stronger board to guide it through difficult times.

The first move was to appoint a new chairman, then work with him to decide who would be sacked and who would stay.

Asked what the ACC board had done wrong, Mr Key said it depended on what was defined as wrong and the minister simply had no confidence in the board.

"We can spend an endless time going in a circular argument ... What we are prepared to say is ACC faces a $22 billion liability, there's been a blowout in the costs that have to be met - one way or the other."

The scheme would have to be looked at "in part", but National remained committed to ACC's fundamental principles.

Labour leader Phil Goff said there was no justification for the sacking.

"We've got a very clear pattern here of the Government acting in a highly partisan way to remove competent and efficient people solely on the basis of their perceived political affiliations."

- NZPA