25 February 2000

Employers Oppose Passage of Accident Insurance Bill

Wellington employers today called for a delay to the passage of the Accident Insurance Bill to allow time for the existing and proposed schemes to be evaluated and all options considered.

Some 70 leaders of enterprise met this morning in Wellington to consider the Select Committee report on the bill.

Paul Winter, CEO of the Employers and Manufacturers Central Association said an analysis of the evidence to the Select Committee showed that there was overwhelming endorsement of the benefits of choice in supply of ACC cover.

“The evidence also clearly challenges the mis-interpretation of international evidence relied upon by Government to justify the proposed return to a monopoly provider of ACC cover,” Paul Winter said.

“The meeting agreed that if the bill is to proceed, as looks likely, that a range of recommendations should be adopted by Government. These were:
 To maintain experience rating by employer rather than industry,
 To include the accredited employer programme framework in the bill, and then only after wide consultation with employers,
 Any accredited employer programme should be flexible in order to fairly reward good employers, irrespective of their size,
 Any accredited employer programme should provide employers with choice in selecting their claims manager,
 And, any accredited employer programme must allow the benefits of reinsurance by employers”

Paul Winter said Government must take notice of the ACC messages employers are continually sending. “Seventy leaders of enterprise can’t all be wrong. The weight of evidence is overwhelming – the Government’s proposals are driven by philosophy, not logic.

“Employers don’t want the bill to proceed, and the very least Government can do is to provide for an appropriately decent time for it to be considered and alternative options canvassed,” Paul Winter said.

Ends…/

Further information: Paul Winter, Chief Executive, EMA Central
Phone 04 470 9938

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