4. HEATHER ROY (Deputy Leader—ACT) Link to this
to the Minister for ACC
What are the estimated savings to ACC of its partnership programme with accredited employers since its introduction, and how do the companies that participate in this programme compare in terms of accident rates and workdays lost to those in the same industry groups that are covered by ACC?
Hon Dr MICHAEL CULLEN (Leader of the House) Link to this
The answer to the first part of the question is nil, as the partnership programme is cost-neutral to the Accident Compensation Corporation (ACC). On the second part, generally speaking, over the last 6 or 7 years accredited employer entitlement claims—those that are more expensive because they involve things like work-related pay—have been higher than non-accredited employer claims. Over the last year or so, total employer entitlement claims have been lower than non-entitlement claims, but for the previous 4 years they were higher.
In extending the review of ACC’s partnership programme, as announced on 13 September, is the Minister paving the way to extend coverage to out-of-work accidents; if so, is this because the evidence overwhelmingly shows that this limited form of competition has resulted in fewer accidents, significant savings, and better outcomes for workers?
Hon Dr MICHAEL CULLEN Link to this
The member clearly did not hear the answer to the first question. Firstly, it is cost-neutral to the Government; as it is covered through ACC, the levies, of course, cover the cost of it. Secondly, the expense of the entitlement claims, which are the more expensive part of the system, has been higher under the accredited employer scheme than under the non-accredited employer claims. Thirdly, given all the to-do about the AFFCO example, where an accident occurred within the workplace site, it is extraordinary that some accredited employers are now asking to cover all accidents by their employees, wherever they may occur, including those over which they can have no control at all.
Lesley SoperWhat are the good health and safety practices that an employer must demonstrate to become accredited?
Hon Dr MICHAEL CULLEN Link to this
To become accredited an employer must satisfy a stringent three-tier assessment by ACC in order to demonstrate a best-practice approach to injury prevention, and appropriate experience in managing health and safety issues. This ensures that only those employers with a commitment to health and safety and injury reduction are able to manage their employees’ workplace injuries. The current accredited employer scheme was introduced as part of the process whereby private insurance was removed from ACC in 2000.
If the current review reveals that competition will result in safer workplaces and greater productivity, what assurance can the Minister give this House that she will expand the partnership programme to cover out-of-work accidents, or has her Government already decided that involvement by private providers is incompatible with Labour’s ideology?
Hon Dr MICHAEL CULLEN Link to this
I think the member is confusing two quite different things. The accredited employer scheme is about employers taking responsibility for the cost of their own accidents. That is quite different from private insurance companies competing for coverage.