$500,000 for ACC stock take or for razor gang - John
Millar
Lucy
Ratcliffe
Accident compensation expert John Millar fears the $500,000 made
available in the Budget today will be used for a razor gang for the
ACC.
"I fear this is going to be a slash and burn," says Mr Millar, a
Wellington lawyer.
Today ACC minister Nick Smith announced the new funding would go
towards a stock take of ACC's levy accounts (work, earner's, motor
vehicle and non-earner's).
"It will focus on where products and services are cross-subsidised,
where cost shifting occurs, where efficiencies can be made and
costs can be contained, how to improve rehabilitation rates, and
how ACC compares to other schemes," Dr Smith says in a media
statement.
Interesting move
It's an interesting move given last year's PricewaterhouseCoopers
report reviewing accident compensation systems worldwide gave New
Zealand's ACC the thumbs up, Mr Millar says.
The new work will be commissioned by a steering group that has an
independent chair and advisors alongside senior officials from the
Department of Labour, the Department of Prime Minister and Cabinet,
The Treasury and the ACC.
The work itself will be undertaken by independent external
advisors.
The project is due to start in a few weeks, when Cabinet has
considered and approved the governance arrangements and the terms
of reference with results reported to Dr Smith by the end of the
year.
Mr Millar says the outcome of the review will largely depend on who
is appointed to undertake it.