5 Nov 2011

National says Labour's ACC plan not credible

10:40 am on 5 November 2011

The National Party says the Labour Party's plan for ACC will load more costs on to New Zealanders.

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Labour announced on Friday it is proposing a flat rate levy for all employers to pay for occupational diseases such as repetitive strain injury.

It says changes under National have had a big impact on vulnerable groups, such as those with moderate hearing loss, sensitive claims and part-time workers.

Labour says it will return to fairer administration of the scheme if it is elected to power on 26 November and that no levy increases are needed.

But National's ACC spokesperson Nick Smith says that is not credible.

"This recipe from Labour is one that inevitably will lead to higher levies and higher costs for taxpayers."

If ACC is to have a future, its costs must be carefully managed with the right balance between proper entitlements and making sure the levies are fair, he says.