7 Dec 2011

No bid increase in ACC levies foreseen

9:50 am on 7 December 2011

The Government says a deal with ACT over the Accident Compensation Corporation will not see a big increase in levies under a State-owned enterprise model.

National and ACT have agreed to introduce competition for ACC's Work Account, with National saying it will make sure ACC does not have an automatic head-start when competing for business.

ACC Futures Coalition group convenor Hazel Armstrong claims this will create a raft of negative consequences.

But ACC Minister Nick Smith told Morning Report that Ms Armstrong and her group were part of the drive which saw ACC incurr losses of more than $5 million.

He said the scheme is now in good shape and the Government intends to make sure there is long term pressure on ACC to remain efficient.

Dr Smith said there are no plans at all to turn ACC into an SOE.