Funding increase for ACC policy advice

The Government will provide $2 million in new funding in 2010/11 so the Department of Labour can provide more robust ACC policy advice, ACC Minister Nick Smith says.

"This increase in funding is necessary to enable the Department of Labour to provide the high quality policy advice on ACC that the Government requires," Dr Smith says.

"The extra funding will ensure that the Government's priorities of a sustainable ACC scheme are achieved. It will also allow an exploration of funding options and models including further analysis of the benefits of competition and choice in the Work Account before decisions are made.

"This is in line with National's 2008 election policy which stated it would investigate opening up the Work Account to competition and choice.

"It also recognises that the Stocktake Steering Group's final report into ACC's accounts will be completed by 30 June this year. Ministers will require substantive policy advice so they can consider all the options for future scheme design.

"Funding for ACC monitoring and policy work by the Department of Labour was gradually reduced by the previous Government from $3.5 million in 2002/03 to $2.4 million in 2008/09.

"This Government is increasing funding by $2 million to $4.7 million for 2010/11 to ensure substantive policy work is undertaken that will secure the long-term future of ACC as a fair, efficient 24/7 no-fault insurance scheme for all New Zealanders."