ACC proposals unnecessary, open to abuse - unions

Proposed increases in ACC levies undermine key aspects of the scheme, could have a negative impact on vulnerable claimants and leaves the system open to abuse by "unscrupulous employers", the ACC Futures Coalition (AFC) says.

The proposed rises announced by ACC Minister Nick Smith today would see the average worker paying an extra $300 a year.

The changes remove the eligibility of people who commit suicide or self-harm, and end payments to those convicted of a serious crime.

A re-jig of how casual and part-time workers pay will be calculated to avoid them earning more when on ACC than when working is also proposed.

AFC said the Government seemed to be planning to reward employers who claimed to have a good safety record - something which was tried in the past and failed.

"The flaw in what Nick Smith appears to be proposing is that some unscrupulous employers will pressure their workers into not reporting injuries to maintain a good record," AFC spokeswoman Hazel Armstrong said.

"It's also a simplistic approach that does not work in the case of occupational diseases contracted in the workplace such as asbestosis.

"This may not show up until long after they've left the unsafe workplace."

Ms Armstrong said lowering the current threshold by which claimants must be physically capable of working 35 hours a week before their entitlement is affected would push people off ACC and on to benefits.

"Levy payers might be better off but taxpayers will have to bear the cost."

Engineering, Printing and Manufacturing Union (EPMU) secretary Andrew Little said the Government was "trying to make out there is no alternative to increasing levies and cutting coverage".

"But they have failed to make a credible argument for their claims that ACC is in `crisis'."

Mr Little said the scheme made a $1 billion surplus in the last financial year and the decision to cut entitlements was entirely political.

"The fact that these needless cuts are being portrayed by National as `not as bad as they could be' only shows how cynical this exercise has been."

-NZPA