Editorial: ACC reform necessary

OPINION: The proposed revamp of the ACC scheme is looming as a major test of the National-led coalition government.

Support party ACT leader Rodney Hide has raised doubts about whether National has the numbers to pass the reforms – meaning he's ready to play hardball – while the Maori Party is not committing itself to supporting the scheme just yet.

Labour, meanwhile, says it would back one element of the reform – postponing a deadline for ACC to become fully funded by five years to 2019 – but does not want a bar of other key aspects, which include raising levies and reducing entitlements in several areas.

Though there has been no shortage of spin around ACC's balance sheet and performance during National's 11 months in office, it is clear some significant changes were needed in order to bring the scheme back under control.

Some of the proposals will sail in – no more entitlements for injured methamphetamine "cooks" for example – but increased levies have already provoked wide-ranging protest.

The revamp has been a key focus of Nelson MP and ACC Minister Nick Smith, who believes his plans will cut ACC's liabilities by $2 billion and secure its long-term viability.

If that can be taken as a binding commitment, it should reassure those conspiracy theorists who believe privatising the scheme remains on the party's secret agenda.

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R Brewster   #1   11:47 pm Oct 28 2009

Here we go again, a huge increase in invalids benefit numbers, and a field day for lawyers, ACC will end up coughing up big time with their proposed "reforms",,tried on every time a National Govt come on the scene, sadly.

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