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Smith: Funding Announced For ACC Stock Take

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Fuseworks Media
Fuseworks Media
Smith: Funding Announced For ACC Stock Take

28 May 2009 - The Government will provide $500,000 in new funding in 2009/10 for a stock take of the Accident Compensation Corporation accounts, ACC Minister Nick Smith says.

"A stock take of ACC's levy accounts - the work account, earners' account, motor vehicle account, and the non-earners' account - was identified as a priority in National's election manifesto," Dr Smith says. "It will involve a significant amount of work and analysis to identify how the scheme's performance can be improved to deliver improved value for money to levy payers and taxpayers.

"It will focus on where products and services are cross-subsidised, where cost shifting occurs, where efficiencies can be made and costs can be contained, how to improve rehabilitation rates, and how ACC compares to other schemes.

"The stock take will also cover the governance and management of ACC's $10 billion investment portfolio."

The stock take is one of the Government's pre-election commitments.

The work will be commissioned by a steering group that has an independent chair and advisors alongside senior officials from the Department of Labour, the Department of Prime Minister and Cabinet, The Treasury and the ACC. The work itself will be undertaken by independent external advisors.

"The project is due to start in a few weeks, when Cabinet has considered and approved the governance arrangements and the terms of reference. I expect results to be reported to me by the end of the calendar year," Dr Smith says.

"The object of the stock take is to deliver practical recommendations for improving performance and to ensure our accident insurance scheme remains affordable."

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