18 May 2011

Union says ACC split another step towards privatisation

8:06 pm on 18 May 2011

Unions say the Government's move to separate the Accident Compensation Corporation from its disputes resolution service has nothing to do with improving things for clients.

The service will operate as an independent Crown entity from July this year.

ACC Minister Nick Smith many people see the corporation as judge and jury when it comes to ruling on claims and separating the disputes resolution service will help restore clients' confidence.

But the Council of Trade Unions says the service is just being prepared to take on cases involving other insurers.

The Government has agreed in principle to introduce competition, and the union says that would be a disaster for injured workers left in the hands of private businesses.

Dr Smith says the Government is working on the details of proposed reforms to workplace insurance, which it will release in a discussion paper.

A lawyer specialising in ACC cases says the change should help to remove a widely-held assumption of bias.

However, John Miller says some reviewers have also worked for the corporation in the past as case managers, so there have been questions about their objectivity.

Mr Miller says that will not be resolved if staff and operations remain the same and the only change is the service's letterhead.