20 Jun 2012

ACC minister rules out pay-as-you-go scheme

4:33 pm on 20 June 2012

ACC Minister Judith Collins says the Government will not be considering a pay-as-you-go funding scheme for the corporation.

At the moment ACC is fully funded, which means each year it has to collect the money to pay for the full, life-long costs of injuries incurred in that year.

Under a pay-as-you-go scheme, it would only have to collect the money needed to cover compensation costs in that year.

On Tuesday, Ms Collins would not rule out a switch to such a scheme, but now she has.

"We're not going to burden the next generations with the accidents of this generation and I'm surprised that the Greens and Labour, who support the Cullen Fund on the same basis that it's pre-funding our superannuation would suddenly decide that they want to burden future generations with the cost of our injuries."

Ms Collins says says the pay-as-you-go scheme is not realistic and the corporation is doing well on funding.