More questions on A.C.C.

Press, 28 July 1989, Page 12

More questions on A.C.C.

One of the biggest question marks left by last fevening’s Budget is the future shape of accident compensation in this country. Apart ' from promising wider coverage — to include illness as well as accident-induced loss of J income — and a cut in accident compensation levies of almost a third, the announcements on A.C.C. raise several doubts that the scheme will continue on its original principles. In effect, the Government proposes to have two schemes for less than the price of one. The inclusion of illness as a ground for relief is equitable, and was always seen to be so; but it will require a reduction in... the level of benefits available to individuals. , v The reduction in levies is not overly generous: two years ago the levies were f trebled, against much opposition; and the corporation now has reserves of $BO5 million. This see-sawing in levies, and the : corporation’s losses in the stock market crash, earn the Minister of Labour, Mr Rodger, a distinctly quizzical look for his comment that the decrease in levies reflects several years of good management. Mr Rodger is not as forthcoming with the details of how the changes will be implemented. He acknowledges that for all - %

claimants — victims of accidents and illness alike — there will be a waiting period before benefits are paid. After this there will be a further period during which a flat-rate benefit, not aligned to earnings, will be paid; and only after that will a higher level of longterm benefit be forthcoming. Former incomeearners will receive eamings-related compensation; non-earners will receive an incapacity benefit? : ? U' Just how long a claimant will have to wait for the first Compensation payment, and how long It will be before earnings-related payments.are,made, is still to be settled. Mr Rodger says that payments to the medical profession will be tightened to prevent abuse. Presumably substantial sayings are expected here. ? Nonetheless, he intends that the changes will be : neutral in the total effect on the corporation’s budget; in other words, a longer wait X for a reduced level of compensation is inevitable. Working parties have been promised to fine-tune the details. Unless the abuse of the? system by fthe medical profession is far greater than anyone suspects, the scheme will move further away from the prompt, income-related compensation scheme first envisaged.