New Zealand’s accident compensation provider has maintained its employer contribution levy for 2007. Despite demands that the rate be reduced, employers will continue to pay 1.21% of payroll towards the compulsory scheme.

Business New Zealand says the Accident Compensation Corporation (ACC) has built up a substantial surplus and the levy should be reduced to help return funds to contributing employers.

“That $NZ500 million ($437 million) is employers’ money,” CEO Phil O’Reilly said. “Keeping it as a surplus in the employer account just creates the temptation to use it for other purposes, like subsidising the self-employed account or paying for non-workplace injuries.”

But the ACC says over-payments are being returned to businesses – which is why rates have not gone up. Finance GM Ian Simpson says funds have been retained to minimise and “smooth out” future rate increases.