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Accident Compensation Act 2001

Accident Compensation Corporation - Provisions relating to accountability of Corporation

271: Service agreements between Corporation and Minister

You could also call this:

“The government tells ACC what services to provide each year”

In this part of the law, a ‘year’ means from 1 July to 30 June the next year. Every year, the Minister must make the Corporation sign an agreement about the services they will provide. This agreement must be signed by 30 June and cover at least the next year.

The agreement has to include information about what the Corporation plans to do, how much money they expect to make and spend, and how they will manage their accounts. It also needs to say how the Corporation will invest money in a way that doesn’t harm New Zealand’s reputation.

The Minister can ask for other things to be in the agreement too, like what the Corporation wants to achieve, how they will prevent injuries, and how they will treat people who make claims.

After it’s signed, the Corporation must put the agreement on their website. The Minister must also show the agreement to the House of Representatives, either with the Corporation’s yearly report or before it.

This agreement is treated like a special kind of plan, so the Corporation doesn’t need to make a separate one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM103166.

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Part 7 Accident Compensation Corporation
Provisions relating to accountability of Corporation

271Service agreements between Corporation and Minister

  1. In this section, year means a period of 12 months commencing on 1 July in any year and ending with the close of 30 June in the next year.

  2. Once a year, the Minister must require the Corporation to enter into with the Minister a service agreement concerning the quality and quantity of services to be purchased or provided by the Corporation (including services delivered through any Crown entity subsidiary of the Corporation).

  3. A service agreement entered into under this section must—

  4. revoke any existing service agreement; and
    1. be signed by the Minister and the Corporation no later than 30 June in the year before the first year to which it relates; and
      1. relate, at least, to the year after the year in which it is signed.

        1. A service agreement entered into under this section must—

        2. contain the information that is required in a statement of performance expectations under section 149E(1) and (2) of the Crown Entities Act 2004; and
          1. comply with generally accepted accounting practice (as defined in section 2(1) of the Public Finance Act 1989); and
            1. set out—
              1. assumptions to be relied on by the Corporation in relation to assessing the cost of capital:
                1. matters relating to the provision of services by the Corporation (including provision through its Crown entity subsidiaries on a commercial basis), including pricing information, forecasts of revenue and expenditure, and how the revenue and expenditure will be allocated among the Accounts:
                  1. the Corporation's functions and duties in relation to the management of each Account:
                    1. procedures, conditions, restrictions, or other provisions to be complied with by the Corporation in the performance of functions or duties in relation to the management of each Account:
                      1. the Corporation's investment statement, being a statement of policies, standards, and procedures that must include a statement relating to ethical investment for avoiding prejudice to New Zealand's reputation as a responsible member of the world community; and
                      2. be published, as soon as practicable after it is signed in accordance with subsection (3), on an Internet site maintained by or on behalf of the Corporation.

                        1. A service agreement entered into under this section may set out—

                        2. desired outcomes and objectives in relation to the performance and exercise of the functions, duties, and powers of the Corporation:
                          1. injury prevention programmes that the Corporation intends to undertake:
                            1. other injury prevention programmes that the Minister chooses to have funded from an appropriation by Parliament:
                              1. desired outcomes and objectives arising from the operation of the Code of ACC Claimants' Rights:
                                1. desired outcomes and objectives in relation to the performance of each Account:
                                  1. desired outcomes and objectives in relation to the management of the funds managed by the Corporation:
                                    1. reporting requirements of the Corporation either in relation to the Accounts or in relation to the Corporation's functions and powers or in relation to both.

                                      1. The Minister must present a copy of the service agreement to the House of Representatives—

                                      2. in the same document as the Corporation's annual report for the previous financial year (see section 150 of the Crown Entities Act 2004); or
                                        1. in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

                                          1. A service agreement entered into under this section must be treated, for the purposes of section 49 of the Crown Entities Act 2004, as if it were a statement of performance expectations, and the Corporation need not prepare a separate statement of performance expectations under that Act.

                                          Notes
                                          • Section 271(2): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
                                          • Section 271(3)(c): amended, on , by section 72 of the Crown Entities Amendment Act 2013 (2013 No 51).
                                          • Section 271(3A): inserted, on , by section 72 of the Crown Entities Amendment Act 2013 (2013 No 51).
                                          • Section 271(5): replaced, on , by section 72 of the Crown Entities Amendment Act 2013 (2013 No 51).
                                          • Section 271(6): replaced, on , by section 72 of the Crown Entities Amendment Act 2013 (2013 No 51).