23 October 2009 Media Statement
Key breaks ACC election promise

Prime Minister John Key has broken his party’s election promise on ACC privatisation, Labour Leader Phil Goff said today.

“National promised New Zealanders last year it would investigate opening only the work account to competition, but John Key now admits National is now looking at privatisation across the whole of the ACC,” Phil Goff said.

“John Key has broken his word with New Zealanders on ACC. This is the first step on the path to privatisation.

“Privatisation means money from ACC levies will be diverted into profits and marketing costs. Hardworking Kiwis will be the losers. They will pay more and get less when they are already struggling with their bills.

“The only winners out of this will be the big Aussie insurance companies and law firms who will make hundreds of millions of dollars at the expense of hardworking New Zealanders.

“Merrill Lynch predicts premiums of billions of dollars will go to Australian companies and more than $200 million in profits.

“National has never supported ACC. They’ve been looking for an excuse to turn it over to their business sector mates, but this time they’ve fabricated a crisis at ACC to do it.”

Phil Goff says John Key will try to call it "competition", but it is privatisation and hardworking Kiwis will be the losers and will have pay through their teeth.

“If privatisation is so effective why are Australian levies for the work account more than twice the levies paid by New Zealanders?

“Kiwis trust that ACC will be there to help with prevention, rehabilitation and support when they suffer injuries, but John Key has now put that all at risk by siding with Rodney Hide.

“Analysis by both the Treasury and PriceWaterhouseCoopers found there was little or no benefit in opening up ACC to competition and some real risks. So the real question is who will really benefit from National and ACT’s privatisation plans?

“Last time National tried this in 1999 Labour cancelled the scheme because it was not serving the interests of ordinary Kiwis. That leaves just the insurance companies who are circling at the moment in anticipation of getting their hands on big profits.

“This broken promise from John Key will force New Zealanders to pay more for the peace of mind that the ACC has provided for over 30 years.”

ENDS

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