Competition in ACC means privatisation

National is intending to privatise ACC, and saying it is opening the organisation up to competition cannot hide that reality, says Labour’s ACC spokesperson David Parker.

“What is currently provided by the state owned ACC will be privately provided. This is privatisation,” David Parker said.

“The inevitable result of creating profit margins for private insurance companies and higher administration and regulatory costs is that hard-working New Zealand families will pay more and receive less care and protection in the event of an accident,” David Parker says.

“Doctors, other health professionals and worker representatives have described the brief period that ACC was privatised during as the 1990’s as a chaotic nightmare.

“The reality is the real beneficiaries of privatisation would be the big Australian financial institutions,” says David Parker.

“Lawyers will be the only other beneficiaries, as legal battles over access to cover mount, which is a feature of privatised schemes overseas.

“ACC was put in place to benefit New Zealand workers not large Australian insurance companies and that’s how it should stay. ACC Minister Nick Smith will claim that he has to do this to save money.

“The reality is ACC has more than $11 Billion in assets and has amongst the lowest administration costs in the world.

“The Government needs to urgently clarify how far their privatisation plans extend. Are they proposing to privatise levy setting and underwriting as well as claims management?

“This unwise move is the price National paid to get ACT support for their recent ACC legislation, that others would not support,” David Parker said.

ENDS

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