Save ACC from National's privatisation prescription

The CTU says that these changes announced this morning aren't about increasing choice, they're about selling off the work account. There is no evidence that the changes will have either cost savings or better safety outcomes. ACC is proven to have cheaper administration costs, lower levies and fewer disputes than the Australian system, and better rehabilitation outcomes for clients.

Peter Conway, CTU Secretary said "Claims will be contested much more strongly and workers will be left fighting both their employer and their employer's insurer to avoid coverage of an accident. We know that international private schemes have an average of 19-24 month delays for legal resolution of claims - this will not improve safety, rehabilitation or the efficiency of ACC."

"Insurance companies will aggressively price initially to cherry pick clients and cases leaving ACC to pick up the losses of companies that go under and take on cases that the private insurance companies won't cover. Increasing insurance costs will lead to pressure by business on Government to reduce entitlements further, dismantle disputes processes and allow more and more parts of ACC to be shifted to the private sector - this is just the beginning," said Peter Conway.

"We've heard the Minister this morning promising that workers will be unaffected, but we've already seen cuts to coverage on hearing loss and also requirements to return to work in an unfamiliar job or lose compensation. Full rehabilitation will suffer - we'll see workers being dismissed and removed from cover rather than being supported to return to work. Innovations such as ACCs Better @ Work won't work with multiple insurers and this type of innovation will be lost," said Peter Conway.

"ACC is the world's best accident and injury compensation scheme, it is unique and something New Zealand we should take pride in. Opening it up to private companies will make it more, not less, expensive to run. It will make it slower and more difficult for injury victims to get payment, and it will not get people back to work quicker," said Peter Conway.

ENDS

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