MEDIA RELEASE

23 June 2011

ACC figures undermine the case for privatisation

The figures on ACC’s financial performance released today by the Minister of ACC undermine the case for the privatisation of the ACC work account says the ACC Futures Coalition.

 

“The Minister is now talking about levy reductions whereas two years ago he was claiming that ACC was practically insolvent”, said Hazel Armstrong ACC Futures Coalition spokesperson.

 

“This climate of fear was part of the government’s strategy to frighten people into accepting the need for their privatisation policy, but now it has evaporated, thanks in large part to the improved performance of ACC’s investments. It was entirely predictable that those investments, which had performed better than most private sector funds during the global financial crisis, would bounce back.”

 

However the figures also demonstrate that there is no financial imperative to privatise the work account as the government is proposing to do.

 

“The Work Account has always been one of the best performing accounts at ACC,”s aid Ms. Armstrong,” and the Minister’s figures show that it is at 95% solvency, due to exceed 100% in the coming year. The government’s position about ACC’s finances was always over the top and now it is beyond doubt that there is no financial reason to proceed with their privatisation plans.”

 

ENDS

02:42PM Thursday, 23 June, 2011