Media release

15 November 2011

New privatisation proposals continue dismemberment of ACC

The announcement by the government yesterday that it will “Explore choice in ACC Motor Vehicles and Earners Accounts” has been condemned by the ACC Futures Coalition.

“The National Party’s ideological commitment to privatisation in ACC has no limits”, said ACC Futures Coalition spokesperson Hazel Armstrong.

“The government has already put together a consultation document on privatising the work account, which independent analysis  has demonstrated as unworkable, with no advantage to injured workers at all. Now they want to follow that up with the privatisation of the earners account.”

“This proposal is farcical. The earners levy is deducted from wages and passed to ACC. How will workers get to exercise effective choice in such a situation? Or will employers be given that right, just as they are likely to get the right to choose the insurer for accidents at work.”

“All of the proposals being floated will drive up costs,” said Ms Armstrong. “ACC has been recognised internationally as administratively efficient compared with comparable schemes overseas. The duplication of providers, the need to return a profit and the increasing level of transaction costs will just make things more expensive with no likelihood of improved service.”

“More importantly we will lose our current seamless approach to accident compensation,” said Ms. Armstrong. “We currently have very little disputation about where an injury occurred and who should cover it – ACC is there for everyone. However these policies, if introduced, will undermine all of that and will lead to disputes that will not only be costly but could lead to delays in either treatment or the payment to health professionals for treatment provided.”

“The Government is engaged in the dismemberment of ACC as an effective service provider, for no advantage to anyone accept private insurers. We all need to oppose these policies.”

ENDS

Contact: Hazel Armstrong : 027 472 1793

10:41AM Friday, 18 November, 2011