Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Jobs under threat from ACC privatisation


Labour
2000 web site

New Zealand must heed the warning from Western Australia where thousands of jobs are being lost as a direct result of a privatised work injury compensation scheme, Labour ACC spokesperson Ruth Dyson said today.

"In Western Australia, workers compensation premiums have increased by an average of 35 percent this year and are predicted to rise by another 50 percent next year. Some businesses have seen their premiums rise five-fold over the last two years. As a result staff are being laid off and many businesses are folding.

"The same problems can be expected in New Zealand as a result of National's privatisation of ACC," Ruth Dyson said.

"Some employers, especially the big ones, have been able to negotiate attractive deals with insurance companies desperate to grab a large share of this new market.

"These premiums are not sustainable and it is inevitable that they will rise significantly. International experience has shown that the involvement of private insurance companies in this area is more expensive. The internationally proven, most efficient way of delivering those functions is through a well-managed single public model.

"National's change to private insurance is not a step forward but a step backward. We had it prior to 1974. So why were private insurers removed then? Because, as is the case now, their involvement is more expensive, more litigious, and less likely to reduce injuries in the workplace.

"Labour will rebuild ACC based on the three primary functions of injury prevention, rehabilitation and compensation - in that order. It will be delivered through a single, public model. We have taken the opportunity of reviewing international models and learning from the many mistakes in legislation and governance of the last 25 years.

"Labour's scheme will be financially and politically sustainable, have integrity and will earn the support that it needs to survive," Ruth Dyson said.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Wainui: Major Infrastructure Partnership For North Auckland

Minister of Housing and Urban Development Phil Twyford and Auckland Mayor Phil Goff today announced a partnership that will fund $91 million of roading and wastewater infrastructure to support the building of 9000 homes... More>>

ALSO:

NZ's Space Programme: Rocket Lab Reaches Orbit Again

Rocket Lab has continued the success of its 2018 orbital launch program with the launch of seven payloads to orbit. The mission marks Rocket Lab’s second successful orbital launch and deployment of customer satellites. More>>

ALSO:

Supreme Court: Labelling Swamp Kauri Slab A Tabletop Doesn't Make It One

New Zealand's highest court has ruled that exporting slabs of swamp kauri as "tabletops" or swamp kauri logs as "totem or temple poles" is illegal under the Forests Act. More>>

ALSO:

Starting Ending Offshore Drilling: Green Party Celebrate Passing Of Oil And Gas Bill

“This Bill is an essential first step in winding down offshore exploration for new sources of fossil fuels. We are in Government together to do this work, to create the change our people and our planet need to flourish." More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020. More>>