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ACC premiums should drop below $1 - ACT

"Cabinet should be announcing today that ACC premiums under the new regime will fall below $1 per $100 payroll," Opposition ACC spokesperson Gerry Brownlee said today.

"To deliver on its claim that re-nationalising ACC won't cost the huge savings made by small and large businesses, health groups and churches the Government has to set premiums at least as low as the Government insurer's @Work.

"@Work has stated that its ACC premiums would drop below $1 per $100 payroll if it had been allowed to offer premiums beyond 1 April 2000.

"Anything higher will demolish any attempts by Dr Cullen to re-assure New Zealanders that his ACC changes are better than the current very successful system.

"The indications are that Dr Cullen wants to build a buffer into the premiums and set them higher than ACC has been seeking.

"If he does he will be sending the strongest signal yet that he has very little confidence that ACC will be able to deliver lower premiums in the future.

"He will be admitting that the Government needs to take more money off employers, charities and church groups to make-up for ACC's inefficiency and inability to do the job as effectively as the existing private providers."

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