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Labour’s ACC Policy Would Harm Tourism Industry

Tourism Industry Association research shows that Labour’s policy of nationalising the provision of workplace accident insurance services would harm the tourism industry, according to Tourism Minister Lockwood Smith.

“A recent Tourism Industry Association membership survey found that 72 percent of members were paying lower premiums under the competitive environment introduced by the National-led Government than was previously the case, without any change in the level of cover ,” Dr Smith said.

“Forty-two percent of respondents also said that the competitive environment in the provision of workplace accident insurance services had increased their focus on workplace safety, which benefits workers, tourists, and all tax-payers by inevitably reducing the load on our emergency health services.

“It’s clear that Labour’s policies of reversing the new regime and re-establishing a monopoly on the provision of workplace accident insurance services would harm the tourism industry, as would its commitment to repeal the Employment Contracts Act, repeal the Tariffs (Zero Duty) Amendment Act, and raise taxes.

“Given these facts, we can only conclude that Labour’s commitment to nationalise ACC is ideologically driven, and more about politics than common sense. Labour should face the facts and accept that its policies are bad for business, because a rational analysis of the facts shows that their costs would far outweigh the benefits.

“Perhaps the best conclusion is drawn by the Tourism Industry Association itself,” Dr Smith concluded.

Given the benefits that have been driven by the introduction of competition, any decision to reverse the [current] policy – and the resulting cost, turmoil and uncertainty – would be bad for business and would be strongly opposed by the TIA.


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