Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


PSA Says Everyone Will Lose Over National Policy


June 16, 2008

PSA Says Everyone Will Lose If National Gets the Chance To Privatise ACC

“Everyone will lose if National gets the chance to privatise ACC because we’ll all have to pay more for accident compensation,” says Richard Wagstaff, National Secretary of the Public Service Association, which has 670 members working for the ACC..

National leader John Key has announced his party’s ACC policy. It states that National will investigate opening ACC’s Work Account to competition.

Mr Key then told Radio New Zealand National’s Checkpoint programme that it was almost certain National would open the workers’ accident compensation account to competition if his party comes to power.

“Mr Key appears nervous about coming out and saying National will privatise ACC but that’s clearly what will happen if National is elected,” says Richard Wagstaff.

“I can understand Mr Key’s nervousness because his policy will mean workers and employers will pay more for accident compensation and get less for their money,” says Richard Wagstaff.

Australia has privatised accident compensation and workers there pay an average of $2 in every $100 towards their worker compensation schemes. In New Zealand workers pay 78 cents per $100.

“And our accident compensation is better than Australia’s privatised system,” says Richard Wagstaff.

Here people who are not in paid employment, like senior citizens and children, are covered by ACC. And New Zealanders also receive accident compensation if they’re injured playing sport. This doesn’t happen in Australia.

“So who will benefit from privatising ACC? The insurance companies, most of which are foreign owned,” says Richard Wagstaff.

This was confirmed when Australian investment bank, Merrill Lynch, issued a report recently saying it believed National would privatise ACC if it comes to power.

Merrill Lynch’s report said this would give Australian insurance companies access to $2.1 billion in new premium income, boosting their after tax earnings by $200 million.

PricewaterhouseCoopers has confirmed that privatising ACC would push up the cost of accident compensation in a report issued in April.

“PricewaterhouseCoopers said privatised accident compensation is more expensive because private companies have to deliver a profit and cover marketing expenses,” says Richard Wagstaff.

The PricewaterhouseCoopers report all stated that ACC “performs as well or better than most other schemes we can observe around the world.”

“With all this evidence to show that our state-owned system provides cheaper and better accident compensation than privatised schemes, why is National planning to privatise ACC?” says Richard Wagstaff.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>


Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>





Featured InfoPages

Opening the Election