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

 

AMI troubles show folly of ACC privatisation

AMI troubles show folly of ACC privatisation

“The news that AMI is struggling in the aftermath of the Christchurch earthquake demonstrates the folly of the government’s decision to privatise the work account of ACC,” says Hazel Armstrong, spokesperson of the ACC Futures Coalition.

“We have been here before, “ says Ms. Armstong. “ One of the main insurers involved in New Zealand’s last failed experiment in privatisation in the 1990s was the Australian giant HIH, who were big players in the Australian workers’ compensation market. A couple years after ACC was once again brought under public control HIH collapsed leaving the Australian state and federal governments to pick up the pieces and ensure that injured Australian workers were not out of pocket.”

“We narrowly dodged that bullet”, says Ms. Armstrong, “but AMI’s troubles demonstrate the risks of relying on the private sector for the delivery of this vital social service. We will be handing millions of dollars in ACC contributors’ levies over to the private insurers. They will make large profits in the good times but ultimately the government will have to provide the security needed should any firms fail. That means the taxpayers run the risk of having to pay twice if vulnerable injured workers are to be protected.”

“ACC has demonstrated its worth during the aftermath of the Christchurch earthquake, but the tragedy has also demonstrated the weakness of the private insurance model. It is time for the government to step back from this ideologically driven crusade to privatise one of the great public services in New Zeland,” says Ms. Armstrong.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

PM's Press Conference: Two More Troops?

Prime Minister Bill English gave a summary his highlights of last week’s budget announcement... The Prime minister was asked about NATO’s request for New Zealand to send two more personnel to Afghanistan and whether or not we will send them. More>>

ALSO:

Carer Settlement: Threat Of Staff Exodus In Mental Health

As a result of the recent pay rise awarded to their aged care and disability sector colleagues, many staff in non-government mental health and addiction organisations are considering leaving to join these workforces. More>>

ALSO:

Climate Policy: New Zealand Set To Blow Its Carbon Budget By 27%

The Government’s Greenhouse Gas Inventory shows New Zealand is set to release 647.5 million tonnes of carbon emissions between 2013 and 2020 – 137 million tonnes more than we are allowed under the Kyoto Protocol. More>>

ALSO:

Earlier:

Christchurch Considers Cathedral, Stadium: Cathedral Working Group Report Released

“About half of Christchurch wants to see the cathedral reinstated, the other half wants something new and more modern, but really, everyone just needs a decision." More>>

ALSO:

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election