Another Air New Zealand

Thursday, September 20 2001 Richard Prebble Press Releases -- ACC

The massive $852 million loss by ACC is another Air New Zealand, said ACT Leader Richard Prebble.

"The true losses of ACC are not just the deficit of $313 million, but also the $539 million loss that ACC made in underwriting that will have to be paid for.

"The Labour Government has already decided to push the loss onto the motorist with a $20 increase in premiums and onto small business with a 25 percent increase on ACC premiums for the self-employed. Emergency services like ambulances and the fire service face a significant increase.

"This is a major corporate failure and the biggest by a state entity ever.

"The Government must take full responsibility. Business and the ACT party warned the Government that renationalising ACC would create a monopoly and great risk.

"The private sector had promised a further 20 percent reduction in premiums this year and instead we not only see an increase in premiums but ACC has not performed in rehabilitating those injured by accidents ' a human tragedy.

"A sign of this Government's lack of business knowledge is a statement by the Minister in Charge of ACC, Lianne Dalziel, who describes this loss as 'a good performance'.

"I believe the Minister can't read a balance sheet. What the Government should do is admit they have made a billion dollar mistake and reintroduce competition and choice into personal accident injury insurance," Richard Prebble said.

ACT's Finance Spokesman Rodney Hide said the loss is so great that ACC will have to be revalued, turning the Government's projected surplus into a deficit. "Dr Cullen does not have the surpluses he thought this morning were available to finance an increased programme of public works. This loss is so large it will affect the whole economy and every New Zealander," Mr Hide said.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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