Dr Paul Hutchison National Party ACC Spokesman

16 August 2006

ACC proposal will send wrong signals

ACC Minister Ruth Dyson's announcement today that the Government will introduce legislation to merge the employer and self-employed accounts is another example of Labour creating the wrong incentives, says National's ACC spokesman, Paul Hutchison.

"Labour is intent on cross-subsidisation rather than ensuring strong incentives are sent that reflect the degree of risk individuals or groups are taking.

"It is unfortunate that under Labour, people in New Zealand do not have a choice of insurer when it comes to cover for personal injury. Instead the Labour Government and their union mates heavily influence a monopoly model that attempts to socialise insurance rather than apply basic principles.

"As with any insurance market, individuals and companies ought to have costs associated with their behaviour. They should have choice of insurer, both to drive levies down and to incentivise safe behaviour and workplace safety.

"The Government's proposal to merge the two accounts will result in socialisation of the costs and benefits of the ACC scheme and reflect a move away from the clear incentives provided by an insurance-based approach."

ENDS

© Scoop Media