The Government has conducted a cynical campaign of deceit and deception but its ACC cover has now been blown, Labour ACC spokesperson Ruth Dyson said today.

"The public can now see that National's public statements about the savings that can be expected from the privatisation of workplace injury cover, run directly counter to the evidence presented to Cabinet.

"A cabinet paper from July, signed by Education Minister Nick Smith, warns that a Ministry arrangement for worker accident insurance may not be repeated in future years "..due to factors such as insurers vying for business in a new market."

"That is exactly what Labour has been saying. Insurance companies have offered unsustainable deals in their desperation to grab a large chunk of this new market. Once the market is captured, the premiums will rocket up.

"Western Australia offers a clear warning to New Zealand. In W.A. premiums have increased by an average of 35 percent this year and are predicted to rise by another 50 percent next year.

"ACC Minister Murray McCully has made wild claims about the savings employers can expect. This cabinet paper, signed by one of his colleagues, shows just how fanciful those claims are," Ruth Dyson said.

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