National releases ACC policy, Labour opposes it saying it would lead to privatisation

ONE NEWS: National is opening up accident compensation to private insurance companies if it wins this year's election.
The party has released its much-anticipated policy which will allow insurers to compete with the Accident Compensation Corporation for the multi-million dollar business of compensating injured workers.

ACC receives a claim every 17 seconds for accidents at home, work, while driving or playing sport, paying out $2.4 billion last year in compensation and rehabilitation.

It's big business and National wants private insurers to get a bigger slice of it.

"We think there's lots of other options the private sector might offer, greater entitlements speedier recovery, better service at a lower price. So we think it can make a real difference to the service that both employers and employees get," says John Key, National leader.

Under National, all employers will be able to get coverage from private insurers instead of ACC, essentially giving insurance companies access to an estimated $640 million a year in premium income.

"We're not afraid of a little competition and ACC shouldn't be either," says Key.

Critics say that will undermine New Zealand's state owned accident insurer.

Prime Minister Helen Clark says National's policy will have a devastating impact on ACC because it works on the basis of being a large social scheme.

"And you kick the guts out of it if you take the workers compensation out."

There's already some private involvement as employers can apply to ACC to manage their own workplace accidents. National wants to expand that.

It believes employers will be encouraged to improve safety because if they have a good record, they will get cheaper rates from private insurers.

"Bring in the private insurers and over time people will pay more not less," says Clark.

National is also promising to do a full stocktake of the ACC scheme and to create a new independent disputes tribunal so clients can challenge ACC decisions.

The party believes its plans will reduce the accidents that cause so much physical and financial pain.

Responses

RADIO NEW ZEALAND: Listen to John Key speak about National's speak about their ACC policy (from Checkpoint 16 July 2008)

Listen to Maryan Street (ACC Minister) speak about National's ACC policy (from Checkpoint 16 July 2008)

Listen to reaction to National's ACC policy (from Morning Report 17 July 2008)