Letting private insurance loose on ACC is nonsense - CTU

“Letting the private insurance industry loose on workplace accident cover is utter nonsense, a point further highlighted by the recent problems in global financial markets,” said Council of Trade Unions president Helen Kelly, in welcoming Labour’s commitment today for a fully public ACC scheme.

“Last month the US government bailed out insurance giant AIG. The National Party wants our accident compensation and rehabilitation managed by firms just like these ones.”

“When National last promoted so-called choice in accident compensation one of the providers, a subsidiary of HIH Insurance which had up to 40 percent of workplace cover, went bust with losses of around $1 billion. Fortunately by the time of their collapse the government had renationalised the scheme.”

“National’s ACC policy is one that nobody wants. Just last week the Northern Employers and Manufacturers Association were saying that business don’t want ACC privatised. They join other business groups and medical and legal professionals in opposing National’s plan to ruin our world class ACC scheme,” Helen Kelly said.

Labour, the Greens, the Maori Party and the Progressives have all committed to retaining a public ACC scheme, but National is pushing on with plans to privatise it. John Key said in July it was “almost certainly likely” that National would privatise the ACC work account.

Ends.

For more on ACC from the CTU this election click here: http://union.org.nz/fairnessatwork/acc