ACC on track for $2Billion surplus, so why privatise?
The Minister of ACC Nick Smith today boasted ‘ACC is in a stable position’, having made ‘huge progress over the last year’, and is expected to make a ‘$2 Billion surplus this year’.
“All of this has been achieved as a publicly owned entity. ACC is currently the best accident scheme in the world. It is cheaper and more comprehensive than private sector insurance based schemes overseas,” says Labour ACC spokesperson David Parker.
“The Minister’s statements today when at select committee this morning fundamentally undermine the National Government’s arguments that it should privatise parts of ACC.
“The National Government is progressively privatising ACC by stealth already. The Minister needs to front up to the New Zealand public on this issue, rather than secretly and quietly privatising currently public parts of the scheme.
“The current ACC scheme provides comprehensive cover for New Zealanders needing help following an accident. Privatisation means a reduction in services and higher levies to pay for the profits private insurers and managers would need,” David Parker said.
“The Minister continues to withhold from the public the so called ‘stock-take reports’ that he received in February and April of this year. In the meantime, under his watch, additional parts of the scheme are being moved from direct control by ACC to private managers.
“Given the Minister’s acknowledgement that ACC is in good shape, the Government should halt its privatisation plans.”
