The announcement by the government yesterday that it will be consulting on various options for the privatisation of ACC represents a major step backwards according to the ACC Futures Coalition.

“All the proposals under consultation will disadvantage New Zealand workers,” said ACC Futures Coalition spokesperson Hazel Armstrong.” The government is stressing that the proposals will introduce choice, but it is choice for employers only. The injured worker will not be the client any more and so the focus is likely to be on denying claims or forcing workers back to work before they are ready.”

TEU national president Dr Sandra Grey says that luckily, accident compensation is not a significant issue for most staff at most tertiary institutions but it is an important safety net.

“Because they demand little of the current ACC system tertiary institutions may be targeted by some private insurers who think they can make a profit from the relatively low level of claims.”

An independent report from Price Waterhouse Coopers in 2008 identified no benefits to the public from privatising ACC. Consultancy company Merrill Lynch previously advised the Australian insurance industry it would make a $200 million profit if ACC was privatised. Putting those two points together suggests that the $200 million would likely come from higher levies, lower benefits or poorer coverage.