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PSA concerned about job losses and increased costs if ACC privatised
02/07/2008 12:00:00 a.m.
"Privatising ACC will push up the cost of accident compensation for workers and employers and could result in ACC staff losing their jobs,” says Public Service Association National Secretary, Brenda Pilott.
The PSA has 670 members working for the Accident Compensation Corporation.
"We’re alarmed to see that Australian investment bank, Merrill Lynch, has issued a report stating that it has a clear understanding that National will privatise ACC if it comes to power after the election,” says Brenda Pilott.
"Privatising ACC will push up the cost of accident compensation for workers and
employers and could result in ACC staff losing their jobs,” says Public Service
Association National Secretary, Brenda Pilott.
The PSA has 670 members
working for the Accident Compensation Corporation.
"We’re alarmed to see
that Australian investment bank, Merrill Lynch, has issued a report stating that
it has a clear understanding that National will privatise ACC if it comes to
power after the election,” says Brenda Pilott.
Details from the report
are published in today’s Dominion Post. This includes the information that
privatising ACC would give Australian insurance companies access to $2.1 billion
in new premium income. This would provide a $200 million boost to their
after-tax earnings.
"All New Zealanders would be the losers if ACC is
privatised,” says Brenda Pilott.
"ACC workers could face losing their
jobs. And New Zealand workers and employers would end up paying higher accident
compensation premiums to private insurance companies, most of which are
foreign-owned.
"The fact is New Zealanders pay less for their accident
compensation premiums than workers and employers in Australia, where they have
privatised accident compensation,” says Brenda Pilott.
In Australia
workers pay on average $2 in every $100 towards their worker compensation
schemes. In New Zealand workers pay 78 cents per $100. “And the accident
compensation in New Zealand is better than Australia,” says Brenda
Pilott.
In New Zealand, people who are not in paid employment, such as
children and senior citizens, are covered by ACC. New Zealanders also receive
accident compensation if they are injured playing sport.
The advantages
and benefits that New Zealanders receive from our current state controlled
not-for-profit accident compensation are confirmed in an independent report
issued by PricewaterhouseCoopers’ Australian office in April this year.
PricewaterhouseCoopers report states that the accident compensation
scheme provided by ACC “performs as well or better than most other schemes we
can observe around the world.”
PricewaterhouseCoopers’ also confirms that
New Zealand’s state controlled accident compensation is cheaper than privatised
schemes because it doesn’t have to deliver a profit or cover the same marketing
expenses as the private companies.
"National needs to tell ACC staff if
it is putting their jobs on the line by privatising ACC,” says Brenda Pilott.
"They also need to tell the rest of New Zealand if they are going to
increase the cost of accident compensation, and line the pockets of
foreign-owned companies, by privatising our accident compensation.”
For further comment call PSA National Secretary Brenda Pilott 027
430-6016 Media contact: Nick Hirst 04 917-2028, 027 600-5498
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