29 August 2013

ACC privatization 'off the agenda'

Amidst all of the fuss about the GSCB Bill and the Labour leadership, one important policy issue that may have escaped people's notice was covered by a Q&A interview (on 18 August). ACC's chief executive stated that the Ministers of ACC and of Finance have advised him that 'privatization' of ACC is 'off the agenda.' (See about 6:30 into this interview.)
This apparently means that National's 2011 election manifesto pledge to introduce competitive private-sector provision into (at least) the work-injury insurance portion of ACC has been abandoned.
This should be welcome news, as competitive provision would have resulted in higher levies. The premiums, and hence the investment funds, would have accrued to Australian insurance companies, rather than being kept on-shore.
Business-sector support for privatization was said to have waned anyway.
Those of us familiar with ACC policy and law will breathe a sigh of relief.


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