21 October 2009 Media Statement
Turia does complete flip flop on ACC privatisation

Labour’s Maori caucus says Tariana Turia must explain the complete u-turn she has done in just two days on privatising ACC.

Labour MPs Mita Ririnui and Kelvin Davis say Tariana Turia has made completely contradictory statements on the issue and Maori should be questioning how far she’s prepared to go just to keep John Key happy.

“On TVNZ’s Q@A programme on Sunday Tariana Turia said she was “very concerned” about the Government’s ACC plans “and one of the reasons why I’m very concerned is that there is a lot of talk about privatising the Work Account,” Mita Ririnui said.

“Privatising the Work (Employer’s) Account would see ACC costs “go up exorbitantly…I’m very concerned about that,” she said.

“As Minister of Disabilities she said she would be “very opposed” to plans to slash spending on modifying vehicles and homes for badly injured New Zealanders,” Mita Ririnui said.

“Yet she has now announced her party is supporting legislation which will cut entitlements such as this and is also open to privatisation because it could benefit Maori providers,” Kelvin Davis says.

“This is very dubious. The only firms who will benefit from privatisation are the big insurance companies who will take on the job. It is highly unlikely Maori health providers would be able to stump up with the huge amounts of capital needed to finance such insurance schemes.

“Privatisating ACC, which is also under consideration by the Government, will cost New Zealanders more not less, because private insurers will only buy into the scheme if they can make a profit. That means New Zealanders get less for each dollar spent on ACC,” Kelvin Davis says.

“Low paid workers face missing out on ACC cover altogether under a privatised system. Maori households would be particularly negatively affected. The Maori Party has been led down the garden path by John Key and Rodney Hide – and not for the first time. They are deserting Maori workers and families in the process,” the MPs said.

ENDS

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