For immediate release
Tuesday 21 December 2010

ACC privatisation Christmas present to Aussie insurance companies

Bank workers’ union Finsec says the Government’s plan to offer Australian owned insurance companies access to New Zealand workplace insurance is a Christmas present to the industry but a disaster for workers and the economy.

General Secretary Andrew Casidy said that the outcome of opening up the workplace account to competition would be to send millions of dollars of profits offshore.

“The effect of this decision will be that the Australian owned insurance companies will make millions more in profits off New Zealand business and send that money offshore to their Aussie owners. The proposal is economic nonsense,” said Casidy.

“We don’t believe that this privatisation is necessary, and we know that it will ensure the transfer of more wealth offshore.”

“ACC is cheaper to run than private insurance and offers better cover to injured workers. This proposal could see an American style litigation system where workers have to go to court to get tight-fisted insurers to pay,” said Casidy.

“The National government is alone in wanting Australian insurers to benefit from New Zealanders’ injuries,” said Casidy. “While playing Santa to big insurance companies, Nick Smith is robbing Kiwi workers of decent public accident compensation.”

ENDS

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