Nats would return ACC to private sector

A National-led government would re-privatise accident compensation insurance.

The previous National Government opened ACC to competition in 1999, a move reversed by the Labour-Alliance Government.

National's ACC spokesman, Gerry Brownlee, said that during the "all too brief" period of private sector involvement in accident insurance, premiums fell dramatically.

Accident statistics also fell as employers experienced the direct financial benefit of keeping workplaces safe, he said.

Competition between insurers would reduce costs to businesses and the public. Labour's return to an ACC monopoly had raised costs and removed choice.

"We do not believe that accident insurance needs to be administered exclusively by a government agency," he said.

Big savings were made by businesses when they were able to choose from competing insurance providers.

Brownlee said National would also review the Labour Department's Occupational Safety and Health Service and look at merging it with the ACC.

ACC Minister Lianne Dalziel said National's plans would sound the death knell for 24-hour, no-fault cover and for ACC's role in injury prevention, rehabilitation and compensation.

She said the average cost of employer levies had dropped from $1.25 to 85c per $100 dollar of payroll.

"As a result of this Government's reforms, New Zealand has been cushioned against the impact of worldwide hikes in insurance premiums ... as well as from the failure of private workplace insurers like HIH in Australia."