Act puts ACC competition on agenda

ACC Minister Nick Smith. Photo / Mark Mitchell

Opening up parts of ACC to private competition is under discussion as the Government looks for the votes it needs to enact changes to the scheme.

ACC Minister Nick Smith announced the changes - reduced entitlements and increased levies - on Wednesday and published a draft bill, but he needs support from either Act or the Maori Party to get a bare majority on a first reading in Parliament.

Dr Smith is talking to both parties and Act leader Rodney Hide confirmed yesterday that he had put his party's competition policy on the table.

It is National Party policy to investigate opening up the part of the scheme that covers work-related personal injuries to private competition, but it hasn't shown any enthusiasm for doing that. Dr Smith said when he announced the ACC changes that there was no timetable for an investigation and it wasn't a priority.

Prime Minister John Key said yesterday that National had always argued that competition could be "quite a good thing" and had campaigned on the fact that the party would like to have a look at how it could work.

He said negotiations with the minor parties were a work in progress.

"We're a minority government ... You always have to negotiate with your partners."

- NZPA