Brash wants to throw ACC open to competition

A National government would allow private companies to compete with the Accident Compensation Corporation for workplace insurance, National leader Don Brash said yesterday.

The party would maintain the no-fault comprehensive accident compensation.

"National believes in a fair, comprehensive provision of accident compensation for all Kiwis and that means giving employers the right to choose a workplace insurer that best suits their needs," Dr Brash said.

Employers and the self-employed would be able to stay with ACC or move to a private insurer.

Competition would be allowed in all of ACC's accounts with the exception of the non-earners' account.

Dr Brash said this would mean no change to cover for non-earners involved in sport.

He said National would also revamp Occupational Safety and Health and ensure co-ordination of injury prevention programmes.

In 1998 National partially privatised ACC accounts, but this was reversed by Labour when it took office in 1999.

Labour also closed the state-owned insurer At Work. It was set up to compete with six private insurers, and employers who failed to buy insurance to cover workers were automatically assigned to At Work.

National launched its policy at a meat-processing plant in Dunedin, and ACC Minister Ruth Dyson said it was appropriate that the policy was launched in a butchery.

Ms Dyson said National's previous attempts to privatise workplace insurance had been a miserable failure.

"Since Labour returned ACC to state provision in 2000, the employer levy has fallen by 30 per cent, from $1.22 to 0.88c per $1000 of earnings. Premium rates for private schemes around the world have escalated."

National's ACC spokeswoman, Katherine Rich, said the corporation had improved its performance after it was forced to by competition. National also believed employers should be allowed to have a choice with whom they insured.

- NZPA