23 Apr 2010

ACC competition report understood to give go-ahead

10:10 am on 23 April 2010

A plan by the Government to allow private insurers to compete with the Accident Compensation Corporation looks almost certain to proceed.

Radio New Zealand understands that an interim report on opening parts of ACC's business to competition has concluded the idea is workable.

The office of ACC Minister Nick Smith won't comment on the report's contents, and says it has not yet gone to Cabinet.

But Radio New Zealand political staff say it is already in the hands of several ministers.

A full ACC stocktake is not due until the middle of the year, but Radio New Zealand staff say it would now seem possible that decisions on the competition question could be made before that.

CTU against

The Council of the Trade Unions says there will be widespread opposition if the Government allows private insurers to compete for Accident Compensation Corporation business.

CTU president Helen Kelly says unions are not the only ones against private insurers handling workplace coverage.

She says countries like Australia use the scheme and they don't work.