Nick Smith has formally announced the government's plans to privatize ACC. Not that he's calling it that - instead it's "competition in the work account" - but privatization it is. Instead of selling ACC, he's simply privatizing its profit stream.
We will all lose from this. An independent report from Price Waterhouse Coopers [PDF] back in 2008 found that there would be no benefits to the public from privatisation. But there will be benefits to Australian insurance companies - approximately $200 million according to Merrill Lynch. That's $200 million we will be paying in higher premiums, which will go straight into the pockets of Aussie insurers.
I wonder how much "corporate hospitality" our Ministers got for that?
