Protests against higher levies and other changes to New Zealand’s national accident compensation scheme are focusing on the potential for the private sector to take it over.

Opposition Labour Party leader Phil Goff told a protest rally in Auckland last week that Australian-owned insurance companies stand warned against investing in the Accident Compensation Corporation (ACC) should it become privatised.

Media reports said he warned insurers they would “privatise ACC at your peril, because when Labour is back you are going to be out of here and we are taking it back”.

The NZ Public Service Association (NZPSA) has also taken aim at the Injury Prevention Rehabilitation and Compensation Amendment Bill which is currently before Parliament, saying it will unfairly reduce the scheme’s coverage, cut accident compensation entitlements and force accident victims to return to work earlier.

“The Government plan to privatise workplace accident compensation will see workers paying more for less,” NZPSA Secretary Richard Wagstaff said.

“The Government has already begun undermining support for victims in preparation for the reduced support they’ll get from insurance companies under privatisation.”