ACT Party leader and soon-to-be Deputy Prime Minister David Seymour has proposed a bold shift in New Zealand’s healthcare and insurance landscape, calling for the option for citizens to opt out of the public health system in exchange for private insurance funding.
In a speech delivered in Auckland during his “State of the Nation” address, Seymour outlined his vision for increased privatisation of public services, including healthcare, housing, and education. According to a report from 1News, Seymour criticised the government’s ownership of assets, stating it was ineffective and failed to deliver sufficient returns for taxpayers.
“We need to get past squeamishness about privatisation,” Seymour said. “How many people here would give up their right to the public healthcare system if they got NZ$6,000 for their own private insurance?”
Seymour’s proposal suggests allocating the approximate NZ$6,000 per capita government healthcare expenditure directly to individuals who opt for private health insurance. This plan, he argued, would grant New Zealanders more choice and allow them to seek private healthcare options.
Seymour’s speech comes amid mounting pressure on New Zealand’s public health system, 1News noted. Te Whatu Ora Health New Zealand has warned that hospitals are likely to operate at “adequate” levels this winter rather than providing “ideal” services.
Critics have raised concerns about whether such a policy would exacerbate inequalities within the healthcare system, as private insurance may remain unaffordable for many despite the proposed funding.
The proposal has drawn criticism from public sector advocates. Public Service Association (PSA) national secretary Fleur Fitzsimons warned that privatisation would divert funding from public services to private profit.
“Asset sales have been tried and failed in New Zealand. The only winners are private companies,” Fitzsimons said.
Prime Minister Christopher Luxon has ruled out asset sales during the current term but has left open the possibility for future terms.
Seymour’s comments, particularly regarding healthcare, have reignited debate over the role of public versus private services in addressing New Zealand’s challenges. The ACT leader argued that the government should focus its capital on infrastructure projects, such as a second Auckland harbour crossing, rather than continuing to own underperforming assets.
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