Government changes to ACC regulations are being welcomed by Federated Farmers, who say they are long overdue.

Government plans to open up much of ACC’s business to privatisation have come under fire from some saying it’s a repeat of the last time National were in power in the late ‘90s.

Feds President Don Nicolson, however, says under the current structure many farmers are struggling to meet costs and the status quo simply isn’t an option for some.

“We’ve seen the cost of ACC blow out, ongoing liabilities and levies have been increasing hugely.

“Levies around ACC in diesel vehicles, for instance, this year increased enormously – where is the accountability?”

Nicolson says the status of ACC as the only player in the industry has led to market failure.

“They have actuaries working this like any other insurance company, but we don’t think there’s enough competitive tension.

“You certainly can’t assess value when you have a monopoly system.”

Nicolson says cross party support is crucial to the success of the changes, as the private sector needs assurance things won’t change with a switch in governments.