ACC continues push for levy hikes

ACC chairman John Judge (L) with ACC minister Nick Smith. File photo / Mark Mitchell

ACC is still pushing for a large increase in levies, despite a storm of protest over the size of the hikes proposed.

ACC chairman John Judge said the organisation received a record number of submissions on its proposed levy hikes, which prompted angry motorcyclists to ride to Parliament in protest.

Mr Judge said in statement that ACC still wanted to bring in more money and was only slightly lowering the recommendation for the motor vehicle levy.

As a result ACC was still asking ministers to lift the average employers and self employed levy from $1.31 per $100 of earnings to $1.89.

The average earners' levy (taken out of PAYE) should also rise from $1.51 per $100 to $2.48.

ACC had also been pushing for the motor vehicle levy to go from $287 a year to $417, it was now asking the Government to lift this to $394.95.

"There are several reasons why we have generally stuck to our original figures. Most importantly, we believed that if the levies were set at lower levels then ACC's difficult financial situation would only be worsened," Mr Judge said.

The Government is yet to decide the size of any increases, though ACC Minister Nick Smith has indicated hikes proposed by ACC were unlikely to be approved by Cabinet.

The Government has also not yet legislated to push out the deadline for full funding of past ACC costs, which will reduce many of the proposed hikes.

Mr Judge said ACC was also trying to reduce costs but without the levy hikes the future of the corporation would be in doubt.

"It is clear that these increases will be unpalatable, especially in the current economic climate. But if New Zealand is to retain the ACC scheme then I believe they are necessary," Mr Judge said.

- NZPA