5 December 2001

No New Zealand employer or worker can have confidence that ACC levies are fair and reasonable, says National's Accident Insurance spokesperson, Gerry Brownlee.

Reacting to the increases in levies - up to 40 percent more for self-employed workers - Mr Brownlee says they are simply a reflection of ACC's own costs and actuarial management.

"When Labour renationalised ACC, levies dropped and last year, the Corporation lost $313 million. National predicted when the law changed that it would only be a matter of time before ACC's costs began to spin out of control.

"Without a competitor, there is no discipline on the Corporation to ensure a high quality service at the most efficient cost.

"The self-employed, who arguably have the greatest interest in staying fit and healthy, are bearing the brunt of additional, unnecessary costs. While the Government may argue that they enjoy the benefit of the Cover Plus Extra Programme, they are still compelled to deal with a monopoly provider.

"For hardworking New Zealanders, the increase in levies is just another raid on their pay packets.

"National will reintroduce competitive provision for ACC so that all New Zealanders can be confident that the levies they are compelled to pay are fair," says Mr Brownlee.

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