Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Labour Wraps Tax Rise For Christmas

Labour Wraps Tax Rise For Christmas

Labour's Christmas present to motorists is the news that petrol prices will rise to cover an increase in the ACC motor vehicle levy, ACT New Zealand ACC Spokesman Heather Roy said today.

"This is nothing more than a revenue rort that does not withstand close scrutiny. Increased revenue from petrol tax will supposedly pay for the rising costs of road injuries and deaths - such as hospitals and rehabilitation. This, however, does not add up. The number of weekly ACC claimants drawing from the motor vehicle account has dropped by more than 1,000 in the past five years, following a recent claimant purge. And ACC's motor vehicle account has run underlying net surpluses of more than $100 million a year before claim revaluation adjustments and changes in accounting treatments.

"The Government calls the increase a way to cover rising health costs for road accident victims. Labour party polling shows this is the most acceptable excuse - yet my questions to the Minister reveal these costs are not rising significantly.

"ACC's problems are actually due to the revaluation of the future cost of Social Rehabilitation which, over the next 30 years, will cost $858 million rather than $696 million. ACC's annual accounts this year show this is an estimate of future costs, based on assumptions that Social Rehabilitation costs will rise 20 percent annually.

"The resulting difference in future social costs of $162 million has simply been deducted from this year's operating surplus, providing a convenient deficit and an excuse to raise petrol tax. A change in accounting treatment increased this deficit by a further $50 million.

"The Government has hiked the bill for taxpayers without providing any good reason. Either Labour is inept and going along with ACC's purported need for more money - or has this been the Government plan always been to increase petrol tax, and the consultation merely cosmetic," said Mrs Roy.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Charlotte Graham: Empowering Communities To Act In A Disaster

The year of record-breaking natural disasters means that in the US, as in New Zealand, there’s a conversation happening about how best to run the emergency management sector and what philosophies best engage and protect communities in the event of a crisis.

How much of the responsibility for a community’s safety in a natural disaster is the Government’s, and how much can be left up to the community themselves? And how do we ensure none of our most vulnerable residents are left behind? More>>


CPAG Report: The Further Fraying Of The Welfare Safety Net

New Zealand’s welfare system has undergone a major transformation during the past three decades. This process has seriously thwarted the original intent of the system, which was to provide a decent standard of living for all New Zealanders in times of need... More>>


Signage, Rumble Strips, Barriers: Boost For State Highway Road Safety

Boost for road safety this summer Associate Transport Minister Julie Anne Genter today announced a short term boost in road safety funding this summer and signalled a renewed focus from the Government on introducing safer speed limits. More>>


Risks & Adaptation: Cheaper To Cut Emissions Than Deal With Climate Change

The cost of climate change to New Zealand is still unknown, but a group of experts tasked with plugging the country's information gaps says it will likely be significant and it would be cheaper to cut greenhouse emissions than simply adapting to those changes. More>>


BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>





Featured InfoPages