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UF won't back petrol tax increase for ACC levy

Baldock: UF won't back petrol tax increase for ACC levy

United Future won't support a further petrol tax excise increase while18.5c of the excise tax collected on every litre of petrol is being diverted into the Consolidated Fund, the party's transport spokesman Larry Baldock says.

At the second reading of the Injury Prevention, Rehabilitation and Compensation Bill in Parliament yesterday, Mr Baldock said United Future welcomed moves in the Bill to make ACC levies more transparent.

"However, the major issue that needs addressing is motorists paying 18.5c per litre more petrol tax than is returned to them in the form of transport-related expenditure. And transport-related expenditure does, of course, include ACC levies.

"Until this discrepancy is remedied, we cannot support another petrol tax hike to pay for ACC", Mr Baldock said.

Currently 2.3c per litre is dedicated to ACC levies, and the Government wants to increase this amount to 5.08c.

"Green Party support for the tax increase shows that the Greens do not understand the importance to the economy of an efficient transport network, and that nor do they realise that safer roads and therefore less accidents would actually serve to reduce ACC costs.

"We have to get our priorities right and this is why United Future cannot support the Bill," he said.

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