Hon Dr Nick Smith

Minister for ACC

15 October 2009

Media Statement

Debate on motor cycle accident costs needed

“New Zealand needs to have a considered debate about the escalating costs of motor cycle accidents, and who should pay”, ACC Minister Dr Nick Smith said in response to proposals by ACC’s board of steep ACC levy increases.

“I was at first quite taken aback at the size of the proposed increase but even more surprised at the actual claim’s costs to ACC of motorcycle accidents. If the true cost was charged the levies would range from $1200 for smaller motorbikes to $3700 for those over 600cc. Even with the levy increases, every car owner will be paying $77 per year to subsidise motor cyclists.”

“The claim that it is cars that cause the accidents does not negate the debate. Even if we assume that all accidents involving motorcyclists and other vehicles are the fault of the other vehicle, the cost of other motor cycle accidents far exceeds the proposed levy.”

“There is a clear social trend of recent years of baby boomers buying big bikes in their middle years and the accident costs soaring with it. We’ve got 8938 new registrations of motorcycles over 1000cc and 5265 over 600cc since 2000. The large increase in accident numbers are for people over 40. I understand those who love their large motorcyclists and it being their recreational pursuit. The issue here is who should pay for the accident risk.

“The Government believes there is a good case to vary the levy based on motorcycle size given the accident data, but we have not pre-determined the appropriate increase.”

“I encourage motorcyclists and other motorists to have their say on this issue by making submissions to ACC by November 10th.”

ENDS

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