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ACC timeline changes welcome

CTU MEDIA RELEASE

11 September 2008

 

ACC timeline changes welcome

 

The Council of Trade Unions has today welcomed the announcement by Maryan Street that Labour intends to push out to 2019 the requirement to fully fund ACC accounts.

Peter Conway, CTU Economist, said that it makes sense to allow a longer time frame to smooth the adjustment.

“The CTU notes that Maryan Street has said that the impact of pushing out the full funding requirement would mean that instead of ACC’s proposed motor vehicle levy for next year of $287, up from $254 this year, there would be a fall to about $203.  The CTU hopes that legislation can therefore be put through Parliament before a final decision is made on the 2009/10 levies.”

“The cost of fully funding pre-1999 claims is distorting levies and is incompatible with a social insurance model.”

“Pushing out the timeline relieves some of this pressure and this will be of relief to motorists who have already faced high petrol prices this year,” Peter Conway said.

 

Ends.

 

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