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Hospitality and accommodation ACC levies 10% increase

PRESS RELEASE
from Motel Association of New Zealand

22 December 2010

Press Release ACC Levies

Disturbed and Disappointed by Hospitality and accommodation ACC levies 10% increase

The Motel Association is deeply disappointed and disturbed by the announced increase in ACC levies for the Accommodation sector, said Michael Baines Chief Executive of the Motel Association.

It would appear that the Moteliers are paying for the inability of the rest of the sector to manage their risks. New Zealand owned and operated motels will suffer a movement in rates from 99c to $1.09 over 10%!

It seems as if the “business friendly” government has struck again with a large hike in regulatory charges to an industry peopled exclusively with SMEs. Again the Government seems to find a way of cloaking deceit in good news. Motels that have over 40% of the workers in the sector owner operators are going to carry the burden of those others in the sectors that fail to recognise their responsibilities. Members were surveyed 12 months ago showing 83% had not and neither had their staff made any ACC claims in the previous 12 months. It is hard to see the justification for a 10% increase in levies

This is a slap in the face for a small but important part of the New Zealand tourism industry. Motels account for over 30% of all commercial accommodation. Moteliers host millions of overseas travellers in their properties, as well as New Zealanders. Moteliers earn millions in overseas revenue and yet they are again being punished because they are a collection of owner operators. It would appear that this government’s tourism friendly approach is as fragile as its business friendly approach.

The Motel Association is extremely frustrated that once again the opportunity to show some common sense and leadership has passed a government minister by. Suggesting that there would be no increases in levies was misleading; certainly the overall take may be the same but individual sectors are facing substantial changes.

We would urge the Minister to reassess the changes to the individual sectors and impose a blanket no change policy across all sectors.

We welcome the opportunities for privatisation, we believe that it would be far cheaper for Moteliers to go privately than the current regime that has them subsidising those sectors that have a high claim profile!

ENDS

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