Why a large build-up of funds?

Media release 19 November 2002

Why a large build-up of funds?

ACC's recommendations for next year's employer levies are unnecessarily high, says Business NZ.

"ACC's consultation document proposed a 3 cent cut in the employer levy of 85 cents per $100 payroll and even more could have been cut, since the rates already build in a substantial risk margin of 15%.

"But ACC's recommendation to the Minister is now for a 1 cent cut only," Business NZ Chief Executive Simon Carlaw said.

"Given the existing reserves in the employer account, ACC's proposed levy for next year is significantly larger than needed for normal operation.

"Why a large build-up of funds? Is it an indication that ACC is about to be expanded in some way?"

Mr Carlaw said the public had a right to know if an increase in the scope of ACC was planned. He said employers had not been notified of ACC's intentions, which were published only in the NZ Gazette.

Other recommendations for continuing high levies in the self-employed and residual claims accounts, and a more than doubled petrol tax within the motor vehicle account would have negative implications for the economy, Mr Carlaw said.

ENDS

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