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ACC Premium Hikes Expose Government’s Failure

The first round of ACC premium hikes has exposed the government's failure to honour its claim that it could match private sector accident insurance, says ACT's ACC spokesman Ken Shirley.

"The 40 percent increase in ACC annual levies for the self-employed is unjustified and will threaten many struggling businesses. The question remains, when will the monopoly once again increase charges and by how much?" Mr Shirley said.

"Motorcyclists have been presented with a massive 57 percent increase in annual levies and yet there are no statistics showing an increase in motorcycle accidents.

"An across-the-board 40 percent increase for car owners is equally unjustified.

"The worst aspect of the state abusing its monopoly powers is illustrated by government's refusal to adopt a recommendation - based on actuarial advice - to reduce the annual employer's levy to 85 cents per $100 of payroll. Instead, the government is insisting on continued overcharging, to build a slush fund that can only result in further distortions and inefficiencies," Mr Shirley said.

ENDS


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