Paul Hutchison MP National Party ACC Spokesman

14 December 2005

ACC monopoly model causes levy increases

The Government's increase in ACC levies for the self employed is yet another nail in the coffin of many New Zealand businesses, says National's ACC spokesman, Paul Hutchison.

Dr Hutchison says Labour's monopoly ACC model demonstrates a lack of choice and does not include individual risk rating. Consequently, the model suffers in failing to send direct messages to those who perform either well or poorly.

"ACC has presided over unnecessarily large reserves in the Employers Account and there is no justification for this.

"ACC should also take into account that interest rates have firmed and this places downward pressure on prospective levies.

"The Labour Government is fixated by the ideology of the state insurance entity remaining as a monopoly.

"This has resulted in the self-employed and non-earner levies being raised.

"ACC has failed to respond to charges that their operational costs are predicted to increase by 35% overall in the next year compared with the current year. This must have a negative effect on levies," says Dr Hutchison.

ENDS

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