Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


ACC Releases 2010/11 Levy Recommendations

1 December 2009

Media Release

ACC Releases 2010/11 Levy Recommendations

ACC has today made public the 2010/11 levy rates it has recommended to the Minister for ACC.

“We received a record number of public submissions on our proposed levies this year, which was to be expected given the scale of the increases. Many were of a very high standard”, said ACC Chairman John Judge.

“Ultimately though, the levy rates we have recommended to the Minister largely reflect what we initially proposed. The only change is that we have slightly lowered our recommendation for the motor vehicle levy, based on updated projections for funding future years’ claims”.

“There are several reasons why we have generally stuck to our original figures. Most importantly, we believed that if the levies were set at lower levels then ACC’s difficult financial situation would only be worsened. ACC’s deficit has grown at an unsustainable rate and that demands we take action to address both the organisation’s income (i.e. levies) and its expenditure.”

“We have set targets for each levy Account (work, earner, motor vehicle) to bring all of them to solvency within a reasonable period. The levies we have recommended will achieve this target. Anything less will not only extend the duration of the deficits but increase their size, much as any other debt grows with time”.

“Of course we’re also looking closely at our expenditure. ACC’s costs in a range of areas have grown rapidly in recent years and we’re working hard to pull those back. Costs like physiotherapy and high-tech imaging have grown by around 100% in the last five years, far more than you would expect from inflation, population growth or any other factor. Some progress has been made in achieving cost savings but it will not be enough to prevent the need for serious levy increases”.

“ACC is also working to improve its rehabilitation performance and again there has been progress, but it would not be prudent to factor these savings into the levy setting process at this early stage.”

“The point is this. The levies we have recommended, along with a programme of cost savings and improved performance will enable us to address the broader financial issues and ensure the future of the ACC Scheme. If one of these elements is neglected then the whole outcome is called into doubt.”

“It is clear that these increases will be unpalatable, especially in the current economic climate. But if New Zealand is to retain the ACC Scheme then I believe they are necessary.”

It should be noted that ACC’s recommendations are not binding on the Minister, who will obtain further advice before making his own recommendations to Cabinet. Also, the Government’s intention to push out the date for fully funding ACC’s residual claims (i.e. pre-1999 claims still on its books) will enable some levies to be less than proposed.

--- Ends ---

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What Lessons The Greens Should Take From The Demise Of Winston Peters

Wondering about “if only" is one of those political games we all indulge in from time to time. For example: episode one of the latest season of The Good Fight TV series dropped us into a world where Hillary Clinton is the US President and Elizabeth Warren and Merrick Garland are Supreme Court justices, where rain forests are being saved and polar bears are coming back from extinction. Yet alarmingly, people keep on having these bad dreams about Donald Trump being the President... More>>


Referendum Preliminary Results: 'Yes' On End-Of-Life, 'No' On Recreational Cannabis

End of Life Choice Referendum The referendum asked the question: 'Do you support the End of Life Choice Act 2019 coming into force?' 65.2% Yes 33.8% No 1.0% Informal VOTES NUMBER OF VOTES RECEIVED PERCENTAGE OF TOTAL VOTES Yes 1,574,645 65.2% ... More>>


Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ... More>>


Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

Election: ParityBOT_NZ Processed Nearly 200,000 Tweets To Find And Fight Online Abuse Over The NZ Election

Auckland, New Zealand: Of the almost 200,000 tweets directed at women candidates that Areto Labs’ proprietary election Twitter bot, ParityBOT_NZ, processed over the New Zealand election period, nearly 4,000 were classified as toxic and triggered ... More>>

Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>


Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>




InfoPages News Channels