Levy reduction proof ACC crisis was manufactured – Labour

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Mon, 11 Jul 2011 6:02p.m.

Motorcyclists protested the increase to ACC levies in February last year (NZPA file)

Motorcyclists protested the increase to ACC levies in February last year (NZPA file)

By Rachel Tiffen

The Government has announced a reduction in ACC earner and employer levies that will lower them to where they were a little more than a year ago.

It will save earners on the average wage around $170 a year.

But critics say it shows claims of an ACC crisis were politically manufactured.

It was a dreary old day for workers in the capital but up on the hill above Lambton Quay, ministers were ticking off what they hope might be a vote-winner: cuts to ACC levies for both workers and bosses.

“ACC's costs were out of control, this Government had to increase the levies as well as make a whole lot of other changes to stop it just accumulating more and more debt. We've now got that debt under control,” says ACC Minister Nick Smith.

The cuts will take effect from next April.

It is a rollback of the increases last April and is because the Government now says that scheme has found its feet.

As it stands, an employee pays $2.04 in ACC levies per $100 of liable earnings.

That will now drop back to $1.70, a savings of $3 plus a week for those on the average wage.

An employer currently pays $1.47 per $100 of earnings and that will come down to $1.15, also saving a little over $3 a week.

All of that will save households $340 million per year, and businesses $247 million.

The levy increases were introduced as unavoidable - the National Government selling them as the result of the previous Labour government's lack of control.

Labour says the crisis was manufactured by National and is now being turned around for good publicity ahead of November’s election.

“I think one of the key messages for New Zealanders is you've been paying too much for ACC. The Government didn't need to hike up your ACC levies as much as they did when National came into office, you've been paying too much,” says Labour ACC spokesperson, Chris Hipkins.

But one group today's announcement will not please is motorcyclists, who protested to get their levy hike softened last time around but are not covered in this lot of cuts.

The Government says motor vehicle levies are staying put because there is still a shortfall in that account.

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Comments

15 Oct 2011 09:36p.m.

Unsolicited wrote:

For a start: to say all of you are misinformed is a gross understatement. There was a perceived crisis because ACC/Labour had cooked the books. That was soon all sorted. The fact that uninformed politically institutionalised little man Chris Hipkins had the audacity to say “I think one of the key messages for New Zealanders is you've been paying too much for ACC. The Government didn't need to hike up your ACC levies as much as they did when National came into office, you've been paying too much,” is just mind boggling. LABOUR increasd levies for many self employed businesses by up to 94% in 2007 and only gave them 10 weeks notice to come up with nearly double the money. Meanwhile they at the same time REDUCED the levies for employers. This was grossly unfair, unjust and unreasonable: self employed already paid so much more due to being treated as an employee and an employer so to increase their levies - often up to $1.60 per $100 of income MORE than an employee doing the exact same job was criminal. And what is worse is that it went unnoticed - just like all the increases in other things like rates, Road User Charges etc etc and not even picked up by even one media outlet. I personally harassed the heck out of Ruth Dyson etc - you name it and NO ONE could give me a satisfactory explanation as to why this had & should have happened. This decrease brought in by National is well overdue & along with the Rating system is bringing in validation to those of us who do the work, earn the money, understand our OSH obligations as opposed to those who don't do the work, who don't earn the money and who cause all the damn accidents that drive up our industries claims. Honestly you left wingers can be such muppets. The gullibility and naivety with which you swallow up Labour's hogwash hook line and sinker is just incredible. Wake up people. All politicians are liars but none more so than Labour. Labour steal by stealth - they are no friend of the people. Period.

12 Jul 2011 11:56a.m.

clinton wrote:

Jabba why dont you get off that substance that you use to work your brain,What you have written is the substance that comes from Smiths and the Nats backside.Once again trying to be faithful to their rich,and stuff the poorer of NZ.Looks like a J Key Smith Shipley ploy to show people that they can not be trusted on election year.

12 Jul 2011 02:37a.m.

RA wrote:

Just goes to show ........... never trust a Tory .

11 Jul 2011 10:22p.m.

Kim wrote:

Oh come on you blue fools. This govt obviously has such a low opinion of you that they think you will fall for this bul$h!t..i guess they know thier voters.

11 Jul 2011 10:20p.m.

Clarke wrote:

The experts long ago agreed that National manufactured the crisis with ACC, they have a way of manipulating figures that if truely unique. Feed the people a line of garbage and expect them to gobble it all up, thats the National Party way. A fictional crisis at ACC, then 2 months before the general election an electional year bribe, vote us in and we will take away the needless ACC hikes.. that we instituted lol

11 Jul 2011 09:19p.m.

Clarke wrote:

LOl the Nats used lies to fool everyone. Well thats not new, they also told us the rich would flee the country if we didnt give them a big tax break, and Key said he knew nothing about the BMW deal even though we later found out he had known for a year after tes driving one. The Nats lieing is nothing new.. they fixed nothing because nothing was broken.

11 Jul 2011 09:11p.m.

Bryan wrote:

It just leaves Labour and it's supporters rocking in their wake bleating what? what? what happened. They fixed it and then moved on and the workers are better off...brilliant work. They will do the same for the country given sufficient time. Bravo. Now keep ACC for what it was originally planned for...accidents. It's scope under Labour was too wide.

11 Jul 2011 08:55p.m.

clinton wrote:

Wolfman,goff does not need to open his mouth as you have done it for him,Nats did Not fix anything with ACC as it was not in trouble in the first place,this is another Nat bullshit stories,now they want to capitalize on one of their biggest lies ever,just for votes,then they said in three years time they will lower the registration levy on motor vehicals.You say you are a tax payer I think you are just a bloody blue bottle like your mate.Also your Nat mate BRAAM

11 Jul 2011 08:43p.m.

Fish Face wrote:

And do people just think the costs that ACC are apparently saving just go away? People who used to get ACC are now being turned down and told their 'injuries' are 'age related conditions' or other 'health issues' so now they get funded by health care dollars instead. So ACC costs will go down, Health costs will go up - and in a year or so we will be having the same debate (having to raise taxes to cover health costs). Health care does not come cheap, and someone always has to pay. This is just political waffle to seal their election win....

11 Jul 2011 08:15p.m.

jabba wrote:

brilliant .. the National Govt got landed with an ACC Dept with no money due to poor management by Cullen. The Nats increased levies to boost the fund short term then once a safe level was reached, lowered the charges .. fantastic job. Labour would have had to increase levies BUT would NEVER reduce them .. NEVER.