Hmmm now I am really in trouble.
Source
http://www.ridestrong.org.nz/RS/foru...3890.aspx#3890
ACC calls for submissions on cyclist levy proposal
ACC has today released further proposals for increases to ACC levies as part of its annual levy setting process.
Earlier proposals included a proposal to increase motorcycle levies. A levy is now under consideration for cyclists.
ACC chairman John Judge said the need to introduce levies for cyclists was driven by many factors. In line with movements towards a user pays system for ACC with motorcyclists it makes sense to also introduce levies for other road users such as cyclists.
‘It seem unfair that other road users should be subsidising the cost of ACC for cyclists.
In 2008 there were 1,475 motorcycle accidents and 50 deaths costing 62,545 million dollars in entitlement claims.
In 2008 there were 1,170 bicycle accidents and 36 deaths costing 15,543 million dollars in entitlement claims. Cyclists paid no ACC levies.
An increase in the number of claims received annually, rising health costs and Scheme extensions have been major contributors to the need to explore means to increase levies to cover the current costs of the Scheme,’ he said. Private health insurer Southern Cross also cited rising claim numbers and healthcare costs increasing well above the rate of inflation as key drivers for their deficit reported earlier.
‘We are also taking a more realistic approach to estimating future costs and liability. Other factors such as the global recession have had a compounding effect,’ Mr Judge said.
Mr Judge noted ACC is required to develop its levy proposals under existing legislative provisions. However, the Minister for ACC is introducing amendments to the ACC legislation that will have an impact on the final levy rates set for 2010/11 – in particular extending the date by which the Scheme must be fully funded. These legislation change requirements mean that the cyclists levies are likely to be introduced six months after the increased levies for motorcyclists.
‘The ACC Board appreciates there’s a limit to how much New Zealanders should be expected to pay in ACC levies, and that many will view the prospect of levy increases at this time with dismay.’ We wish to stress that levy increases are not seen as the only answer to the challenges confronting the ACC Scheme – the focus must be on other ways to make the Scheme more sustainable and affordable in the long run.’
Cycle levies
Within the motor vehicle levy changes the ACC is proposing an introduction of cycle levies to take into account the fact that for several years, that other motorists have been subsidising cyclists.
As no national registrar of bicycles is currently maintained an exact figure for the number of cyclists using N.Z. roads is not available. Our calculation have been based on an active national cycling fleet of 92,000 cycles. Using this figure as a base for calculation the new levies reflect the fact that cycle riders are an estimated 14 times more likely to be involved in a road crash than car drivers and are far more likely to be seriously injured.
‘The proposed legislative change to extend the full funding date to 2019 would reduce the effect of residual claims on motor vehicle levies by $100,’ said Mr Judge. ‘However, whether or not this translates into an equivalent reduction in those levies will depend on how best to fund the account fully over the next 10 years. This is something the Board must determine.’
The following are the key elements of the proposed Cyclist levy.
- While the cover for motorists and will be paid by motorists through licensing fees & petrol levy the cover for cyclists will be recovered solely from bicycle registrations.
- While it was initially proposed that all cyclists of legal driving age (15 years and over) would be required to pay an ACC levy it seems unfair that parents would have to pay an ACC levy for school children. Cyclists who are attending primary, intermediate or secondary school will not be required to register their bicycles. Students attending tertiary education would be required to register their bikes. It is noted that many of these students already qualify for student loans which may be used to meet registration costs.
- As with other road users cyclists will be required to register their vehicles with the national vehicle registration data base. This will be performed at any vehicle testing station. A registration number will be fixed to each cycle using a numbered tamper proof seal similar to that used on home power usage meters and several bike parks in New Zealand.
- Registration of cycles also offers benefits for law enforcement and rider identification in the case of fatal accidents.
- In line with other road users cyclists will be required to register each cycle they intend to use on road separately. Cycles that will be used exclusively for off road use will not require registration.
- The amount of the ACC levy has not been finalised as yet, but will need to take into account that while cyclists are in the same risk group as motorbike riders they make no contribution to ACC levies through petrol purchasers. Even with the significant proposed increases in the rates payable by cyclists, car drivers will still continue to subsidise cycle drivers by $78 a year for the 2010/2011 year. An ACC levy of $300 to $500 dollars would be realistic.
- Preventing further deterioration
‘Along with other changes, levy increases are needed to help avoid further deterioration in our financial position,’ Mr Judge said.
‘The proposed increases only deal with the current shortfall in funding and largely go towards paying the ongoing costs of existing claims – not future cost increases or increases in demand for services.
‘Government is proposing legislative changes which, if passed, will reduce the size of levy increases. When the Amendment is passed, the Board will reconsider its funding requirements and levy recommendations to the Minister. Despite this, the proposed rates we are releasing today show how bad the situation has really become,’ Mr Judge said.
Consultation
Mr Judge said the ACC Board’s final view on levy increases will be informed by consultation and it will then make appropriate recommendations for Government to consider and to make a final decision.
Further information, including consultation documents and actuarial reports relating to setting levy rates and the estimated outstanding claims liability, is available from
www.acc.co.nz/consultation. Alternatively, call 0800 ACC RATES (0800222 728) or send an email with your request to
consultation@acc.co.nz.
Making a submission
ACC is encouraging New Zealanders and affected organisations to have their say. Submissions should be addressed to:
By post:
ACC
P.O. Box 242
Wellington 6140
By fax: (04) 918 4395
By email:
Consultation@acc.co.nz
Submissions must include:
Your name
Your Address
Your contact phone number(s)
Deadline for submissions 5pm, 10 February 2010
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