copy of email I have just sent to John Key.
"Hi John
I am having difficulty understanding ACC maths. It's different from the stuff I did at school. Maybe you can provide an explanation?
An ACC spokesman on TV last week said that every motorist would need to pay an extra $77 a year in ACC levies to cover the cost of motorcycle injuries.
The ACC statistics show that motorcyclists cost the ACC 63 million in payouts.
I understand there are about 3 million vehicles currently registered in NZ. When I multiply 3,000,000 x 77 my calculator tells me this is about 231 million or 3.6 times the total cost of motorcycle accident payouts?
I am especially concerned as I am a vehicle collector and I currently have five vehicles registered yet I can only drive or ride one at a time.
It would seem fairer that ACC levies were charged per rider/driver rather than per vehicle.
I also note that through the other various ACC levies I pay that I currently subsidise other high risk activities I don't do.
e.g. Rugby and ruby league account for about 50 million in ACC costs.
Netball accounts for about 11 million and so on.
If the intent is to move to a user (risk taker) pays system I have no problem as long as it is fair.
If it were a private user (risk taker) pays situation then the insurance companies would require higher premiums from rugby players etc which would mean that other ACC levies I pay wouldn't be subsidising their risks and my overall ACC contributions would in all likelyhood decrease.
I voted National last time around as I like most of your policies but like most New Zealanders I have a very strong sense of fair play.
The newly proposed ACC levies are just not fair and New Zealander's have a strong sense of fair play that just shouldn't be underestimated.
I fear this proposal will cost National thousands of critical votes at the next election. Please don't make me partly responsible for a Labour victory next time!
I look forward to your response on the issues I have commented on.
Kind regards
XXXXX "
"Hi Chris
As a fellow Hawke's Bay resident I was please for you and for your selection as Government Whip.
Perhaps now is a good time to use that whip and make National se sense.
I am very concerned regarding the proposed hikes of ACC levies for motorbikes. I know you as an intelligent individual, and as such I am sure you have cringed when the false information, statistics and costs has been drummed out as being factual. But if you as a result if more important issues have missed the most obvious ones, I will here forward some of them:
Lets assume for a moment that the following figures are correct (and I highly dispute that!). In the last year $62 millon was paid by ACC to motorcycle riders, but the levies collected were only $12.3 million. A shortcoming of $49.7 million we are told. We are now told that if every car owner was to "cross subsidise" that they would have to pay $77 each. To make the calculation simple lets say we have 3 million cars. Take 3,000.000 x $77 and you get $231 million... I asked my 10 year old son (You have already met him twice at events in HB and he liked you; once at the "Enough Is Enough Hikoi", once at a Family Day organised by my organisation) to tell me how much each of the 3 million cars would have to pay to cover the "shortcoming". Inside 30 seconds he told me: $15.67! Perhaps you could use him at ACC. Who knows, he might be able to save your political creer?
We are told that the costs for motorcycle injuries is about 4 times as high as other road users. I know you will hate me for stating what you, as an very "on to it" individual, already know, but I will do so anyhow. Just to show that in our family not only my 10 year old, but also my other sons, have a brain. I asked my 12 year old (that also has met you, but was not so taken by you, he has an amazing sixth sense!) Here the information from ACC's website that he found for me:
2008 statistics:
Cyclists: 567 active claims, $12,573,000, $22,174 per claim
Pedestrians: 1115 active claims, $24,494,000, $21,967 per claim
Car Occupants: 8525 active claims, $208,305,000, $24,434 per claim
Motorcyclists: 3173 active claims, $62,523,000, $19,704 per claim
If this information has alluded you, please feel free to c/p what I have here posted as my 12 yo would love to be the one who made the National Party realise that information that is forwarded as facts need to
be backed by actual stable information. Bless him!
I would dispute that ACC was ever intended as a "User Pay" system. I have had a read of Sir Owen Woodhouses idea behind ACC and I think he deserves a DB! But for the purpose of this argument, lets assume that we tried to get the vehicle owners to pay their ACC yearly cost. And again, as you already know, "Active Claims" is an ongoing cost over years, not something that has to be paid today. (That would be like asking any separated parent to pay their Child Support for the 18 years TODAY. "Absurd" I hear you say, and you are right!) But let's take the figure and play with it: We have currently $270.827.000 as active motorvehicle claims payable by ACC. With approx 3 million vehicles that makes the ACC contribution for each $90,28. But cars currently pay $136.44 and motorbikes $204.66. (Add to that the ACC levy of 9.34 cents per litre of petrol) I asked my 8 year old (Who can't remember you. But as the only thing he cares about is Moto Cross, and you have not been at the Valley Road track while he is racing, it is understandable. And he tells me that he forgives you IF you come there soon) if he had to pay one of them, and they all were enough to pay the ACC bill, which would he pay. He looked at me with a look that told me that he and his brothers now were the ones that needed to take charge in this household as dad clearly was loosing it. But he straight away told me $90.28. So if a 8 year old can tell me that $90.28 is enough to cover the bill, why can ACC and National not figure it out?
I know your son is an aspiring Magpie. And I am looking forward to him following in the footsteps. But tell me, if he ever needs help from ACC as a result of an injury, where is that "User Pay" payment coming from? Surely not from any of the other payers? Nah, I must have missed something here...
I could carry on, but I am sure you get the message. My three boys can clearly se the facts. Why can not ACC, National, Act and Maori Party? Or perhaps I have three genuises in my household! If that is the case then I am pleased, as their dad clearly is not one as he voted for "change". But as I always say, we all make mistakes. The secret is not to make the same again. And in two years time I, and every other NZ biker, will get the chance to correct that mistake.
Xxxx Xxxxxxxx
Hawke's Bay
Are you saying that you don't kiss a guy before he fucks you in the arse? The big problem is that the government isn't offering to buy us dinner - but they expect to be able to fuck us! If they aren't careful National will only be in power for one term then out on their arses - the voters will be looking to fuck them back.
If this shit goes through then I would sooner vote for the Greens than National at the next election - despite them being a bunch of sandal wearing, tree hugging, dolphin loving hippies.
"Look, Madame, where we live, look how we live ... look at the life we have...The Republic has forgotten us."
Thanks.
Yep, I know I could have spellchecked. But I figured, that if I write something that shows that it is not a massproduced spam to all MP's, then, hopefully, there is a better chance to get a personal response as nobody else has yet to get that from a National MP. And really, the spelling mistakes are few and far inbetween. Time will tell.
Turns out Goff is a biker. The following appears to be a personal (as opposed to formula) reply.
Thank you for passing on your concerns about the enormous increase in ACC levies the Government intends to impose on motorbike riders.
Labour regards the 300% increase in levies on some motorbikes and doubling levies on others as totally unacceptable and is strongly opposed to it.
The message from Government seems to be that it wants motorcycles priced off the road.
National appears to ignore the fact that bikers use less petrol, create less carbon emissions and cause less congestion.
It ignores the fact too, that most accidents involving motorbikes are in fact caused by cars.
How can it be fair that motorcyclists knocked off their bike by a car are then charged much higher levies for the experience?
ACC Minister, Nick Smith, keeps saying ACC is an insurance scheme and it should be user pays. He then hugely exaggerates the cost of motorcycle accidents and uses that to justify the outrageous increase in levies.
But ACC was not designed as a user pays system. Otherwise pedestrians and cyclists who don’t pay motor vehicle levies would have to pay. Sportspeople and the elderly who suffer more injuries would be charged accordingly. Men would pay much higher rates than women.
That doesn’t make sense and the Government should not be playing one group of New Zealanders off against another.
Labour will continue to fight against the unprecedented cost that the Government is trying to impose on bikers but we need your help.
Bikers need to protest strongly and show that they also will fight this all the way. The Government needs to be aware that it will cost them votes. That’s the only way to make them listen.
As a fellow biker (for around 40 years), thanks for speaking out on your concerns. I look forward to working with you to get the changes reversed.
Best wishes
Hon Phil Goff
Leader of the Labour Party
Only 'Now' exists in reality.
This was received from Sandra Goudie, National MP for Coromandel. Not all Nat MP's are following the party line.
Geoff, thank you for taking the time to email me. I have forwarded your email to ACC but am disappointed there is no submission process whereby people can be heard and there is select committee consideration of all the issues. I have already expressed my concerns to the Minister and will continue to do so.
Regards, Sandra.
She's a bit of a hoon herself. Campaigned against Jeanette Fitzsimons in her classic gas-guzzling Fairlaine! That was really twisting the knife![]()
Dear Sam
Thank you for your email. As a rider of small electric scooter (trying to keep my carbon footprint down!) I share you concerns. But we all need to consider the real problem that we have found ourselves in with ACC when in 2008/09, ACC paid more than $62 million to motorcycle riders but collected only $12.3 million in levies.
The National-led Government is determined to preserve and protect our 24/7, no-fault accident insurance scheme and we all agree with that. .
ACC is facing some real challenges. Its liabilities have ballooned to almost $24 billion – $13 billion more than its assets. This is unsustainable and unaffordable especially, as I have already noted, when in 2008/09, ACC paid more than $62 million to motorcycle riders but collected only $12.3 million in levies.
The incidence, severity and cost of motorcycle crash injuries are not reflected in current levies. The cost of injuries in motorcycle crashes is about four times higher than injuries in other motor vehicle crashes.
To help make up this difference the ACC Board has proposed a reclassification and an increase to the motorcycle levies. Even with the proposed increase in levies other motor vehicle owners will continue to pay $77 each to cross-subsidise motorcyclists.
We want to have an open and honest conversation with the public as to how they want us to fund the shortfall. If the shortfall is not funded through an increase to motorcycle levies, it will have to be funded from somewhere else.
You may not be aware that these are only proposed increases and they are currently open to public consultation. You are lobbying me- good on you! I also encourage motorcyclists and other motorists to have their say on this issue by making submissions to ACC by 5PM, 10 November.
You can click here to have your say www.acc.co.nz/consultation and I have included a Q & A below which may interest.
Following public consultation, the Government will receive advice from the ACC Board and make a final decision.
Best regards
Nicky Wagner MP
Information on Motorcycles & Proposed ACC Levy Increases
1. Why has there been no consultation?
That is happening now. The ACC Board has proposed levy rates and classifications and is seeking public submissions. Submissions close 5pm, 10 November and can be sent by emailing consultation@acc.co.nz or sent by post to Levy Consultation, ACC, PO Box 242, Wellington 6140.
2. Who makes the final decisions?
Once public submissions have been considered, ACC makes final recommendations to the Minister for ACC Nick Smith and he will consider ACC’s proposed rates alongside independent advice from the Department of Labour. Cabinet will make the final decision.
3. Why is ACC proposing to increase motorcycle levies?
* Last year, ACC paid more than $62 million to care for people injured while on their motorcycles, but collected only $12.3 million from motorcyclists
* If we charged motorcycle owners for the true cost of injuries, levies for motorcycles would be between $1200(bikes under 125cc) and $3700 (bikes more than 600cc)
* Even in accidents where the motorcyclist is clearly at fault, levies would need to range from $754 (bikes under 125cc) to $2200 (bikes more than 600cc)
* Even with these proposed changes, most other motor vehicle owners will still be paying $77 to cross-subsidies motorcyclists
* In 2008 there were 1446 motorcycle casualties – more than double the total in 2000.
4. Why are just motorcycles facing an increase?
This is not correct. Increases in other areas include:
* Petrol cars: current levy $168.46; proposed 2010/11 levy $237.37
* Diesel trucks: current levy $302.32; proposed 2010/11 levy $585.84
* Earners’ Account: current levy $1.70 per $100 of liable earnings; proposed 2010/11 levy $2.80
* Employers Account: current levy $1.31 per of $100 liable earnings; proposed 2010/11 levy $1.89
5. Why are levy increases necessary?
ACC lost $4.8 billion in 2008/09 on top of $2.4 billion in 2007/08. Unfunded liabilities have grown from $9 billion to $24 billion in just four years due to scheme extensions, increases in claim numbers, increases in claim costs and poor investment returns.
6. What is the Government doing about the levy increases?
The Government considers the proposed ACC levy increases to be too large and has introduced legislative changes to push out the full funding date to 2019 and to pull back on entitlements so as to make savings. The Government is aiming to reduce future liabilities by $2 billion. The changes are aimed at halving the levy increases and securing the future of ACC for New Zealanders.
Nicky Wagner MP National Party MP
DDI +64 4 817 6633 | Fax +64 4 473 0469
189 Montreal St Chch 8013 | Ph 03 365 8297
or FREEPOST: Parliament Buildings, Wellington 6160, New Zealand
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Reply from Chris Tremain:
Pete,
Thank you for your email regarding the proposed changes to ACC levies. Thanks for your kind words about my role as Whip.
ACC is facing some real challenges. Its liabilities have ballooned to almost $24 billion – $13 billion more than its assets. This is unsustainable and ACC has recommended significant increases in levies to meet this shortfall.
National believes that the initial levy increases proposed by ACC under the current law are too much for New Zealanders to pay. They would impose significant costs for Kiwi families who are already struggling in the economic downturn.
As a result, a lower level of levies from what was originally indicated has been proposed for debate. The current proposal still has higher levies for motorcyclists albeit way back on what was initially proposed.
It is important to note that there will be no change to entitlements for current claimants. We will at least halve the proposed increases for Kiwi families, workers and motorists. These changes will help get ACC back on a more sustainable path.
The Government is working hard to secure the future of ACC, and are looking for a careful balance between the interests of claimants and those paying levies.
I encourage you to have your say regarding the proposals by visiting www.acc.co.nz/consultation.
I can assure you that I have received a strong message from the motorcycling community which I will pass on to the Minister for ACC.
Yours sincerely,
Chris Tremain
Thank you for your email about the changes and cost increases that the National-ACT Government is bringing into ACC. It is really good to get feedback from the public about these changes because the changes have been bulldozed through here at Parliament and MPs need to know what the public really think about this issue.
At the moment the new Government seems to be proposing less coverage for more cost! The increase for motorcyclist of up to $500 extra each year seems particularly unfair.
Labour’s position is:
* National’s ACC changes mean you will pay more than you have to in levies and for your own care.
* New Zealand has the world’s best accident compensation scheme. We in Labour want to keep it that way, because you need ACC if you have an accident.
* The government claims ACC is insolvent. But it’s scaremongering. ACC has over $11 billion of reserves and last year collected $1 billion more in levies than it spent on claims.
* At a time when family budgets are stretched, National is increasing levies for people like car owners and motorcyclists, and making you pay more for your care, so it can privatise parts of ACC.
* National is cutting injury prevention programmes, which just does not make sense.
* You’ve heard about ACC’s rising costs - but Labour has a better way to keep your levies down. We know that extending the date for full-funding of claims from prior years (from 2014 to 2019) takes a lot of pressure off levy increases.
* ACC costs you less than alternatives. It’s cheaper than paying high lawyers’ bills, and cheaper than insurance from expensive foreign-owned corporates. ACC is cheaper than the privatised alternatives in Australia.
* ACC works for New Zealand.
* Privatisation is estimated by Merrill Lynch Australia to mean $2 billion revenue for Australian insurers - at a profit of $200 million per annum. That can only be paid for by increases in levies and decreases in cover.
* Don’t pay more for National’s scare-mongering – they encouraged the media to report ACC increases for a car of $130 per annum and then put it up by $30. $30 is bad enough but the four-fold exaggeration was designed to scare people into accepting privatisation and cuts to ACC cover.
Thanks again for taking the trouble to write. I know this is a big issue in my Te Atatu electorate in West Auckland.
Kind regards
Hon Chris Carter MP
Member of Parliament for Te Atatū
New Zealand Labour Party Spokesperson for Foreign Affairs and Ethnic Affairs
PP DH
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