Slight easing of ACC proposed rates... are you appeased yet?

**kwaka_crasher** · 1st December 2009, 04:59

See here.

"Motorcyclists and car owners can expect a slight easing of proposed registration fee rises in new ACC recommendations out today.

But that will not stop the bikers keeping pressure on the Government for levies closer to the lower rises facing other motorists.

Although proposed legislative changes to the ACC scheme may soften the increases further, it was unclear yesterday what effect these would have on the corporation's latest recommendations.

Without changes, owners of bikes with engines larger than 600cc still face an increase of $445.92 on their annual registration fee to recover part of what ACC calls a subsidy from other motorists because of a higher risk of injuries faced by motorcyclists.

That would lift their annual ACC levy to $698.61 and follows a readjustment of figures by the corporation, which raised a storm of protest including a 5000-strong "bikoi" ride to Parliament when it initially recommended an increase of $493.

A rise of $224.12c is now proposed for motorcycles between 126cc and 600cc, compared with an earlier figure of $258.74c.

Article continues below

Moped owners face paying $177.57c more. That is down from $208.61c proposed earlier, but is still three times as much as an ACC levy of $58.97 now paid on mopeds.

Car owners face an increase of $65.97c on the $168.46c they now pay as an ACC levy on annual registration fees, compared with a rise of $68.91 initially proposed. After contributions to the national land transport fund, that would lift their overall registration fee to $313.37.

The ACC board is also recommending a 1.5c increase for each litre of petrol sold - to 11.4c a litre.

Chairman John Judge yesterday denied responding to any public pressure in easing the throttle on motorcyclists and car owners.

Meanwhile, a speech by ACC Minister Nick Smith to party faithful in Auckland last night was gatecrashed by about 100 angry bikers.

Mr Smith was giving a speech on the environment when the bikers turned up at the Royal Akarana Yacht Club on Tamaki Drive.

They wanted to know why riders of the 600cc-plus bikes were being hardest hit by the proposed new levies.

Dressed in fluoro vests, the bikers shouted Mr Smith down as he attempted to answer their questions.

* Reving up levies

Moped / motorcycles to 125cc: Up from $58.97 to $236.54

Motorcycles 126cc to 600cc: Up from $252.69 to $476.81

Motorcycles above 600cc: Up from $252.69 to $698.61

Cars: Up from $168.46 to $233.97"

**kwaka_crasher** · 1st December 2009, 05:03

Then there's this.

"The ACC has wound back recommended levy increases for motorcyclists, but riders of big bikes will still face a rise of more than 50 per cent next year.

The state insurer will today release to ministers its final recommendation, which will see the levies on employers, workers and motor vehicles all rise.

The work account levy, paid by employers and the self-employed, will rise from $1.31 for every $100 of earnings to $1.89, but that is expected to be cut to $1.57 once law changes going through Parliament are in place.

Earners face a rise from $1.70 now to $2.80 per $100 of income next year, although that will drop to $2.70 once the new ACC law is passed.

The average rate for cars (including the levy on petrol) will surge from $287 to $352.19 a year.

Lobbying by motorcyclists, including a 5000-strong rally at Parliament last month, failed to change the ACC's plan to cut the cross-subsidies for motorcyclists, chairman John Judge said.

"We don't see any policy reason why motor vehicles as a whole should be subsidising motorcyclists."

However, a change in assumptions had trimmed the recommended increase and that could drop further if ACC Minister Nick Smith decides, as signalled, to moderate the rise.

Figures released yesterday show the ACC's final recommendation would see the levy on moped owners rise from $100 a year now to $247.22.

The cost for motorbikes bigger than 600cc would rise from $430.54 to $739.32, but that is down on the $781.12 originally suggested by the ACC. It would fall to $659.26 once the law change was in place.

Judge said the new rates should mean the workers' levy would not rise again for a decade. "We have set the levy at a rate we think we can keep steady for 10 years because to the extent that inflation puts our costs up, equally it will put wages up, and so our levies will go up."

Over the same period, motor vehicle levies would need to rise only by the rate of inflation.

After 10 years, ACC would be fully funded, including for its pre-1999 liabilities, and levies would need to cover only the current year costs of accidents.

Judge said there were still some areas of unfairness and cross-subsidisation that the ACC could not address under its current legislation. He would raise them with an expert group looking at possible changes to the scheme, including opening some accounts to competition.

One possible change was the levy on retired or unemployed motor vehicle owners.

"You and I, when we drive our cars, are insured for both medical treatment and for earning compensation. If you took my mother, before she ceased to drive, for the last 20 years she's only been insured for medical and yet she's paying the same rate," he said."
"At its heart it doesn't seem very fair ... that the poorest people in the community would subsidise the people with the highest incomes in terms of that income-replacement insurance as far as motor vehicles are concerned."

People who owned several cars or motorcycles also faced unfairness because they paid a levy on all their vehicles, although they could drive only one at a time, he said.

"It's a completely valid point. It's certainly the sort of thing I want to bring to the notice of the stocktake."

**blossomsowner** · 1st December 2009, 05:13

i am not appeased at all

**YellowDog** · 1st December 2009, 05:29

This appeasing U-Turn is great if you want to:

Encourage changing from motorcycling to car driving.
Encourage law breaking (no rego at all)
Encourage Riders to buy bikes too big for their abilities (why ride a 250cc and pay the same price as a 600 rider).
Destroy the NZ motorcycle sales and service industry.
Over congest the roads and car parks.
Polute the air that we all breathe.

Well thought out Dr Nick.

Keep this up and you'll be PM next.

I am totally appeased off.

**knuckles24** · 1st December 2009, 05:58

not appeased at all, it should be 0% increase and that is what we need to keep fighting for.

**DEVVIL** · 1st December 2009, 11:34

Originally Posted by YellowDog

This appeasing U-Turn is great if you want to:

Encourage changing from motorcycling to car driving.
Encourage law breaking (no rego at all)
Encourage Riders to buy bikes too big for their abilities (why ride a 250cc and pay the same price as a 600 rider).
Destroy the NZ motorcycle sales and service industry.
Over congest the roads and car parks.
Polute the air that we all breathe.

Well thought out Dr Nick.

Keep this up and you'll be PM next.

I am totally appeased off.

We got a U turn keep it up and drive it home!
Encourage law breaking (no rego at all)!!!

TIME TO GET A VEST.
How do I get the FUCACC sticker?

**DidJit** · 1st December 2009, 11:44

Slight easing of ACC proposed rates... are you appeased yet?

No.

**kwaka_crasher** · 1st December 2009, 12:00

Some people are just never happy!

**FastBikeGear** · 1st December 2009, 12:10

The OP of the second article missed the final two paragraphs when he cut and pasted the content of the article from The Press.

"At its heart it doesn't seem very fair ... that the poorest people in the community would subsidise the people with the highest incomes in terms of that income-replacement insurance as far as motor vehicles are concerned."

People who owned several cars or motorcycles also faced unfairness because they paid a levy on all their vehicles, although they could drive only one at a time, he said.

"It's a completely valid point. It's certainly the sort of thing I want to bring to the notice of the stocktake."

We need to pick up on this point and quote John Judge where ever possible saying

"People who owned several cars or motorcycles also faced unfairness because they paid a levy on all their vehicles, although they could drive only one at a time".

"It's a completely valid point. It's certainly the sort of thing I want to bring to the notice of the stocktake."

**avgas** · 1st December 2009, 12:14

Wow that lube did help ease it in.
Shame I'm still being fucked in the arse though

**FastBikeGear** · 1st December 2009, 12:14

Originally Posted by YellowDog

Encourage Riders to buy bikes too big for their abilities (why ride a 250cc and pay the same price as a 600 rider).

Hmmm I don't think you have this right. 600CC riders pay more than 250CC riders under the new ACC recommendations.

[Edited: thanks guys for pointing out my error (see posts below) nicely]