ACC - there is another way

The ACC Minister Nick Smith is ignoring a sensible option put forward by officials from ACC to keep levies low for the next decade, something Labour had already committed to prior to the election, former ACC Minister Maryan Street said.

“The Briefing to the Incoming Minister for ACC clearly advises that by taking an option to extend the deadline to fully fund historical claims to 2019, the Minister could reduce some levies and keep others at current levels,” Ms Street said.

“I note that the Minister repeatedly quotes advice from the Department of Labour but seems to have conveniently forgotten the advice he received from ACC itself. He fails to consider the range of options available to him.”

ACC Minister Nick Smith has claimed today he is concerned that by 2014 levies will rise significantly.

“One can therefore only assume that by making this statement he has rejected the option put forward by ACC officials to extend the deadline for full funding for workers and employers to 2019.

“Labour said before the election it would move the deadline to 2019. Why is the National Government not prepared to take the same course of action? It could lower levy costs to employers, which would be helpful in these economic times.

“It could also return money to working families who run a car by dropping the average car registration fee by $83 a year or $1.60 a week. That would offset increases in the earner levy.

“Why isn’t the National Government thinking laterally here? Labour would have been happy to cooperate with the simple law change required to relieve pressure on levies,” she said.

“The National Government has chosen a most expensive and painful solution and has sought to demonise ACC in order to soften New Zealanders up to their privatisation agenda,” Maryan Street said.

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