ACC listening

Media release
24 October 2003

ACC listening

Business NZ is pleased that ACC has heeded its request to recommend lower levies in the light of higher interest rates.

Business NZ Chief Executive Simon Carlaw says ACC's recommendations for the 2004/5 levies have been pruned back and now propose no change to the average levy in the employer account, a reduction in the average levy for the self-employed account and a bigger reduction in the average levy in the motorist account.

"ACC's initial proposals were based on a forecast 10-year interest rate of 5.5% but subsequently 10-year rates have increased to over 6%, so ACC will earn substantially more from its investments and will not need to increase levy amounts.

"Business NZ is also welcoming ACC's recommendation to retain the existing 130 levy risk groups. We submitted that 130 provides more responsiveness and less cross-subsidy than moving to 56 would have.

"Employers will be pleased that ACC has listened to business representation and will expect the Minister for ACC to accept the recommendations without delay."

ENDS

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