Key deliberately misleading public over ACC levies
The National Party is deliberately misleading the public about ACC levies in order to try to privatise the ACC scheme.
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National Party leader John Key is deliberately misleading the public about ACC levies in order to justify his plans to return to the flawed policies of the 90s and to privatise ACC, says ACC Minister Ruth Dyson.
"John Key recently claimed on Newstalk ZB that ACC levies are 'rising rapidly' and 'going through the roof'. That claim is demonstrably wrong and misleading.
"While the motor vehicle levy has both risen and fallen since the Labour-led government came to power, over the same period, to the end of March this year, the average self-employed levy has come down by 6%, the earners' rate has reduced by 7%, and the average employers' levy has dropped by a massive 43%.
"Which leaves me wondering why National wants to go back to their failed policy unless it is simply as a payback to its financial backers in the insurance industry, as we saw in the leaked memo from the Insurance Council before the last election," said Ruth Dyson
Background: average ACC levy rates
Employers (per $100 payroll)
1999/00 $2.14
2006/07 $1.21 (new merged rate: $1.32)
Self-employed (per $100 earnings)
1999/00 $3.76
2006/07 $3.54 (new merged rate: $2.48)
Earners' (per $100 earnings)
1999/00 $1.24
2006/07 $1.16 (remains the same in 07/08)
Motor vehicle account (per motor vehicle)
1999/00 $156.56
2006/07 $190.00 ($204.78 in 07/08 - slightly less than in 05/06)
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National Party leader John Key is deliberately misleading the public about ACC levies in order to justify his plans to return to the flawed policies of the 90s and to privatise ACC, says ACC Minister Ruth Dyson.
"John Key recently claimed on Newstalk ZB that ACC levies are 'rising rapidly' and 'going through the roof'. That claim is demonstrably wrong and misleading.
"While the motor vehicle levy has both risen and fallen since the Labour-led government came to power, over the same period, to the end of March this year, the average self-employed levy has come down by 6%, the earners' rate has reduced by 7%, and the average employers' levy has dropped by a massive 43%.
"Which leaves me wondering why National wants to go back to their failed policy unless it is simply as a payback to its financial backers in the insurance industry, as we saw in the leaked memo from the Insurance Council before the last election," said Ruth Dyson
Background: average ACC levy rates
Employers (per $100 payroll)
1999/00 $2.14
2006/07 $1.21 (new merged rate: $1.32)
Self-employed (per $100 earnings)
1999/00 $3.76
2006/07 $3.54 (new merged rate: $2.48)
Earners' (per $100 earnings)
1999/00 $1.24
2006/07 $1.16 (remains the same in 07/08)
Motor vehicle account (per motor vehicle)
1999/00 $156.56
2006/07 $190.00 ($204.78 in 07/08 - slightly less than in 05/06)