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The Auckland Chamber of Commerce has come out against proposed changes to the Accident Compensation Corporation, describing them as "massively unfair".
ACC Minister Nick Smith has drafted hefty rises in ACC levies as part of the biggest ACC shake-up in decades.
Smith says ACC's biggest problem is a huge increase in the cost of claims that are not currently being met by levies.
Proposed changes will affect workers on an average wage by around $320 a year.
The Auckland Chamber of Commerce says the 10%-plus increase in premiums is unacceptable, being well above the rate of inflation and leaving consumers with no choice other than to pay up or face stiff penalty charges.
The chamber's CEO Michael Barnett says businesses must pay ACC's premiums as no other provider of accident insurance is allowed.
"And, because ACC has no competition, there are no benchmarks to measure its performance against," he says.
Federated Farmers says some farmers who are already struggling to make ends meet may have their levies increased by 70%.
It says ACC levy consultation documents show that the work levy rates for employers and the self-employed will rise from $1.97 to $3.35 for every $100 earned.
Meanwhile, Business NZ CEO Phil O'Reilly says changes to ACC are overdue with the scheme having become less transparent as claim costs have escalated over recent years.
"Reducing incentives for workplace safety, smoothing premiums, extending the payment period for residual claims and blurring the boundaries between ACC accounts and between injuries and diseases have all contributed to the blow-out in costs," says O'Reilly.
O'Reilly says the current system is complex and confusing.
He says ACC needs to refocus as an insurance-based risk management scheme rather than become an overlapping social welfare scheme.
Federated Farmers agrees that the ACC needs to be scaled back and suggests that changes could include cutting entitlements, reducing the number of medical conditions covered, and managing long-term claimant's back into the work force.
Add a Comment:
Post new commentmouthguard said on 2009-12-10 @ 14:59 NZDT: Report abusive post
The unfair bit is this: the ACC forms for accident claims have a wee box that you fill in about how it happened. If you mention a motorbike, then that statistic goes on.This includes farm bikes that are responsible for a lot of injury claims, but are responsible for no ACC levies as they are not registered. That is why you are being screwed roadbikers. Blame the farmers, levy them, it is only fair.
Pucky said on 2009-12-10 @ 14:41 NZDT: Report abusive post
I'm sorry that Tiggy obvously doesn't understand bikers. I myself live in a family of bikers. All of whom are resposible, sensible riders. Why does this person believe if a car (or truck) hits US it is us who should pay? Does tiggy also believe if they get hit by a larger vehicle then they should pay for there own treatment? We already pay higher registration fees. Bikes also produce less greenhouse gases surely this should be taken into account.
tiggy said on 2009-12-04 @ 13:22 NZDT: Report abusive post
Bikers should pay up! If you choose to ride a bike and your involved in an accident you will suffer a more serious injury, doesnt matter if its your fault or not. Choose to ride..choose to pay!!
diogenes said on 2009-12-03 @ 00:51 NZDT: Report abusive post
I also am thoroughly disgusted with these antics and I am not a biker although have been and was contemplating selling our older second car and buying a new 250. Looks like that ain't now going to happen! Using cc rating as any sort of a yardstick anyway is a joke! I've known of souped up 125s blowing the pants off 250 cruisers. Somehow cc rating is being equated with speed. I'm with bikers all the way in opposing this iniquitous hike in charges! And .. last time I'll be voting National!
wasteoftime said on 2009-12-01 @ 21:07 NZDT: Report abusive post
Agree it is totally unfair, but we riders don't help ourselves by blaming others. Fact is a third of bike crashes only involve the bike, of the rest half are the riders fault and half the other drivers. So at least 2/3 are the riders fault, and you could say that if you get hit by a car you generally deserve it for not riding defensively. Sometimes we shouldn't shout too loudly - just give it the berries when nobody is watching.