Bikers vow to keep fighting ACC hikes

Published: 8:34AM Tuesday December 01, 2009 Source: ONE News/NZPA

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Two weeks after thousands of motorcyclists staged their spectacular protest at parliament, the Accident Compensation Corporation has released a revised table of levy increases.

And while ACC has slightly trimmed the increases for motorcyclists, they are not happy.
 
On Tuesday parliament's forecourt, the scene of the bikers' protest, was virtually deserted and bikers say ACC's latest response is an equally empty gesture.

"We're standing here on the steps of parliament, out there we had five, six thousand motorcyclists come to parliament to make their point. And we've been ignored. Basically ACC has gone 'thank you guys, we're not interested'," said Peter McIntosh of the Ulysses Motorcycle Club during the protest.

Bikes over 600cc were going to cost $780 a year. That has now been trimmed by $40 but it's still $300 more than they cost now.

Most other bikes will cost around $85 more a year.

"People will be upset and they'll be angry," says McIntosh.

Campaigners say they want dialogue with ACC, but admit more anger means more protests.

Incredibly, ACC told ONE News only one person in the corporation could comment, and he was in meetings all day Tuesday.

But they gave an illustration of why the levies must go up.

If a middle aged biker earning $80,000 a year breaks his back in a motorbike crash, the cost of care for the first three years is estimated at nearly $800,000, rising to over $4 million over his lifetime.

That is to cover the cost of spinal unit rehabilitation, home and child help and income compensation.

Two weeks ago after ONE News cameras filmed ACC Minister Nick Smith meeting with bikers, he was feeling generous.

"I think the size of the increase that the ACC board has proposed is too much," he said on November 17.

On Tuesday we were told he was also in meetings and had no comment to make. But his counterpart, Labour's ACC spokesman David Parker, did.

"You've got to ask why is it that the government's doing this. And that's because they're trying to scare people into accepting change and privatisation of ACC when it's not necessary," says Parker.

And protesters promise there's no way they're going to let the issue ride.

ACC chair defends hikes

ACC chairman John Judge says the organisation received a record number of submissions on its proposed levy hikes, but ACC still wants to bring in more money and is only slightly lowering the recommendation for the motor vehicle levy.

As a result ACC is still asking ministers to lift the average employers and self employed levy from $1.31 per $100 of earnings to $1.89.

The average earners' levy (taken out of PAYE) should also rise from $1.51 per $100 to $2.48.

"There are several reasons why we have generally stuck to our original figures. Most importantly, we believed that if the levies were set at lower levels then ACC's difficult financial situation would only be worsened," Judge says.

The government is yet to decide the size of any increases, though Smith has indicated hikes proposed by ACC were unlikely to be approved by Cabinet.

The government has also not yet legislated to push out the deadline for full funding of past ACC costs, which will reduce many of the proposed hikes.

Judge says ACC is also trying to reduce costs but without the levy hikes the future of the corporation would be in doubt.

"It is clear that these increases will be unpalatable, especially in the current economic climate.  But if New Zealand is to retain the ACC scheme then I believe they are necessary," Judge says.

Click here to view a summary of the ACC Board's levy recommendations.

What do you think about the proposed changes? Have your say on the message board below.

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  • mouthguard 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.

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