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Proposed cuts in ACC entitlements and increases in levies follow weeks of the government frightening the public on the state of ACC, Labour says.
An average worker will have to pay $300 a year more if the government passes legislation to cut entitlements.
But if its amendment bill does not pass, the increase in levies advanced by ACC will be even higher, ACC Minister Nick Smith announced on Wednesday.
Employers and motor vehicle levies will also rise. At the same time, cuts were proposed to a number of ACC entitlements.
Click here for the full list of proposed changes and details on how to make a submission on the proposals. What do you think of the proposals? Comment on the messageboard below
Smith said the changes were aimed at cutting ACC's liabilities by $2 billion and will secure the long-term future of ACC.
He was "reasonably confident" the changes would "fix" ACC.
However, Labour ACC spokesman David Parker said Smith had been "scaremongering" about the prospect of higher levies and entitlement cuts.
Smith was trying to "convince people that ACC is fundamentally broken when it is not".
"The reality is that it remains cheaper than Australian equivalents."
Green Party ACC spokeswoman Sue Bradford said the changes to entitlements would "take us back to the late 1990s when accident victims who needed support were pushed off willy-nilly".
The changes were a "disastrous backward step" and continuing partial privatisation, she said.
"These changes are the beginning of the National Government's attack on New Zealand's no-fault accident insurance scheme that they ultimately want to privatise."
Smith said on Wednesday that while the levy increases were large, if the public wanted to keep "all those entitlements" as well, the levies will have to increase even more.
ACC chairman John Judge said he is satisfied the increased levies and entitlement cuts are enough.
The ACC Futures Coalition said the proposed changes to ACC undermined the system and heavily impact the vulnerable.
Engineering, Printing and Manufacturing Union secretary Andrew Little said increased levies were politically motivated and the government had failed to make a credible argument for their claims that ACC is in crisis.
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.