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The amount of money New Zealanders shell out in levies that
cover them if they are injured in an accident is about to
rise.
That is because the government wants to cut the cost of the
accident compensation scheme and build up enough money in the fund
to cover New Zealanders in the future.
So, for motorcyclists, taking a road trip is about to get much more expensive.
The government is targeting motorcyclists in its Accident Compensation Corporation (ACC) shake-up, as well as hitting all New Zealanders in the pocket with significant increases in ACC levies.
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.
ACC Minister Nick Smith says it is the toughest thing he has had to do in politics.
"Frankly, fronting up to families and asking them to fork out another $300 a year for ACC levies at the same time as I'm having to ask for a pullback in entitlements is probably the most difficult political message I've had to give the public in my 20 years in this parliament," he says.
Difficult maybe, but it is claimed necessary, if ACC is to bridge the $13 billion gap between its assets and liabilities.
"This is like a mortgage, if you don't start paying it off now, it'll be a bigger problem next year," says John Judge, ACC Chairman.
Employers levies are going up by 16 cents in every $100 to $1.47.
Levies taken directly from workers' pay packets are rising too, by 67 cents in every $100 to $2.17.
New Zealanders will also be paying in other ways.
Car registrations are rising, but the biggest increase is in motorbike registrations.
Moped registrations will go up by $200 to $260 a year. Registrations for motorcycles from 126cc to 600cc will go up by $260 to $511. And registration for powerful bikes over 600ccs will go up by almost $500 to $745.
Entitlements cut
As well as asking people to pay more, entitlements are being cut.
Coverage is being reduced for injured casual and part-time workers.
It will also be harder to qualify for funding for hearing aids.
There will be part charges for certain treatment, and even tighter rules around funding for cars and house modifications for people with disabilities.
Critics, such as Labour's ACC spokesman David Parker, say the Minister's changes are far too drastic.
"I think he's manipulated people so that he can generate this fear that the ACC system is fundamentally broken when it's not," Parker says.
But the Minister says the change is necessary if New Zealanders want a world-class accident compensation scheme.
Another change is that families of suicide victims won't be
getting compensation in future. ACC says that is costing
millions of dollars.
Claimants not happy
The reaction to the changes has been swift and not too much of it is positive.
South Canterbury couple Lorraine and Robert Keenan are both on ACC and they are angry with the Minister.
Lorraine has been told she is no longer eligible for ACC payments.
"I've been punished enough by having the accident and now I'm really punished," she says.
Her hand was crushed milling wood six years ago.
ACC says it does not dispute she is in pain but it has now ruled the pain is due to rheumatoid arthritis, not the injury.
The couple are seeking a review but fear they will lose their home.
"Government created ACC to protect people and you lot, you've turned around and done a 360 and kicked us all in the a*se and kicked us out." says Robert.
ACC lawyer John Miller says he is seeing more and more clients like the Keenans.
But Wednesday's announcement is a blow, too, for motorbike users.
Steve Longley's Ducati is his pride and joy. But news it could now cost him $745 a year to ride it has left him shocked.
"That's dear, one hell of a jump," he says.
He owns four bikes in total - meaning all up that's $2,000 each year to register them.
"I think biking people will try and fight this," he says.
You can send your submission:
By post:
Levy Consultation
ACC
PO Box 242
Wellington 6140
By fax: 04 918 4395
By email: consultation@acc.co.nz
Deadline for submissions: 5pm, 10 November 2009
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.