The Automobile Association is dismayed the government has passed up an opportunity to ease the burden on car owners from ACC levies.
ACC had proposed to cut motor vehicle levies for the owners of all cars, utes and vans from next year but ACC Minister Judith Collins ruled that out yesterday in claiming the Government could not act immediately in that area because that account was not yet fully funded.
Instead, cuts to car licensing and petrol prices, would take effect from July 1, 2015.
The levy reductions would have ranged from $10 to $92 a year according to a vehicle’s safety rating.
The AA said today the total saving to some three million vehicle owners would have been $160 million for the 2014-15 financial year and every car owner would have received some level of reduction.
"The annual licence fees motor vehicle owners pay are the highest they have ever been,'' AA spokesperson Mark Stockdale said.
"Some motorists are struggling to pay their levies and it would have been a welcome relief for many people to save some money in licence fees."
The AA believes the Government could have given some reductions now and still achieved its funding targets.
"ACC will meet its funding target by 2015, four years ahead of schedule. Meanwhile, accident claims are falling due to safer vehicles, safer roads and safer driving. The AA’s view is that motorists should be rewarded with cuts to levies now.
"The government's decision is denying motorists savings of $160 million in their own pockets, money that would be much better spent in the economy – or used to maintain vehicles to a safe standard – than putting ACC's books in the black sooner.