Levy plan slammed by bikers

BY LAURA BASHAM
Last updated 13:04 16/10/2009

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Nelson motorcycle owners say the Government's proposed increases to ACC levies are horrendous. They believe motorcyclists are being picked on as an easy target and are predicting a big backlash.

Owners of bikes over 601cc will see their annual ACC levy increase from $252.69 to $745.77 under the proposal. Those owning bikes from 126cc to 600cc face an increase from $252.69 to $511.43.

The nation's 20,000 moped owners each face a $58.97 jump in the licence portion of the ACC levy to $257.58. Mopeds, classed as having a power output of two kilowatts or less and a maximum speed of 50kmh, will be lumped in with small motorcycles.

The proposed levy increases are on top of motorcycle registration – now $129.98.

Motueka rider Leanne Chapman, who owns a 750cc Ducati Super Sport, said the proposed $745 levy was horrendous. "That's going to make it impossible to pay. It's ridiculous."

She predicted motorcyclists would ride without paying their registrations if it went ahead.

The Government said if ACC charged motorcycle owners for the true cost of injuries, their levies would range from $1200 to $3700.

It argues motorcycles are 16 times more likely to be involved in a road crash than other road users, and while motorcycles comprise only 3 per cent of vehicles, motorcyclists' injuries are 21 per cent of road-crash injury claims to ACC.

"Half the time the crashes are not the motorcyclists' fault," Ms Chapman said. "My partner was seriously injured and it wasn't his fault.

"The car pulled out in front of him. He spent four days in hospital and was six months off work."

In Tahunanui, AB's Motorcycles owner Andy Watson, who owns a 900cc and 1000cc Ducati, said the increases were unfair and there would be protests.

He reckoned there would be such an outcry the Government would have to backtrack.

He believed it would be more realistic to charge $500, regardless of the motorcycle size, and that should include third-party insurance.

In Nelson, McLean Motorcycles manager Jason Howcroft, who has three bikes, said motorcyclists were being unfairly targeted because it was easy. "They're not going to ask for any contribution from rugby players, cyclists and off-road riders because they don't have registration, which means they are not spreading it around groups who have high ACC claims."

Motorcyclists were being asked to pay when 75 per cent of crashes were caused by other road users.

Karel Pavich, of Nelson, who is New Zealand's first woman road-racing champion and does motorcycle training, said it would be better to have incentives for skills training as a way to make the roads safer and reduce ACC costs.

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Nelson student Rory McShea, 15, who has a 50cc Suzuki, said he did not have the money to pay the levy and his parents would be landed with the cost.

Nelson Motorcycle Club president Simon Routledge said ACC needed to be reviewed.

He would prefer to see the cost met through a user-pay charge through petrol tax rather than a levy on registrations, which penalised owners who had four or five bikes.

HOW MUCH?

Proposed ACC levies: Bikes over 601cc – $745.77

126cc to 600cc – $511.43

Mopeds – $257.58

- © Fairfax NZ News

12 comments
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Media Propaganda Suckers   #12   11:13 am Oct 19 2009

Horse #10 - Somewhat simplistic view

- Does this mean that health care for car drivers, who make up the majority of accidents due to sheer weight of numbers, is somehow cheaper?

- Why pay per registered vehicle as it's not possible to use them all at once?

- Why pay more for higher capacity bikes when it is more likely learners on smaller bikes who have accidents?

- Statistics are manipulated without taking into account real cause of accident (e.g. car hits bike - recorded as motorcycle accident, dirt/diesel/gravel on corner with no warning signs - recorded as motorcyle loses control on bend etc). Greater transparency means ACC hikes could then go against cause - increased car registration to cover for cars hitting bikes, increased truck reginstration for truckies who's diesel tanks are allowed to overflow and spill, greater contributions from roadworks companies who fail to maintain roads and/or post hazard signage etc

- What about all the other recreational sports and activities that lead to injury that are not taxed (Rugby, Netball, Soccer, Mountain Biking, Skiing, DIY etc)?

- If Government/ACC really want to go down the personal healthcare insurance line then cut all ACC tax related contributions and then open the market to competition and risk assessed according activities, age, experience etc so a single healthcare premium is paid.

The proposal has so many flaws it's hard to know where to begin.

Graham McCormack   #11   10:09 am Oct 19 2009

Just been reading comments. What I think most have missed is the blatant, incompetent and appalling financial and corporate mismanagement that appears to be rife in all government entities. These people pat each other on the back, pretend to be "business people" of equivalent skill and stature to private companies and get paid accordingly. The reality is that they are incompetent and have no business sense. How can you loose $4.8B in one financial year and not notice? ACC along with IRD are so full of dead heads and dead wood they have become the replacement for Railways and Post office type work scheme employment. So now we motocyclists and motorists in general will have to pay for their incompetence. Maybe it is time to emigrate to Australia and buy a business over there?

Horse   #10   03:14 pm Oct 18 2009

Dave at #3: Nice rant, you sound like a muppet, not an IT professional. The issue isn't whose fault an accident is - it is about the costs of care. Nobody cares if you have a clean driving record - something which all motorcyclists seem to be claiming at the moment. It is why ACC exists - NO FAULT. I'm sure many motorists have seen motorcyclists race through the traffic or pass vehicles travelling at the speed limit on the open road - I'm sure those motorcyclists would also say the are careful yada yada yada. Motorcyclist injuries cost money, they already pay ACC so it is easy to re-coup the costs because there is a direct correlation and there is a levy mechanism in place. Lose the self interest, and think it through.

lisa   #9   01:52 pm Oct 18 2009

I think the acc levy rise is ridiculous and i dont even own a motorbike sounds like nz is heading australia's way when it comes to paying out more for owning a motorbike they pay about that a year if not more get rid of the this goverment please!.

Nick   #8   01:11 pm Oct 18 2009

I agree with previous comments, i ride myself and ive nearly been in accidents due to careless car drivers, and have known people who have crashed due to the fault of car drivers not looking. One of the most dangerous things i find and friends from overseas have commented on is New Zealand roads are horrible for motorcyclists! Whos the retard who thought it was a good idea to put slippery man hole covers and tar seal on the corners!

High Risk Holy Roller   #7   12:52 pm Oct 18 2009

As people have mentioned in other forums - the ACC is taking in $1.5 billion more than paying out so where is the crisis?

Not to be found in discriminating against one group that’s for sure.

I’d say the real crisis is from employing dead beats who allow budgets to blow out by 15+ times and concoct half arsed ill thought out schemes to fleece people who are already being taxed from multiple sources for ACC. So time to cleanse the parasites from the overbloated ACC carcass.

I have insurance which is calculated on risk and considers that at age 43 with 23 years riding experience, no claims bonus, limited mileage, single rider etc that the risk of me demolishing my bike is low (not sure if it factors in bad car drivers, poor roads, diesel spills etc). Although I’ve had two bikes stolen in this time which disappeared without a trace through our porous pseudoephedrine smuggling borders where the thieves probably got ACC funded physio for putting their backs out carrying them out of where they were stored at the time.

Meanwhile, under the proposed scheme it seems that I have the misfortune of possessing two impending instruments of injury over 600cc (much like as per the last 19 years). This obviously means double the trouble, despite not yet finding a way to ride them at the same time, so will cost $1750+ to register or in other words, since I can only get time for 30 or rides a year, about $58 per ride before petrol (a whole $20 for a tank) and running costs.

So to save some money and make a really good sized carbon footprint I may as well fly to Los Angeles and rent a motorcycle for a few weeks once per year and really enjoy myself riding without a helmet in my t-shirt and thong away from the bureaucratic fun police nightmare of health and safety know alls this country is mass producing.

Robert   #6   11:33 am Oct 18 2009

One would have thought that in the current environment of global warming the Government would be encouraging the use of motorcycles as a means of transport. Even large engined bikes are more fuel efficient than cars and have a smaller impact on the environment by taking less energy and raw materials to manufacture, they reduce road and parking congestion and cause minimalwear ans tear to the roads. Statistics (lies, damn lies etc) can be manipulated and I am sure the information used by ACC to justify a huge levy increase could also prove justification for a levy decrease. We must not allow ACC and the Government to persecute a minority group while they perpetrate the massive con of fully funding ACC. I have been riding bikes for over 35 years and have not yet had any ACC claim related to motorcycling. Perhaps we should take the ACT party view and privatise ACC so that those who truly use pay and those with a good record get a rebste like all other insurances. Another thought would be to require regular retesting for all driver license holders to ensure they still have the skills and abilities to safely use our roads. Even better would be to make it mandatory to spend two years on a motorcycle before being eligible to apply for a car license, this would certainly improve the driving awareness of all.

Nathan   #5   09:06 pm Oct 17 2009

I just cant get over it. I am a invalid on $270.00 a week. One of the few things i enjoy is riding my old 750. This is my only transport. Currently am getting two tires put on at a cost of $340, (the cheapest ones i can get) have struggled to keep my rego up to date. Then bang you get this. Suddenly Freedom and one of the few things i enjoy look deemed to end. I have owned 14 motorcycles and have never had a serious accident. How can someone on $272 a week be expected to pay $745 a year for rego. Its just unbelievable!

Ryan   #4   10:15 am Oct 17 2009

Its interesting that with insurance you are rewarded for an accident free tenure, however ACC will penalise you no matter how clean your record is. Shame the ACC with all their well paid execs and admin staff can't implement a similar system. As was mentioned, all sorts of unregistered vehicles will claim ACC, off roading, push biking, no doubt injuries occur

David   #3   03:37 pm Oct 16 2009

To Right there will be a backlash!

I am a IT professional, i have a young family and i thought a motor bike would be a good mode of transport A) because its cheap to run and doesnt use anywhere near as much petrol as a standard 4 seater car. B) because i thought it would be better for the enviroment. C) it ment my wife and child had the car with the car seat and we didnt run out of space on the driveway.

I might as well go get a smokey old banger and pay the cheap tax and to hell with the enviroment!

Ive been driving and riding bikes for nearly 20 years, ive never had an accident and yet i am going to be penalised.

I wonder if the ACC board will release how many of those $60M payouts they paid to motorcyclists were due to accidents caused by car drivers who came out better off and so did not require as much money from ACC?

The amount of times i get cut up, pulled out in front of and generaly disrespected by other motorists is astonishing, and thats why in the tests for motorcycles it says 'look out for other road users, because your more likely to be hit than a car driver'. Go grab a copy and see for your selves, its there in black and white.

If the government want to turn hardworking honest citizens into law doging poluting anarcists they are going the right way about it.

The government seem only to care at the moment about trying to claw back money into the coffers, its just been a recession, many people are struggling to get through day to day and yet the ACC bosses get nice big bonuses, they lay off workers and then tell everyone that hey were going to bump up the prices.

The reason why its motorbikes is because most people are turning to motorbikes because they go further on fuel than cars, and because of this the government are not getting as much taxes on car drivers petrol consumption and so they are going to try to make it up with the new motorbike riders.

Well Mr Key, i thought at first that you had things under control, now all i see is a business mentality of profit profit profit, now is not the time for profit but for aid to help the little people get through, not all of us have a few million in the bank!

Lets all get together and ride to parliment in force, block the streets make the government see that we will not take this laying down!

Next week there will be notifications of other increases in prices for some service that the general public use all the time thats government owned / run.

An idea to the governement, how many holiday makers come to New Zealand, injur them selves and get free hospital treatment? I once came on a working holiday many years ago, i broke my back kite surfing and had treatment, but i had insurance to cover me on my trip.

Shouldnt it be compulsary that people have insurance when visiting the country? Then the rest of the country wont be subsidising those people, and i wonder how many holiday makers hire bikes which are then involved in accidents costing the country money?

I think ACC need to release very transparent figures and not just grouped together information just because a bike was envolved.

Grrrr this makes me so mad!


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