INDEPENDENT NEWS

Farmers' ACC Payments Jump 21% On Saturday

Published: Thu 29 Jun 2000 05:34 PM
Federated Farmers President Alistair Polson said today that farmers will be furious and disillusioned at the 21% increase in their accident insurance bills from the new Government monopoly ACC.
"Farmers will be bitterly disappointed by this jump in their ACC cost. The Government promised that the average ACC rate would be lower than under the previous competitive market," Mr Polson said.
"The Government made a promise that ACC's costs would be cheaper, and the new ACC's performance would be better than in the past. Neither has proved to be true for farmers."
"Another frustration is that ACC's new Self-employed package that allows farmers to purchase guaranteed weekly compensation is still not ready.
"Self-employed businesspeople will receive the old, second class, accident insurance coverage from ACC, and are highly unlikely to receive weekly compensation."
Federated Farmers advises self-employed farmers to seriously consider buying income top-up insurance from the private sector.
The new ACC farming rate has increased by 21% over the rates available from the private sector, moving from $1.88 per $100 of wages or salary, to $2.28.
Farmers should have received their information packs this week. The federation has been monitoring the insurance market, and considers that the insurance companies were happy with their rates, and forecasting further reductions.
"Rural employers have no defence against this monopoly charging. Only the lack of competition enables this unjustified extraction of funds from rural New Zealand. This jump could not have happened under a competitive market."
"Is this is a repeat of the December 1995 45% increase that was later found to be unjustified, and reduced the next year. If so, farmers can't have much confidence in the continued performance of the new ACC organisation."
"This increase will only further erode confidence in the new Government," concluded Mr Polson.
ENDS

Next in New Zealand politics

Government to end tenure review
By: New Zealand Government
A new future for work skills training in NZ
By: New Zealand Government
Progress Stalled in Reducing Inequality
By: Salvation Army
SSC to seek answers on IRD survey
By: New Zealand Government
Prohibiting smoking in vehicles carrying children for health
By: New Zealand Government
Nationwide events to commemorate Waitangi Day 2019
By: New Zealand Government
Forest & Bird welcomes end to tenure review
By: Forest And Bird
Fish and Game welcomes the halt to tenure reviews
By: NZ Fish and Game Council
Purchase of unique North Otago reserve announced
By: New Zealand Government
Regions will suffer under centralisation of training
By: New Zealand National Party
SIT should not be merged
By: New Zealand National Party
Govt should privatise vocational education
By: ACT New Zealand
Vocational education needs to serve learners and businesses
By: Business New Zealand
Do not dismantle industry-led training and apprenticeships.
By: Industry Training Federation of New Zealand
Bold proposal puts people at heart of vocational education
By: Tertiary Education Union
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media