12 Oct 2009

PM keen to avoid big hikes in ACC levies

6:47 pm on 12 October 2009

Prime Minister John Key says he wants to avoid hikes of 30% to 50% in accident compensation levies - but will not yet reveal how big the increases will be.

The Government will introduce legislation on Wednesday extending the deadline to fully fund historic ACC claims - a move it says will reduce pressure on levy increases next year.

The Accident Compensation Corporation will release its options for levy increases for public consultation on Wednesday.

The ACC board has said the increases will be substantially more than 10%.

However, Mr Key says they will not be as high as 30% to 50%, as that would cut into people's incomes and be unacceptable.