New Zealand Labour Party

90,000 cars reclassified in botched ACC ratings

New figures obtained by Labour show the ACC Minister’s botched motor vehicle levy system has resulted in 90,000 vehicles having to be reclassified so far – at a cost of $6 million, Labour’s ACC spokesperson Sue Moroney says.

“Nikki Kaye’s unfair, flawed system will mean a fall in ACC revenue of at least $6 million because these 90,000 vehicles were given the wrong safety rating – they were initially classed under the highest rate but have been dropped to the two lowest rates.

“This follows reports today that the Government has already been forced to refund $578,000 to motorists who were overcharged for their vehicle licenses.

“Last week Labour revealed the flawed system had cost more than $3 million to develop and implement.

“By the time the cost of responding to the growing mountain of complaints is factored in, ACC will be $10 million down the gurgler without making a single improvement to road safety.

“The Minister’s incompetence has already wasted enough money – it’s time she admitted she got it wrong and scrapped the faulty system before it costs more money.

“Every day more mistakes are being exposed as angry motorists wrestle with ACC over the faulty risk rating model. It is like watching a car wreck in slow motion,” Sue Moroney says.