New Zealand Labour Party

Flawed system costs $3 million and counting

New figures obtained* by Labour show the Government’s shambolic ACC car registration levy system has cost more than $3 million to implement and the costs are set to escalate, Labour's ACC spokesperson Sue Moroney says.

“That’s $3 million that could have been passed on in levy reductions if ACC Minister Nikki Kaye had not brought in this flawed, confused and unfair new system.

“This funding doesn't even cover the cost of fixing up the mistakes found so far, or the levy revenue lost because 22 models had to be reclassified to lower levy payments. The Government has so far withheld this information from the public, but I will keep digging to expose the full folly of this debacle.

“Most alarming is $2.5 million spent on an ICT system that couldn’t even recognise models with more than two words in their name.

“Around $268,000 has been spent so far on advertising and promoting the flawed system, while the costs are yet to be finalised for the use of consultants for a ‘quality review of the tool for risk rating’.

“I hope the Government will be demanding their money back from these consultants.

“The data ACC is using is so flawed, it has also already been the subject of two Fair Go investigations since the system was launched less than three weeks ago.

“National’s levy system penalises people who can’t afford the latest model cars. It beggars belief that shifting more costs onto them will make our roads any safer,” Sue Moroney says.

* This figure was obtained by Labour through written Parliamentary questions to ACC Minister Nikki Kaye.