Motorcycle accidents are creating escalating costs and New Zealand needs to decide who will pay, ACC Minister Nick Smith says in the face of anger from motorcyclists over incrasing levies.
Motor vehicle levies are set to rise from $287 to $317.80 under changes flagged by ACC yesterday. The increase will be collected in increased registration fees and petrol tax.
Moped owners face a jump in the licence portion of the ACC levy from $58.97 to $257.58 in 2010/11.
All petrol powered motorcycles currently pay $252.69.
The portion for motorcycles under 125cc will increase by $5, for 126-600cc it will increase to $511.43, and for those over 601cc it will rise by $493.08 to $745.77.
Non-petrol powered motorcycles also face significant increases.
Motorcyclists are unhappy with the changes.
Phil Garrett, director of Street and Sport Motorcycles in Christchurch, said most accidents involving motorcycles were caused by another vehicle.
Motorcyclists would rise up against the changes, he said.
Labour MP Rick Barker said the rise would prejudice motorcyclists.
"They will probably have to go to the bank manager to ride their bikes if Nick Smith has his way to try to afford the levies."
The ranking of motorcycles by cc rating did no take into account the relative power of a motorcycle -- a 650cc vintage motorcycle would cost more than a 250cc modern one which was capable of doing more than 200km/hour, Mr Barker said.
It also did not take into account people who own more than one motorcycle.
"They can only ride one at a time," he said.
"How is it fair that a motorcyclist is knocked off their bike by a car and then they are charged much higher levies for the experience. That means the victim pays." The changes were a plan to drive motorcycles off the road, Mr Barker said.
However, Dr Smith said there was a social trend of middle age baby boomers buying motorcycles and accidents costs were increasing too.
"The claim that it is cars that cause the accidents does not negate the debate... the cost of other motorcycle accidents far exceeds the proposed levy.
"I was at first quite taken aback at the size of the proposed increase but even more surprised at the actual claim's costs to ACC of motorcycle accidents"
The Government had not predetermined the appropriate increase per cc rating and encouraged people to have their say before submissions closed on November 10.
ACC said that in 2008/09 it paid more than $62 million for accidents involving motorcycles. It collected $12.3m in levies from motorcyclists in the same period.
