Operators uneasy at ACC levies

Queenstown tourism operators are facing increases of up to 100% on ACC levies if proposed changes go ahead next year.

NZSki chief executive James Coddington said the company's levies were going up from $2.77 to $5.54 per $100 of wages.

It had made a submission to ACC on its proposed levy increases for 2010-11.

"We've made our concerns known to ACC. We have concerns as an employer that 100% increases are not in line with increasing costs. If anything, we have reduced our costs," he said, adding the company had worked hard to reduce work-related injuries and took health and safety very seriously.

Ski Areas Association chief executive Miles Davidson said it would be fairer if ACC determined levies based on each employer's direct cost of claims.

"We are making every effort to reduce costs and maintain prices. A 100% increase in ACC levies imposed by a government agency works against this effort, and will impact severely on our profitability and future growth," he said.

Ngai Tahu Tourism southern regional general manager David Kennedy said the increase for his company was "significant".

The company runs Shotover Jet and Dart River Safaris and employs 100 during the peak season.

He said ACC should introduce the increases over time.

"A staged introduction would give us time to understand the impact on our costs. We set our prices two years in advance, so any unbudgeted costs severely impact on business,' he said.

Kawarau Jet director Andy Brinsley said ACC calculated levies on perceived, rather than actual, risk.

He said he expected some increases, but ACC should soften the blow to tourism operators by introducing them over time or adjusting them to allow businesses to pay less in off-peak seasons.

Tourism Industry Association (TIA) chief executive Tim Cossar said tourism operators were facing levy increases of between 30% and more than 100% if proposed changes to ACC go ahead.

The increases would put significant strain on an industry already trading through difficult times, he said.

In its submission to ACC on its proposed levy increases, TIA had asked for a staged introduction to give tourism businesses more time to manage and adjust to the higher levies.

Mr Cossar said a ski company employing more than 100 staff would be faced with levy increases of more than $300,000 a year.

Sport and physical recreation, amusement and outdoor guiding businesses would face levy increases of around 100%, accommodation, cafes and restaurants more than 80% and bus transport 63%.

Hospitality Association New Zealand chief executive Bruce Robertson said the proposed increases were "draconian".

"In the past 12 months we have had 100 members close their doors and many more are marginal at best," he said.