Labour wants ACC to reduce vehicle charge

The Labour Party says ACC's proposed motor vehicle levy increases are too high and it wants them reduced from the current level.

ACC Minister Maryan Street took the unusual step of issuing a statement in the name of the Labour Party because ACC is proposing rates for next year -- after the election.

The Government traditionally determines new levy rates, which may or may not differ from those proposed by ACC.

Ms Street said ACC was proposing a motor vehicle levy for next year of $287, up from $254 this year.

Under the change Labour would promote, next year's levy would reduce to about $203.

"Petrol and food price increases, together with high interest rates, have created additional spending constraints on families this year," Ms Street said.

"There was a sizeable increase in the motor vehicle levy last year and I don't want to see that repeated.

"If we did, I think we would run the risk of people failing to register their vehicles."

She said a range of factors influenced the proposed levy rates, including injury claim numbers, medical and surgical costs and rehabilitation rates.

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