LeesGalloway lukewarm on ACC petrol hike
AUCKLAND: ACC will have to make a ‘‘very strong case’’ as to why it thinks petrol prices should increase by a further two cents a litre.
This is according to ACC Minister Iain LeesGalloway, who said the Government was ‘‘acutely aware’’ that New Zealand families face rising living costs and have had suppressed wages for 10 years.
Yesterday morning, ACC proposed increasing the road user levy, which would increase the price of petrol by 2c a litre. This would be on top of this weekend’s introduction of nationwide petrol excise duty of 3.5c a litre.
It is also recommending the Government increases the average motor vehicle levy for road users from $113.94 to $127.68 — a 12% increase.
ACC has proposed the levy be increased to help pay for the increasing costs associated with the higher number of road accidents across the country.
The Opposition has called on the Government to immediately rule out implementing the levy, but Mr LeesGalloway is waiting until ACC’s fourweek public consultation period has ended before making his recommenda tion to Cabinet.
But speaking to media, he did not sound keen on slapping on another tax at the pump.
‘‘I can assure everyone that this Government is very well aware of the cost pressure New Zealanders face — we’re able to take that into account when we make our decision about ACC levies and we will.’’
National’s transport spokesman, JamiLee Ross, said the levy was yet another tax being proposed to hit motorists at ‘‘literally the worst possible time’’.
‘‘We’re already seeing stories of the record high price of fuel taking food off the table for families and putting the pinch on household budgets across New Zealand.’’
A regional fuel tax was introduced in Auckland on July 1 and generated $13.2 million in its first month — $700,000 more than initial estimates.
This week, average fuel prices passed $2.40 a litre in some areas.