12. Question No. 12—ACCHon TIM MACINDOE (National—Hamilton West) to the Minister for ACCQuestion No. 12—ACC12. Hon TIM MACINDOE (National—Hamilton West) to the Minister for ACC: Does he stand by all his answers to Oral Questions relating to ACC's proposed increase to motor vehicle levies which would include an increase of 1.9c per litre for petrol?Hon IAIN LEES-GALLOWAY (Minister for ACC): Yes.Hon Tim Macindoe: Why did he argue on Tuesday that the asset-to-liability ratio which in his words actually maxed out at 115.7 percent" in 2015 and has been significantly above the 105 percent funding position target each year since explains the proposed 12.1 percent motor vehicle levy increase when those figures actually highlight that an increase is neither needed nor justified?Hon IAIN LEES-GALLOWAY: Over the past two years the number and lifetime cost of treating accidents that happen on the road involving a motor vehicle has increased. ACC has paid an average of 30400 road accident claims per year. This is 9 percent higher than the last time it considered levies in 2016. Some of the drivers of increased costs include increased social rehabilitation costs involved in restoring the independence of road crash victims following accidents the impact of historically low interest rates which can impact the future performance of ACC's investments a higher volume of weekly compensation claims and a faster than expected increase in the lifetime cost of treating injuries. ACC is aware that it currently has more money in reserves than is needed to cover the costs of motor vehicle injuries already on its books. The projected solvency ratio as at the start of 2019-21—SPEAKER: Fairly soon fairly soon.Hon IAIN LEES-GALLOWAY: Nearly there Mr Speaker. The member has asked me this question several times. I think he's interested in the answer.SPEAKER: Well that's right. It's becoming tedious.Hon IAIN LEES-GALLOWAY: The projected solvency ratio at the start of the 2019-21 levy period i.e. 1 July 2019 is 111 percent and it needs to get back to its 105 percent target. ACC intends to do this by charging less than what it needs to cover the costs of treating injuries. This shortfall will be paid by the surplus that it has saved.Hon Tim Macindoe: Why does the Minister assert that an "exploding road toll" is behind ACC's proposed increase in the motor vehicle levy when the average road toll under the previous National Government was 305 deaths per annum—significantly lower than the average road toll of 416 road deaths per annum during the nine years of the Clark Labour Government?Hon IAIN LEES-GALLOWAY: Because despite the road toll falling consistently for a couple of decades over the last five years it has gone up steeply.Hon Tim Macindoe: Has he questioned ACC officials about their decision only to propose an increase in motor vehicle levies in its discussion document and not a decrease despite the ratio being so high in favour of assets?Hon IAIN LEES-GALLOWAY: Under legislation ACC is required to return its ratio to 105 percent over a 10-year horizon. In its consultation documents it has indicated that these proposals are what it thinks it needs to be able to give effect to that funding policy statement—a funding policy statement gazetted by the Hon Nikki Kaye.Hon Tim Macindoe: Is he concerned that the proposed increase of 1.9c per litre in the motor vehicle levy will add to the methamphetamine for petrol black market as reported by Newshub?SPEAKER: Order! That's not a matter of responsibility of this House.Hon Tim Macindoe: If the ratio is in such a healthy position will he recommend to Cabinet that ACC decreases the motor vehicle levy to provide New Zealanders with some much-needed respite from the skyrocketing petrol prices that have occurred under this Labour-led Government?Hon IAIN LEES-GALLOWAY: I will be making a recommendation that I think is responsible for the long-term viability of ACC and is responsible from the point of view of the living costs that ordinary New Zealanders face. I would point out that the motor vehicle levy is considerably lower today than it was for a large chunk of the time that National was in Government."