9. Question No. 9—ACCHon TIM MACINDOE (National—Hamilton West) to the Minister for ACCQuestion No. 9—ACC9. Hon TIM MACINDOE (National—Hamilton West) to the Minister for ACC: Does he stand by all of his answers to Oral Questions on 24 and 25 October including his answer that he will neither rule in or out any proposed increases to ACC levies"?Hon IAIN LEES-GALLOWAY (Minister for ACC): Yes including the clarification that I made on 25 October.Hon Tim Macindoe: Why did the Minister claim that ACC needs to increase motor vehicle levies further raising petrol taxes when the 2017 annual report upon which levy adjustments were proposed in the consultation process confirms that revenue from that source was above 110 percent and a further result above 110 percent is revealed in the 2018 annual report while ACC's funding position target in both of those reports is only 105 percent?Hon IAIN LEES-GALLOWAY: Because contrary to what the member just said it's not that the revenue is 110 percent; it's that the assets are 110 percent of the total liabilities. That asset to liability ratio actually maxed out at 115.7 percent under the previous Government. It has been dropping since then and in order to maintain a steady progress towards 105 percent—the mid-point of the 100 to 110 percent—we have to make sure that levies are set at an appropriate level. That decision is ultimately of course a decision for Cabinet. Cabinet is yet to make that decision.Hon Tim Macindoe: If as the Minister said last week ACC's accounts need to be brought back to being more sensibly funded and that Cabinet will take that into account when it makes a decision about future ACC levies isn't this proposal which would see a further increase in petrol tax when New Zealanders are already feeling considerable pain at the pump a long way from being "very convincing"?Hon IAIN LEES-GALLOWAY: The member makes a good point that ultimately I and Cabinet have to be convinced by the case that ACC makes. ACC is yet to make that case. But I would also point out—this is important for the member to know if he wishes to be an effective Opposition spokesperson—that the funding policy that ACC is legislated to work under requires it to give effect to the target band of 100 to 110 percent and that if the asset to liability ratio is outside of that target band it must set levies at a rate that will allow it to achieve that band over a 10-year horizon. That is the funding policy statement that was put in place by the Hon Nikki Kaye.Hon Tim Macindoe: So in light of that answer will he now rule out a 12.1 percent increase in motor vehicle levies and commensurate increase in petrol tax given that ACC has reported results well above its own funding position target for the motor vehicle account in each of the last three financial years?Hon IAIN LEES-GALLOWAY: I reiterate that although I have said that ACC will need to make a very convincing case they have only just completed their consultation. They have yet to make a recommendation to me and I am yet to make a recommendation to Cabinet. What I will do is take into account not only the rate at which ACC can return its accounts to the appropriate level of funding but also matters such as the cost of living and costs that are faced by middle-income New Zealanders. That is the decision that Cabinet will make."