Opposition claim rejected by A.C.C.

Press, 12 June 1987, Page 4

Opposition claim rejected by A.C.C.

Wellington reporter The Accident Compensation Corporation has rejected an Opposition claim that debt collectors would be used to obtain unpaid levies.

The claim was made yesterday by the Opposition spokesman on the A.C.C., Mr Merv Wellington, who maintained that the A.C.C. had announced the move. .

The A.C.C.’s managing director, Mr Jeff Chapman, denied any such announcement.

The A.C.C. would take action against any employer who deliberately flouted the. law, but he knew of no suggestion that debt, collectors would be used.

The deadline for the controversial increased levy was June 2, and employers will be liable for a 10 per cent penalty

on unpaid levies. Employers with genuine financial problems are able to seek relief from the Inland Revenue Department, which collects the levy.. Mr Chapman was unable to determine? the extent to which employers had not paid or had paid at last year’s rate, because processing the payments took time.

However, the $290 million already received by the A.C.C. appeared to be about $23 million less than expected..

This estimate was based on the way payments had come in in previous years, and took account of the average 200 per cent levy Increase this year. A complete picture of the threatened levy revolt by some employers would not emerge for another week, Mr Chapman said.