A.C.C. levies ‘withheld’

Press, 9 October 1987, Page 3

A.C.C. levies ‘withheld’

PA Wellington Members of the Meat Industry Association withheld $32 million in levies to the Accident Compensation Corporation, the High Court at Wellington was told yesterday. They believed the levies were fixed at the wrong rate. Appearing for the association and 27 meat companies, Mr lan Millard said the levies, due in May increased three-fold and there may have been a miscalculation of $13.6 million in over-recovery. The industry was aggrieved by the increase, which was announced in December. The association paid the old levy and at the same time filed a

hearing application in an attempt to clarify the matter. Mr Millard said the A.C.C. retrospectively imposed a higher rate on the levy period ended March 31, 1987, when it should have been calculated at the rates in force during that time. The companies did not know of the increase, and would have had to increase killing charges for the remaining three months of the financial year to recover a 12month levy increase. This would have unfairly penalised farmers who slaughtered their animals then. Meat companies did not seek to overturn the rate, but thought it would not have been the intention of Parliament to impose higher costs of production on employers which were unknown during that time, he said. Appearing for the A.C.C., Mr John Gibson said meat companies paid only $9 million of the $37 million due in levies. A 10 per cent penalty was imposed with a further penalty to be imposed on November 30. Although the penalties were substantial, so were losses suffered by A.C.C. in unpaid levies, Mr Gibson said. The new rate was not retrospective. After submissions and replies, Mr Justice Heron adjourned the Court to consider his decision.