Consultation on Proposed Changes to the Motor Vehicle Account Premiums ACC is responsible for managing the Motor Vehicle Account which meets the costs of people injured in accidents involving motor vehicles on public roads. The Motor Vehicle Account has previously been funded on a `Pay As You Go' basis. On a `Pay As You Go' basis, premiums are set each year to collect as much money as would be spent in that year on motor vehicle injuries. The Accident Insurance Act 1998 requires the Account to be managed on a `Fully Funded' basis from 1 July 1999. This means that enough money needs to be collected in 1999 to meet all the ongoing costs of the injuries which occur in that year. ACC invites interested people to make submissions about the premium rates required to obtain full funding before a recommendation is made to the Minister for ARCI. The new premium rates will take effect from 1 July 1999. The 1999/2000 premium options available to generate the increased revenue required for the transition to a fully funded system are: Increase the petrol levy; Increase the vehicle licence premium; or A combination of both. Full details of the options are set out in the consultation paper. ACC invites premium payers to make submissions on the above proposals. A discussion paper and the proposed regulations are available by writing to: Motor Vehicle Premium Consultation ACC P.O. Box 242 Wellington or by contacting Trish Millward on (04) 918 7304 or the ACC premiums help desk on 0800 222 776. Copies may also be obtained from ACC's website: www.acc.co.nz Submissions close on 29 April 1999.