ACC levy consultation document has been released, and includes two changes of significance for the transport and heavy equipment sectors.
This includes the development of new GSV classes to collect levies, and the introduction of a fleet safety incentive program.
Feedback is currently requested on the proposed Motor Vehicle levies for 2013/14 (available online), with submissions closing 5pm on October 23.
In response to concerns raised by private and small business owners of utility vehicles and vans to the levy
increase in 2010, ACC has investigated the drivers of cost (or risk) in the GSV class of vehicles.
It proposes that the goods service vehicle (GSV) classification – which is currently two sub-classes based on fuel type – be split into four by introducing a gross vehicle mass component.
This follows concerns raised by private and small business owners of utility vehicles and vans, to the levy increase in 2010.
The trends from claims experience over the last five years, show that the average cost of claims for trucks is 80-90% higher than vans or utes. Trucks with a gross vehicle mass of 3501 kg and over account for 3% of the total registered vehicles but contribute to 15-20% of total costs in the ACC’s Motor Vehicle Account per year.
The GSV split proposal will more accurately reflect the respective ACC costs resulting in an injury from light and heavy GSVs, meaning a discount for the former and increase for the latter.
Diesel and LPG GSVs currently pay a levy of $467.08 for the 2012/13 year. The proposed 2013/14 changes would see GSVs under 3500kg paying $355.59, and those 3501kg and over paying $643.18.
The petrol powered GSV levy of $383.02 (including petrol levy) would be be split along the same lines, totalling $355.59 and $643.18 respectively.
There are approximately 452,000 vehicles in the GSV class. Implementation of the proposal will result in reductions for about 341,000 light GSVs. A significant proportion of these light vehicles are used for private purposes or used by small businesses. Increases would occur for 111,000 heavy, mainly non-petrol, GSVs.
ACC has used information from the Road Transport Forum to assess the impact of the proposed changes on a median-sized road transport fleet consisting of three trucks. The increase in heavy GSV levies supposedly adds less than 0.1% to the annual operating cost of 3-truck business.
ACC also proposes to introduce a Fleet Safety Incentive Programme (FSIP) from July, 2013. The programme will be voluntary and seeks to support operators of heavy vehicle fleets to move from compliance with regulations to implementing best practice fleet management. The FSIP will be audit-based and provide fleet owners and ACC with an objective assessment of the safety practices within the fleet.
Fleets that meet the audit standards will benefit from lower ACC levy charges when the vehicles are licensed each year.
As a fleet attains higher levels of assessed safety practices, the annual levy charged by ACC will further reduce. This will provide a more accurate representation of the respective ACC levy rates that heavy GSVs should pay, based on the relativity of risk that they represent on New Zealand roads.
The programme focuses on fleet practices that improve road safety, reduce workplace injuries and improve fuel efficiency. Fuel efficiency is included because of the strong evidence-based links between safe driving and fuel efficient driving.
Both behaviours require drivers to observe and anticipate the situations ahead, manage speeds, and maintain their vehicles in good condition.
The type of fleet management practices required to improve safety, injury prevention, and fuel efficiency are essentially the same.
Fleets which have implemented fuel efficiency measures in New Zealand have typically saved between 10% and 18% of their fuel bills and have reported 50% reductions in incidents. A 10% fuel saving typically results in an increase in fleet profit of up to 30% because profit margins are small and fuel is a relative large expense.
Similar schemes in other countries have shown decreases in crashes, improved productivity and significant savings beyond the insurance costs to the fleets involved in the programme.
The FSIP is modelled on the ACC Workplace Safety Management Practices (WSMP) programme that encourages employers to create and maintain safer workplaces and recognises/rewards employers who have established health and safety systems and good practices in injury prevention.
The FSIP is tailored for heavy vehicle fleet management. It includes workplace injuries, road safety and fuel efficiency.
Each fleet will be audited on site at least once every three years, with telephone-based audits undertaken in the years when an on- site audit is not carried out.
In addition, ACC will be monitoring crash, injury and infringement data associated with the fleet, to ensure ongoing improvements in safety are being made.
Demonstration of good safety management systems and improvements in safety outcomes are required to maintain membership in the programme.
