Call to raise levies for accident scheme

PUBLISHED : Wednesday, 10 November, 1993, 12:00am
UPDATED : Wednesday, 10 November, 1993, 12:00am

THE Government has proposed raising the levies on drivers and car owners by 156 per cent over the next two years to ensure victims of road accidents get compensation.

In a paper to legislators, the Health and Welfare Branch said the Traffic Accident Victims Assistance Fund would be depleted by early next year. It estimated expenditure would exceed revenue by $41.8 million in 1993-94, bringing the fund down to $2 million.

The scheme came into operation in May 1979. It aims at providing speedy financial assistance to traffic accident victims. Anyone who receives compensation from other sources has to refund the money.

''In order to keep the fund solvent, an increase in levies is needed before the end of this financial year. If no increase in levies is approved, payments to accident victims will have to cease when funds run out,'' it said.

If the proposals got through, no further increase would be necessary before 1997, the branch said.

The levy on a one-year vehicle licence now stands at $48, and on a three-year driving licence it is $16.

The latest proposal came despite the fact legislators threw out a similar suggestion in March, which sought to raise the levies by 50 per cent.