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MPs pass first reading of ACC bill

28/10/2009 7:00:03

The controversial new ACC legislation has passed its first reading in Parliament despite a range of speeches by opposition MPs criticising the bill.

The bill will see levies raised and some entitlements cut. The Green Party, Labour and Progressive MP Jim Anderton voted against it, but the bill went through to select committee by 69 votes to 53.

Green Party MP Sue Bradford hopes opposing MPs are not the only ones who make their voices heard.

"In almost ever respect, this bill is a shocker and I hope all affected individuals and organisations will feel moved to make clear, strong submissions to the select committee."

ACC Minister Nick Smith has said the changes to the scheme are necessary to deal with huge deficits. In the 2008/09 financial year ACC showed a loss of $4.8 billion. It lost $2.4 billion the previous year.

Last night, Dr Smith told MPs that reforming ACC is vital because thousands of New Zealanders rely on it for their wellbeing and it needs to be robust.

"This Government is committed to the core concepts of ACC as a 24/7 no fault insurance for New Zealanders at work, at play and on the road."

The bill will now be considered by the Transport and Industrial Relations Select Committee which will report back to Parliament early next year.

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