24 Feb 2010

ACC law change passes

8:53 pm on 24 February 2010

Parliament has changed the law on the Accident Compensation scheme after a full day of debate under urgency.

The legislation extends the date for full funding of ACC and cuts back on some compensation entitlements.

The Labour Party says people will pay more and get less under the Government's changes.

It put up hundreds of amendments during the committee stage of the bill, denying that it was filibustering.

The Maori Party, which supported the bill at its first reading, opposed it.

The law change was passed with the support of ACT and the United Future Party leader Peter Dunne.

Parliament has been sitting under urgency on Wednesday as it debates proposed changes to the Accident Compensation Scheme.

Parliament has been sitting under urgency on Wednesday as it debates proposed changes to the Accident Compensation Scheme.

The bill cuts back on several entitlements and pushes back the date to fully fund all the corporation's liabilities to 2019.

At the same time, ACC is considering closing two of its branches.

Labour deputy leader Annette King says it is a sad day for New Zealanders because people will pay more and get less under the changes.

But ACT MP John Boscawen told the House changes need to be made because ACC is running a huge deficit.

Parliament is also debating other bills under urgency, doing away with question time, which allows opposition MPs to grill ministers on issues of the day.

Labour is questioning why it has been denied that opportunity, especially given the controversy over personal spending on ministerial credit cards.

The Maori Party, which supported the ACC bill at its first reading, is now opposing the changes. It says a number of aspects of the bill which came up during the select committee process led it to withdraw its support.

The House will continue to sit under urgency until midnight, enabling the ACC bill to pass probably later in the evening.

Branch closures possible

ACC is talking to staff in Blenheim and Thames about possibly closing the branches, saying falling claim numbers have made the branches uneconomic to operate.

In the case of Blenheim, many of its clients live outside the area, it says.

ACC says small branches could be replaced with day clinics.

The corporation says affected staff may be given the option of relocating, but that is not yet certain.