Woodhouse Michael: Veterans’ Support Bill — First ReadingText is subject to correctionWoodhouse Michael: Veterans’ Support Bill — First Reading[Sitting date: 22 October 2013. Volume:694;Page:14102. Text is subject to correction.]Hon MICHAEL WOODHOUSE (Minister of Veterans’ Affairs): I moveThat the Veterans’ Support Bill be now read a first time. I nominate the Social Services Committee to consider the bill and at the appropriate time I intend to move that the committee report back to the House on or before 27 March 2014. New Zealand has a proud history of service in defence of our country and of freedom and democracy around the world—from the Second Boer War when New Zealand decided to help fight for the empire making that war New Zealand’s first overseas military campaign; to the Great War and the Gallipoli campaign where forces fought for the first time as a New Zealand contingent; to Passchendaele where New Zealand suffered the most grievous losses in our nation’s history; and to so many other theatres and conflicts thereafter. That freedom and the legacy of service to our country does however come at a significant cost. Many lives have been lost in defence of that freedom and even more injured.We members of Parliament sit in this House every day surrounded by the names of those theatres of war and campaigns—the Somme LeQuesnoy the Battle of River PlateCassino the Battle of Britain Viet Nam Malaya and a host of others. These are names that act as a constant reminder of the burden of any decision we make to send our young men and women into harm’s way. In July this year this House dedicated three more plaques commemorating service in Afghanistan East Timor and in missions in support of peace. It was a poignant reminder that more than 20000 modern Defence Force personnel are now veterans and of the need to have a legislative framework that supports all our veterans including our recent and our future veterans.In 2007 the War Pensions Act 1954 was referred to the Law Commission for review. The foreword to the Law Commission’s finding stated that the review was commissioned in realisation of the fact that the 1954 Act was outdated unwieldy and no longer fitted the needs of the veterans it was intended to serve. It was designed to deal with the physical risks associated with deployments but did not cover the psychological and environmental risks that veterans face. It also focused on compensation for disability but was silent on the provision of rehabilitation. Lastly the 1954 Act had not been adequately amended to take into account that although some veterans qualify only for entitlements under the war pensions scheme others qualify for entitlements under both the war pensions scheme and ACC.The Law Commission reported in 2010 with 170 recommendations. The Government adopted 132 of those recommendations in full or in part as part of a $60 million package of changes of which this bill forms the material part. Most of the recommendations not taken up related to administrative structures not related to veterans’ entitlements. The process of rewriting a 59-year-old Act and implementing all 132 recommendations has been a long one but I make no apology for this. I was much more interested in getting it right than in getting it done early. I want to thank officials from Veterans’ Affairs New Zealand the New Zealand Defence Force and the Parliamentary Counsel Office for their diligent hard work in preparing the bill—under I must say considerable pressure from the Minister.The Veterans’ Support Bill will replace the 1954 Act and the associated subordinate legislation. Although there are significant changes to some entitlements the key foundations remain the same. The key principle of benevolence including relaxed evidential provisions will continue in this new bill as will the service eligibility criteria. Furthermore all deployments currently covered under the 1954 Act will retaincoverage under the new Act and medical treatment will continue to be funded for all service-related impairments.The new legislation contains two schemes which I would now like to focus on in a bit more detail. Scheme one will cover veterans who served from the Second World War through to and including the Viet Nam War. Until 1 July 2015 it will cover all veterans as a transitional measure. After that time scheme one will cover veterans with service prior to 1 April 1974. The scheme is based on the entitlements available under the 1954 Act and it covers approximately 10000 veterans and 5500 surviving spouses and partners of deceased veterans. Veterans will continue to receive periodic disablement pension payments for impairments of 5 percent or greater. Veterans who are under the age of retirement and unable to work will have the option of receiving weekly income compensation which will be paid at a rate of 80 percent of the average weekly wage. This is significantly higher than the current entitlement they receive. However entitlements for spouses or partners and children will remain the same. Scheme two will cover veterans who have served since 1 April 1974. This includes deployments such as Cambodia East Timor and Afghanistan. The entitlements available under this scheme will be based on entitlements available through ACC with a top-up that is additional to ACC entitlements and that recognises the special nature of military service.Veterans who are of working age and who are unable to work due to service-related impairment will be eligible for weekly compensation. This will be payable at 100 percent of their pre-injury earnings for the first year of their incapacity and 85 percent for the period thereafter. It is higher than the 80 percent compensation paid by ACC to other New Zealanders and retains the benevolence shown in the current Act. Scheme two will provide impairment compensation to veterans in the form of lump-sum payments. The lump-sum rates will be set at the equivalent rate payable by ACC plus an additional 20 percent. In addition the scale will be broader than the ACC’s scale and will provide for compensation of 5 percent to 100 percent of whole person impairment to match the rates of impairment compensation provided for in a 1954 Act payment. Compensation for the spouse or partner and children of eligible deceased veterans will also be based on ACC entitlements. A one-off survivor’s grant will be payable in the form of a lump sum as well as ongoing weekly compensation. The spouse or partner will receive 60 percent of the veteran’s earnings prior to death and the children will share 20 percent. This is a slightly higher rate than that paid by ACC.There will also be a number of common provisions available to veterans of both schemes. Veterans covered under either scheme will have access to medical treatment and rehabilitation for accepted conditions. The veteran’s pension for over-65s will be retained from the 1954 Act. This is an equivalent of New Zealand superannuation with some additional entitlements. Other common provisions include access to support services such as home help and lawnmowing for service-related conditions and the provision of funeral grants for veterans with a service-related death. The Veterans’ Support Bill also includes a new provision for a code of veterans’ and other claimants’ rights. It also establishes a specialist medical advisory panel the functions of which will include providing advice on specified matters relating to service veterans’ health and entitlements under this Act.The Government recognises the significant sacrifice and contribution our veterans have made in serving our country over the years. The replacement of the War Pensions Act with the introduction of the updated and modern Veterans’ Support Bill demonstrates the Government’s ongoing commitment to those who have given service to our country. Our veterans deserve no less. I commend this bill to the House.