Sepuloni Carmel; Dean JacquiThird ReadingHon CARMEL SEPULONI (Minister for ACC) on behalf of the Minister of Finance: I move That the Income Insurance Scheme (Enabling Development) Bill be now read a third time. The Income Insurance Scheme (Enabling Development) Bill is a short relatively simple and straightforward bill. That is because it does not put in place a social and income insurance scheme or indicate that the Government's decisions on a scheme have been made. What it does do is ensure that we are in a position to set up the scheme if that decision is made by authorising ACC to engage in work to develop the scheme and setting out key requirements that must be followed when doing that work. The bill's small size and simplicity should not make us lose sight of what a big step it represents on New Zealand's journey towards a fairer and more productive labour market one that supports employers to find the workers they need and supports workers to find the employer and the job that best suits their needs.A series of independent reports all point to the need for better support for people who lose their jobs. These include reports by the Public Advisory Group on Redundancy and Restructuring the Organization for Economic Development and Co-operation the New Zealand Productivity Commission and one that I know very well the report of the Welfare Expert Advisory Group. Officials estimate more than 100000 people lose their jobs every year due to redundancy lay-offs or health conditions. This number can be even higher during economic shock and the significant steps this Government took to prevent widespread job losses over the COVID-19 outbreak are a stark reminder of this. We know people often struggle to find suitable re-employment after a redundancy and end up accepting lower-pay jobs that don't match their skill set. This can have lifetime impacts on the wellbeing of them and their whānau. This is an issue that disproportionately impacts our most vulnerable New Zealanders. Loss of work is more likely to affect low-income workers and these workers are more likely to lose more than one job in their lifetime. Low-income households are far less likely to have significant savings and therefore are in a much worse position to manage difficult economic times compared to higher-income households. This is also true for our Māori and Pacific communities. Māori and Pacific people are more likely to be made redundant or leave work because of a health condition or disability. And young Māori are a significant proportion of those economically displaced. We all know this is a gap in the support New Zealanders need to get through hard times and land on their feet. In fact we are only one of a small number of comparable countries that does not have some kind of income insurance scheme in place. On the other side of the House they think doing something to bridge this gap is too hard or too expensive or should be left to private insurers. But this Government is not content to do nothing and leave New Zealanders exposed to the risks of job loss and economic shocks while wage scarring costs our economy more than $15 billion per year. That is why we have consulted on a proposal for an income insurance scheme that would support workers who lose their jobs through no fault of their own. By also covering health conditions and disabilities through the proposed scheme we could go some way toward addressing the disparities between the support people receive under ACC and the support available in the health and welfare systems. Fifty years after it was set up ACC remains a world-leading income insurance scheme providing a safety net for New Zealanders who have suffered an injury by accident. However practically everyone knows someone whose ability to work has been affected by an illness that cannot be covered by ACC. This can leave families and whānau without an income when they are already dealing with the stress of a loved one falling ill. An income insurance scheme that covered health conditions and disabilities would help to support New Zealanders through these difficult times. I'll never forget a woman who I met quite early on in my political career in West Auckland the mother of very young children who was an early childhood teacher who developed stomach cancer and had to continue working at that time because of the fact that her household could not afford for her not to. I think all of us would agree that when someone falls seriously ill they deserve to be able to take time out to actually take care of their health and recover. Unfortunately in that case that woman passed away and she is a reminder for me why it is important that we include health conditions and disabilities when considering this scheme. I want to thank those who have helped not just with the development of this bill but with the proposal for a new social insurance scheme and who have supported the national conversation on the benefits costs and risks that come with establishing such a scheme. The proposal for a scheme came from a partnership between Government Business New Zealand and the New Zealand Council of Trade Unions known as the Future of Work Tripartite Forum. The discussion document setting out the proposal was developed by a working group comprising officials from a range of agencies and representatives from Business New Zealand and the New Zealand Council of Trade Unions. Having strong social dialogue can strengthen worker and employer voices on important labour market issues. Policy developed on a tripartite basis is more likely to represent and balance the interests of employers and workers and to endure. So I want to thank Business New Zealand and the New Zealand Council of Trade Unions for partnering with the Government and taking this journey with us.Many of the issues we've worked on are not as simple as this bill and of course we do not always agree on every issue but having the hard conversations and continuing to journey together on this path is what will help us deliver for all those we represent be they citizens workers businesses or employers. The Tiriti provisions in the bill are being developed through engagement with Māori and I'd like to particularly thank the co-chairs of Pou Tangata of the national Iwi Chairs Forum and others involved. I also want to thank all of the officials across Government agencies and their responsible Ministers who continue to contribute to this kaupapa. This is a once-in-a-generation opportunity for New Zealand to add to our social safety net and their hard work and collaboration is essential to us progressing this. Running through all the contributors to the income insurance mahi it's clear that an incredible amount of time and effort has gone into bringing all the stakeholders together and driving the work forward. I want to particularly acknowledge the Hon Grant Robertson for his leadership and vision in this space and his ability to corral us all with regards to this kaupapa. As we move towards the next stage in our consideration of the proposed income insurance scheme I'd like to thank the many New Zealanders who took the time and effort to submit on the proposal or engage in the consultation. Whether they were workers employers or others such as representatives of the New Zealand insurance sector the submissions and other information supplied have given us a great platform to make future decisions on a social insurance model for New Zealand. It is important that we build on that platform further by ensuring ACC can add their decades-long experience in delivering social insurance. This bill achieves that. I commend this bill to the House. ASSISTANT SPEAKER (Hon Jacqui Dean): The question is that the motion be agreed to.