Knowledge (XXG)

Accident Compensation Corporation

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year to cover the cost of claims for that particular year, in 1982. The “fully funded” model was restored in 1999. However, getting ACC onto a strong financial footing was not easy and in 2009, ACC posted a $ 4.8 billion loss—at the time described as the biggest corporate loss in New Zealand's history. This cost escalation is thought to have been due to an increase in the number of claims, a widening of entitlements and increased costs of meeting the claims. Another factor was
916: 422:, the Labour Party's ACC spokesman, criticised this decision, claiming that it was driven by the government's attempt to bring the budget into surplus and reducing the levy would provide a boost to the economy. In the 2013 budget, Collins announced a $ 1.3 billion cut in ACC levies over the next two years. Collins said the Earners and Workers accounts were now fully funded after the Corporation reduced the number of long term ACC claimants from 14,000 to less than 11,000. 977: 458:
exclusion list, including weapons manufacturer Lockheed Martin and British Tobacco. ACC's ethical investment policy was drawn into question again in 2019, when Green Party MP ChlĂśe Swarbrick publicly criticised the Crown Entity for continued investment in fossil fuels, arguing that in light of the climate emergency this investment was unethical and that divestment should take place according to the precedent set by its exclusion of investment in tobacco companies.
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protecting and managing claimants' information" and said ACC had an "almost cavalier" attitude toward its clients. The review showed that the culture within ACC enabled its staff to target clients involved in privacy breaches and complaints rather than demonstrating respect for claimants. In 2013, a "training academy" for staff was mooted, with an "emphasis on a client-centred approach".
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self-employed contractor would get 100% of the pre-agreed compensation paid until they were fit to return to full-time work. A business owner would be able to get compensation under ACC CoverPlus Extra even if the business continued to earn income whilst the business owner could not work because of injury. This would not be possible with the standard policy.
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than they actually provided. Another category of ACC fraudster includes widows who continued claiming payments after their (injured) partners have subsequently died. Sometimes these payments went on for nearly 30 years before the fraud came to light, with one woman having received nearly $ 150,000 after her husband had died.
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out to all new and existing claims. There has been some conjecture over whether or not ACC staff were paid incentives to remove long term clients off weekly compensation. This was refuted by Ex-CEO Ralph Stewart in 2012. That year there were 10,400 long-term claimants registered with ACC—down by over 1,000.
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In 2013, it was reported that 64 people have been convicted of defrauding ACC of a total of more than $ 10 million over the past four years. This includes clients claiming they were "injured" but who kept working while receiving ACC benefits and medical practitioners who billed ACC for more treatment
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on 1 April 1974 as a result of the Accident Compensation Act 1972. Its principal governing act today is the Accident Compensation Act 2001. As a Crown entity, ACC is governed by a board that is responsible to the Minister for ACC. Unlike most other Crown entities, it has its own dedicated ministerial
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resigned from Cabinet after it was revealed that he had written letters on behalf of Pullar, who was a personal friend of his, while he was ACC Minister. ACC chairman John Judge continued to insist his version of events was correct and as a result ACC Minister Judith Collins did not renew his tenure
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that it was going to take a "hard-nosed" approach to get ACC into a sustainable position. This would require "substantial" levy increases and "legislative change to get people off the scheme and back to work quicker". By 2012, ACC had made good progress towards its 2019-goal (of being fully funded),
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ACC initially had a "fully funded" model whereby sufficient levies were collected to cover the lifetime cost of each injury, which might require compensation over a period of 30 years or more. The scheme was shifted to a "pay-as-you-go" funding model, where the scheme collects enough levies during a
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ACC staff have defrauded the corporation on a number of occasions. Jeffrey Chapman, former ACC chief executive from 1985 to 1992, was imprisoned for defrauding ACC and other government agencies; Gavin Robins, his successor from 1993 to 1997, was also charged with fraud but was acquitted. In 2011, a
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In 2015/16, ACC's outstanding claims liability (OCL) increased by $ 6.4 billion, which lead to a net deficit of $ 3.4 billion. The OCL measures the future cost of all existing ACC claims. That year also saw 1.93 million claims accepted; a 5.2% increase from the previous year. $ 3.5 billion was paid
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The scheme provides a range of entitlements to injured people, however 93.5 percent of new claims in 2011 to 2012 were for treatment costs only. Other entitlements include weekly compensation for lost earnings (paid at a rate of 80% of a person's pre-injury earnings) and the cost of home or vehicle
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The Act was later replaced by the Injury Prevention, Rehabilitation and Compensation Act 2001, which was in 2010 renamed the Accident Compensation Act 2001. The Commission's annual report for 1989/90 proposed that the distinction between accidents—which are covered—and "illness"—which is not—should
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ACC CoverPlus Extra was introduced by ACC to provide cover for self-employed workers and business owners that would fail to otherwise be covered adequately by the standard ACC CoverPlus policy. It works by paying an agreed level of compensation, in the event of an injury resulting in time off from
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ACC invests the premium it collects in various ventures. It has a portfolio of $ 40b and its investment manager was believed to be the highest paid public servant in New Zealand. Of its top 50 investments, 47 are listed companies in NZ and overseas. Notable exceptions include a 22% shareholding in
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ACC is the sole and compulsory provider of accident insurance in New Zealand for all work and non-work related injuries. The corporation administers the ACC Scheme on a no-fault basis, so that anyone, regardless of the way in which they suffered an injury, has coverage under the scheme. Due to the
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broadcasts linking her to the leak of an email from Michelle Boag following the release of the files. The case was settled after a High Court hearing in November 2012. An independent review of ACC was conducted toward the end of 2012; it found the organisation "lacked a comprehensive strategy for
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ACC has had a number of breaches of privacy relating to claimants. The most significant occurred in 2011 after the release of details of 6700 claimants to an ACC claimant, Bronwyn Pullar. Pullar had been battling ACC since suffering a head injury in 2002—and had 45 separate complaints against the
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revealed that ACC held investments in brewery industry giants DB Breweries and Lion Nathan, which she claimed contravened ACC's legal obligation to engage in ethical investments to protect New Zealand's global reputation. In 2016 ACC admitted it had indirectly invested in six companies on its own
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With this cover already agreed upon, any business would not have to prove loss of income and has certainty on their amount of cover in the event of an accident-related injury. The ACC CoverPlus policy was designed to cover employees at 80% of their net taxable income. With ACC CoverPlus Extra, a
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announced that Government would not cut ACC levies for the 2013–14 year. While the ACC Board and Ministry of Business Innovation and Employment had recommended reducing the levies by between 12 and 17 per cent, Collins stated that the government's decision was motivated by the uncertain economic
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ACC allows certain companies to manage and fund the claims of its employees who are injured at work. In return, they are given a large discount in ACC premium. ACC says this provides companies with a financial incentive to have good health and safety practices at work. More than 140 New Zealand
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ACC is primarily funded through a combination of levies and government contributions. Income collected from each source goes into predetermined accounts based on the source. Costs relating to an injury are paid from one of these accounts based on the type and cause of the injury.
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senior manager was convicted of dishonesty offences involving property leased to ACC by private business interests. In late 2012, Jonathan Wright, an ACC-contracted medical assessor, was convicted of dishonestly obtaining over $ 18,000 in falsified travel expenses from ACC.
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Levies collected from employers and self-employed people. The amount payable averages 0.63% of an employer's payroll or income earned (as of 1 April 2024), though rates vary depending on the employer's industry and risks associated with it.
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modifications for the seriously injured. The scheme offers entitlements subject to various eligibility criteria. ACC works with partners and communities on initiatives to prevent injuries. These initiatives include "RugbySmart" with
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The ACC has its origins in the Workers' Compensation for Accidents Act 1900, which established a limited compensation scheme for workers who had suffered injuries where there was no directly responsible party. In 1966, a New Zealand
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A treatment injury is one caused in the course of treatment by a registered health professional, and are not a necessary part or ordinary consequence of the treatment. Until 2005, these were called "medical misadventure" claims.
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passed the Accident Compensation Act 1972, later amended in 1973. The Accident Compensation Commission was established from 1 April 1974. In 1992, the commission was renamed the Accident Compensation Corporation (ACC).
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accidental injury compensation scheme, commonly referred to as the ACC scheme. The scheme provides financial compensation and support to citizens, residents, and temporary visitors who have suffered personal injuries.
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outside ACC offices and police have had to be called on several other occasions. In 2012, there were a total of 134 recorded threats made against staff—the majority against case managers "making difficult decisions".
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The four main accounts are: Work, Earners, Non-Earners, and Motor Vehicle. There is also a fifth account: Treatment Injury (formerly Medical Misadventure), that draws on both the Earners and Non-Earners accounts.
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employers participate in this programme. ACC Futures Coalition and Green Party criticize this programme because creates a conflict interest for employers to wrongly deny claims and say it should be cancelled.
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Levies collected in conjunction with tax deductions on income. Paid by employees through PAYE or by self-employed people directly. The amount payable is 1.39% of income earned (as of 1 April 2024).
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services being made free at the point of delivery leading to over-servicing of clients. Between 2000 and 2008 this appears to have contributed to an increase in physiotherapy costs of 214%.
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on the ACC Board. The chief executive of ACC, Ralph Stewart, also resigned the next day. Three other board members—Murray Hilder, Rob Campbell, and John McCliskie—also resigned.
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It is claimed that the system encourages clinicians to report mistakes. The cost of litigation to the health system is considerably less than in some other countries.
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Levies included in the price of petrol (not diesel or LPG), and through motor vehicle license fees. The levy on motor vehicle license fees averages $ 113.94 (
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The 100% reimbursement scheme for physiotherapist services was ended, and ACC levies on wages and motorists were increased. ACC chairman John Judge told the
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ACC clients have occasionally threatened or attempted to harm ACC staff. In 1999, a staff member was fatally stabbed by a claimant at an ACC office in
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ACC has attracted controversy at several junctures since its establishment due to the nature of some its investment decisions. In 2003 Green Party MP
229: 2275: 2217: 571: 2026: 2332: 419: 233: 1869: 2109: 1960: 236:(elected in November 1999) repealed this change, and as of 1 July 2000 re-instated ACC as the sole provider of accident insurance coverage. 2378: 369: 2370: 2303: 1665: 877: 546: 1790: 2073: 1843: 1818: 308:, for the 2022/23, 2023/24 and 2024/25 levy periods. Levy periods run from the 1st of April to the 31st of March the following year. 2482: 2467: 2174: 1348: 1596: 2042: 1497: 2393: 575: 1683: 232:
allowed private insurance operators to provide work-related accident insurance, and ACC was briefly exposed to competition. The
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scheme's no-fault basis, people who have suffered personal injury do not have the right to sue an at-fault party, except for
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have held responsibility for the Accident Compensation Corporation. Ministerial responsibility was held prior by the
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agency—only one of which was about the privacy breaches. In 2011 she and former National Party president
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Funded from the Earners and Non-Earners accounts, depending on the clients' employment status.
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and was $ 4.5 billion short of matching liabilities ($ 28.5b) with its assets ($ 24b).
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The fallout from the affair continued in May 2012, when Collins sued Labour MPs
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conditions and a desire to ensure that reductions to the levy were sustainable.
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As a result of medical treatment (previously known as medical misadventure)
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Annual Report (1989/90) of the Accident Compensation Commission, p.5
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Savage Investigative reporter, NZ Herald, Jared (16 January 2013).
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in November 2021 after a final recommendation from ACC Minister
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be dropped. This proposal was not taken up by the government.
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and Andrew Little for defamation over comments they made on
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ACC has been criticised for providing funding for several
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ACC leads good economic news at National party convention
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Government contribution from the general taxation pool.
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that are unsupported by scientific evidence, including
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Herenga ā Nuku Aotearoa, the Outdoor Access Commission
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portfolio, which since November 2023 has been held by
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Medical and health organisations based in New Zealand
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Full list of Bronwyn Pullar's complaints against ACC
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Ministers and Members in the New Zealand Parliament
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Dunedin: University of Otago Press. 1974:"Former ACC property boss escapes jail over bribe" 1844:"Joining the Accredited Employers Programme (AEP)" 1546:"ACC moves to curtail rise in physiotherapy costs" 1484: 1482: 1617:. 17 January 2013 – via www.nzherald.co.nz. 429:In 2019 ACC posted a record $ 8.7 billion loss. 2063:. 21 March 2012 – via www.nzherald.co.nz. 1976:. 14 March 2011 – via www.nzherald.co.nz. 1565:"The painful bills about to wallop your wallet" 1490:"The painful bills about to wallop your wallet" 2094:. 19 June 2012 – via www.nzherald.co.nz. 2225: 1441:"Paying levies if you own or drive a vehicle" 8: 2450:indicates an entity which has been dissolved 2309:Energy Efficiency and Conservation Authority 1128:Atiyah's Accidents, Compensation and the Law 182:responsible for administering the country's 18: 2106:"Mallard served papers by faux-constituent" 1947:"ACC frauds hit $ 10m over past four years" 1666:"Ex-boss defends ACC rehabilitation policy" 24: 2255:public sector organisations in New Zealand 2232: 2218: 2210: 2200: 365:Relating to motor vehicles on public roads 300:Levy rates were most recently approved by 41: 2074:ACC boss resigns amid political pressure 605: 352:Non-work-related, by non-income-earners 310: 1597:"Funding issue brews in ACC's cauldron" 1463: 1461: 1139: 2333:Health Research Council of New Zealand 2131:Judith Collins defamation case settled 2092:"Murray Hilder resigns from ACC board" 1563:Armstrong, Grahame (11 October 2009). 413:Towards the end of 2012, ACC Minister 17: 1813: 1811: 7: 2379:New Zealand Qualifications Authority 1641:"ACC's outstanding claims liability" 1343:. London: Swift Press. p. 127. 2371:New Zealand Fire Service Commission 1895:"ACC murder spurs security beef-up" 1738:"ACC booze investments 'unethical'" 1684:"ACC employee's pay tops $ 800,000" 1239:"NZ Rugby Foundation - Rugby Smart" 648: 340:Non-work-related, by income-earners 190:The corporation was founded as the 2346:Kāinga Ora – Homes and Communities 2043:"Editorial: Time for answers, ACC" 1819:"Types of cover for self-employed" 1789:Coughlan, Thomas (8 August 2019). 1764:"ACC invested in banned companies" 14: 2414:Social Workers Registration Board 2266:Accident Compensation Corporation 2061:"Nick Smith bows out as minister" 1989:"ACC fraud doctor named in court" 1868:Mead, Thomas (24 November 2021). 1364:Clayton, Rachel (29 April 2016). 176:Te Kaporeihana Āwhina Hunga Whara 164:Accident Compensation Corporation 26:Te Kaporeihana Āwhina Hunga Whara 19:Accident Compensation Corporation 2404:Pharmaceutical Management Agency 2394:New Zealand Trade and Enterprise 1987:Bayer, Kurt (30 November 2012). 1226:Auckland City Council v Blundell 1093: 1068: 1032: 1000: 975: 939: 914: 882: 857: 832: 807: 775: 743: 718: 693: 668: 636: 192:Accident Compensation Commission 2384:NZ Transport Agency Waka Kotahi 2361:New Zealand Antarctic Institute 1991:– via www.nzherald.co.nz. 1949:– via www.nzherald.co.nz. 1150:. Parliamentary Counsel Office. 475:Accredited Employers' Programme 2314:Fire and Emergency New Zealand 1520:"Physiotherapy claims summary" 1315:"Make your home a safety zone" 212:, chaired by High Court judge 1: 2432:Tertiary Education Commission 2286:Crown Health Financing Agency 2108:. 28 May 2012. Archived from 533:Bronwyn Pullar privacy breach 442:and the consortiums building 2148:"Charm school for ACC staff" 1319:www.starship.org.nz/safekids 1290:"Preventing sexual violence" 1211:WN 149 for an old definition 545:In March 2012, ACC Minister 1928:"ACC staff in line of fire" 1264:"About Âť Ride Forever" 462:Cover for the self-employed 448:Puhoi to Wellsford Motorway 444:Transmission Gully Motorway 135:Megan Main, Chief Executive 2499: 2338:Health Sponsorship Council 2325:Health Promotion Authority 1391:"What your levies pay for" 1162:"ACC comes into operation" 230:fourth National government 2445: 2389:New Zealand Tourism Board 2366:New Zealand Blood Service 2280:Aviation Security Service 2261: 2251: 1050: 1048: 1046: 1041: 1038: 1031: 1026: 1023: 1021: 1014: 1012: 957: 955: 953: 948: 945: 938: 933: 930: 928: 896: 894: 789: 787: 650: 620: 617: 608: 316: 313: 40: 23: 2468:New Zealand Crown agents 2276:Civil Aviation Authority 1224:1 NZLR 97, confirmed by 474: 393:Palmerston North offices 93:41.274876°S 174.777701°E 524:Treatment-injury claims 317:Types of injury covered 234:fifth Labour government 2291:District health boards 2135:The New Zealand Herald 489:Violence against staff 394: 228:From 1 July 1999, the 218:New Zealand Parliament 175: 98:-41.274876; 174.777701 62:New Zealand Government 25: 2483:Workers' compensation 2409:Real Estate Authority 2351:Legal Services Agency 2304:Electricity Authority 2299:Earthquake Commission 2278:(Constituent agency: 2165:Wood, G. A. (1996) . 1630:NZ Herald 25 May 2013 1339:Hunt, Jeremy (2022). 1222:Donselaar v Donselaar 392: 270:alternative therapies 264:Alternative therapies 178:) is the New Zealand 2437:WorkSafe New Zealand 2356:Maritime New Zealand 2321:(Health New Zealand) 1710:"Annual report 2017" 1552:on 16 February 2013. 109:Minister responsible 2424:Transit New Zealand 2271:Careers New Zealand 1526:on 15 February 2016 1184:"ACC - Our history" 89: /  20: 2154:. 10 January 2013. 2137:, 14 November 2012 1901:. 16 August 2000. 1899:New Zealand Herald 1577:on 11 October 2009 996:Iain Lees-Galloway 576:Minister of Labour 395: 118:, Minister for ACC 2455: 2454: 2419:Sport New Zealand 2078:The Dominion Post 2031:The Dominion Post 1963:34 VUWLR 329, 348 1690:. 23 October 2014 1570:Sunday Star-Times 1270:on 28 August 2017 1208:Fenton v. 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Index

Māori

Crown entity
New Zealand Government
Wellington
41°16′30″S 174°46′40″E / 41.274876°S 174.777701°E / -41.274876; 174.777701
Matt Doocey
Crown entity
www.acc.co.nz
Māori
Crown entity
no-fault
Matt Doocey
Royal Commission
Owen Woodhouse
New Zealand Parliament
fourth National government
fifth Labour government
exemplary damages
New Zealand Rugby
alternative therapies
acupuncture
osteopathy
chiropractic
Cabinet
Carmel Sepuloni
GST

physiotherapy
Judith Collins

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