The ACT government says it accepted a ''gutted'' version of its motor registration reforms last night to avoid further increases to motorists' annual bills.
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Treasurer Andrew Barr said the bill achieved none of the government's aims except to close a legal loophole that had monopoly insurer NRMA threatening to apply for a $45 increase in annual premiums on top of the $52 increase approved last month.
The passage of the bill was the last act of the Assembly before it rose last night for the last time before October's territory election.
Mr Barr said the only progress made through the process was the closing of the ''Furler'' loophole left by a drafting error in legislation passed in 2008, which the insurer claimed left it vulnerable to increased claims.
The Treasurer said there had been ''no genuine progress,'' towards a regime that would attract competition into the market and put downward pressure on compulsory third-party insurance premiums, the major component of registration.
''We need to be very clear that there is no genuine progress tonight in tackling the outdated and unsustainable elements of the CTP scheme,'' Mr Barr said.
''While we have made small advancements tonight, we have closed a loophole and we have put downward pressure on legal costs associated with the scheme which have gone far enough, turning into a lawyers' bonanza and we must address these issues.''
But opposition Treasury spokesman Brendan Smyth, who was advised in the Chamber throughout last night's debate by Law Society President Noor Blumer, disagreed with Mr Barr
''The reforms that I've put in place and that the Assembly has agreed to this evening, will make the [legal] process smoother and make that process simpler,'' Mr Smyth said.
''It will have better outcomes for the people of the ACT, whether that be cheaper premiums in the long term or whether it be fair outcomes for people injured in motor vehicle crashes.''
Earlier in the afternoon, the government passed its 2012-2013 budget with the support of the ACT Greens overcoming the opposition of the Canberra Liberals who reversed their support yesterday of the health budget to vote against the appropriation bill as a whole.
Treasurer Andrew Barr and opposition leader Zed Seselja used their closing remarks to mark election battle lines.
''The budget boosts frontline services, it provides the infrastructure that our community deserves and expects and it supports our economy at a time when federal spending will be contracting,'' Mr Barr said.
Mr Seselja said the government was about to put the biggest cost-of-living slug on families Canberra had seen.