Institutional exemption · New Zealand
In May 2025 New Zealand discontinued 33 live pay equity claims under urgency with no select committee stage — the entry threshold is now 70 percent female composition sustained for ten continuous years
New Zealand had a working pay equity claim procedure and then removed the claims that were using it. The Equal Pay Amendment Act 2020 was passed by Parliament without a dissenting vote in July 2020 and came into force that October, creating the first formal route for a female-do…
- Resolution status
- not confirmed
- Checked
- 2026-08-15
- Evidence type
- SecondaryPress reports and institutional documents
- Outlet
- not recorded
- Authoring mode
- Derived from press reports
- Views
- 9
What is happening?
New Zealand had a working pay equity claim procedure and then removed the claims that were using it. The Equal Pay Amendment Act 2020 was passed by Parliament without a dissenting vote in July 2020 and came into force that October, creating the first formal route for a female-dominated occupation to argue that its pay reflected historical undervaluation. Between October 2020 and May 2025 that route produced 12 settlements, costing about NZD 1.8 billion a year to maintain.
On 2025-05-06 the government announced a replacement bill on a Tuesday morning, the bill was introduced that afternoon, and it completed every parliamentary stage under urgency. There was no select committee stage, no regulatory impact statement and no call for public submissions. Royal assent followed within roughly 48 hours, with opened sources placing the final vote on the evening of 2025-05-07 or on 2025-05-08.
On commencement all 33 pay equity claims then pending were discontinued. They covered school administration support staff, librarians, aged care workers, Māori language advisers, mental health support workers and social workers. The Act also raised the female-dominated threshold from 60 percent measured at a point in time to 70 percent sustained for at least ten continuous years, narrowed the comparator rules to a hierarchy running from the same employer outward, voided the review clauses in the 12 existing settlements and barred those workers from lodging a fresh claim for ten years after settlement. Budget 2025 recorded NZD 12.8 billion over four years released for other purposes.
Fifteen months later nothing has been reversed. A High Court judicial review brought by five unions finished a three-day hearing on 2026-08-06 with no judgment delivered as of 2026-08-15, a complaint sits with the UN Committee on the Elimination of Discrimination against Women, and a general election falls on 2026-11-07.
Whose problem is this?
| Role | Who |
|---|---|
| Affected | Workers in the 33 discontinued claims — between 150,000 and 180,000 by the two published estimates — concentrated in care and support work, nursing, teaching support, library services, aged care and social work · plus workers in the 12 settled claims whose review clauses were voided |
| Raised by | Five unions in the High Court — NZNO, PSA, PPTA, TEU and NZEI · the Human Rights Commission, which joined as an intervener · a self-organised committee of ten former women members of Parliament · Pay Equity Coalition Aotearoa, about twenty organisations, at the United Nations |
| Decides | Parliament, which can repeal or amend what it passed · the High Court, on consistency with the New Zealand Bill of Rights Act · voters on 2026-11-07 |
| Bears the cost | Workers in the discontinued claims, who lose the years already spent in negotiation · employers and the public purse, which retain about NZD 12.8 billion over four years that had been set aside |
The body that removed the claims is the same body that created them five years earlier without a dissenting vote. Nothing outside Parliament can restore them, and a declaration of inconsistency from the High Court would not amend the statute by itself — it would be reported back to the House, which is free to do nothing.
Where does this problem end?
| Axis | This is the problem | This is not the problem |
|---|---|---|
| What | The retroactive discontinuation of 33 live claims and the raising of the entry threshold to 70 percent sustained for ten continuous years | Whether any particular one of the 33 claims would have succeeded on its merits |
| The voiding of review clauses in 12 settled claims and the ten-year bar on refiling | Whether the wage levels agreed in those 12 settlements were correct | |
| The use of urgency to complete all stages in about 48 hours with no select committee, no regulatory impact statement and no public submissions | The general merits of urgency as a parliamentary procedure | |
| Who | Workers in female-dominated occupations under the New Zealand pay equity regime | The gender pay gap of the general workforce, which is a separate statistical measure |
| Where | New Zealand | Comparable pay equity regimes in other countries were not examined |
| When | 2020-10 commencement of the 2020 Act through 2026-08-15 | The repeal of Fair Pay Agreements and other labour law changes are separate events |
| Scale | 33 claims · 150,000 to 180,000 workers · 12 settlements affected · NZD 12.8 billion over four years | Total public sector wage policy is outside this frame |
The boundary here is not whether pay equity claims should succeed but whether a claim that was already lodged and already in negotiation can be ended by statute while it is running. That question survives whatever anyone thinks of the individual claims.
What is the state now, and what should it be?
Now
| Indicator | Value | As of |
|---|---|---|
| Pay equity claims pending when the 2025 Act commenced | 33 | 2025-05 |
| Those claims after commencement | all discontinued | 2025-05 |
| Female-dominated threshold before | 60 percent, measured at a point in time | 2020-10 to 2025-05 |
| Female-dominated threshold now | 70 percent, sustained at least ten continuous years | 2025-05 |
| Comparator rule | narrowed to same employer, then similar employer, then industry or sector; cross-sector comparison excluded | 2025-05 |
| Review clauses in the 12 existing settlements | voided | 2025-05 |
| Bar on a fresh claim after settlement | ten years | 2025-05 |
| Parliamentary stages completed under urgency | all of them, in about 48 hours | 2025-05-06 to 2025-05-08 |
| Select committee, regulatory impact statement, public submissions | none | 2025-05 |
| Settlements reached under the 2020 regime | 12, costing about NZD 1.8 billion a year to maintain | 2020-10 to 2025-05 |
| Budget provision released | NZD 12.8 billion over four years | Budget 2025 |
| High Court judicial review | three-day hearing concluded in Wellington, judgment not delivered | 2026-08-06 |
| UN CEDAW complaint | filed, under consideration, no stated timetable | 2026-05-06 |
| Claims refiled and settled under the new threshold | no figure published by any source opened here | 2026-08-15 |
| Gender pay gap, June 2025 quarter | 5.2 percent, down from 8.2 percent a year earlier, lowest since the series began in 1998 | 2025-06 quarter |
What it should be, according to those contesting it
The People's Select Committee on Pay Equity, ten former women members of Parliament acting without statutory authority, published a 174-page report on 2026-02-24 setting out five recommendations: repeal the 2025 Act, reinstate the 33 discontinued claims without requiring the applicants to repeat the application process, establish an independent pay equity body, restrict the use of urgency for legislation affecting core rights, and require a minimum consultation period of 90 days. The opposition parties have committed to repeal if they form a government after the 2026-11-07 election.
No official target has been published by the government, because the government position is that the current settings are the intended end state rather than a stage on the way to one.
How big is it?
Between 150,000 and 180,000 workers. The upper figure comes from Pay Equity Coalition Aotearoa in the complaint it filed with the UN Committee on the Elimination of Discrimination against Women on 2026-05-06. The lower figure comes from the five unions, who told the High Court in August 2026 that more than 150,000 workers were affected.
These two figures describe the same event and neither publisher shows how it was calculated, so the range is a range of published claims rather than a measured interval. The lower number is stated as a floor rather than as a count, which is why it sits at the bottom of the range.
Two sub-counts are published on their own bases and do not add up to the total. About 65,000 of the affected workers are in care and support roles. About 38,000 nurses employed by Health New Zealand are in a different position again: their claim was already settled, so they were not among the 33, but the voiding of review clauses means their settlement no longer reopens on schedule.
The quantity being counted is workers who had a live claim extinguished, not workers who would have won a settlement. Nobody can say how many of the 33 claims would have succeeded, and no source opened here attempts the subtraction.
Under what conditions does it arise?
1. A statutory right can be withdrawn faster than it was granted. The 2020 Act took a joint working group recommendation from 2016, a full parliamentary process and four years to arrive. The 2025 Act took about 48 hours. The same chamber controls both directions and only one of them has a procedural floor.
2. Urgency removes the record, not just the delay. Skipping select committee means no submissions, no departmental advice tested in public and no regulatory impact statement. Afterwards there is nothing to point at when asking what was weighed, because the documents that would carry that answer were never produced.
3. Retroactivity attaches to claims, not to money already paid. The 12 completed settlements kept their wage rates. What was removed was the mechanism by which those rates get revisited, and the claims that had not yet reached a settlement. Both of those are future events, which makes the loss hard to photograph.
4. A high threshold does not read as a prohibition. Requiring 70 percent female composition sustained over ten continuous years does not say that a workforce may not claim. It says that a workforce must be able to document a decade of payroll composition, and the number of occupations that can do that is not published anywhere.
5. The headline indicator moved the other way. In the same year the national gender pay gap fell to its lowest recorded level. That measure covers wage and salary earners only, excluding the self-employed and those out of work, and an independent analysis puts roughly 80 percent of gender and ethnic pay gaps inside organisational pay and promotion decisions, which is the type of undervaluation the claim procedure existed to test.
What has been tried?
| Attempt | By whom | What was done | When |
|---|---|---|---|
| Joint working group on pay equity | Government, employers and unions together | Recommended principles for handling pay equity claims, which became the basis of the 2020 legislation | 2016 |
| Equal Pay Amendment Act 2020 | New Zealand Parliament, passed without a dissenting vote | Created a formal pay equity claim procedure inside the Equal Pay Act 1972 for female-dominated work | 2020-07 enacted, 2020-10 in force |
| Settlements under the 2020 regime | Health New Zealand and other employers with unions | 12 settlements reached, including administration and clerical staff in 2022-06, allied health science and technical roles in 2023-06, librarians and interpreters, midwives, and nurses from a 2021-12 agreement in principle; backdated payments for 2020-01 to 2022-04 in some cases; about NZD 1.8 billion a year to maintain | 2020-10 to 2025-05 |
| Equal Pay Amendment Act 2025 | The National-ACT-New Zealand First coalition government | Introduced and passed under urgency with no select committee, no regulatory impact statement and no public submissions; discontinued 33 pending claims; raised the threshold to 70 percent over ten continuous years; narrowed comparators; voided review clauses; imposed a ten-year bar; released NZD 12.8 billion over four years | 2025-05-06 to 2025-05-08 |
| Judicial review in the High Court | NZNO, PSA, PPTA, TEU and NZEI, with the Human Rights Commission as intervener | Filed a challenge arguing inconsistency with the New Zealand Bill of Rights Act; three-day hearing held in Wellington and concluded without judgment | filed 2025-08, heard to 2026-08-06 |
| Self-organised public inquiry, the People's Select Committee on Pay Equity | Ten former women members of Parliament from across party lines | Took 1,383 to 1,390 written submissions, depending on which account is read, and heard 171 people plus one singing group; published a 174-page report making five recommendations; recorded that the Ministry for Women was not consulted on the policy detail | report published 2026-02-24 |
| Complaint to the United Nations | Pay Equity Coalition Aotearoa, about twenty organisations | Filed a complaint with the Committee on the Elimination of Discrimination against Women naming about 180,000 affected workers | 2026-05-06 |
| Election commitment to repeal | Labour and the Green Party | Committed to repeal the 2025 Act if they form a government | in force at 2026-08 |
Every route that does not run through Parliament has now been tried at least once, and none of them can change the statute. The court can declare an inconsistency, the committee can recommend, the United Nations can find a breach; in each case the outcome is a report that goes back to the same chamber.
What was found?
| Finding | Observed value | Evidence grade |
|---|---|---|
| Pay equity claims discontinued on commencement | 33 | high — four opened sources state it independently |
| Elapsed time from announcement to royal assent | about 48 hours | medium — opened sources place the final vote on 2025-05-07 evening or 2025-05-08 |
| Select committee, regulatory impact statement, public submissions | none of the three | high |
| Female-dominated threshold before the 2025 Act | 60 percent at a point in time | high |
| Female-dominated threshold after the 2025 Act | 70 percent sustained at least ten continuous years | high — stated in the government release |
| Comparator rule after the 2025 Act | hierarchy from same employer to similar employer to industry or sector, excluding cross-sector comparison | medium — two opened sources agree |
| Settlements reached 2020-10 through 2025-05 | 12 | high — government party page and Health New Zealand settlement list agree |
| Annual cost of maintaining those settlements | about NZD 1.8 billion | medium — a government figure, not independently recomputed |
| Largest single settlement | about NZD 2 billion, disability home and community support work | medium — Health New Zealand framework page |
| Budget provision released over four years | NZD 12.8 billion | medium — reported from Budget 2025 |
| Review clauses in existing settlements | voided, with a ten-year bar on a fresh claim | medium — two opened sources agree |
| Health New Zealand nurses whose settlement lost its review clause | about 38,000 | medium — single opened source |
| Care and support workers among those affected | about 65,000 | medium — single opened source |
| Workers whose claims were discontinued | 150,000 to 180,000 | low — two published figures for the same quantity, neither with a stated derivation |
| High Court judicial review | hearing concluded 2026-08-06, no judgment as of 2026-08-15 | high |
| Gender pay gap, June 2025 quarter | 5.2 percent, down from 8.2 percent, lowest since 1998 | high — official statistics release |
Why is it still unsolved?
Institutional exemption — the remedy was not abolished, it was narrowed until most of the workforces that used it fall outside the door, and the claims that were already inside were put back outside.
The first reason nothing has moved is that a threshold is not a prohibition and does not attract the political cost of one. A rule requiring 70 percent female composition sustained for ten continuous years leaves the pay equity procedure formally intact and open to everyone who qualifies. What is missing is any published count of how many occupations can produce a decade of payroll composition evidence, so the effective narrowing has a number that nobody has calculated. A ban would need a defence. A documentary requirement produces the same silence and needs none.
The second reason is that every live challenge routes back to Parliament. A declaration of inconsistency under the New Zealand Bill of Rights Act does not strike down a statute; it is reported to the House. The complaint to the United Nations committee is under consideration and no opened source states a timetable for it or says what would follow a finding. A committee that ten former members of Parliament convened themselves has no statutory power and its recommendations were not adopted. Three separate processes are running and the arithmetic is the same for all three.
The third reason is that the loss is counterfactual and the saving is a line in a budget. The NZD 12.8 billion released over four years is an appropriation figure that can be printed. What the 33 claims would have delivered cannot be, because the claims were negotiations and not judgments, and the settlements they would have reached were never reached. One side of the comparison is an accounting entry and the other is an argument.
The fourth reason is that the most visible national indicator moved in the reassuring direction during the same period. The gender pay gap reached its lowest recorded level in the June 2025 quarter, which is a real measurement of a different thing, and it arrives every quarter whether or not any claim is ever heard again.
What observation would mean it is solved?
Candidates — (a) the 2025 Act is repealed or amended and the 33 discontinued claims resume from the stage they had reached (b) claims are refiled under the current settings and reach settlement at a rate comparable to the 12 settled between 2020 and 2025 (c) an independent body with its own standing takes over the assessment of pay equity claims, as the 2026 report recommended.
(a) alone is not enough on its own terms. The committee report specifically recommends reinstating the claims without requiring the applicants to repeat the application process, which tells you what the weaker version of repeal looks like: the statute goes, the claims are told to start again, and years of negotiation already completed are spent a second time. A repeal that resets the queue restores the procedure without restoring what was taken.
(b) is the only one that measures the threshold rather than the politics, and it is also the one nobody can currently evaluate. No source opened here reports a single claim refiled and settled under the 70 percent and ten-year rule. That absence has two readings — too little time has passed, or nobody is counting — and the sources do not separate them. Until that number exists, any claim that the new settings are workable is untested.
(c) alone risks counting institutions rather than outcomes. An independent body with a narrow entry threshold would process very few claims very properly. The body and the threshold are separate variables and only one of them is what closed the 33 claims. All three have to be read together, and (b) has to be read against how much time has actually elapsed since commencement.
What is it connected to?
Fills with researchthe design of pay equity regimes in comparable jurisdictions, the effect of removing collective bargaining structures on female-dominated occupations, the constitutional question of whether urgency should be procedurally limited for rights-affecting legislation, and the relationship between occupational undervaluation and the aggregate gender pay gap statistic. Relation type and evidence grade were not established in this round.
What these sources do not say
- How many claims have been refiled and settled under the new threshold. No opened source gives a figure. Whether that means none have succeeded or that nobody publishes the count cannot be separated from what is available, and the difference matters because it is the only direct test of whether the 70 percent and ten-year rule leaves a usable route.
- How the two population figures were calculated. One source says about 180,000 and another says more than 150,000, apparently about the same 33 claims. Neither gives a method, a date basis or a reason for the difference, and neither acknowledges the other.
- When the High Court will deliver judgment. The reporting says the matter would be dealt with promptly and stops there. No opened source names an expected date.
- How many workers across all 12 settlements lost a review clause. One opened source gives 38,000 nurses as a single example. No source opened here totals the workers in the other 11 settlements now holding wage rates that no longer reopen on schedule.
- What the legal advice on Bill of Rights consistency actually said. Reporting records that the responsible minister referred to a conclusion of consistency. The advice itself was not obtained, so the reasoning behind that conclusion is absent from everything opened here.
- What the government answer to the 2026 committee report was. The report made five recommendations and the sources record that they were not adopted. None carries a departmental or ministerial response explaining why.
- How many occupations could satisfy a ten-year composition test. This is the number that would convert the threshold change from a rule into a measurable exclusion, and no source opened here estimates it in either direction.
See the evidence
| Item | Source | Confirmation |
|---|---|---|
| Official announcement of the changes — threshold raised from 60 to 70 percent and the ten-continuous-year requirement, comparator changes, effect on pending claims, annual cost of existing settlements | New Zealand Government, Beehive release | 2026-08-15 |
| Gender pay gap of 5.2 percent in the June 2025 quarter, down from 8.2 percent, lowest since the series began in 1998 | New Zealand Government, Beehive release citing Stats NZ | 2026-08-15 |
| Legal analysis of the amendment — stated rationale, urgency timeline, discontinuation of pending claims, comparator hierarchy | DLA Piper GENIE, global employment developments | 2026-08-15 |
| Human Rights Commission objection and the NZD 12.8 billion over four years released in Budget 2025 | New Zealand Herald | 2026-08-15 |
| Passage of the bill under urgency, dated 2025-05-08 | TVNZ 1News | 2026-08-15 |
| Individual list of the 12 settlements — administration and clerical 2022-06, allied health science and technical 2023-06, librarians and interpreters, midwives, nurses, with backdated periods | Health New Zealand, Te Whatu Ora | 2026-08-15 |
| Pay equity framework overview including the roughly NZD 2 billion disability home and community support settlement | Health New Zealand, Te Whatu Ora | 2026-08-15 |
| Government party account of the change — 12 settlements and about NZD 1.8 billion a year | New Zealand National Party | 2026-08-15 |
| Three-day High Court hearing concluded 2026-08-06, the five applicant unions, the Human Rights Commission as intervener, and the figure of more than 150,000 affected workers | Scoop Independent News | 2026-08-15 |
| About 65,000 care and support workers affected and about 38,000 Health New Zealand nurses whose settlement lost its review clause; comparator narrowing; ten-year bar | Kaitiaki Nursing New Zealand, published by NZNO | 2026-08-15 |
| Complaint filed with the UN Committee on the Elimination of Discrimination against Women on 2026-05-06 by a coalition of about twenty organisations, naming about 180,000 workers | NEWS WIRE | 2026-08-15 |
| Official statement of the findings of the self-organised committee of former members of Parliament | People's Select Committee on Pay Equity, media statements | 2026-08-15 |
| Detail of the 174-page report published 2026-02-24 — submission counts, 171 people heard, the five recommendations, the finding on the Ministry for Women, and the opposition repeal commitments | The Spinoff | 2026-08-15 |
| Background to the 2020 Act — the 2016 joint working group, enactment in July 2020 and commencement in October 2020 | Mercer, law and policy insights | 2026-08-15 |
| Limitations of the national gender pay gap measure — wage and salary earners only, and roughly 80 percent of gender and ethnic pay gaps arising inside organisational pay and promotion decisions | Still Minding The Gap NZ | 2026-08-15 |
| Full text of the Equal Pay Amendment Act 2025 | New Zealand Legislation, official government database | URL not confirmed: automated retrieval returned HTTP 403; the statute text was not read in this round |
| Explanatory note to the Equal Pay Amendment Bill 2025 | New Zealand Legislation | URL not confirmed: automated retrieval returned HTTP 403 |
| List of the occupations covered by the 33 pending claims — school administration support, librarians, aged care, and others | Radio New Zealand | URL not confirmed: automated retrieval returned HTTP 403 |
| Human Rights Commission joining the High Court proceeding as an intervener, 2025-12-05 | Newsroom | URL not confirmed: automated retrieval returned HTTP 403 |
| Overview of the enacted amendment | Library of Congress, Global Legal Monitor | URL not confirmed: automated retrieval returned HTTP 403 |
No primary legal document was read in full. The two New Zealand Legislation pages carrying the statute text and the explanatory note both returned HTTP 403 to automated retrieval, so every statement here about what the Act does is taken from the government release and from professional and news sources that describe it. The government release is the closest thing to a primary source in this table and it is the origin of the 70 percent and ten-continuous-year figures. Where sources overlap they agree: the count of 33 discontinued claims appears in four opened sources, the comparator narrowing in two, and the count of 12 prior settlements in two. Where they disagree the disagreement is left visible rather than resolved — the final parliamentary vote is placed on the evening of 2025-05-07 by some accounts and on 2025-05-08 by others, the submission count to the 2026 committee is given as 1,383 in one place and 1,390 in another, and the number of affected workers is given as about 180,000 in the United Nations complaint and as more than 150,000 by the unions in court, with neither figure carrying a derivation. Four further sources describing the occupations covered by the pending claims, the entry of the Human Rights Commission into the proceeding and an external legal overview were also blocked to automated retrieval and are recorded here without URLs rather than dropped. This is a research-based definition, so observation_refs is empty and provenance_mode: press-derived.
This table holds 20 evidence rows, 15 of which carry a source you can open · 13 distinct sources. How this table is made
People affected
Estimated range 150,000–180,000 As of 2025-05
Derivation chain
| Term | Value | Source | Assumption |
|---|---|---|---|
| Workers whose pay equity claims were discontinued when the Equal Pay Amendment Act 2025 commenced, as stated by Pay Equity Coalition Aotearoa in the complaint filed with the UN Committee on the Elimination of Discrimination against Women on 2026-05-06 | 180,000 | Newswire report on the CEDAW complaint, 2026-05 | This is the upper bound of the interval and the single anchor of the chain. It is the largest published estimate of the quantity and it is the figure a coalition of about twenty organisations was willing to carry into an international filing. The lower bound of 150000 is not a second term and is not multiplied against this one: it is a competing estimate of the same quantity, given by the five applicant unions at the High Court hearing in August 2026, and it is stated as more than 150000, which makes it a floor rather than a count. Neither publisher shows a derivation, so the interval expresses the distance between two published claims rather than a measured uncertainty. |
Sensitivity The interval is not a confidence interval. Its two endpoints are two published figures for the same event, and no source opened here gives a method, a date basis or a reason for the gap between them. Three corrections would move the number and none of them can be computed from the sources opened. Downward: the count is of workers who had a live claim extinguished, not of workers who would have won a settlement, and nobody can say how many of the 33 claims would have succeeded or how far short of the amounts sought they would have landed. Downward again: the two estimates may double count workers who appear in more than one of the 33 claims, since several claims cover overlapping occupational groups in the same employers, and neither publisher says whether that overlap was removed. Upward: the count excludes workers whose claims had already settled and who were nonetheless affected, because the same Act voided the review clauses in all 12 existing settlements and barred a fresh claim for ten years after settlement. About 38000 nurses employed by Health New Zealand sit in that excluded group by the one count published for it, and no source totals the equivalent figure across the other 11 settlements. Two sub-counts are published on their own bases and do not sum to the total: about 65000 care and support workers among those affected, and the 38000 nurses just described, who are not among the 33 at all. The number of occupations that could satisfy the replacement threshold of 70 percent female composition sustained over ten continuous years, which would say how much of this population is excluded going forward rather than retroactively, is not estimated anywhere.
Regional breakdown No source opened here breaks the affected workers down by region. New Zealand pay equity claims are lodged by occupation against employers that are largely national in reach, including Health New Zealand and the school system, so the claim boundaries are occupational rather than territorial and no regional figure is produced at any stage of the process. Splitting the national figure across regions by population would be proportional allocation, and the affected occupations of care and support work, nursing, teaching support, library services and social work are not distributed in proportion to population, so that split would be wrong in both directions at once.
What is missing 1
Grouped by how it gets filled, not by block number — that axis is the only one that tells a reader what can be done next.
- SectionWhat is it connected to?
the design of pay equity regimes in comparable jurisdictions, the effect of removing collective bargaining structures on female-dominated occupations, the constitutional question of whether urgency should be procedurally limited for rights-affecting legislation, and the relationship between occupational undervaluation and the aggregate gender pay gap statistic. Relation type and evidence grade were not established in this round.
Fills with research
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