Curran Clare: Motor Vehicle Sales Amendment Bill — First Reading 
Curran Clare: Motor Vehicle Sales Amendment Bill — First Reading 
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CLARE CURRAN (Labour—Dunedin South) 
: 
 I rise to take a call on the Motor Vehicle Sales Amendment Bill. Labour will be supporting this bill to a select committee. The bill amends the Motor Vehicle Sales Act that was passed by the Labour Government in December 2003. The Act sought to introduce a new registration regime for motor vehicle traders and make them more accountable to action but also to offer some degree of flexibility to participate in the motor vehicle industry. The policy underpinning this Act had several core elements to ensure accountability. These included the requirement for those trading vehicles to be registered more disclosure concerning used motor vehicles and the provision for consumer remedy through the Motor Vehicles Disputes Tribunal. Contained within this sensible law reform was the requirement for a review after 2 years; the Ministry of Consumer Affairs completed this review which was tabled in the House on 22 March 2006. 
Although I believe that this bill is important I ask whether it will address the primary concerns that are facing most New Zealanders right now and why National is prioritising this bill when the House should be using its valuable time to consider measures to protect New Zealand jobs. The motor vehicle industry has been heavily hit by the recession. Should we not concentrate on jobs for New Zealanders? A survey in January by the Motor Trade Association highlighted that over 200 people had lost their jobs in that industry alone. In Wellington which mostly I travel to weekly I see the effects of this recession through the empty lots that were once Williams and Adams. Empty car yards are now appearing in Dunedin and I imagine across the country. A release from the Independent Motor Vehicle Dealers Association has shown that a fifth of New Zealand’s used-car dealers have closed down in the past 6 months. 
This bill intends to reduce the compliance costs on traders currently associated with requiring an annual statutory declaration to be made as part of the registration renewal process. But what about dealerships that have already closed down? The recession blues that used-car sales employees are feeling are very concerning. As quoted in the  
New Zealand Herald  
of 25 February this year “Industry groups say the closures and cutbacks at surviving dealerships have wiped out at least 10000 of the 50000 jobs in the used-car business.” Some have reported that used-car sales are down 44 percent yet here we are concentrating on amending the industry rather than supporting those who have lost their jobs. 
There is no doubt that the economic recession has hit this industry hard. The only doubt that lingers is New Zealanders wondering why the Government does not have a plan to protect New Zealand jobs. The Prime Minister promised back in February that his Job Summit would save or create thousands of jobs but the evidence is that he has not delivered. The truth is that the Job Summit was little more than a talkfest and a gimmick. Over 1000 Kiwis a week are joining the dole queue. New Zealanders are crying out for more action from the Government to preserve jobs but the Prime Minister is not listening. The New Zealand Institute of Economic Research forecast this week that 60000 Kiwis will lose their jobs over the next 12 months. New Zealand needs focus. It needs fresh ideas and solutions to tackle unemployment but the National Government does not appear to have any. 
Since the Budget the Government has gone silent on preserving and creating jobs. John Key has released 13 statements since Budget day. Just one—the statement on the Green Party’s home insulation fund—was linked to jobs. The Minister of Finance Bill English has been even more reticent. One of his two statements dealt with jobs. Ironically it defends National’s cuts to adult and community education which will cause hundreds more job losses. 
Hon Trevor Mallard 
: Thousands. And they can’t become used-car dealers. 
CLARE CURRAN 
: That is right. Last is the Minister for Social Development and Employment Paula Bennett: none of her three media releases relate to jobs at all. Since the Job Summit 16000 New Zealanders have joined the dole queue and 4000 have joined that queue since the Budget. To date the Job Summit has saved just 345 jobs. 
The review that triggered this amendment to the Motor Vehicle Sales Act considered how the registration process banning provisions information disclosure process and Motor Vehicle Disputes Tribunal were operating. The review concluded that some minor changes could be made to reduce unnecessary compliance costs but that overall the registration aspects of the regime are functioning well. They are functioning well yet the Government has targeted this legislation in the midst of a global recession. This bill will add a new requirement for providing information to the registrar when new directors or persons are involved in the management of a registered company and it closes a gap in the present legislation. That is important as disclosure in the industry has always been a goal for consumers. 
The consumer information notice is also updated under this bill. The consumer information notice has been designed to provide information clearly to consumers and for ease of completion by traders. The bill removes the requirement for private sellers to display a consumer information notice at car markets but traders using car markets will still have to display the notice which is important. Although car sales are down there is hope in the industry. Websites such as TradeMe have attracted the more price-conscious buyer. Making use of new technology is very important. The quality of finance companies in the car industry has taken a dramatic turn with the gap left by GE Money and GMAC which has been only partly filled by other companies. Designing law that protects consumers in relation to motor vehicle sales is important. 
As mentioned in the press release of the Minister of Consumer Affairs the bill is a step toward removing unnecessary red tape and compliance costs from the sale of motor vehicles. But how much red tape will this bill actually cut? That is a very important question for an industry that is struggling as many other industries are. This Government has promised to tackle some of the so-called regulatory impediments so I look forward to further discussion on how this bill will achieve that at the select committee. 
Although this bill is a start to making informed choices with confidence there are still further discussions to be had. This bill increases the financial limit on the jurisdiction of the Motor Vehicle Disputes Tribunal from $50000 to $100000. That may be important in the luxury car market where the recession is in fact providing bargains. Todd Hunter General Manager Marketing at Turners Auctions says that sales of luxury cars are definitely up—some from finance companies and some from repossessions. At a recent auction a 2005 Ferrari with 1000 kilometres on the clock sold for $250000. That was down from the original price paid of $640000. Crikey! 
One recommendation from the original review that triggered my attention was the recommendation that consideration be given to amending the inspection powers in sections 124 to 129 of the Motor Vehicle Sales Act to also include the Commerce Commission in order to allow appropriate enforcement of the information provisions and that this should be explored in conjunction with work already in progress regarding similar powers under the Fair Trading Act 1986. I hope to discuss this recommendation further at the select committee. 
This bill will also allow the Motor Vehicle Disputes Tribunal to award costs for non-attendance of either party at disputes and to publish its decisions which makes sense especially in consumer law. As mentioned the objective of the Motor Vehicle Sales Act 2003 is to promote and protect the interests of consumers in relation to motor vehicle sales. This bill amends the Motor Vehicle Sales Act 2003 and will improve its effective operation. Labour will be supporting this bill to select committee and I look forward to further discussion on it. 
Although this bill amends an Act that is designed to protect consumers in relation to motor vehicle sales which is important it has to be said again that it does not address the primary concern of New Zealanders which is keeping their jobs. It is time that the Government announced initiatives that will protect the jobs of hard-working New Zealanders and initiatives to stimulate the economy and create jobs. 
One of the central policies that this Government took to the election was its $1.5 billion pledge to deliver ultra-fast broadband to 75 percent of New Zealanders where they live and work. This policy was central to the National Party’s economic stimulus package. Well 7 months later we are no further advanced. The Government constantly talks about delays and the need to get it right. It is time that it started showing New Zealanders that it has a plan that it can deliver jobs and that it will stimulate the economy and lead us out of the recession. I am not holding my breath.