Hughes GarethGARETH HUGHES (Green): Kia ora Mr Speaker. Ngā mihi nui ki a koutou. Kia ora. I rise on behalf of the Green Party to support this legislation this very good legislation which is going to make a real difference to people's lives. Now I hear the comments of the previous speaker Ian McKelvie and I think it's important to acknowledge this is a relatively modern phenomenon these third-tier market lenders pay-day lenders. New Zealand's first one only emerged in the year 2000. This is something new and is having a huge impact on New Zealand.I acknowledge there's a small market for short-term high-interest loans—maybe you know a business example—but the vast bulk of people receiving these pay-day loans or these short-term high-interest loans aren't business people. They're not trying to carry over. It's disadvantaged families in many cases being taken advantage of by predatory lenders. We just have to say that because that's the actual truth and what we know is the latest figures show there's $120 million being taken out of some of our poorest and most disadvantaged families—many of these families with children—as a result of these high-cost predatory loans. We've seen annualised interest rates of 600 percent 1000 percent 2000 percent. We saw evidence in the Finance and Expenditure Committee of interest rates at an annualised basis of 2600 percent. That is simply outrageous simply unacceptable and I'm glad this legislation is doing something about it.I'd like to acknowledge the committee because they have improved the legislation. Often committees can improve legislation with technical fixes transitional provisions. This has been fundamentally transformed by including an interest rate cap. Now the original legislation was around capping the total cost of borrowing. That was worthy. That was a very positive step forward. But there was a chorus of experts and those who work at the coalface of the high-cost lending sector that it wasn't going to be enough that you would actually still see low-income families paying way too much being taken advantage of if the total cost of borrowing wasn't also supported with the other wall the other protection which was an interest rate cap. So I'd like to acknowledge the committee. They've fundamentally improved it.I'd like to acknowledge those people who have played a role advocating for this for an awful long time. I'm thinking of Andrew Shann who I've met with who's previously drafted legislation to this effect I understand with Carol Beaumont a former member who's no longer here who was at the forefront of this campaign. But most of all I would like to acknowledge FinCap and the Salvation Army who tenaciously and very assertively campaigned for an interest rate cap. I'd like to acknowledge their campaign. They presented evidence such as this that pointed out how many other countries had the protections of an interest rate cap: Australia the United Kingdom United States Canada—in fact they referenced 76 other countries that had interest rate caps.This wasn't something new something novel where we were going out on a limb into an experimental environment. This was something which is the norm overseas and I'm glad that New Zealand is taking a step towards joining the rest of the modern world that has said there are social ills and huge economic problems when you refuse to cap interest rates. So I'd like to acknowledge FinCap and the Salvation Army. Of course they did a huge amount of work including working with Business and Economic Research Ltd (BERL) and contracting BERL to publish the substantive report which made the economic case for what a huge impact high-cost high-interest loans was having on New Zealand.Now this issue was something the Green Party has been raising consistently; it's something we'd previously voted for when it was before the House in previous Parliaments. It's something we lobbied the Minister on. It's something we used our ability to speak in the media to advocate for. While I wasn't privileged to sit on the select committee I was still reading the submissions meeting with the submitters working out how we could support the Government to do the right thing and I'm so glad that the Government parties including the National Party are supporting it today.Now I think 0.8 percent is still too high. On an annualised basis that's still quite a large figure. I guess because this is a new regime there is the ability to review it in the future which I think is great. I wouldn't be surprised in fact if we find 0.8 is too high but this is a great first step. I really want to acknowledge the Minister Kris Faafoi who's been wonderful to engage with who's been constructive who's listened to the evidence and acted. This is something that I drafted a Supplementary Order Paper on and I'm glad that there is no need for that any more because the select committee has improved this legislation by including it.So while I'd like to thank everyone who's been involved I just want to reiterate that this is a concrete example of how this House today is helping people who are facing these horror stories which the committee heard where kids are going without presents at Christmas where people are having their weekly pay cheques mostly eaten up by these high-cost loans where capping the total cost of borrowing would simply see these predatory lenders increase the number of loans. It would rapidly increase the size of the initial loan to get around this. So this prediction is making a real difference.Now when FinCap talked to me they talked about the 70000 people that they work with every year and the $700 million in debt that hangs like a millstone around those New Zealanders' shoulders. This is a great positive concrete step to make a real difference. This Government often talks about wellbeing and I think here is a concrete tangible example of how the wellbeing of everyday New Zealanders who work hard—I note the previous comment around financial literacy and I acknowledge there is more we could be doing to encourage financial literacy in New Zealand but make no mistake: these people are using very sophisticated marketing techniques. They are making the most of psychological research on how to encourage their business and they're in the business of trying to get as much money out of some of the poorest New Zealanders as they possibly can. They've been stunningly successful but that has gone on for too long and this Government is acting.I believe the Government in the future can actually do more because while I thought the risks of a black-market third-tier lending scenario arising were overblown and we haven't seen that occur overseas we still know that there are people out there trying to take advantage of some of our most vulnerable New Zealanders. Perhaps there's a role I think for the Government to in future consider how they can support responsible lending and access to capital tools for those families who need it. So thank you once again to all the members on the committee. This is a very proud day for our Parliament. Kia ora koutou.