Power Simon: Disputes Tribunals Amendment Bill — First Reading 
Power Simon: Disputes Tribunals Amendment Bill — First Reading 
[Volume:653;Page:2258] 
Hon SIMON POWER (Minister of Justice) 
: 
 I move  
That the Disputes Tribunals Amendment Bill be now read a first time. 
 At the appropriate time I intend to move that the Disputes Tribunals Amendment Bill be referred to the Justice and Electoral Committee for consideration and that the committee report finally to the House on or before 31 May 2009 and that the committee have authority to meet at any time while the House is sitting except during oral questions during any evening on a day on which there has been a sitting of the House and on a Friday in a week in which there has been a sitting of the House despite Standing Orders 187 and 190(1)(b) and (c). 
This bill fulfils part of the small-business relief package announced by the Prime Minister on 4 February this year by expanding the jurisdiction of a disputes tribunal to reduce the amount of time small businesses are tied up in District Court battles. The Government is very keen to smooth the way for these businesses so we will encourage the use of the disputes tribunal which provides a simple cost-effective and fast forum for resolving small civil disputes. The tribunal provides access to justice for New Zealanders through a more conciliatory approach to justice rather than the traditional adversarial court system. 
The Disputes Tribunals Amendment Bill will increase the maximum claim levels of the disputes tribunal. The current maximum claim levels are $7500 or $12000 where both parties agree but these were last reviewed by the previous National Government in 1998. This bill will increase these levels to $15000 or $20000 where both parties agree. This will improve access to the disputes tribunal for individuals and small businesses reducing costs for up to 3600 additional cases annually. Many of these cases would currently be dealt with in the District Court with its higher associated costs including the cost of legal representation. The reduced costs for these cases will be more proportionate to the value of their claim than if they had been dealt with by the District Court. This increase in the maximum claim levels will therefore free up valuable time and money for small businesses and individuals. 
The decade or more that it has taken to increase maximum claim levels of the disputes tribunal has increased the gap between cases that can be taken to the disputes tribunal and those that are financially viable to be taken to the District Court. In other words this bill will improve access to justice for individuals and businesses pursuing cases that would otherwise have fallen through the cracks. Part 1 of this bill amends the Disputes Tribunals Act 1988 to reflect the increased maximum claim levels. Part 2 contains a number of consequential amendments to reflect the change in statutes that confer jurisdiction on the disputes tribunal. 
I ask that the Justice and Electoral Committee consider this bill in a shortened period of time to allow the new maximum claim level to be implemented quickly thereby assisting small businesses across the country to resolve their disputes during the tougher economic climate we now face. We need to lighten the load on small and medium sized businesses so they can get on with the business of producing goods and services. Expanding the jurisdiction of the tribunal also fulfils National’s election promise to increase the jurisdiction of disputes tribunals to reduce pressure on District Courts. This increase in jurisdiction levels is a first step and we do not rule out making further increases to the threshold. I commend this bill to the House.