Webb DuncanDr DUNCAN WEBB (Labour—Christchurch Central): Thank you Madam Assistant Speaker. It's a real pleasure to speak on this excellent updating of the Credit Contracts and Consumer Finance Act—an Act that's been with us in one form or another since the 1970s. It's been continually updated to take account of things like buy-back transactions in the 1990s and irresponsible lending a little bit in the 2000s as well; I saw some updates there. But we've got to recognise I think not only that some debt is really problematic and causes huge harm and difficulties in our community but also that other debt is good and really important so that people can look after their families grow their businesses and those kinds of things. It strikes me that this piece of legislation strikes a great balance in ensuring that borrowers have the appropriate degrees of knowledge there's some basic fairness around the transactions there's appropriate remedies for borrowers as well and penalties when they step well out of line. Obviously the centre piece and the most significant innovation in this bill is found in clause 22 which inserts a new section which caps the amount that a high-cost consumer credit lender can recover. I want to make it very clear that this is an excellent balance that's been struck whereby the lender can only recover 100 percent more than the amount advanced. Now there's been some talk about a further restriction in terms of interest rate caps but that's a blunt tool. Here we have something which makes sure that the additional fees the additional interest and any collection costs will all be restrained and capped at 100 percent—a huge amount nevertheless—of the amount advanced. But we know that there is a section of the community that needs money often short term and in small amounts so it is appropriate that those costs are high to reflect the risk and the transaction costs there. But it's important to make sure that we have a cap there and the Minister's done well in striking that balance. The other thing I would briefly touch on is the disclosure rules. One of the very useful innovations is that where lenders advertise in a particular language and we know that lenders particularly at this smaller end of the market advertise in particular ethnic communities—whether it be the Asian Chinese community or the Pacific Island community—and they do it by using the appropriate language. It's no good then to present them with a contract that's in English and all of the disclosure documents that are in English which they really have very limited ability to look at. So here if you're going to advertise in say Tongan disclosure must be in Tongan—a great innovation if I may say so. Here we have a balance struck—good—making sure that the borrower has knowledge making sure that the terms are fair even in those high-interest cases and also the Act tweaks some of the remedies and introduces some somewhat sterner penalties.So again this really is mainly an updating bill keeping this Act fit for purpose in the 21st century—an absolutely needed piece of legislation with a couple of great innovations to make sure we look after the most vulnerable here. Thank you Madam Assistant Speaker.Bill read a first time. Bill referred to the Finance and Expenditure Committee.