Bayly Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeBayly Andrew: Oral Questions — Questions to Ministers[Sitting date: 08 June 2016. Volume:714;Page:11788. Text is incorporated into the Bound Volume.]12.ANDREW BAYLY (National—Hunua) to the Minister of Commerce and Consumer Affairs: What steps is the Government taking to better protect consumers and promote competition?Hon PAUL GOLDSMITH (Minister of Commerce and Consumer Affairs): I was pleased to announce today that Budget 2016 provides the Commerce Commission with an extra $15.2 million of operational funding over the next 4 years. In the past 3 years there has been significant legislative reform of two Acts that the commission enforces the Fair Trading Act and the Credit Contracts and Consumer Finance Act. The extra funding will help ensure that the commission can even more actively enforce the recently reformed consumer and credit laws for the benefit of all New Zealanders. The last time the commission’s funding for general market regulation was increased was in 2005. Budget 2016 increases it by 25 percent.Andrew Bayly: How else will this funding increase benefit New Zealand?Hon PAUL GOLDSMITH: With this additional funding we will see faster enforcement action to stop consumer harm caused by non-compliant businesses such as those engaged in misleading practices or irresponsible lending. In one recent example last week the commission succeeded in court action against a pay-day lender operating in a low-income community whose practices included charging his customers a 50 percent weekly fee. The Commerce Commission plays a vital role in enforcing competition law and responsible lending practices working to ensure that New Zealanders—especially those in vulnerable circumstances—are protected from businesses using dishonest practices and that honest traders are able to compete on a level playing field. The additional funding will ensure that the commission’s good work in areas like this continues and expands. [Interruption]Andrew Bayly: How does this announcement—Mr SPEAKER: Order! I have not called the member yet. I was waiting for Mr Tabuteau to cooperate.Andrew Bayly: How does this announcement support the Government’s national strategy on financial capability?Hon PAUL GOLDSMITH: Last year the Government signalled that improving the financial capabilityor money skills of New Zealanders was a priority. The Government can make a difference in three ways: firstly through legislation such as recent amendments to the Fair Trading Act and Credit Contracts and Consumer Finance Act; secondly by ensuring that those laws are properly enforced by a well-resourced Commerce Commission as this Budget ensures—but we also know that when it comes to steering people away from being entrapped in a cycle of debt and poor financial decisions properly enforced laws can take you only so far;the long-term challenge is to improve the money skills or financial capability of New Zealanders. The Commerce Commission also plays an important role here by educating and informing businesses so that they are aware of their new obligations and consumers so that they know their rights under the new laws.