Williams Andrew: Credit Contracts and Financial Services Law Reform Bill — First ReadingText is incorporated into the Bound VolumeWilliams Andrew: Credit Contracts and Financial Services Law Reform Bill — First Reading[Sitting date: 17 September 2013. Volume:693;Page:13414. Text is incorporated into the Bound Volume.]ANDREW WILLIAMS (NZ First): I take a call on behalf of New Zealand First. We will be supporting the referral of the Credit Contracts and Financial Services Law Reform Bill to a select committee. This bill provides an increased level of consumer protection and we certainly believe that it is in the interests of all New Zealanders to have that higher level of consumer protection. It will particularly assist and serve to protect vulnerable consumers. It requires a higher level of responsible lending and a duty of care on the part of those who are lending finance to the citizens of New Zealand.The bill also puts in place greater controls on unscrupulous loan sharks and other such people who could perhaps be described as questionable operators to ensure that some of the practices that have been in place in New Zealand over many years now are brought to bay. We have seen exorbitant extortionate interest rates up in the range of 20 30 and 40 percent and more being made out in the retail market. For those vulnerable consumers many of whom are in very desperate and difficult circumstances this really is a very very grave situation.This legislation addresses matters of repossession which have at times seen basic civil rights not being observed. It must be very very taxing on some families and some communities when repossession takes place and when again perhaps unscrupulousoperators are involved in the repossession of those goods because of the very high finance charges that are being paid.The legislation also requires that lenders and consumer groups will be consulted to get a sensible and fair outcome from this legislation. Again as a result of this bill going through to a select committee and having submissions on it we believe there is the potential for and an expectation of a good outcome for New Zealand consumers.The bill also provides greater channels for dispute resolution. Again often by having sensible dispute resolution a difficult situation might not be compounded and might be resolved where in the past perhaps it would have been allowed to escalate and the finance charges would have just increased by a disproportionate amount. It also provides greater powers for the Financial Markets Authority to have controls in this area. Again New Zealand First believes there is merit in this. It is long overdue for this to take place.We are somewhat concerned however that this legislation has taken some 6 years to get to the House. We believe that this legislation should not have taken the amount of time it has—from 2007 through to 2013—to get to this point. It has been a time when New Zealanders have been facing great uncertainty in the workplace when the economy has been described as being in recession and when the most vulnerable in society often are the ones who are having to turn to all sorts of means in order to cover their weekly family budget. In that respect there is a requirement on this House to act in the interests of our citizens to ensure that legislation is there in place to help protect vulnerable consumers and citizens who may otherwise be finding it a great strain when trying to meet their weekly and monthly needs.So in this respect New Zealand First will be supporting this legislation going through to a select committee. We anticipate that it will receive quite significant submissions in terms of what is currently in the bill and we think that with consultation with the wider community there can be only a good outcome as a result of this. Thank you.