Power Simon: Disputes Tribunals Amendment Bill — Second Reading 
Power Simon: Disputes Tribunals Amendment Bill — Second Reading 
[Volume:655;Page:4967] 
Hon SIMON POWER (Minister of Justice) 
: 
 I move  
That the Disputes Tribunals Amendment Bill be now read a second time 
. I thank the Justice and Electoral Committee and its chairman Chester Borrows for its careful consideration of the bill particularly in such a tight time frame. This pace was set by the Prime Minister’s announcement of a small business relief package on 4 February this year of which this bill was a part to respond promptly to the global financial crisis. Expanding the jurisdiction of the tribunals also fulfils National’s election promise to increase the jurisdiction of the disputes tribunals to reduce pressure on District Courts. This bill will increase the maximum claim levels of the disputes tribunals thereby improving access to justice for individuals and small businesses through the simpler faster and cheaper processes of the tribunal. 
Since the first small claims tribunals were established in 1977 there has been a forum for resolving small civil claims culminating in the disputes tribunals from 1989. These forums have proven to be effective in resolving disputes in an efficient and low-cost manner. They have been and will continue to be an important pathway for New Zealanders to access justice. 
The increase to the maximum claim levels proposed by this bill is the first increase in over 10 years. The current maximum levels are $7500 or $12000 where both parties agree. 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 thereby reducing costs for up to 3600 additional cases annually. 
I am advised that the Justice and Electoral Committee received 10 written submissions on the bill and three submitters appeared before the committee. Submitters were broadly in favour of an increase to the maximum claim levels of a disputes tribunal as proposed by this bill. In fact a number of submitters considered that a further increase could be made to the maximum claim levels than that proposed by the bill. I have some sympathy for that view but ultimately the committee was right to conclude that a further increase could not be justified within the current framework of the disputes tribunals. 
The disputes tribunal provides a unique and important justice service in that it limits a number of the normal protections found in the court system in order to provide simple fast and cheap access to justice. For example disputes tribunal proceedings are held in private parties are not entitled to legal representation referees are not required to be legally qualified and the grounds for appeal are limited. An increase to the threshold beyond that proposed in this bill would require the strengthening of a number of the disputes tribunals’ protections because there would be more at stake. This bill strikes a balance between increasing the maximum claim levels of the disputes tribunals while maintaining the tribunals’ integrity. I want to make it clear that I will not rule out further changes to the threshold as long as the character of the tribunals can be maintained. 
Submitters suggested a number of other changes to disputes tribunals that could be considered including changes to the appeal rights of a tribunal the requirements for the appointment of referees the publication of tribunal decisions and the mechanism for adjusting the maximum claim levels. These ideas have merit and I am willing to consider them once the impact of the current change has been assessed. 
It is important that the increase proposed by this bill is progressed as quickly as possible in order to assist small businesses and individuals to resolve their disputes more simply and faster. 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 lack of change in the maximum level claims for the disputes tribunal over 10 years has created a gap between cases that can be taken to the disputes tribunal and those that are financially viable to be taken to the District Court. This bill will improve access to justice for individuals and businesses pursuing cases that would otherwise fall through the cracks. That in turn will free up valuable time and money for small and medium sized businesses so that they can get on with the business of producing goods and services. 
Again I thank the Justice and Electoral Committee for the expeditious consideration of the bill. I thank all of those who made submissions on the bill for their interest in the work of the tribunal. I commend the bill to the House.