Clark David: Credit Contracts and Financial Services Law Reform Bill — In CommitteeText is incorporated into the Bound VolumeClark David: Credit Contracts and Financial Services Law Reform Bill — In Committee[Sitting date: 08 May 2014. Volume:698;Page:17712. Text is incorporated into the Bound Volume.]Dr DAVID CLARK (Labour—Dunedin North): Labour supported this bill the Credit Contracts and Financial Services Law Reform Bill at its first reading but did want to see it given more teeth during its progression through the House. The bill does finally at least make some improvements in regulating consumer credit including third-tier lending or fringe lending or predatory lending depending on your point of view where significant harm is being done every day to our most vulnerable families.In my own electorate I am aware of vans that have made their way around the suburb of Brockville at times chased away by angry neighbours concerned about the horrendous practices of these predatory lenders. The vans turn up on the day they know that money is most needed. They turn up again when the money comes in to take their cut. They are like some kind of vampire that sucks the life out of vulnerable consumers at the time when they are indeed most vulnerable in what they might see as an opportunity but what the rest of us see as a parasitic type of behaviour.The bill embodies the National Government’s attitude to protecting consumers particularly those most susceptible to being preyed on. Its long-delayed response I think is indicative of a Government that is distracted by other issues more concerned with scandals aroundOravida—The CHAIRPERSON (Lindsay Tisch): No. Order! Part 1.Dr DAVID CLARK: —and its support partners and to come back to the issue less focused on getting this important piece of legislation through the House. I mean 2011 was when Simon Power announced that “The Government is to target unscrupulous credit companies that prey on unwary consumers” and that “There are gaps in the system that allow the unscrupulous to take advantage of the unwary when it comes to access to consumer finance in these tough economic times.” And yet the bill took 2½ years—Hon Tau Henare: It’s a wonder it’s not 50 years.Dr DAVID CLARK: —to even get to the second reading. This Government may have the worst economic record in 50 years as Mr Henare wanted to bring in to the debate but that is very much a broader issue than what we are dealing with here which is the very specific issue of payday lenders and their parasitic behaviour upon those most vulnerable in society.Instead of carrying out its word in terms of the priority that Mr Power pointed out—those “unscrupulous credit companies that prey on unwary consumers”—the Government has passed Crown Minerals bills road-user charges legislation and so onand really has not focused on the issues of looking after our society and regulating it in a way that makes sure that our most vulnerable are looked after.The Government has had numerous opportunities to address loan sharks and predatory lending including the review process commenced by Labour and my excellent colleague Carol Beaumont’s member’s bill the Credit Reforms (Responsible Lending) Bill 2010 which was of course originally drafted by Charles Chauvel. I am sure she will mention that in her contribution and we will look forward to hearing about it. But the Government did not take up that opportunity then. It has sat on its hands focusing on other distractions which I will not mention right now.Serious questions remain though around whether the Commerce Commission is adequately resourced to monitor what is happening in the consumer credit area especially third-tier lenders and in terms of enforcing the provisions provided for in the bill. And we are yet to see whether there is sufficient support for consumers to know their rights and how they can have them enforced.The other thing to point out I guess is that Craig Foss the Minister in the chair has a habit of lodging major Supplementary Order Papers as a bill comes to be read. He has done it belatedly and we have Supplementary Order Papers here that have come before the Committee in that regard. I guess he will explain his behaviour and we will look to understand better why that is so.