Duynhoven Harry: Motor Vehicle Sales Bill — Instruction to CommitteeCWH In Committee 
Duynhoven Harry: Motor Vehicle Sales Bill — Instruction to CommitteeCWH In Committee 
[Volume:607;Page:4775] 
Hon HARRY DUYNHOVEN (Associate Minister of Transport) 
: 
 This bill has a large number of issues in it and it is hard to know where to start in a 5-minute speech. [ 
Interruption 
] For the benefit of the Hon David Carter I will start with clause 89 which is about the offence of tampering with odometers. I suggest that the member read it; it is in large print so he should be able to find it. It has reference to clause 106 which is about penalties. 
I have had some misgivings about this legislation and that would be no secret to anyone in this Committee. I am pleased that in the process the bill has been improved somewhat. I share some of the concerns of my United Future colleague Paul Adams who spoke about the entry level. But it has been deemed that those over the age of 18 who have no criminal convictions should be able to enter into the motor vehicle dealer business. That is outlined in the bill in such a way as to say: “We have faith that the registrar will be able to ensure that those persons who are suitable remain in the industry and that those who are not suitable exit from it by being banned.” 
I am very pleased that this bill is removing the statutory authority given to the Motor Vehicle Dealers Institute. It takes away the institute’s respectability which in my view—and I am not talking about the motor vehicle dealers themselves but about the organisation—has been used fraudulently for a long time. That may seem a very strong comment but in the interests of the consumers who have bought clocked cars over the last decade and a bit I have to say that very few motor vehicle dealers have been imprisoned or indeed taken to the cleaners by the Motor Vehicle Dealers Institute. I imagine that it will now rapidly go out of existence. I see the Motor Trade Association and perhaps even what used to be known as the Imported Motor Vehicle Dealers Association and is now the Independent Motor Vehicle Dealers Association taking over those roles. 
I have a little question about the definition of “motor cycle” in clause 6 not including a moped. The definition of “motor vehicle” states in paragraph (b)(iii) that “a motor cycle the total cylinder capacity of which does not exceed 60 cubic centimetres:” is not included as a motor vehicle. There are lots of motorcycles that go fairly quickly even though they are classified as mopeds. I am surprised by that definition. However there might be a good reason for it which someone might enlighten us about later. 
I am pleased with clause 14 which is about the particulars that must be displayed. I have never ever seen a vehicle with “This vehicle is clocked.” displayed on it despite Mr Delamere assuring us when he was a Minister that that would happen. If members compare—and I have done this; I have been there—the deregistration data in Japan including the mileage by just walking down the lines at any auction and looking at the registration data and the original mileage recorded at the time of the first inspection of the vehicle on its coming to New Zealand they will find that there seems to be a huge disparity. One has only to look at the price of diesel in Japan to start asking: “Why would people buy a diesel vehicle in Japan where petrol and diesel are more or less the same price unless they were doing very high mileage?” and to wonder at the failure rate of Japanese diesel vehicles in New Zealand to conclude that clocking is still with us and is an issue. I am pleased that it is addressed in clauses 89 and 106 of the bill. 
I have some concern about one aspect which I hope will be rigorously policed and that is the idea of travelling door-to-door salespeople. How can people believe that pressure will not be exerted in that situation? For example if an elderly person has an older car that breaks down and that will cost a lot to repair a motor vehicle dealer who knows the person may notice that the car has broken down and may shoot around with a flash Japanese used-car import and say: “This is a marvellous little car. We will give you a good trade-in on your old car.” The dealer would see the person alone in his or her own home where the person could be convinced by offers of finance and by lines like: “We can do the deal right here in your lounge.” Motor vehicle salespeople are excellent at psychology: they know how to close deals. We will see that happen. I hope that is an aspect of the bill that the registrar will rigorously follow up. 
I am pleased with clause 22(ea) which is the new bit that has been added and is about one of the concerns I raise. I have to say though that anyone who investigates that will be very disappointed with the very low number of disqualified dealers.