Adams Paul: Motor Vehicle Sales Bill — Instruction to CommitteeCWH In Committee 
Adams Paul: Motor Vehicle Sales Bill — Instruction to CommitteeCWH In Committee 
[Volume:607;Page:4774] 
PAUL ADAMS (United Future) 
: 
 I hope not too many of my friends in the motor industry are listening to this tonight because many of them were concerned at my level of intelligence when I said that I was going to become an MP. They said to me: “Paul they’ll run rings around you.” Well hearing the debate tonight I think many of them would be sadly disappointed. I did like Wayne Mapp’s description of car salesmen; I had never heard it before—honest hard working entrepreneurs. The National Party has got something right; they are. 
But if my car salesmen described a car—and members should listen to this carefully—with the same accuracy as my parliamentary colleagues are describing this bill they would have to lose their jobs. Under the Fair Trading Act and the consumer protection bill their descriptions would be so inaccurate that they would probably lose their jobs. There is one word that we need to see come back in every industry in this country and I think the motor industry largely runs on this word and it is “integrity”. One cannot legislate for every situation that one has in business. I am surprised when I see some of my parliamentary colleagues who talk about less legislation bringing in more legislation. I scratch my head and as just a poor car salesman I wonder where they are coming from. 
Let us have a look at clause 13 “Tampering with odometers prohibited”. That is fine but if one is without integrity one can change the speedometer in a car without tampering with it. There is plenty of wreckers’ yards in New Zealand or overseas. Without integrity one cannot write legislation that will cover every situation. 
I would also like to touch on—[ 
Interruption 
] That is not tampering; it is changing. One thing about this legislation is that the motor industry does welcome it but my concern about it is that we are lowering the bar. In other words up until now motor vehicle dealers have had to invest a large amount of money in their motor vehicle businesses. They need a site which they have either had to purchase or had to lease to operate from. All of that is changing. Many of the calculations that have been done have been done on the existing regime of the car industry which to be honest—but people do not like me using that saying. The figures show that for example there has been very little call on the fidelity fund. Unfortunately with the lowering of the bar under this bill I think that we will have greater challenges unless the industry is policed correctly and really dealt with. It will be very easy now to enter the motor industry. 
Many people have also talked about motor vehicles being a high-ticket item. But in reality today that is not the case. One can buy a very good motor vehicle for say $3000 $5000 or $7000 which will serve one well. One can buy a spa pool for $15000 $25000 or $30000 or one can buy a television set. So members should not say that the motor industry has big-ticket items; yes it can have big-ticket items but it can also have very good items. 
I also see in clause 15 problems for the finance industry. I have concerns about the security interest having to be covered in what we call the current motor vehicle dealers window card. If a finance company has a security interest in a vehicle and if that vehicle is sold by a less-than-desirable motor vehicle trader who has entered this industry and who has disclosed in the window card that the vehicle has finance on it then yes the member of the public who purchases the vehicle will have clear title to it but the finance company will lose its right to the security on that vehicle. Its only right of redress to get its funds back will be through the trader. Under this legislation the standard required of the trader is far less than what we currently have. I can see that that may possibly cause a problem down the line. 
Nevertheless I welcome the 2-year review of this bill. I think that is absolutely necessary. 
Simon Power 
: Why? 
PAUL ADAMS 
: If National members are quiet I will tell them why.