Sio William: Credit Contracts and Financial Services Law Reform Bill — In CommitteeText is incorporated into the Bound VolumeSio William: Credit Contracts and Financial Services Law Reform Bill — In Committee[Sitting date: 08 May 2014. Volume:698;Page:17725. Text is incorporated into the Bound Volume.]Su'a WILLIAM SIO (Labour—Māngere): I would like to take just a short call on a few points. Firstly I am heartened by looking at Part 1 in terms of the purpose of the Credit Contracts and Financial Services Law Reform Bill to protect the interests of consumers in connection with credit contracts and consumer leases etc. I am also heartened by the fact that in Part 1A the bill now installs a Responsible Lending Code—the reason being that the previous Ministers of Consumer Affairs prior to this Minister all heard this from the community. In the range of community meetings up and down this country after National became Government following the 2011 election during that period there was the unanimous view throughout the communities that they wanted this protection. So I am heartened that finally after this long period of time this has happened. I also want to acknowledge the Minister because I am heartened by what he said earlier in recognition that there are certain sectors of our communities that are targeted by those in this industry whose predatory nature this bill is meant to harness. So I want to thank the Minister but I also want to acknowledge my colleague Carol Beaumont because she has been quite vigilant in the pursuit of ensuring that we do arrive at this stage although she has been very focused on capping interest.The other thing I do want to put on record is that I am quite angry that despite the evidence of our communities stating quite clearly the need for consumer protection in the credit contract industry it has taken this long. And the thing is that this is an ambulance at the bottom of the cliff approach. There is also an approach that we oughtto be taking because this industry really targets the very vulnerable in our communities and the very vulnerable in our communities are generally on low wages. I think that what we ought to be doing also if we are serious about providing long-term solutions is ensuring that our economy enables people to have good jobs and higher incomes to support themselves. If people on low incomes are unable to sustain their families on the incomes that they are earning this is what happens to them. In desperation they end up borrowing money and end up going to the pokie machines. That has now become a pattern for many on low incomes because of the way that our economy over the years seems to have been embracing a low-income economy. I just think that is wrong.The other factor that I hope that this bill addresses is the complicated way that some of these contracts are written up recognising that in this country of ours the thing to do if we are really serious about protecting consumers is to simplify the process so that people know exactly what they are borrowing and know exactly what they have to pay in terms of interest and any other penalties and I think we also need to curb the amount of penalty fees that some in this industry seem to just get away with. There have been too many families in our communities that end up out of desperation using these services and losing their homes losing whatever valuables they may have and ending up in family break-ups.The point I am making is that yes absolutely I welcome the change of attitude in terms of this bill. I do believe though as some have said in their intention to introduce Supplementary Order Papers that the Government needs to take seriously the question of if there is a sector of our community that is not protected and if we do not provide that protection what sort of a country we are building. I just commend the Minister for bringing this bill finally after his other colleagues seem to have pretended to listen but did not do anything about it. I commend that and listening to his remarks earlier today I am heartened by what he said.