Beaumont Carol: Credit Reforms (Responsible Lending) Bill — First Reading 
Text is incorporated into the Bound Volume 
Beaumont Carol: Credit Reforms (Responsible Lending) Bill — First Reading 
[Sitting date: 21 July 2010. Volume:665;Page:12591. Text is incorporated into the Bound Volume.] 
CAROL BEAUMONT (Labour) 
: 
 My colleague Steve Chadwick said to me: “I don’t know whether to feel sad or mad.” and I feel exactly the same way. I feel both ways: I feel very sad that I have heard in this House tonight that the Government will not take responsibility on this issue; I feel very mad that the voice of the community has not been listened to and that a genuine effort to deal with the problem of loan sharks is being ignored. Instead members have tried in 5-minute speeches to argue what is wrong with the Credit Reforms (Responsible Lending) Bill. I think it deserves a fair hearing at a select committee and the public deserve the right to have a say on it. I acknowledge those parties that have spoken in support of this bill—the Greens the Maori Party the Progressive party and I understand that United Future will also be supporting it—and I thank them for that. 
I believe that what I have heard in the House tonight has been truly awful. The speeches have been probably some of the worst speeches I have heard in my time in Parliament. 
I do not think there is any disagreement that there is a problem with loan sharks. Any member of Parliament will know there is a problem because they will see it in their communities. They will have people coming to their offices and they will hear the stories. Certainly I found it quite tragic that the member for Maungakiekie spoke in the way he did because in the very area that we share our offices—we both have offices in Onehunga—there are many loan sharks. Just this week I saw featured on television a young man going into one of those places and being offered loans at 25 percent per month which on a compounding basis is over 1300 percent per annum. I found it disgraceful that the member for Maungakiekie made the kind of speech that he did. 
Members know there is a problem with loan sharks. I want to repeat for the House what was said by the Jubilee Christian Centre which is a registered charity with no interest at all in getting involved in party politics. It talked about the use of the term “usury” in the Bible and that none of the references—all 23 of them—speak favourably of it. My colleague Su’a William Sio also mentioned that. The centre went on to say that this bill should receive parliamentary-wide support and that all members who have a conscience including Government members should support it. At this stage in the debate I am still standing before the House urging members to make the right decision to assist people who are struggling who are vulnerable and whose families are being hurt by the actions of predatory and irresponsible lenders. 
We have heard a number of excuses given tonight that make me mad and angry. It has been said that this bill does not go far enough but frankly some of the issues that lead to the problem are not things for which we would legislate—for example we all agree that we need to improve financial literacy. That is about resources and focus; it is not a matter for legislation. Members have mentioned low incomes in New Zealand but I do not see the Government doing a lot of work in that area. Certainly that is one of the root causes of the problem as is the credit market itself where those who are outside the banking system who cannot get credit from banks need access to credit on reasonable terms. That is also not a matter for this bill but there are targeted suggestions that are worthy of consideration in a select committee. 
We have heard the excuse that the provisions in the bill will not work. In several 5-minutes speeches we have had supposedly some analysis of that issue. Well I would like to see a great deal more robust consideration of that in a select committee where we look at the experience of other countries. I do not see that the dire consequences being predicted by the Minister and some of the other speakers are in play in those countries. 
National and ACT MPs have said that their parties are already working on this issue but I say that that is the biggest and worst excuse of all. Frankly there are some good provisions in the review of the Credit Contracts and Consumer Finance Act but why has it been delayed for 12 months? How can those members stand in this House and tell us that that legislation will help when they have delayed it by 12 months? It is an absolute disgrace. I find those excuses very hard to stomach and doing nothing which is effectively what is happening here is not a plausible answer. Where are the solutions? None of the Government members who have spoken tonight have suggested solutions. 
I want this House to know that this campaign will not end here. The community wants something done and I and my colleagues will be working with the community to continue this campaign.