Lee Melissa; Dean JacquiFAIR TRADING (GIFT CARD EXPIRY) AMENDMENT BILLFirst ReadingMELISSA LEE (National): I move That the Fair Trading (Gift Card Expiry) Amendment Bill be now read a first time. I nominate the Economic Development Science and Innovation Committee to consider the bill.At the outset I'd like to acknowledge my parliamentary adviser over the last eight years Matthew Stephens who worked hard with me on the development and progression of this member's bill and the countless New Zealand consumers who are suffering under the weight of expired gift cards in dire need of relief and trade reform in this part of the New Zealand economy.Today I rise to present the Fair Trading (Gift Card Expiry) Amendment Bill which aims to bring about fairness and consumer protection in the gift card industry. It seeks to extend the minimum expiry date of gift cards for three years ensuring that all New Zealanders have a fair opportunity to utilise the full value of their gift cards.The idea for this bill was first sparked with my colleague the Hon Jacqui Dean in 201718 when she served as the Opposition spokesperson for small business and I was chairperson of the then Commerce Committee which is now the Economic Development Science and Innovation Committee. The bill was subsequently entrusted to me in 2020 after a brief spell under the custodianship of my former parliamentary colleague Jo Hayes. After the random authority of the biscuit tin ballot it was drawn from the ballot in November last year to be debated in this House today.Gift cards have become a popular choice for many Kiwis offering convenience and flexibility for both gift-givers and recipients. However the current situation allows for unreasonably short expiry dates on these cards causing approximately one in five recipients in our country to lose the full value of their gift before they can redeem it.According to research an estimated $10 million a year is lost on expired gift cards which is simply unjust in my view. From books to baches to barbecues and restaurants Kiwis are missing out on the opportunity their loved ones have provided them due to the paucity of time they have to utilise them.Some research indicates there is currently about $267 million of gift cards throughout New Zealand that are unused. The frustrations and sometimes tears and anger at the inability to use a gift card when you've thought and considered for weeks how to utilise it for special purchases or being completely unable to utilise it due to the time scope involved must end. By extending the minimum expiry date to three years we ensure that individuals have ample time to utilise their gift cards reducing the frustrations and disappointment caused by premature expiration.Furthermore this bill contributes to the economic wellbeing of New Zealanders by preventing the loss of funds due to expired gift cards and more money stays in the pockets of consumers stimulating the economic activity and supporting local businesses. It removes uncertainty across the economy by ensuring businesses small and large alike know how long they have to maintain gift cards as a liability in their accounts. It also ensures we get better consumer outcome for all more holidays more special moments and more exciting products purchased that will make New Zealand families happier.This House today is not alone in considering the regulation of this small and vital part of our consumer economy. Countries like Canada have banned expiry dates outright while the United States enforces a minimum five-year expiry date requirement. By comparison many New Zealand retailers still impose a shorter six-month or 12-month expiry date. I have proposed the three-year minimum period as the middle ground at this first reading stage and I hope should this House pass the bill to the select committee that we hear industry and consumers alike as to the best time scale for New Zealand standard gift card expiration time.As with much proposed legislation there have been some small concerns raised with me that this proposal could infringe on small-business practices. Some argue that extending the minimum expiry date may burden businesses or lead to unintended consequences. One article in particular raises concern about how this bill might affect retailers and implies potential drawbacks.Let me address these concerns directly. First and foremost this bill is not intended to place an undue burden on businesses. Instead it seeks to strike a balance between consumer protection and fair business practices by providing a three-year minimum expiry date. Retailers still have ample opportunity to encourage timely redemption while ensuring fairness to consumers.Moreover this bill aligns New Zealand's regulations with international standards promoting a competitive and fair marketplace. It is essential that we take into consideration the experiences of other countries that have successfully implemented similar policies. So many of our New Zealand businesses that offer gift cards are part of a wider international network so it makes greater sense in a globalised economy that we can have better gift card expiration date alignment with our international friends and trading partners.Finally I know that some consumers also want to debate how gift cards should be treated when a business ceases trading and I look forward to advice and submissions on this topic at the select committee. Just last week I had an email from a consumer who had seen a TV story about gift cards and my member's bill. I contacted her and it's a tragic story of how her son was leaving work because of an illness and the company had given him a $500 gift voucher for the Nike shop at Britomart. Her son has since died of a brain tumour and what the family wanted to do was to utilise that gift card for purchases for their grandchildren. But the shop at Britomart had since closed and when they went to another Nike store the gift card was not honoured.So I look forward to the submissions on this very matter because I did not include that in the actual bill but I'm sure the select committee could make recommendations and perhaps a Supplementary Order Paper could be introduced on that.There are some significant additional questions to add at select committee in particular whether Prezzy cards and other types of temporary credit and debit cards should fall within the remit of the proposals and how our policy can align with trans-Tasman operational businesses and indeed other online-only and international partners. These are important considerations I hope to discuss comprehensively at select committee stage. I know there are many businesses consumers and commercial organisations all eager to constructively engage in these conversations.Honourable members we are still in a cost of living crisis. New Zealand is in a recession and weekly shops the replacement of utilities and the need for services are hurting New Zealand households. Gift cards with a minimum three-year expiry date can go a long way to helping those households who save a card thinking that they can purchase something for a rainy day but find out that the gift card expired a long time ago.In conclusion the Fair Trading (Gift Card Expiry) Amendment Bill is a vital step towards consumer protection and economic prosperity in New Zealand. By extending the minimum expiry date of gift cards to three years we ensure that Kiwis have a fair chance to utilise the value of their gifts. I call upon all members of this House to support this bill to ensure that New Zealand remains at the forefront of consumer protection and fairness in the market place. I commend the bill to the House.ASSISTANT SPEAKER (Hon Jacqui Dean): The question is that the motion be agreed to.