Adams Paul: Motor Vehicle Sales Bill — In Committee Third Reading 
Adams Paul: Motor Vehicle Sales Bill — In Committee Third Reading 
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PAUL ADAMS (United Future) 
: 
 In some ways this part is probably the whole crunch of why the industry is so pleased that this bill is going through. For many years dealers have been operating on an uneven playing field where traders have been operating and selling cars from their backyards through auction houses and car fairs. I agree that the policing of it has been non-existent. Comments have been made that no longer because our society’s foundations have been breaking down can we rely on the goodness of people to operate within the laws we make. We expect the police to have to operate and to keep all laws. That is an absolute impossibility. A substantial amount—I would estimate probably about one-third of the vehicles that are bought and sold in this country on a day-by-day basis—would be bought and sold by unlicensed traders. It will interesting to see whether those who deal in that realm register or indeed are capable of being registered. 
Personally I think the criterion for the registration of a vehicle trader under this bill is a good criterion. It is a fair criterion. It is in enough detail for anybody who has a brain to read it to understand how it works. It will be interesting to see how many of the unlicensed traders become registered. 
Last night my colleagues in National asked why this legislation needs a review within 2 years. This is one of the reasons it will need a review within 2 years. Currently to be a licensed motor vehicle dealer requires a substantial investment of capital. Therefore dealers are very aware that if their licence is taken from them then they will not have the ability to trade whereas under the new regime it will cost very little to get a licence. Therefore an unscrupulous trader when he or she does get prosecuted and loses his or her licence to trade will not have lost anywhere near as much. But likewise United Future also believes that enterprise is well capable of looking after itself. 
I believe that what we will find over this 2-year period is that the good dealers will again group together. They will make sure that there are the criteria of a code of ethics for the people who are within their group as they buy and sell motor vehicles. In 2 years’ time we will find again that there is a massive gap between the genuine motor vehicle dealer and those who have just taken a licence because it has been cheap to get. We will find going through the disputes tribunal a massive difference in the quality. 
I also notice in the legislation that there is the ability to charge different levies to different types of dealers. That is very wise because those who are continually in the tribunal will be able to be levied at a higher rate and those who are not at a lesser rate. That is great. United Future is pleased to support this legislation. I really hope that all those who are dealing illegally in motor vehicles take this good opportunity that has been given to them to register to clean up their act to operate within the laws of the nation and to keep up the great reputation that the motor vehicle dealer industry has.