Andersen GinnyGINNY ANDERSEN (Labour): Thank you very much Madam Speaker for the opportunity to speak on this important piece of legislation the Credit Contracts Legislation Amendment Bill. The main aim of this bill is to stop private sector practices which cause or deepen hardship which already exists. It's one of those things that to be frank really sticks in my craw: taking advantage of people who need some extra help and support—profiting off someone in a position where they need some assistance. There have been many examples through the select committee process where there are practices that are technically legal in New Zealand law that quite frankly prey on those who can't fight back and that really gets to me. I'm encouraged to see that these protections complement longer-term work to really try and lift children out of poverty and increase people's financial capability to be able to look after themselves and look after their families and not leave people stuck in a cycle that quite frankly not only leaves people hungry but leaves people in situations where their mental health suffers because every day people don't know how they're going to be feeding their families. They get themselves deeper into debt and then people prey on that vulnerability and I do not like that. So in particular I'm really happy to see that mobile traders will be brought within the scope of the Credit Contracts and Consumer Finance Act. I know those red trucks when they're around and I know you can pay $30 for a pack of Weet-Bix and that's just wrong—that's just wrong. Not only do you pay $30 for your pack of Weet-Bix but you're paying interest on that $30. So while it's great that we have private companies like progressives who send out trucks in some parts of New Zealand to be selling groceries at a shelf rate alongside to try and compete on these predatory practices—I commend companies for doing that—we need to do more than just rely on the private sector to fill that space. So it was good to see at the Finance and Expenditure Committee that there was widespread support from submitters for tighter regulation of these mobile traders. They're quite clearly creating harm in our communities and they put people in situations where they quite simply can't repay debts. That contributes to New Zealand children going to school without lunches or not attending school because they don't have a lunch or haven't had breakfast and that's the kind of cycles that we want to move away from as a Government. Debt is a major concern for New Zealanders and we know that. We know a lot of households in New Zealand spend more money than they earn in a regular cycle and we need to be working effectively to make sure that there are checks and balances on those short-term loans to make sure people know what they're signing up to people know what they are committing to and people know what those repayments are. That's just fair. Some people might want a short quick loan for certain reasons before pay day and that's fine—everyone has the freedom to do that. But as part of that freedom people need to be clearly understanding what they're having to repay in the future and how that impacts and it also helps families to plan for the future. When you know what the next instalment's going to be and when you know what the penalties are that's a strong way of making sure that families are able to budget in a way that gives people the confidence and the reassurance that they can get back on their feet if they're going through a tight patch. I think it's also important to note that there were submissions around car loans as well because for me I've seen situations in my own area—in Hutt South—where I've had families who have purchased a vehicle unaware of the details of that contract and the repayments on some of those financing areas have been quite frankly unfair. So it's good to also see some improvements in that area. I think it's important to note that there is a debt spiral there and that having a bill that takes clear actions to try and prevent that debt spiral from kicking in is really stopping situations where we've seen 803 percent per annum interest rates where people are charged fees that range between $5 and $5000 for no apparent reason and also really the failures by loan sharks to disclose what is in all the parts of that contract that someone is signing up to. So by having clear areas where we know that this package will deliver and by having these changes it will reduce the problem I believe. It will reduce debt and the harm it does for people. In order for these reforms to be effective we've also strengthened the penalties where the law is breached and I think that's incredibly important. It's all very well having the law there but I think those who were benefiting in this area under the previous law also need to be held accountable for when going forward they haven't complied with the new legislation. Stakeholders throughout the consultation commented on both the stronger enforcement and penalties that were needed in the lending industry for serious breaches of the law. It's great to see that the select committee have listened to that feedback by including new and tougher financial penalties and statutory damages and by improving banning orders for breaches of the law. So I'm encouraged to see that this is an area that where New Zealanders have been preyed upon it's great to see a select committee that has really listened to people and made improvements to the law and it's an area we can continue to work on to make sure that people who earn money and who want to live a good life in New Zealand get the opportunity of getting back on their feet and that debt is not used as an opportunity for those who wish to profit from it. I commend this bill to the House.