Young Jonathan: Disputes Tribunals Amendment Bill — First Reading 
Young Jonathan: Disputes Tribunals Amendment Bill — First Reading 
[Volume:653;Page:2315] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 The Disputes Tribunals Amendment Bill brings in changes that will allow parties to resolve their disputes in a more cost-effective manner. Unfortunately disputes are a part of life business and politics as we know in this House. Though we will never be free from disputes how we handle them is very important. A process that is simple easy to access and cheap enables people to resolve disputes and get on with the business of earning a living and getting this country growing again. 
That is why this Government is putting through this measure as part of our economic relief package during a time of recession. The last thing we want is to be caught up in a process that is toxic complicated expensive and destabilising for citizens and their businesses. Right now there is a gap that some disputes are falling through. The cases are too big for the disputes tribunal yet they are not big enough to take to a District Court because of the associated costs involved. 
Do we really want to have a heavily litigious society or do we want to seek a process of mediation when the costs of dispute resolutions are excessively high? When the level for resolution in a disputes tribunal is too high it leaves people feeling that they cannot access justice. It leaves people angry and dissatisfied about the issues they are facing. 
Part of the reason for people wanting to live in New Zealand and not move overseas is having a process whereby a proper and just resolution of disputes can take place that is not going to break the bank. We do not want people moving overseas to work because they feel they cannot do business in a just and successful way in New Zealand because it is just too hard. This gap is there because inflationary pressure has made the present maximum level of claims of less value. This bill brings through an inflationary adjustment to lift the maximum level of claims to an amount more in keeping with what it should be. Back in 1998 this maximum level was lifted from $7500 to $12000. This bill proposes that the maximum level be lifted to $15000 or by consent of both parties to $20000. 
If we do not make these amendments it means that the costs of recovering anything over the maximum amount of $12000 would incur the associated litigation costs of going to a District Court which would make it unviable for many. The result is that some people would simply walk away from their claim but sadly in the case of many people if they walk away from their claim it could put their business in jeopardy. There are still many businesses in New Zealand where $12000 to $20000 is a large amount of money. For many it would be the difference between success or failure or employing a person or not. Businesses want to spend their money on productivity and growth not on a litigious process of going to a District Court hiring solicitors and going through all the filing fees they would incur. 
We need to make the resolution of disputes more accessible simple and cheap. This amendment bill makes the disputes process more accessible. As my colleague Allan Peachey said 3600 more New Zealanders would be able to access this process than are able to now. 
Simon Bridges 
: How many? 
JONATHAN YOUNG 
: Three-thousand six-hundred more New Zealanders would be able to access a process to resolve disputes than are able to at present. The disputes tribunal offers that ability. It avoids the legality and formality of the courtroom filing fees are significantly lower and lawyers are not allowed. Therefore the costs of taking a claim to the tribunal are significantly lower than in the courts. 
The best outcome of making the disputes tribunal more accessible to more New Zealanders is that we will see our country and particularly small businesses get going and get growing. The best outcome of this amendment bill is to enable businesses in particular to get back into business instead of tying up their resources and time in litigation. 
This move will also reduce pressure on District Courts as we have heard. This bill is part of the measures introduced by the Government to fulfil our election promise that we would expand the jurisdiction of the disputes tribunal. It is also part of our commitment to helping small businesses through the economic downturn. 
The most recent increase in the maximum level of claims was back in 1998—11 years ago—under the previous National Government so the proposed increase is well overdue. I particularly like clause 6 of the bill. In clause 6 we have an amendment to section 14 of the Disputes Tribunals Act to lift the provision to $15000. Clause 6 enables a person to abandon part of a claim in order to bring the claim within the tribunal’s jurisdiction. A person with a claim of $16000 may choose to forgo his or her right to claim the full $16000 and may claim only $15000 instead. The thinking is that this would enable that person to claim $15000 and to save perhaps $1000 on legal costs. For many people that becomes a very workable solution. 
We need to understand that having such a process gives people access to a process of resolution but there are limitations of protection and we must understand that. In order for the disputes tribunal to provide cheap simple fast and less formal access there are limits to the protections that would normally be found with a court. Referees’ decisions are not necessarily based on law but rather on the substantial merits and justice of the case. Grounds for appeal are extremely limited. Appeals can be made only if the proceedings were conducted in a prejudicial manner. The disputes tribunal does not allow the legal representation of parties etc. Proceedings are held in private and the decisions are not published. 
This bill makes available a process that is cheaper quicker and simpler for people to be able to resolve their disputes in a timely manner. As we know from the research it gives 3600 New Zealanders the opportunity essentially to get back into business to use their resources for productivity and growth and not to lose their resources in a litigious way. 
The bill proposes an increase in claim levels from $12000 to $15000 or to $20000 with the consent of both parties. This will achieve the objectives of improving access to the tribunal and of allowing an increased number of New Zealanders to be able to reduce their costs when resolving small civil claims. This bill will increase access without compromising the nature of the tribunal. The current level of protections would continue to be relevant and appropriate for the amounts of money involved in disputes. The only changes to the tribunal will be operational in managing the increased number of cases coming before it. 
I appreciate the opportunity to stand in support of this amendment bill. Thank you. 
Bill read a first time.