Foss Craig: Credit Contracts and Financial Services Law Reform Bill — In CommitteeText is incorporated into the Bound VolumeFoss Craig: Credit Contracts and Financial Services Law Reform Bill — In Committee[Sitting date: 13 May 2014. Volume:698;Page:17795. Text is incorporated into the Bound Volume.]Hon CRAIG FOSS (Minister of Consumer Affairs): This will be the final time that I rise in the Committee stage on this bill the Credit Contracts and Financial Services Law Reform Bill. Members have asked a few questions. I think it is importantto note that in addition to the National Government targeting dodgy behaviour and targeting loan sharks as we are in this bill and in other consumer affairs bills actually just in the last couple of weeks we have announced microfinancing under the Hon Paula Bennett’s portfolio. That is about bringing in good shepherds—the Bank of New Zealand—to offer very very very low-interest loans to those who are stuck in a spiral of debt and whom the Ministry of Social Development is working very hard with to assist them out of those circumstances.Members have also asked about the resources for budgetary services around the country in addition to those in Auckland. That is a fair question and I am sure that they will be pleased to know that Minister Bennett recently announced that an increase from $13 million per annum to $22 million per annum will be going in to assist those same budgetary services.Interest rate caps have been mentioned a few times in this last part and I will address those because something demonstrates how hard and complex they can be. No one has actually talked about the total cost of finance caps; they have talked about interest rate caps. Yes there were two Supplementary Order Papers in that space. Well one of them would have given the humble Minister of Consumer Affairs more power than the Minister of Finance and it would probably be up there with Dr Bollard essentially setting interest rates. Another one actually had the totally unintended consequence I am sure of totally contradicting itself and basically giving second-hand dealers and pawnbrokers absolutely unlimited fees charges interest rates—you name it. So that was the consequence of that Supplementary Order Paper.But I really want to talk to those who are voting against this bill. I do thank and acknowledge members across the House for their acknowledgment of what has been going on in dire situations across this country in many many tragic circumstances. However those who are voting against this bill and against this protection are voting for uninformed borrowers and uninformed lenders. They are voting for irresponsible behaviour from lenders—predatory behaviour. They are voting for a continuation of some in our community carrying out exploitative behaviour towards some of the most vulnerable in our community because that is what has been going on and that is what those members are voting for if they in fact vote for the status quo. If those members are voting against this bill they are voting for having no principles of responsible lending no consideration of the circumstances of the borrower no Responsible Lending Code no pre-checking and no understanding of what the obligations are that a guarantor might be taking on if English was their second language and if they did not actually know what was going on.I have had members in this House come to me about issues that in fact this bill would fix and they are now voting against this bill. I cannot understand it. If they vote against this bill they will be voting for the status quo of arbitrage and whole exploitation in rules and regulation across this land. That is not right. That is not fair. That is not the Kiwi way. If those members are voting against this bill they will be voting for embedded fees ratcheting costs and selling insurance to beneficiaries who are taking on loans that they cannot afford to pay back in the first place. That is what they are voting for if they vote against this bill. They if they are voting against this bill will be voting for unlicensed repossession and predatory behaviour carried out by some in our country. They will be voting for people to go into other people’s houses and take possession of things that have not been borrowed against and have not been listed and they will be voting for them to use leverage extortion and even blackmail—even running down the road with a machete to chase down some of our vulnerable New Zealanders.I do not for the life of me understand why some members in this House are doing that. They can make their political point but they are putting New Zealanders at risk. They will be exposed and I think that they will be judged accordingly. Those who are voting against this bill will take no allowance of the hardship they will take no allowance of the oppression clauses in the bill and they will take no allowance of the changes to the dispute resolution services. As is evidenced by those good members across the Chamber who are voting for vulnerable New Zealanders and for fair play yes some members are putting New Zealand first but some other members in this House are not. I think that that will play back very badly for them because they are allowing a continuation of bad dodgy predatory and exploitative behaviour within our community. I am proud to stand with the other MPs in this Chamber to address that exact matter. Thank you.