Disputes Tribunals Amendment Bill
Second Reading
Hon NATHAN GUY (Associate Minister of Justice) : It is a great opportunity to take a call on the Disputes Tribunals Amendment Bill, which has just come from the Justice and Electoral Committee. We heard from the previous speaker, Charles Chauvel, that 10 submissions were gained through the select committee process and that three of those submitters chose to be heard orally. It looks to me as though the bill has a great deal of support across the whole of Parliament this evening.
The objective of the disputes tribunals is to provide cheap, simple, and fast access to justice, and a forum that avoids the legality and formality of the courtroom, which is extremely appropriate. Filing fees are significantly lower and no lawyers are allowed. Therefore, the costs of taking a claim in the tribunal are significantly lower than in the court process.
It is significant that National is delivering on its election promises, as it has done in its first 6 or 7 months in Government, here increasing the jurisdiction of the disputes tribunals, to reduce pressure on District Courts. This is the first step in that process. This bill will also help the cash flow and make enforcement of debt easier for small and medium sized businesses and individuals who are feeling the strain placed on them in the current economic climate. That is also a very significant point.
The bill will make some amendments to quite a large number of other Acts. If members turn to the schedule, they will see that this bill affects the Consumer Guarantees Act 1993, the Credit Contracts and Consumer Finance Act 2003, the Fair Trading Act 1986, the Fencing Act 1978, and the Minors’ Contracts Act 1969. So this legislation is very far reaching.
It will increase the maximum claim level in the disputes tribunals to $15,000, or $20,000 where both parties agree, which is an important point. The current maximum claim level in the disputes tribunals is $7,500, or $12,000 with the consent of both parties. So the bill represents a significant increase in the monetary threshold. The maximum claim levels were not adjusted under the whole of the previous Government’s 9 years. There has not been any adjustment since National was last in power in 1998, which is a very important point for the House to realise. National has certainly got on with the business here during the first 7 months that we have been in Government.
Due to inflation and the increase in costs associated with litigation in the District Court, the disputes tribunals were losing some of their usefulness to individuals and small businesses with relatively simple disputes, and the proposed increase in maximum claim levels improves access to justice. This is a significant point.
This is an important bill, which is progressing through its second reading this evening. It looks to me as though it has a great deal of support right across the whole of Parliament. It is great that the Government and the other political parties in this Parliament support it. I commend the second reading of the bill to the Hous