Page 303 - Week 02 - Tuesday, 12 May 1992
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The cost of administering the Act will be covered and will not be passed on to the consumers or the agents as the interest can be calculated and credited to the fund automatically by the bank. The legislation, Madam Speaker, includes proposed new section 59A, which will enable real estate agents to negotiate the best interest rates. After compensating any person who may unfortunately lose money through the illegal misuse of trust funds, the board of the fund will use the money to administer the Agents Act 1968 as it applies to the operation, licensing and registration of real estate, business and stock and station agents. The Government has proposed that any remaining amount be used to fund educational and housing programs relevant to the real estate industry under proposed new section 71Q(2).
There are a number of concerns that the Liberal Party shared with the industry on this section, Madam Speaker. We are concerned, for example, that no budget has yet been presented, and this would include an analysis of the administration costs and interest rates being paid on account balances. We believe that this money should be going to protect the consumer and to develop the industry and not to cover overheads or to be used as a money tree. We need to know the genuine costs of administration rather than creative accounting principles. We need to know the provisions made for money to be given to housing programs for people to buy or rent dwellings.
Madam Speaker, the Opposition accepts the principles but would like to see some guidelines. We do not want to see the fund becoming some money bucket for causes looking for a problem. The three amendments that I will move later on, Madam Speaker, will make sure that the two people from the industry are, in fact, suggested by the industry. This would go a long way towards alleviating the concerns about proposed new section 71Q(2)(b).
Clause 5 of the Bill is to be commended. It says that the chairman no longer has to be a public servant. That is a good move, as I have said. We are also happy with the changes in proposed new sections 41A and 54A making the renewal date for licences a common day. That is going to make life a lot easier and a lot simpler for the agents.
I would also like to note that the Opposition supports proposed new section 71Q(3), which intends to cap the fidelity fund. In Queensland - one example that comes to mind - a similar fund now boasts $70m. New section 71Q(3) will ensure that the money is not needlessly poured into the fund. The Opposition has discussed this with the industry and we believe that the cap should be set somewhere between $2m and $3m.
Madam Speaker, that is all I need to say at this stage. As I said, I will move later on a number of amendments which I have had checked by the parliamentary draftspeople. Madam Speaker, I seek leave to circulate those amendments now.
MADAM SPEAKER: Leave is not required. That is fine. They can be circulated now.
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