Page 2142 - Week 08 - Wednesday, 9 September 1992
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Of course, compulsory recall of defective goods may not be needed in some cases, while in others a recall order may not be sufficient to warn or compensate affected consumers. Therefore, the Minister has two additional powers that he or she can use instead of, or in conjunction with, a recall order. First, the Minister can require the supplier to warn consumers about defective goods and provide advice on handling and disposal procedures where necessary. Secondly, the Minister can require the supplier to choose between repairing, replacing or refunding the price of the goods and then notify the consumer which of the remedial actions she or he has chosen. However, since compliance with these kinds of orders can be a costly exercise, a supplier who is affected by such an order can, either before or after the order is made, request a conference with the product safety advisory committee, which may make recommendations to the Minister whether to make, amend or revoke an order.
Madam Speaker, before completing my overview of the Bill, I would like to draw your attention to the updated penalties for product safety provisions which are included in this Bill. It is the view of the Government that breaches of consumer product safety laws should be treated no less lightly than breaches of other fair trading laws. Therefore, the maximum fine for an offence of supplying goods which do not comply with a consumer product safety standard or supplying goods in contravention of an interim or permanent product safety order has been greatly increased. The maximum fine that can be imposed on individuals will be raised from $5,000 to $20,000. However, the penalty providing for a term of imprisonment of up to two years will be removed. The maximum penalty that can be imposed on corporations will increase from $20,000 to $100,000.
The additional offences created by this Bill which prohibit the supply of goods that do not comply with consumer product information standards or product recall orders will also attract similar fines. These penalties are in line with those in the Fair Trading Bill and those applying to similar product safety provisions in the product safety legislation of the Commonwealth and the States.
In conclusion, I am happy to say that I expect that these new product safety provisions will be rarely called upon. The Trading Standards Office of the Consumer Affairs Bureau already works cooperatively with the Federal Bureau of Consumer Affairs and other State and Territory agencies. This cooperative venture ensures that, as far as possible, traders are aware of product safety before they market their goods, so that unsafe products are not sold in the Territory or, indeed, anywhere in the Australian market. The safest marketplace is, after all, a self-regulated one. Madam Speaker, with this Bill, and the Bill that accompanies it, the Labor Government has achieved a significant reform in bringing the consumer protection laws in this Territory up to modern standards which, I am pleased to say, was something that I pledged myself to in my introductory speech when first sworn into this Assembly as a member. I commend the Bill to the Assembly. I particularly commend the work of officers in the Consumer Affairs Bureau and the drafting office who have prepared this quite substantial and massive package of reform. I commend the explanatory memorandum to the house.
Debate (on motion by Mr Humphries) adjourned.
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