Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1996 Week 9 Hansard (29 August) . . Page.. 2779 ..

MR HUMPHRIES (continuing):

The reason the Government ultimately chose to have a negative licensing scheme rather than a positive licensing scheme was fairly simple. It was our view that the onus of activity by agencies, in this case the Consumer Affairs Bureau, in respect of provisions in the credit legislation ought not to be processing applications and examining the paperwork that related to a person's bid to be registered or to be reregistered on a regular basis; that it should be enforcement and dealing with problems that are actually emerging, rather than problems that might appear on the face of paperwork lodged with the department. The desire to be proactive and out in the community looking out for signs of problems and randomly checking the records and accounts kept by credit providers was felt to be the right onus in achieving a high level of protection. Certainly, in the past positive licensing schemes have failed. I cannot exclude the possibility that negative ones might fail as well, but in this case the desire of the Government, and indeed a number of other Australian governments, has been to put the onus onto enforcement and getting out in the community and looking for signs of problems, rather than assuming that problems will appear on the paperwork that is lodged by credit providers when they apply for registration or reregistration.

That is the onus that was chosen. I think it is the decision that has now been made by most Australian governments in dealing with this situation. We will see how this transpires. Clearly, if a problem emerges, if we find that credit providers are using negative licensing to avoid taking basic steps in ensuring that their clients, their customers, are protected, then we will have to reconsider this model; but I think that the model is now well enough established and the onus that falls on credit providers well enough known in the industry to present an opportunity for us to focus our efforts in other areas where they can be of more value and where greater return can be achieved.

I thank the Opposition for its support. I hope that the beginning of the national consumer credit regime across this land will be a significant step forward. In the past something like 20 per cent of credit transactions have been covered by legislation, at least in the ACT. Now that this legislation is in place, 100 per cent of consumer credit transactions will be affected and regulated. That is a very significant expansion of the protection that we are able to offer. I hope that it will produce a level of benefit to the community.

Question resolved in the affirmative.

Bill agreed to in principle.

Bill, by leave, taken as a whole

MR HUMPHRIES (Attorney-General) (12.23): I move:

Page 5, line 2, insert the following clause:

"Exemption - banks

3A. This Part does not apply in relation to a bank.".

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .