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Legislative Assembly for the ACT: 2001 Week 10 Hansard (29 August) . . Page.. 3702 ..

MR STEFANIAK (continuing):

the operation of the Code so that Australian consumers will continue to benefit from having uniform credit laws in a national market.

As you are aware, the Government fully supports your proposal at every level, noting that the changes that you want to introduce are also being treated seriously at a national level, with a draft Bill to amend the Credit Code, incorporating your proposals, earmarked for MCCA's consideration in November.

If the ACT were to pass the legislation, the consequences are that the ACT would fall outside the uniform Credit Code regime, exposing ACT consumers to higher fees and charges and interest rates as a result of higher compliance costs imposed on credit providers which would inevitably be passed on to consumers.

On balance, in light of UCCCMC's comments, I would urge you to agree to adjourn debate on this Bill. I say this because your proposals, together with a raft of other proposals aimed at addressing credit card over-commitment, will gain legislative force in an amendment to the uniform Credit Code early next year.

This course of action will ensure that ACT consumers will continue to enjoy the financial benefits that the Uniformity Agreement delivers, as well as benefiting from the provisions in your Bill which will be incorporated into the Credit Code in the new year.

Similarly, in a letter dated 24 August to my colleague the Leader of the Opposition, I advised:

Dear Jon,

I am writing to seek your co-operation in opposing the passage of Mr Rugendyke's Fair Trading Amendment Bill 2001.

I am saying that it is sensible if we support it in principle but not pass it tonight for the reasons given. If we do go to the final stage, I think-sad as it would be-we would have to oppose that. But we should pass it in principle, and I will come back to that at the end.

I go on to say:

I seek your support because of the adverse consequences that the passage of the Bill will have on the ACT community. If the ACT is forced to withdraw its support from the normal protocols under MCCA, this will impact, not only on this Government and future ACT Governments in administering the Territory, but also on their dealings with other Australian Governments.

While the Government fully supports Mr Rugendyke's proposals at every level, the changes that he wants to introduce are already being treated seriously at a national level, with a draft Bill to amend the Consumer Credit Code incorporating his proposals and a raft of other proposals aimed at addressing credit card over-commitment, earmarked for MCCA's consideration in November this year. Indeed, it is anticipated that these proposals will gain legislative force in an amendment to the uniform Credit Code early next year.

Unfortunately, our attempts to persuade UCCCMC to give us some leeway for the passage of the legislation in advance have been unproductive. UCCCMC has advised that if the ACT were to pass this legislation, this would amount to a breach

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