Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

I move:

That the amendments be agreed to.

The National Consumer Credit Protection Bill 2009 and related bills deliver on the Council of Australian Governments agreement that the Australian government assume responsibility for the regulation of consumer credit. This package of reforms will create a single, nationally consistent regime for consumer credit regulation. The Senate has moved a number of enhancements to the bills to incorporate the recommendations arising from the Senate Economics Legislation Committee’s inquiry into the bills. In addition, other amendments have been made to ensure the efficient delivery of this package of reforms. Amendments that directly address the recommendations of the Senate committee include the deferral of the commencement of the reforms by six months to 1 July 2010 to give industry more time to make the changes they need to move to the new regime. These amendments also clarify that consumers have access to remedies without there needing to be a formal finding by a court in relation to civil penalty and that lenders are required to provide consumers with reasons for rejecting applications for hardship variations and stays of enforcement. The Senate committee also recommended the removal of subsection 130(3) of the main bill so that credit providers will have to verify information provided in a preliminary assessment.

Amendments have also been moved to clarify provisions in the bills so that the regime operates effectively. The amendments modify the definition of ‘residential property’ so that it excludes properties which are not predominantly used for residential purposes. A number of the amendments clarify the role of the regulator, the Australian Securities and Investments Commission. They clarify that ASIC decisions, particularly those regarding enforcement action, are excluded from Administrative Appeals Tribunal review. They also ensure ASIC has the applicability to grant exemptions to some parts of the National Credit Code, subject to conditions, and allow ASIC to exempt a person and all their credit representatives in a single determination. These amendments also allow for the transfer of information, documents, assets or liabilities from a state or territory to ASIC prior to the commencement of the National Credit Code and enable ASIC to issue certain documents in a form prescribed by regulations. Finally, a number of errors have been removed and provisions regarding binding the Crown under the code have been drafted. These changes support and enhance the new national consumer credit regulatory regime.

On behalf of the government I thank the Senate for its work on these bills. I also table further explanatory memoranda relating to amendments to the National Consumer Credit Protection Bill 2009 which incorporate all the proposed amendments that have been moved by the Senate. The government fully supports the amendments moved by the Senate on this bill. I commend these amendments to the House.

Question agreed to.

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