MAGISTRATES COURT (SMALL CLAIMS JURISDICTION) AMENDMENT BILL

Introduction and First Reading

Mr MARSHALL (Norwood) (10:31): Obtained leave and introduced a bill for an act to amend the Magistrates Court Act 1991. Read a first time.

Second Reading

Mr MARSHALL (Norwood) (10:31): I move:

That this bill be now read a second time.

If successful this bill will bring much needed amendments to the Magistrates Court Act 1991. These amendments, I believe, are long overdue and they have been designed to bring fast, effective and affordable justice to the small business sector in South Australia and the people of South Australia.

Madam Speaker, as I am sure you are aware, there are two divisions in the current Magistrates Court: the General Division and the Minor Civil Claims Division. Prior to coming into parliament I worked in the family business sector and my experiences in the small to medium enterprise sector informed the bill which I am introducing today.

The current Magistrates Court Act 1991 defines a 'small claim' as a matter which will be held in the Minor Civil Division of the Magistrates Court. The maximum amount that can currently be disputed as a small claim in South Australia is just $6,000. This is a fairly simple bill which is aimed at simply changing the threshold under which disputes can be held in the minor civil jurisdiction of the Magistrates Court, and I am proposing that we change this threshold to $25,000.

I believe that our current low threshold disadvantages businesses in South Australia. We are only one of two states in Australia, along with Tasmania, with a limit below $8,000. In New South Wales, Western Australia, ACT, and Northern Territory, the limit is $10,000 or above; and, in Queensland, the state with the most recent legislation in this area, the threshold is set at $25,000, which is the amount I am proposing in my bill today.

The original legislation and the threshold have not been reassessed since 1991, and I believe it is completely inadequate in this current economic climate. By having the limit set so low, we are forcing businesses and individuals to take disputes over relatively minor claims to the General Division of the Magistrates Court. This is often a significantly more expensive process and a significantly more timely process for our businesses and individuals.

Quite often the costs far outweigh the work of the original dispute, meaning that it is not worth the time, effort and money needed to effect justice for this important sector in South Australia. Moreover, this disadvantages the business community in South Australia and deprives them of cost-effective justice that they would be able to achieve in other jurisdictions around the country. This is particularly a problem for small businesses that do not bother taking disputes to court because it is simply not worth it. By raising the limit from $6,000 to $25,000, we would allow more small businesses, family businesses and individuals to achieve justice and cut down on the backlog in the General Division of the Magistrates Court. By having people represent themselves, instead of lawyers representing them, I believe that this will be more cost-effective, and I believe a fairer way of resolving minor civil claims.

Raising the limit of the Small Claims Court is one of the recommendations made by Judge Peggy Hora, a former thinker in residence in South Australia, brought here by the government. She published her report Smart Justicewith a number of excellent recommendations and I would like to read a short quote from the report, where she stated:

...where there is a dispute involving a large sum of money (over $5,000)...only the wealthy or corporate bodies can afford to have it resolved in a court of law.

She is referring to the costs associated with taking a claim through the legal system in South Australia.

When I first introduced this bill, it was reported in the popular press that the Attorney-General had suggested that it was appropriate to look at an increase in the threshold, and I welcome that. I am asking for this government to heed the advice given to it by experts like Judge Peggy Hora and support the Magistrates Court (Small Claims Jurisdiction) Amendment Bill 2011. I believe that South Australians deserve fast, fair and cost-effective justice, just as much as people living in Queensland. As their elected representatives, I believe we have a duty to ensure that our justice system is as streamline, efficient and accessible as possible.

This is a genuine bill that I introduce today. I genuinely think that this simple amendment will address the disadvantage that our business sector and individuals currently suffer in South Australia. It is not something where I have sought to bash the government; it is not something where I have put out press releases talking about government neglect or anything like this. It is something that I genuinely feel would be very well regarded in the business sector and for individuals in South Australia. I ask all members of this place to support this simple amendment and help bring justice to the people of South Australia.

Debate adjourned on motion of Mrs Geraghty.