OFFICE OF CONSUMER AND BUSINESS AFFAIRS

The Hon. T.J. STEPHENS (14:47): I have a supplementary question. Minister, what cost do you think you have imposed upon the real estate industry with the changes that were forced upon that industry? When you talk about reductions, what about the actual increased cost?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:47): Again, I am very appreciative of the opportunity to talk about the reforms to the real estate sector. Indeed, as Minister for Consumer and Business Affairs, I advise that it is always a balancing act, and I think we do a very good job in getting that balance right. On the one hand, we want the business environment to be a place of vibrancy and viability. We want to encourage businesses to come here to South Australia, and we want them to be run well. In terms of their legal requirements, we are very keen to make sure we minimise the sorts of imposts those legal requirements impose on businesses. However, we have to balance these considerations with consumer rights and protections.

In relation to the real estate industry, we know that complaints have been made to our office by consumers who have been very frustrated, for instance, by the process at property auctions, which were notorious for the practice of dummy bidding to affect the price of properties, and I am sure my colleagues will concur with this view. Also, there are a number of issues that a purchaser should be made aware of in terms of the checks and balances they need to look into, such as easements and issues around property title and conditions put on a property.

Potential purchasers have to be provided with a template check list. This template is something that can be just copied off; it is not a form that real estate people have to generate for each transaction. A copy of this template check list is required to be handed to prospective buyers, and this check list ensures that a person looking at buying a property thinks about the sorts of problems and issues that might end up costing them huge amounts of money.

As I said, it is about getting the balance right. This area was, in some ways, notorious for practices that consumers complained about so we inserted some provisions. We made sure when we planned those provisions to look at the softest touch possible. We looked at how we could protect the rights of consumers and fix the problems that we had identified without being too heavy-handed or making the impost too great. The confidence of consumers attending auctions has increased because they have far more trust in the process whereas previously there was a concern that they might be being taken for a ride.

So, I think those sorts of things are good for consumers and for improving confidence in the industry, which is good for property transactions.