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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-05-27 Daily Xml
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CREDIT (TRANSITIONAL ARRANGEMENTS) BILL

Introduction and First Reading

Received from the Legislative Council and read a first time.

Second Reading

The Hon. J.R. RAU (Enfield—Attorney-General, Minister for Justice, Minister for Tourism) (17:00): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This Bill supports the Credit (Commonwealth Powers) Bill 2010, which has the object of adopting the National Consumer Credit Protection Act 2009 of the Commonwealth. As I have said, that Bill forms part of the new national credit protection regime being established under Commonwealth law and will provide the Commonwealth with the necessary Constitutional power it requires for the implementation and operation of the national credit regime.

Given the move from the State-based Uniform Consumer Credit Code (UCCC) to the national consumer credit code under the National Consumer Credit Protection Act 2009, a number of minor and technical transitional issues inevitably arise.

This Bill, the Credit (Transitional Arrangements) Bill 2010, seeks to address these transitional issues.

The Bill, which operates in conjunction with the Credit (Commonwealth Powers) Bill 2010, ensures that references made to the existing UCCC are amended to refer to the new National Credit Code.

To provide further flexibility, if any concerns are raised in the move to the new national regime, the Bill provides for the making of additional regulations of a saving or transitional nature. While not expected to be necessary, this provision provides further confidence to both industry and consumers that appropriate mechanisms can be put in place to respond to unforseen issues.

Most importantly, the Bill repeals the existing Consumer Credit (South Australia) Act 1995 and the Credit Administration Act 1995. These Acts gave effect to the UCCC in South Australia and are no longer required under the national credit regime. In repealing these Acts, and in passing both this Bill and the Credit (Commonwealth Powers) Bill 2010, we allow South Australia to embrace broad reaching improvements to consumer protection and credit law, and support the national seamless economy vision of the Council of Australian Governments.

I commend the Bill to Members.

Explanation of Clauses

1—Short title

This clause is formal.

2—Commencement

The measure will be brought into operation by proclamation.

3—Interpretation

This clause sets out the definitions required for the purposes of the measure.

4—Pre-Code contracts

It is necessary to continue the regulation of certain contracts under the Consumer Credit Act 1972 or the Consumer Transactions Act 1972. This preserves the situation that currently applies by virtue of regulations under section 10 of the Consumer Credit (South Australia) Act 1995.

5—Consumer Credit Fund

It is necessary to provide for the continuation of the Consumer Credit Fund for a transitional period. The Commissioner will be able to wind up the fund at an appropriate time and apply any remaining money for a purpose authorised by the Minister.

6—Provision of information and assistance to ASIC

The Commissioner will be able to provide relevant information to ASIC in connection with the operation of the National Credit legislation.

7—ASIC has certain functions and powers

The Minister will be able to enter into an arrangement with ASIC for the performance of functions or the exercise of powers as an agent of the State, even if those functions or powers are conferred on another body under a law of the State.

8—References

This clause provides for the effect of references to the current State legislation, the Consumer Credit (South Australia) Code or the Consumer Credit (South Australia) Regulations.

9—Regulations

The Governor will be able to make other provisions of a saving or transitional nature consequent on the enactment of this measure or the transition from the State scheme to the national scheme.

Schedule 1—Related amendments and repeals

This schedule sets out related amendments to other Acts. The Consumer Credit (South Australia) Act 1995 and the Credit Administration Act 1995 are to be repealed.

Debate adjourned on motion of Ms Chapman.

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