The Motor Vehicle Sales Amendment Bill proposes to amend the Motor Vehicle Sales Act 2003 to improve its operation. The purpose of the Motor Vehicle Sales Act 2003 is to promote and protect the interests of consumers in relation to motor vehicle sales. This measure creates an environment in which consumers have the information and confidence they require in order to make informed decisions.
A statutory review of the Motor Vehicle Sales Act in 2006 identified that its operation could be improved in a number of ways. The Motor Vehicle Sales Amendment Bill introduces changes to the Act to improve its operation and ensure that consumers’ interests continue to be protected in relation to motor vehicle sales. This includes ensuring consumers have access to quality information that allows them to make informed purchasing decisions. The bill also removes compliance costs and red tape for motor vehicle traders, private sellers, and motor vehicle purchasers. The amendments are in three broad areas: disclosure requirements, registration requirements, and the operation of the Motor Vehicle Disputes Tribunal.
Third Reading:
I move, That the Motor Vehicle Sales Amendment Bill be now read a third time . The bill introduces changes to the Motor Vehicle Sales Act to provide for its more effective operation and to ensure that consumers’ interests continue to be protected in relation to motor vehicle sales. It ensures that consumers have access to good information that allows them to make informed purchasing decisions.
The Motor Vehicle Sales Act came into force in December 2003. It introduced a new registration regime for motor vehicle traders that served to make traders more accountable. It also offered more flexibility to participate in the industry, introduced new information disclosure requirements for used motor vehicles, and established the Motor Vehicle Disputes Tribunal, which offered consumers a forum in which complaints against traders could be heard.
The bill is the result of a review of the operation of the Motor Vehicle Sales Act conducted by the Ministry of Consumer Affairs. I endorse the review of legislation 2 to 3 years after enactment. This allows assessment as to whether legislation is bedding in as intended, and it provides for any operational problems to be addressed.
I thank the members of the Commerce Committee for their consideration of this bill. I also thank those who made submissions on the bill to the select committee and throughout the initial review of the operation of the Motor Vehicle Sales Act. Many of the issues raised in those submissions have been addressed in this bill. I also thank the previous Minister of Consumer Affairs, officials from the Ministry of Consumer Affairs, and parliamentary counsel for their work on the bill.
As an ACT Minister in the National-led Government I am pleased that this bill not only includes benefits for consumers who buy motor vehicles but also removes some compliance costs and red tape for motor vehicle traders, private sellers of motor vehicles, and motor vehicle buyers. The bill tidies up the processes related to motor vehicle trader registration renewal and the registration process for overseas directors. It removes the requirements for a consumer information notice if selling a car privately at a car market, and also in sales made between motor vehicle traders and motor vehicle traders and wreckers. Car market operators, those offering premises for an Internet site or for vehicle sales but not actually selling vehicles themselves, will no longer be required to register as motor vehicle traders.
A key function of the Motor Vehicle Sales Act is to protect consumer interests, and I am pleased to highlight to the House that the bill raises the limit to which the Motor Vehicle Disputes Tribunal may hear claims. It has been increased from $50,000 to $100,000. This will allow better access to the tribunal and will also future-proof the limit. The bill also includes some amendments to allow for the more efficient functioning of the Motor Vehicle Disputes Tribunal, and it provides for all decisions of the tribunal to be published, which will provide more transparency and allow traders and consumers alike to learn how best to adjudicate disputes between themselves and resolve them.
In terms of positive outcomes for both consumers and motor vehicle traders, the success of the Motor Vehicle Disputes Tribunal highlights how well these kinds of dispute resolution entities work in providing low-cost, efficient, and fair outcomes for all New Zealanders. I encourage consumers to take advantage of their existence if in a dispute about a motor vehicle and a trader.
The changes I have outlined are designed to strengthen the operation of the Motor Vehicle Sales Act. They are designed to improve consumer outcomes when purchasing motor vehicles, and to remove unnecessary regulatory requirements and the associated compliance costs. I commend this bill to the House.