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		Motor Vehicle Sales Bill New Zealand Association of Citizens Advice Bureaux submission on the Motor Vehicle Sales Bill February 2002

Background The New Zealand Association of Citizens Advice Bureaux welcomes the opportunity to comment on the Motor Vehicle Sales Bill. The aims of the Association are: To ensure that individuals do not suffer through ignorance of their rights and responsibilities or of the services available: or through an inability to express their needs effectively –– Me noho matära kia kaua te tangata e mate i töna kore möhio ki ngä ähuatanga e ähei atu ana ia, ki ngä mahi ränei e tika ana kia mahia e ia, ki ngä ratonga ränei e ähei atu ana ia; i te kore ränei öna e ähei ki te whakaputu i öna hiahia kia märama mai ai te tangata. To exert a responsible influence on the development of social policies and services, both locally and nationally -- Kia tino whawähi atu ki te auahatanga o ngä kaupapa-ä-iwi me ngä ratonga-ä-rohe, puta noa hoki i te motu. The New Zealand Association of Citizens Advice Bureaux – Ngä Pokapü Whakahoki Pätai mai i te Iwi Whänui provide free, confidential and impartial information, advice, advocacy and support to individuals, and use our experience with clients to advocate for socially just policies and services in Aotearoa New Zealand. The national network of 88 Citizens Advice Bureaux aim to empower individuals to deal with their own problems and to strengthen communities by identifying and raising local and national issues.  The person to person information, advice, advocacy and support service provided by 2,750 bureaux volunteers is unique in New Zealand, as is our ability to provide a national snapshot of community issues and concerns. In making our comments we draw on the knowledge and experience from bureaux’ client contact and that fact that since 1998, Citizens Advice Bureaux have dealt with over 25,000 enquiries (about 250 every week) about motor vehicle dealers and sales, including disputes through the MVDT.  Bureaux report that the vast majority of these cases are very complex, often involving complicated contracts and credit arrangements, and occasionally requiring mediation between consumers and traders.       Comments on the Bill The Association welcomes the Bill.  We consider it represents a very positive shift away from the weak consumer protection contained in the existing Motor Vehicle Dealers Act and the Motor Vehicle Dealers Bill introduced in 1998.  Effective consumer protection legislation for motor vehicle sales is long overdue; we therefore hope that the members of this Committee will ensure quick passage of the Bill through all stages.  The Association wishes to see these provisions passed into law this year. The Association has been lobbying for position change in motor vehicle sales law for many years.  We made comments for shaping this Bill most recently during consultation on the Ministries of Economic Development and Consumer Affairs discussion document Motor Vehicle Sales: A proposed regulatory regime.  The Bill has succeeded in translating the proposals discussed in that document into provisions that the Association feels offers consumers effective protections.  There were however a few concerns that have not been addressed in the Bill.  Those are: consumer representation on the Disputes Tribunal, fees for taking a claim to the Disputes Tribunal and the fidelity fund. Motor Vehicle Disputes Tribunal Consumer representation In our submission on the discussion document we argued that the consumer representative should remain on the Disputes Tribunal, in addition to the technical expert.  We feel that consumers are provided with effective protections through other provisions in the Bill, however we maintain that the consumer representative on the Disputes Tribunal would provide extra protection. User charges to fund the Disputes Tribunal The Association does not support user charges for the Motor Vehicle Disputes Tribunal, just as we do not support user charges for the Disputes Tribunal. Fidelity Fund In our submission on the discussion document we supported the retention of some form of fidelity fund.  This Bill has not carried over the fidelity fund from the Motor Vehicle Dealers Act.  On balance, after considering the other consumer protection provisions in the Bill, the Association accepts the winding up of the Motor Vehicle Dealers Fidelity Guarantee Fund as outlined in the Bill.           Information | Contact Us | Volunteering | Social Policy | About Us