Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

by leave—I move government amendments (1), (11), (12), (15) to (19), (21) to (24), (36), (41), (47), (48), (51) to (55), (63) and (66) on sheet BJ236 together:

(1)   Clause 2, page 2 (table item 2), omit the table item, substitute:

(11)  Schedule 1, item 1, page 6 (line 20), before “Without”, insert “(1)”.

(12)  Schedule 1, item 1, page 7 (after line 21), at the end of section 4, add:

        (2)    Before the Governor-General makes a regulation for the purposes of subsection (1)(n) prescribing a kind of term, or a kind of effect that a term has, the Minister must take into consideration:

             (a)    the detriment that a term of that kind would cause to consumers; and

             (b)    the impact on business generally of prescribing that kind of term or effect; and

             (c)    the public interest.

(15)  Schedule 1, item 2, page 9 (lines 29 to 31), omit “, and paragraph (b) has not already applied in relation to the contract”.

(16)  Schedule 1, item 2, page 10 (line 3), omit “applies to the contract”, substitute “applies to the term”.

(17)  Schedule 1, item 2, page 10 (after line 6), after subitem (2), insert:

(2A) If paragraph (2)(b) applies to a term of a contract, subsection 2(2) and section 7 of Schedule 2 to the Trade Practices Act 1974 applies to the contract.

(18)  Schedule 1, item 2, page 10 (line 7), after “paragraphs (2)(a) and (b)”, insert “and subitem (2A)”.

(19)  Schedule 1, item 2, page 10 (line 7), after “contract”, insert “, or a term of a contract,”.

(21)  Schedule 1, item 11, page 13 (line 16), omit “(1)”.

(22)  Schedule 1, item 11, page 13 (lines 18 to 20), omit subsection 130(2).

(23)  Schedule 1, item 11, page 13 (line 21), at the end of the heading to section 131, add “etc.”.

(24)  Schedule 1, item 11, page 13 (lines 24 to 26), omit subsection 131(2), substitute:

        (2)    Despite section 130, Part 2 of the Australian Consumer Law does not apply to, or in relation to:

             (a)    contracts that are financial products; or

             (b)    contracts for the supply, or possible supply, of services that are financial services.

(36)  Schedule 2, item 73, page 50 (line 2), after “paragraph (1)(b)”, insert “or (d)”.

(41)  Schedule 3, page 51 (before line 5), before item 1, insert:

        1A Subsections 12AE(1) and (3)

Before “Subdivision C”, insert “Subdivision BA (sections 12BF to 12BM),”.

(47)  Schedule 3, item 7, page 53(line 17), before “Without”, insert “(1)”.

(48)  Schedule 3, item 7, page 54 (after line 20), at the end of section 12BH, add:

        (2)    Before the Governor-General makes a regulation for the purposes of paragraph (1)(n) prescribing a kind of term, or a kind of effect that a term has, the Minister must take into consideration:

             (a)    the detriment that a term of that kind would cause to consumers; and

             (b)    the impact on business generally of prescribing that kind of term or effect; and

             (c)    the public interest.

(51)  Schedule 3, item 8, page 56 (lines 32 to 34), omit “, and paragraph (b) has not already applied in relation to the contract”.

(52)  Schedule 3, item 8, page 57 (lines 5 and 6), omit “applies to the contract”, substitute “applies to the term”.

(53)  Schedule 3, item 8, page 57 (after line 8), after subitem (2), insert:

(2A) If paragraph (2)(b) applies to a term of a contract, subsection 12BF(2) or section 12BK of the Australian Securities and Investments Commission Act 2001 applies to the contract.

(54)  Schedule 3, item 8, page 57 (line 9), after “paragraphs (2)(a) and (b)”, insert “and subitem (2A)”.

(55)  Schedule 3, item 8, page 57 (line 10), after “contract”, insert “, or a term of a contract,”.

(63)  Schedule 3, item 44, page 80 (line 25), after “paragraph (1)(b)”, insert “or (d)”.

(66)  Schedule 3, item 55, page 82 (lines 15 to 20), omit subsection 12GND(1), substitute:

        (1)    The Court may, on the application of a party to a consumer contract or on the application of ASIC, declare that a term of such a contract is an unfair term.

     (1A)    Subsection (1) does not apply unless the consumer contract is a standard form contract that is:

             (a)    a financial product; or

             (b)    a contract for the supply, or possible supply, of services that are financial services.

I understand there has been considerable discussion of these amendments and there will not be any need for a prolonged debate.

The delay in the commencing of the unfair contract provisions of the bill to 1 July 2010 or a date fixed by proclamation within six months of royal assent is the subject of these amendments. They seek to specify considerations the minister must take into account when prescribing terms that may be examples of unfair terms, such as the detriment caused to consumers by a term, the impact on business generally and the public interest. The amendments seek to clarify the transitional arrangements for contracts and effects before the commencement of the law, and there are various technical amendments to correct drafting errors in the bill.

Question agreed to.

I move government amendment (38) on sheet BJ236:

(38)  Schedule 2, item 74, page 50 (lines 10 to 12), omit subsection 87AC(1), substitute:

        (1)    The Court may, on the application of a party to a consumer contract or on the application of the Commission, declare that a term of such a contract is an unfair term.

     (1A)    Subsection (1) does not apply unless the consumer contract is a standard form contract.