Review of the Hire-Purchase Act 1959

Chairman's Foreword

With the return of the Kennett Government after the 30 March 1996 election, a new Scrutiny of Acts and Regulations Committee was established for the 53rd Victorian Parliament. This Committee, in conjunction with Chief Parliamentary Counsel, had first been given the reference by the Governor in Council on 12 May 1994. The reference to review redundant legislation was renewed on 18 June 1996.

The reference requests the Committee to review Acts of Parliament and other legislative instruments which are unnecessary or redundant or alternatively, which are unclear, ambiguous, or should be redrafted.

The primary objective of the Committee is to reduce the number and complexity of Victorian Acts and legislative instruments and ensure that Acts and instruments are clearly expressed in accordance with modern drafting practices. The overall aim of the Committee is to ensure that the Victorian statute book is clear, relevant and accords with the needs of the community. The success of the Reference has been greatly enhanced by the valuable assistance of Chief Parliamentary Counsel, Ms Rowena Armstrong.

Under the terms of reference the Committee is required to examine several aspects of the legislation contained in the Statute Book. Bearing in mind the primary object of reducing the number and complexity of Victorian Acts and legislative instruments, the Committee of the 52nd Parliament approached the task on the portfolio by portfolio basis, as well as receiving individual submissions on legislation perceived as redundant or unclear.

On 24 May 1995, the Committee received a submission from the Australian Finance Conference, the national finance industry association, requesting the Committee to examine the possible repeal of the Hire-Purchase Act 1959 (Vic) ("HPA"). The Committee wrote to the Minister for Fair Trading, the Honourable Jan Wade, MP, seeking her comments. The Minister then invited the Committee to conduct a review of the Act. The Committee welcomed the opportunity to review the Act. It was of particular interest to the Committee as the Act formed part of the first national scheme of uniform legislation.

The Committee heard evidence that the Act, originally intended for the protection of consumers, had become an instrument regulating business hire-purchase transactions. Protections for consumers now being covered by the Consumer Credit Code. The Committee was told that the Act was rigid, overly prescriptive and outmoded in it application to business. The recommendations for the repeal of the Hire Purchase Act 1959 is proof of the Committee's ability to work in a bipartisan way.

I wish to thank the various Ministers, interest groups and individuals who co-operated and assisted the review of the Act by their comments, submissions and responses.

I wish to thank all the members of the Scrutiny of Acts and Regulations Committee from the 52nd Parliament for their work and acknowledge their contributions. Similarly, my thanks to all members of the current Scrutiny of Acts and Regulations Committee. In particular, I am grateful to the Hon Maree Luckins, MLC, the Chair of the Redundant Legislation Subcommittee and those committee members who worked with her on this Reference and in the development of this Report. Thank you also to Ms Dominique Saunders, Legal Officer, for her research, drafting and editing skills. Thanks are also due to Ms Helen Mason and Ms Tanya Coleman for their legal advice, guidance and support. Finally, I express my appreciation for the assistance of Mrs Rhonda MacMahon, Mr Stephen Robertson and Mr Richard Kings for dealing with the relevant administrative tasks.

I commend the Report on the Review of the Hire Purchase Act 1959 (Vic) to the Parliament of Victoria.

Mr Peter Ryan, MP
Chairman
December 1996.

Recommendations

The Committee recommends:

1. That the Hire Purchase Act 1959 (Vic) be repealed;

2. That the Minister for Fair Trading, the Minister for Agriculture and Natural Resources and the Minister for Small Business consider as a question of policy the development of new legislation to address requirements of the rural sector in regard to commercial finance as part of a model for a national code relating to protections for the business/farming sector.

3. That the Ministers consider referring these recommendations to the relevant ministerial council for the development of national uniform legislation.

Chapter 6--p. 62

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