Annex One: New Initiatives to Be Progressed in an Omnibus Bill
1. Under the Consumer Credit Contracts Act 2003, firms are allowed to charge reasonable costs when awarding a discount to a borrower if a loan is repaid early whereas under the Second Hand Dealers and Pawn Brokers Act, pawnbrokers can charge interest but not any other form of fee. Thus there is confusion as to which Act should be followed. To address this, the Ministries of Economic Development (MED) and Justice will deliver a proposed solution to eliminate inconsistencies between the Consumer Credit Contracts Act 2003 and the Second Hand Dealers and Pawn Brokers Act. Necessary legislative changes would reduce excessive paper work and clarify whether lenders can charge borrowers non-interest fees for early loan repayment.
2. It is unclear whether the co-regulatory arrangements under the Gas Act 1992 applies to gas used for feedstock. To address this, MED proposes to amend the Gas Act 1992 to clarify that regulations and rules made under the Act's co-regulatory Part 4a do cover gas used for feedstock, unless it is specifically stated that they do not.
3. To remove confusion and excessive compliance for industry caused by both the Weights and Measures Act (WMA) 1987 and Gas Act 1992 applying to liquid petroleum gas (LPG), MED proposes to amend the WMA so that the supply of LPG is controlled only by the Gas Act 1992.
4. To address the difficulty that some businesses have in determining when averaging of relevant daily pay should occur and how commission payments should be treated the Department of Labour (DoL) proposes amending the Holidays Act 2003 specifically to clarify when averaging of relevant daily pay should occur and how commission should be treated, without undermining employees' holiday entitlements. This will be considered by the Minister of Labour, by March 2007, for inclusion in the Omnibus Bill if approved.
5. Taxation legislation specifically refers to GST invoices being marked "copy only". However, such invoices are often received marked "copy" and the use of them is technically in breach of the Act. To address this problem, IRD proposes to make the requirements of what constitutes an invoice for GST purposes less prescriptive for all businesses.
6. Under the Designs Act 1953, if renewal fees are not paid on time, the design registration lapses. MED proposes to amend the Designs Act 1953 to allow for renewal of design registrations after renewal fees are not paid on time, provided that failure to pay the renewal fee was unintentional. This will ensure that for unintentional late payment, the design owner has their design (business investment) protected until the maximum term for sole ownership of their design has expired.
7. The paperwork required for obtaining a mining permit is extensive. MED proposes amending section 41 of the Crown Minerals Act 1991 to better reflect the policy reasons behind the section and reduce the number of transactions, involving permits issued under the Act, for which permit holders must obtain the consent of the Minister. Further changes are proposed also, to regulations promulgated under that Act, to allow for the use of electronic filing of documents.
Back to Top