NORTHERN TERRITORY TREASURY CORPORATION AMENDMENT BILL 1998 Second Reading Speech

Northern Territory Second Reading Speeches

NORTHERN TERRITORY TREASURY CORPORATION AMENDMENT BILL 1998

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

(This is an uncorrected proof of the daily report. It is made available under the condition it is recognised as such.)

Bills presented and read a first time.

Mr STONE (Chief Minister): Madam Speaker, I move that the bills be now read a second time.

These 3 bills are designed to make some relatively minor amendments to the Financial Institutions Scheme legislation. Section 13 of the Financial Institutions (NT) Act, like equivalent provisions in state and ACT Application of Laws Act provided that appeals from the Australian Financial Institutions Appeals Tribunal should be to the Queensland Supreme Court.

The Ministerial Council for Financial Institutions felt that appeals should be in the relevant state or territory Supreme Court. Jurisdictions other than Queensland are amending this legislation and the Financial Institutions (NT) Amendment Bill is part of the process. The Australian Financial Institutions Appeals Tribunal is designed to hear administrative appeals from the Australian Financial Institution Commission and state supervisory authorities. The Building Societies Act formerly dealt with permanent building societies and terminating building societies. Permanent building societies now called building societies, accept deposits and make loans on a continuing basis, and are now covered by the Financial Institutions Code, applied to the Northern Territory by the Financial Institutions (NT) Act. Territory Mutual Building Society Ltd is such an organisation.

Terminating building societies can lend funds provided by government, or wholesale funds that are government-guaranteed, often to low-income earners. They are also known as cooperative housing societies. When the funds on loan have been paid back, the building society is terminated.

The Building Societies Act was retained when the Financial Institutions (NT) Code came into operation to cover the establishment of a terminating building society if required. None was in existence. However, none was established in the 5 years since the Financial Institutions Scheme came into operation. State legislation dealing with these bodies is more up-to-date and includes appropriate standards.

In the Northern Territory itself, housing assistance to low-income earners is provided through the HomeNorth Scheme. The housing finance market generally is very competitive with banks, building societies, credit unions and mortgage originators all keen to provide housing loans to Territorians. It is appropriate to repeal the Building Societies Act and regulations. If there were an initiative to establish a new terminating building society then the Northern Territory could base the legislation on that of another jurisdiction.

Honourable members may remember that the Financial Institutions, (Miscellaneous Amendments) Bill was passed at the April 1997 sittings, and those who had an interest in that matter will recall that particular bill I am sure. It provided that persons and organisations that could invest in banks could invest in building societies and credit unions. This amendment makes a consequential amendment to the Northern Territory Treasury Corporation Act to make an adjustment that was overlooked previously. I commend the bill to honourable members.

Debate adjourned.

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