Farm Debt Mediation Bill

  • discharged on 25 October 2018

Farm Debt Mediation Bill

Member’s Bill

62—1

Explanatory note

General policy statement

The purpose of this Bill is to introduce Agricultural Debt Mediation as a mandatory step before the appointment of a receiver in respect of Agricultural Debt. The recent mis-selling of Interest Rates Swaps, which saw the Commerce Commission reach a settlement with affected banks, points to a need for mediation ahead of any action under a security.

Furthermore, agricultural debt is a large amount of money concentrated into very few hands standing at over $54 billion in the year to January 2015. Many farmers, according to Federated Farmers, are dissatisfied with existing dispute resolution options within the Banking Ombudsman Scheme. This Bill places obligations on the Banking Ombudsman Scheme to administer Agricultural Debt Mediation and through the Receivership Act, removes any financial limit for compensation.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause. It provides for the Bill to come into force on the day after the date on which it receives Royal assent.

Clause 3 states the purpose of the Bill to amend the Receiverships Act 1993.

Clause 4 states the insertion of the new Part 2 after section 42.