Parliamentary Speeches
Conveyancing Amendment (Mortgages) Bill 2007 ( 15/05/2008)
Mr DONALD PAGE (Ballina) [5.22 p.m.], in reply: I thank the members for Pittwater, for Macquarie Fields, for Tweed, for Baulkham Hills, for Miranda and for Davidson for their contributions to this debate on the Conveyancing Amendment (Mortgages) Bill 2007. I am extremely disappointed with the position the Government has taken on this bill, bearing in mind that this legislation was subject to a discussion paper issued by the Government a few years ago, it was amended at that time, and it went through this Chamber with support from both sides of politics.
This bill would protect people who are experiencing mortgage stress, particularly those who find themselves in a mortgagee in possession situation. Government members come into this place every day bleating about what could be done to protect people who are experiencing mortgage stress and this is an opportunity to vote on legislation that, until now, has had bipartisan support. Yet what do Government members do? They show what hypocrites they are. They say they will not vote for the legislation because they want to introduce a slightly different form of the legislation. If Government members have a problem with this legislation—bearing in mind that they have agreed to it in the past—they should come and talk to me about amending it.
The legislation is very basic. It provides that where a mortgagee is in possession, the borrower's equity will be protected so that the property is sold at the market price. New South Wales currently has no requirement for market price to be achieved; all that is required is that the financing institution—the mortgagee in possession, act in good faith and not act recklessly or wilfully. This legislation makes the duty of care equivalent to the Commonwealth legislation under the Corporations Law, which says that a mortgagee in possession must sell the property for market price. In practice that means that the property must be advertised, it must go to auction and it must be properly described, and if there are bidders who are prepared to pay a higher price then their bids will be actively sought and acted upon.
Far too often in New South Wales a mortgagee in possession—in most cases the bank—says, ``This is a million dollar property and there is a $600,000 loan on it. We care about getting our $600,000 back and we do not care about the $400,000-worth of equity the borrower has``. Frequently, that equity, if protected, is what will give that person a chance to buy another property. But if that equity is sacrificed then the person who has previously been in the property market probably stands very little chance of ever buying back into it.
The Government previously agreed with this legislation, without any amendment. In fact, the last time it was before the House I amended it so that we had agreement with the Government and the bill had bipartisan support. But because a Coalition member introduced this bill and is therefore supported by this side of politics, and because it has got our name on it and not the Government's name, the other side is saying, ``We are prepared to sacrifice the genuine interests of the people of New South Wales.``
The other day the Reserve Bank said that 40,000 people in New South Wales are suffering mortgage stress, and many of those people will be candidates for mortgagee in possession in the next month or so. We have an opportunity to do something to help those people, but what are Government members doing? They intend to vote against this legislation. It is absolutely shameful. The Government deserves to be condemned for opposing this legislation, which, in the past, has had bipartisan support. It is a disgrace. I call on the Government to support this legislation, particularly at a time when so many people are suffering mortgage stress. We on this side of the House will make it very plain to the people of New South Wales that the Government voted against this legislation at a time when they needed help, and that this legislation would have given them that help.
