Diplocom welcomes the introduction of the First Private Members
Bill into Parliament as a significant step in the maturation of the country’s
Parliamentary democracy.
Parliament released the following statement:
Parliament’s
first ever Private Members Bill saw the light of day when the National Credit
Amendment Bill was introduced today in the Portfolio Committee on Trade and
Industry.
The Bill came after a ruling from the Constitutional Court last year and was
introduced by Dr Mario Oriani-Ambrosini, albeit more than an hour later than
planned, as Dr Oriani-Ambrosini was delayed.
Committee Chairperson Ms Joanmariae Fubbs emphasised the symbolism of the
meeting and promised that the Committee would give serious deliberation to the
Bill.
The National Credit Amendment Bill calls for a postponement in interest accrual
for up to five years for small businesses that find themselves in financial
difficulties. It further seeks to exclude credit agreements involving
business-to-business transactions from the application of the National Credit
Act.
In introducing the Bill, Dr Oriani-Ambrosini said that while some debtors were
under review others were paying up to 100% interest on their initial debt. “It
is hard times. People are suffering. The legislation does not give them a
break. So instead of going the insolvency route, they try to take the hard
route.
“I feel we need to give them a break. Let’s stop accrual of interests.” He
elaborated by stating that this should not be the case in all instances. “Only
when the debt councillor advises this to a magistrate and the magistrate agrees
and gives a ruling to that effect.” Dr Oriani-Ambrosini said this should be
done when circumstances justify and allow for this to happen.
Deputy Director-General: Consumer and Corporate Regulation Division in the
Department of Trade and Industry, Ms Zodwa Ntuli, said the Act is already being
reviewed by the Department, as happens to all legislation after five years.
The Department further claimed that the National Credit Act already allows
magistrates and debt councillors to use their discretion.
Parliamentary Legal Advisor Adv Charmaine van der Merwe cautioned the Committee
that the amendments proposed by Dr Oriani-Ambrosini do differ from the Act,
which does not provide for interest to be stopped for a period of time as
proposed in the amendments.
Ms Fubbs indicated at the end of the meetings that although the Bill may have
merit, the Committee now has to decide on a way forward. “Do we want to take
this on in a piecemeal approach?” she said with reference to the two amendments
proposed by Dr Oriani-Ambrosini and in light of the fact that the Department is
busy with a complete review of the Act.
