Northern Territory Second Reading Speeches

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BUSINESS NAMES BILL 2006

Mr STIRLING (Justice and Attorney-General): Mr Acting Speaker, I move that the bill be now read a second time.

The purpose of this bill is to repeal the current Business Names Act and replace it with more modern legislation. The bill is an example of the government’s commitment to reducing red tape for businesses by abolishing the requirement that a business owner who resides interstate must appoint a resident agent in the Territory.

For member’s information, the current Business Names Act dates back to 1962 and replaced the previous ordinance which had its origins in the 1930s. Members may also be interested to learn that the act is largely based on legislation originating in Great Britain as a wartime measure in 1916, and it was designed in part to reveal foreign proprietors of British businesses.

Notwithstanding these origins, the objectives of the business names legislation in the 21st century are primarily that of consumer protection. It provides a means to identify the persons who use a name other than their own when conducting business in the Northern Territory. Reasons why the identify of such persons might be sought include: consumers seeking redress in relation to unsatisfactory goods and services; debt recovery by other traders; credit checks prior to goods being forwarded on consignment; and obtaining details for other legal proceedings. The act also provides a mechanism for ensuring that undesirable business names cannot be used; for example, names that might be offensive or mislead consumers about the nature of the business or the business operators.

The government recently determined it necessary to make several amendments to the current Business Names Act. In the course of drafting the amendments it became clear, because of the age of the act and its associated outdated terminology and drafting style, the exercise was larger than was anticipated. It was decided the changes were best achieved by a separate bill repealing the current act and re-enacting it. The result is this bill is more logically set out and easier to read. It substantially retains the requirements of the current act but with some changes to reflect modern best practice and business requirements in the Territory.

First, as the Commissioner of Consumer Affairs has been administering the Business Names Act for a number of years, the bill abolishes the statutory position of Registrar of Business Names, and cites the Commissioner of Consumer Affairs as the person responsible for administration of the act.

Another important change I mentioned earlier is the abolition of the resident agent requirement. The act currently requires a person carrying on business in the Territory under a business name, but who does not reside in the Territory, must appoint a resident agent. The appointment of a resident agent had the objective of facilitating the service of notices, and providing a local point of contact for persons who reside interstate. However, advances in communication and database technology have made it easy to locate and contact businesses based outside the Territory. Access to trader details and a number of state, territory and Commonwealth registers means there is no longer any justification for the added burden of costs associated with the appointment of a resident agent. The removal of the concept of resident agent is consistent with business names legislation in other jurisdictions, including New South Wales, South Australia, Queensland, Victoria and Western Australia.

Other changes include an updating of the penalty levels, the approval of forms by the commissioner instead of forms being prescribed by regulation, and other amendments of a statute law revision nature, such as removal of gender specific references, spent transitional provisions and other matters of this nature.

Mr Acting Speaker, I commend the bill to honourable members. I table a copy of the explanatory statement.

Debate adjourned.

 

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