Simon Power

1 April 2009 - A bill that increases the maximum claim level of the Disputes Tribunal has been introduced to Parliament by Justice Minister Simon Power.

The Disputes Tribunals Amendment Bill will increase the maximum claim level of the Disputes Tribunal from $7500 to $15,000, or with the consent of both parties, from $12,000 to $20,000.

"The bill will allow parties to resolve their disputes in a more cost-effective manner," says Mr Power.

"It will improve access to the tribunal for small businesses and individuals, and will reduce the costs associated with resolving disputes."

The increase is one of a number of initiatives announced by the Government in February to help small businesses through the economic downturn.

Mr Power says the benefit to small business would be noticeable.

"Being tied up in district court dealing with small claims is one of the trouble spots for small businesses - it costs them valuable time and money.

"Previously these cases would have been held in the district court and many would not have been pursued due to the costs involved.

"This bill is designed simply to lighten the load on small and medium-size business so they can get on with the business of producing goods and services."

The bill will allow up to an additional 3,600 cases to be heard in the tribunal annually.

"I will ask that the Justice and Electoral Committee consider the bill in a shortened period of time to allow the new maximum claim level to be implemented quickly, to help small businesses resolve their disputes during the tough economic climate.

"Expanding the jurisdiction also fulfils National's election promise to increase the jurisdiction of the Disputes Tribunal to reduce pressure on district courts.

"This is a first step, and we do not rule out making further increases to the threshold," Mr Power says.