Dr Parmjeet Parmar: ACT proposes to keep credit card surcharges

In July the Government announced a ban on surcharges on credit card payments in-store from May 2026 at the latest.

ACT is attempting to block this ban by allowing credit card surcharges, as long as other payment options are offered- such as cash or eftpos.

They suggest the ban will either increase prices for customers or unfairly punish businesses. 

ACT Commerce and Consumer Affairs spokesperson Dr Parmjeet Parmar said to Heather du Plessis-Allan that ACT's proposal was creating with 'cost and choice' in mind.

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Episode Transcript

Speaker 1 (00:00):
Acts looks like it might kill off the planed surcharge ban. Now,
the plan was to ban retailers from putting a surcharge
on contactless credit card purchases so that they use to
cover the fees that they pay. But act is written
to National proposing to actually allow businesses to continue with
the surcharges as long as they give customers an alternative
way to pay, like cash or f poss ax PALMG
parmas with US now hi PALM g hihata. Is this

(00:24):
a proposal that you may or may not go with
or is this a line in the sand and this
is what you want?

Speaker 2 (00:30):
So the bill is going through the Select committey process.
So I have put this idea to the Select Committee
at the start of the process. And as you know
that many bills have been adjusted in the Select Committee process.
So I'll be really looking forward to seeing what submitters
have to say on this amendment.

Speaker 1 (00:45):
Oh, I propose if National says to yet not, we're
not going to do that. It's a ban on everything
all surcharges. Will you support that?

Speaker 2 (00:53):
So this bill is a government policy. An actors committed
to supporting a government position, but that doesn't mean that
we can't put our ideas forward. So I have done
that and now it's in the hands of the Select Committee.

Speaker 1 (01:04):
Have you heard back from Scott Simpson on this, not
yet directly. Are you convinced of the merits of banning
all surcharges?

Speaker 2 (01:14):
So what I've heard from businesses is this that it
is going to impose a huge amount of cost on businesses.
Obviously that depends on businesses turnover, and that's where I
have come up with this position because my position is
about choice and cost. It's about saving Different modes of
payment are also stopping inflation because if businesses can't search
charge for PAYWAF, they will build the cost of that

(01:35):
in their products and then everybody who is using other
modes of payment will also end up paying the cost
towards that, and that will result in higher prices for everybody.
And I want to stop that.

Speaker 1 (01:46):
So that's the idea of beare okay you, I agree
with you on everything you just said, So how can
you support the surcharge ban then?

Speaker 2 (01:53):
So what I'm saying is that if a business is
not providing any other choice, then the band should be applic.

Speaker 1 (02:01):
Yes, I know, but I asked that shouldn't thought if
they don't accept this proposal, will you still support the
surcharge band? And you said yes, But how can you
if you know that it's going to impose costs on businesses?

Speaker 2 (02:10):
It is going to and as I said, the bill
is government policy, an actors committed to supporting the government position.
But as I said, many legislations have been changed in
the Select committee process, and that's what I'm looking forward
to this bill beings for you.

Speaker 1 (02:23):
Okay, So alternative theory, have you given Scott Simpson a
way out of this little conundrum that he's found himself in.

Speaker 2 (02:31):
So I have put my idea forward to this Select
committee because now the bill is in the Select Committee,
not with the Minister, so it will be reported back
and we'll have to see what form it is reported back.

Speaker 1 (02:41):
Okay, Palm Jed appreciate a Pumjeet Palmer ACT Party Commerce
and Consumer Fair spokes person. I have a suspicion, I
just think just alternative theory here that maybe ACT has
just given Scott Simpson a way out of a terrible
policy because at the moment, if he imposes this policy,
he is going to be getting a lot of retailer
offside just before the election, so it might have given

(03:02):
him a little out here quarter past. Heather got to
get you across as a terrible sports clash that's happened.
I'm going to run you through that. Just a bit
of an update really quickly on the Tom Phillips case.
The mother of the three children has now joined the
legal proceeding proceedings to keep that information you know that
we all know about secret. It was originally brought by
Tom Phillips's mother with Linda Clark as her lawyer. Now

(03:25):
the mother of the three children has joined different lawyer,
Michael Bott knows his way around a courtroom, so he'll
be good. The information still remains suppressed. This is the
third time the judge has suppressed it. She says, this
is Justice Cull that she's going to release a minute
based on her decision today, which I think we will
all be pleased to understand what's going on here. But
apparently there is no end in sight here and this

(03:45):
suppression may go on for a very long time. For
more from Heather Duplassy Allen Drive, listen live to News
Talk said Be from four pm weekdays, or follow the
podcast on iHeartRadio.