Senate passes Creditors Bill

The Opposition objected to both the numerical reduction and to the use of a negative resolution of Parliament to rein in the Finance Minister’s power to set such rates. However, the House in committee rejected the Opposition’s call for Parliament’s oversight to be done by an affirmative resolution.

In his wind-up, Local Government Minister Franklin Khan justified the reduction by saying five percent is more reflective of interest rates paid elsewhere in this society at this time, such as the prime rate and the repo rate used by banks.

He refuted Independent Senator Stephen Crease’s “conspiracy theory” that the Bill’s intent was to ease up the Government’s financial liability in lawsuits by unpaid contractors.