I am pleased to be here today to review Bill 12, Garnishment Remedies Statutes Amendment Act.
This bill amends the Creditors Relief Act, the Territorial Court Act and the Public Service Garnishee Act so that a garnishment order would continue to be in effect for up to one year or until the debt is paid, whichever comes first. The legislation also amends the Exemptions Act to increase the amount of wages that are exempt from garnishment.
Garnishment orders are used to collect debts that have been ordered paid by the court. The order is served on the person who owes the debtor money, usually the debtor's employer, and an amount is deducted from debtor's pay paid into court, and ultimately paid out to the judgment creditor.
Under current legislation, this order can only apply to salaries and wages that are due at the time the summons is served. If the total amount owing is not paid in full, then another garnishment order must be obtained and so on until the entire amount is collected. This is expensive and time consuming. The judgment creditor must pay fees to file and serve each garnishment order, and this cost is added to the amount owed by the debtor. This process involves unnecessary time for court staff that can be better spent on other duties.
Madam Chair, these amendments would reduce the cost and inconvenience of filing and serving garnishment orders every payday. Recent amendments to the Territorial Court Act increased the limit of civil claims from $5,000 to $10,000. The amounts of judgments and garnishments have increased, and obtaining a continuing garnishee is an appropriate and cost-effective way to ensure collection and payment of debts.
Section 9 of the Exemptions Act limits the amount of wages or salary that can be garnished in a month. Currently, the exempt is $300 plus a further r$100 per adult and $80 per child. The proposed amendment would raise the limit to 30 percent of salary and wages. This is consistent with legislation in other jurisdictions.
These amendments will ensure the small claims process is an accessible and effective tool for resolving disputes.
Consultations have indicated general support for these amendments.
I would like to thank the Standing Committee on Social Programs for its careful review of Bill 12, and its cooperation in bringing forward amendments that improved the bill.
Madam Chair, we will be pleased to answer any questions the committee may have. Thank you.