MUTUAL BENEFIT ORGANISATIONS BILL

Order for Second Reading read.

2.53 p.m.

The Minister for Labour and Law (Mr K. M. Byrne): Mr Speaker. Sir, I have His Excellency's recommendation to proceed with the Bill, and I beg to move, "That the Bill be now read a Second time."

Mr Byrne resumed his seat.

Mr Speaker: Is the Minister not making a speech in support of the motion? Or is somebody else moving the Second Reading?

Mr Byrne: My Parliamentary Secretary is moving it.

Mr Speaker: So the Minister is not moving the Second Reading?

Mr Byrne: No, Mr Speaker, Sir, I have been advised that that is the correct way of proceeding.

Mr Speaker: Order. What was really required of the Minister was the signification of the Yang di-Pertuan Negara's recommendation. The Minister need not, in fact, move the Second Reading if his Parliamentary Secretary is to do that. The Parliamentary Secretary can now move the Second Reading.

2.55 p.m.

The Parliamentary Secretary to the Minister for Labour and Law (Mr Wee Toon Boon): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The object of this Bill is to provide for the registration and control of all mutual benefit organisations as defined in clause 2 of the Bill. A number of such organisations are at present registered under the Business Names Ordinance, the Companies Ordinance or the Societies Ordinance, but it is proposed that in future all such mutual benefit organisations should be registered under the provisions of the new Ordinance.

Existing mutual benefit organisations which are registered under the Business Names Ordinance or the Companies Ordinance are required to apply for registration under the new Ordinance within thirty days of the coming into operation of this Ordinance, while mutual benefit organisations registered or exempted from registration under the Societies Ordinance are required to apply for registration under the new Ordinance within one year of the date of coming into operation of this Ordinance.

The reason for this difference is that, while it is possible to have some control of the organisations concerned if they are registered or exempted under the Societies Ordinance, no such control is possible if they have been registered under the Business Names Ordinance or the Companies Ordinance.

I do not think it is necessary for me to elaborate on the reasons and the need for the registration and control of such mutual benefit organisations. Unless strict control is kept on the activities of such organisations, there is a possibility of persons being cheated of the moneys, which they have saved for their old age or for the benefit of their dependants. In the United Kingdom, the activities of similar organisations are controlled by the Friendly Societies Act, and in the Federation there are special provisions in the Societies Ordinance to deal with death benefit societies.

The principal provisions of the Bill are dealt with in the Explanatory Statement of the Bill, and I feel it is unnecessary for me to elaborate on them. The provisions of the Bill are, to a large extent, based on those of the Friendly Societies Act of the United Kingdom, though some provisions are taken from the Federation Societies Ordinance.

This Bill is complementary to the Societies (Amendment) Bill and, in order that the provisions of the Bill can be examined in detail, I propose, when the Bill is read a Second time, to move that it be referred to a Select Committee.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time.

Committed to a Select Committee consisting of Mr Speaker as Chairman and seven other Members to be nominated by the Committee of Selection.-[Mr Wee Toon Boon].