PUBLIC TRUSTEE (AMENDMENT) BILL

Order for Second Reading read.

5.59 p.m.

The Minister for Labour and Law (Mr K. M. Byrne): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The amendments which are proposed to the Public Trustee Ordinance were drafted at the request of the Public Trustee Board which is constituted under section 13 of the Ordinance.

The first proposed amendment, which is to section 6 of the Public Trustee Ordinance, is to enable monies of the General Estates Fund to be placed in fixed deposit for terms of three to six months, thereby earning interest at about four per cent on the daily balances. Money which is held by the Public Trustee on trust for a long period of time is invested in the Common Fund, so that the interest can be credited to the individual estates up to the time of distribution. Other monies such as funds held by an estate which are to be paid out within a few months, or small amounts which are held for minors and are being reduced by monthly payments of maintenance, are held in the Public Trustee General Estates Bank Account. Under the existing law, such monies are held in a general banking account and earn interest at the rate of two per cent on the daily balance which is paid into the Consolidated Fund under the provisions of section 6 (7) of the Public Trustee Ordinance. The proposed amendment will enable such monies to be placed on fixed deposit, thereby earning interest at about four per cent. The amount in the General Estates Bank Account is now about half a million dollars and represents monies due to about 300 estates varying in value from $100 to $20,000. It is difficult, from an accounting point of view, to pay out interest earned on small estates to the various beneficiaries, as this will involve a tremendous amount of work; and as the average amount held in such estates is small, the interest earned for each estate will be negligible. It is therefore proposed, as in the past, to pay out interest earned into the Consolidated Fund.

The second amendment proposed is to section 14 of the Public Trustee Ordinance. Under the existing law the Public Trustee Investment Board is required to meet in the month of February each year, and to give directions to the Public Trustee as regards the disposal of the balance standing to the credit of the Income Account of the Common Fund at the end of the preceding year, after interest payable to the beneficiaries and other lawful charges have been duly debited to the said Account. In order to give such directions, it will be necessary for the Board to have the audited accounts of the Public Trustee for the preceding year, but it is not always possible for such accounts to be ready by February in the year. It is therefore proposed that the directions of the Board may be given in April or such later month in the year as the Minister may appoint.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill. -[Mr Byrne].

Bill considered in Committee; reported without amendment; read a Third time and passed.