CERTIFICATES (WINDING UP) BILL

Order for Second Reading read.

3.52 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Low Por Tuck): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, as hon. Members can see from the Explanatory Statement, this Winding Up Bill seeks to wind up the Certificates Fund constituted under the Victory Savings Certificates Ordinance, 1946.

The principal Ordinance was passed on 10th October, 1946, and under its provisions the Certificates Fund was set up to borrow money to provide for the reconstruction of capital works after World War II. Certificates were sold at a discounted value of $15 each, and when they reached maturity in 10 years from the date of issue, holders were entitled to $20 per certificate. Redemptions were allowed any time before the expiry of 10 years and the surrender values of a unit certificate were graduated from $15 when less than one year to $20 on completion of 10 years. Certificates were sold from 1946 to 1950, when sales were terminated. The total sale of the certificates was only $809,542.50.

Some of the buyers of the certificates started handing in their certificates for redemption within a year after the certificates were introduced, and after 1948 the amount of certificates presented for redemption was more than the amount sold. As stated, the date of maturity of certificates is 10 years from date of issue. Since the last certificates were sold in 1950, all the certificates sold have matured and no certificates will earn interest after 1960. Therefore, it is now proposed to wind up the Fund.

The Bill contains provisions which are largely procedural. Clause 5 provides that not later than six months after the coming into operation of the Ordinance, the assets of the Fund shall be converted into cash and used to settle all outstanding principal and interest payments on unredeemed certificates. Notice is to be given to holders of unredeemed certificates so that they will have ample warning that the Fund is going to be wound up.

If there is any dispute regarding any payment or repayment, the Minister may pay the amount into court or may make other appropriate provision for them.

After all claims have been paid or provided for, the balance, if any, is to be paid into the Consolidated Fund.

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 Low Por Tuck].

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