SINGAPORE SOCIETY OF ACCOUNTANTS BILL

Order for Second Reading read.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, at the moment there is no legislation providing for the control of the accountancy profession as in the case of lawyers, architects and doctors. Qualified members of recognised bodies practising the State observe professional codes laid down by the distant parent bodies which cannot, however, exercise control here. Again, unqualified accountants in practice are not bound by bye-laws and code of ethics. Any malpractices among them are apt to bring the profession into disrepute. There is, however, a danger of having "mushroom" and "splinter" societies or associations of accountants being formed to admit persons of very low standards of accounting knowledge and skill. In these circumstances, the need for a local parent body of control is evident.

In June 1961 the opportunity was taken of the presence of the Vice-President and the General Registrar of the Australian Society of Accountants in Singapore to carry out a survey of the accountancy profession. They submitted a report in which they recommended that a statutory body to register and regulate the conduct of all accountants in Singapore should be established. This Bill, Sir, is based on the recommendations of this Report. Regard is also paid to graduates who have already passed out.

Briefly, the Bill provides for the establishment of the Singapore Society of Accountants and its purposes are to register accountants, to determine the qualifications of persons for admission to the Society, and to regulate the practice of the profession. Powers to enable the Society to function are also laid down. This is provided in Part II of the Bill.

The Constitution of the Council of the Society with its enabling powers to carry out its functions of control are laid down in Part III. Provisions for the registration of the accountants are laid down in Part IV. Part V provides for the regulation of conduct of members and the establishment of the Investigation and Disciplinary Committee to deal with complaints from members. The powers of the Disciplinary Committee to levy punishment are laid down in clause 32. There is provision for appeal against the decision of the Disciplinary Committee. Part VI consists of a list of offences and penalties that can be levied under this Ordinance.

The details of the Bill are, however, explained in fuller detail in the Explanatory Statement attached to the Bill. No one will dispute the need for the regulation of professional conduct and standards of important professional groups. This Bill seeks to do this. At the same time, I must sound a word of warning against the dangers of regulation in these matters. It often happens that professional associations, under the pretext of maintaining high standards, introduce unduly restrictive measures which have the effect of creating a tight closed shop. This has undesirable effects in two ways. First, an artificially created scarcity value for their services compels society to pay high rates for them. Second, talented people are denied adequate opportunities of entry into the profession and are hence restricted in the choice of careers open to them. Members will agree that we do not want this to develop in the profession of accountancy as a result of regulation.

Since this is the first time that a Bill on the control of the accountancy profession is being introduced and there are provisions of an important nature, I propose that the Bill be referred to a Select Committee after the Second Reading.

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 five Members to be nominated by the Committee of Selection.-[Dr Goh Keng Swee].