MONEYLENDERS (AMENDMENT) BILL

Order for Second Reading read.

3.13 p.m.

The Parliamentary Secretary to the Minister for Social Affairs (Mr Chan Chee Seng) (for the Minister for Social Affairs): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The purpose of the Bill is to exclude a finance company licensed under the Finance Companies Act, 1967, from the provisions of the Moneylenders Ordinance. It also seeks to stagger the renewal of moneylenders' licences throughout the year for administrative convenience and provides for the late stamping of a note, a memorandum or a promissory note within seven days after its execution.

Under the present definition of "moneylender" in the Moneylenders Ordinance, 1959, finance companies are required to take out a licence under the Moneylenders Ordinance. Finance companies are also required to be licensed under the Finance Companies Act, 1967. In order that such finance companies, which are licensed under the Finance Companies Act, are not again licensed under the Moneylenders Ordinance, the Minister in exercise of the powers under section 34 (a) of the Moneylenders Ordinance has granted qualified exemptions to such finance companies. Since there is provision in the Moneylenders Ordinance which expressly excludes pawnbrokers, co-operative societies, banks and insurance companies which are all governed by their own respective ordinances, it is proposed to exclude a finance company licensed under the Finance Companies Act, 1967, from the provisions of the Moneylenders Ordinance. Clause 2 of the Bill does this.

At present all moneylenders' licences expire and hence are required to be renewed at the end of the year. There is a total of 412 licensed moneylenders and it is administratively convenient that the renewal of licences takes place throughout the year instead of at the end of the year. Clause 3 of the Bill provides for a licence to be valid for a period of 12 months from the date specified therein.

It has been pointed out that the Moneylenders Rules are not in accordance with the Stamp Ordinance. Section 40 of the Stamp Ordinance requires every instrument chargeable with duty and executed in the Republic to be stamped before its execution. Rule 12 of the Moneylenders Rules, 1959, on the other hand, provides that every promissory note shall be presented for stamping within seven days of its execution. However, as section 46 of the Stamp Ordinance allows stamping after the first execution where it is expressly provided under the Stamp Ordinance or in any other ordinance, it is proposed to amend section 17 of the Moneylenders Ordinance to allow for stamping of an instrument within seven days after its execution. Clause 4 of the Bill removes the conflict between the Stamp Ordinance and the Moneylenders Rules.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill.-[Mr Chan Chee Seng].

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