HIRE-PURCHASE (AMENDMENT) BILL

Order for Second Reading read. 3.05 p.m.

The Minister for Law and Science and Technology (Mr E.W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Section 33(c) of the Hire-Purchase Act permits finance companies to charge a rate of interest of 12% per annum on overdue instalments under a hire-purchase agreement, or such lesser rate as the Minister may prescribe. The Minister has no power to raise the rate beyond 12%. It has become necessary to allow an increase of the rate of interest on overdue instalments beyond 12% per annum because finance companies are today paying more than 12% interest per annum on their loans.

This Bill deletes the reference to the 12% maximum rate of interest and provides for the Minister to fix, by notification in the Government Gazette, the maximum rate of interest on overdue instalments, in keeping with prevailing commercial rates of interest payable by finance companies on their loans.

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 E.W. Barker].

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