LAWS TO GIVE PROTECTION TO CONSUMERS

Mr Chiam See Tong asked the Minister for Trade and Industry whether the Government intends to pass laws giving protection to consumers such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993 of New Zealand, and, if so, when.

The Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Speaker, Sir, the Government's approach to consumer protection is to educate consumers while enabling the market to operate as efficiently as possible, regulating only where necessary. Encouraging competition and increasing access to a range of goods and services enable consumers to make their own decisions from a menu of choices. This is the best way to increase consumer welfare. The policy has served us well. In areas where protection is necessary, for example, to safeguard health, safety or public morals, there are already existing legislation. Specific offences of cheating and certain forms of fraudulent trades are also covered in the Penal Code and other legislation.

We must avoid over-regulating. First, legislative and regulatory requirements on businesses carry with them compliance costs. This will increase business costs generally that would ultimately be passed on to consumers. Second, we must also avoid excessive dependence by consumers on Government regulation. Otherwise, legislation would have to keep expanding in scope and coverage to cover all possible cases of cheating and unfair trade practices. In the end, the best principle must be let the buyer beware - this is the caveat emptor principle.

We believe that --- 1.30 pm

Mr Speaker: Order. End of Question time.

[Pursuant to Standing Order No. 21(3), Written Answer to Question No. 11 on the Order Paper is reproduced in the "Oral Answers t Questions Not Reached" (Cols 1051-2). Question Nos. 12 to 27 have been postponed to the sitting of Parliament on 25th February 2000.]