AUCTIONEERS' LICENCES (AMENDMENT) BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Auctioneers' Licences Act to give legislative effect to remove the need for licensing of auctioneers.

Rationale

The Auctioneers' Licences Act, which was enacted in 1906, licenses auctioneers, appraisers and house agents. The Act serves to regulate persons who conduct the sale of goods or any other properties through open bidding. We have looked at the relevance of licensing auctioneers today, and have concluded that there is no need to license auctioneers.

Auctioning is a mode of sale. A good sold by auction could be similarly sold by direct sale, telemarketing or exhibition sale. Other modes of sale such as direct sales, telemarketing or exhibition sales are not licensed. An auction sale is open and subscribes to willing buyer and willing seller principles. Buyers and sellers enter into mutually agreeable contractual terms in the sale. Therefore, they are in the position to determine what are mutually agreeable terms of sale without the need for another safety net via licensing.

Feedback from auctioneers who are currently licensed indicate that the various trades see little value in the licensing requirement. The removal of licensing is not expected to have adverse impact on their activities. In addition, removing the need to apply for a licence would make it easier for auctioneers to carry out their work, and could encourage more professional auctioning activities to be based in Singapore. Proposed Amendments

The Bill makes the following amendments to the Auctioneers' Licences Act:

(a) to change the title of the Act to Appraisers and House Agents Act;

(b) to remove the definition of auctioneers and the requirements imposed on them in conducting auctioning activities;

(c) to remove any reference to auctioneers in the various sections of the Act;

(d) to have the transitional provision to deem all auctioneers to have the appraiser and house agent licences until 31st December 2000; and

(e) to amend the schedule to the Act.

Transition Measures

As a transition measure, auctioneers, who hold licences for the auction of land and building and immovable properties and are engaged in the appraisal or sale or rental of such properties, will be deemed to hold an appraiser or house agent licence as the case may be until the expiry of their licences on 31st December 2000. Thereafter, those who wish to continue to perform appraisal or house agent services will have to apply for the appropriate licence of appraiser or house agent.

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. - [Dr Richard Hu Tsu Tau].

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