DEVELOPMENT FUND (AMENDMENT) BILL

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DEVELOPMENT FUND (AMENDMENT) BILL: Order for Second Reading read.

4.50 pm

The Second Minister for Finance (Mr Lim Hng Kiang): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill seeks to provide for expenditure on investments of moneys in the Development Fund to be paid directly from the Development Fund.

Expenses on investment are currently apportioned to the Consolidated Fund, the Government Securities Fund and the Developmental Investment Fund. However, in the case of the Development Fund, these expenses are not apportioned to the Development Fund but to the Consolidated Fund.

The Development Fund Act is therefore being amended to allow the expenses on investment to be appropriated from the Development Fund just like the other Funds. This is in line with our move to assign costs correctly so that the financial statements of Government agencies will more accurately reflect their financial performance.

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 Lim Hng Kiang].

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

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LEGAL PROFESSION (AMENDMENT) BILL:

The Minister for Law (Prof. S Jayakumar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill amends the Legal Profession Act to promote Singapore as an arbitration venue and to allow lawyers to practise on a freelance basis, similar to a locum practice which is well known in the medical profession.

Foreign Counsel in Arbitration

Sir, in 1992, we amended the Legal Profession Act to allow foreign counsel to argue arbitration cases involving Singapore law. When we did that, we also provided at that time that they should appear jointly with a Singapore lawyer.

Arbitration has since then grown into a major form of dispute settlement, and is increasingly becoming an attractive alternative mechanism to resolve large commercial disputes.

We have made good progress in promoting Singapore as an arbitration centre. We are already a major arbitration centre, but our aim is to make Singapore the location of choice for arbitration in the Asia-Pacific region.

To further promote this objective, we have reviewed the requirement for foreign counsel to appear jointly with a Singapore lawyer. There is no similar restriction in the laws of the United Kingdom, Hong Kong, Malaysia and Australia. It is a requirement which has put us at a disadvantage with jurisdictions that do not have it, and it may be a factor against the use of Singapore as an arbitration venue. Foreign parties are more likely to recommend or choose a place with less restrictions. To be competitive in this field, we need to remove this requirement, and allow foreign counsel the choice of appearing without local counsel.

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Let me stress that this amendment does not mean that local lawyers will be excluded altogether. Foreign counsel may still choose to appear with a Singapore lawyer, for example, where there are complex issues of Singapore law. If they choose to appear on their own, it would be prudent for them to engage a Singapore lawyer for advice on Singapore law.

Legal Profession

Let me move on to another key amendment. Under our current system, Singapore lawyers who are admitted to practise in Singapore are required to apply for a practising certificate (PC) from the Supreme Court on an annual basis. The current PC regime requires practising lawyers to practise in a law firm or law corporation.

The Law Society has proposed a new class of conditional de-linked practising certificates for "locum lawyers". It is a common practice in the United Kingdom for solicitors to be employed as locums, who may have associations with more than one firm. Barristers in the UK work on their own account, and they are not restricted to taking work from a single firm of solicitors. Under the UK system, specialists may offer their skills to multiple firms. Such specialists are able to develop and strengthen their expertise through a broader range of work than may be available in a single firm. Law firms have more flexibility to build expertise in specialist areas, especially when the current volume of work may not justify a full set of specialist lawyers. The UK system also allows firms to fill casual vacancies with freelance solicitors, eg, arising from maternity leave or when the sole practitioners are on leave or if they are ill.

Such a scheme will promote specialisation, minimise the loss of talent and improve manpower allocation. It will

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also allow the market to tap the large pool of solicitors who have left active practice for one reason or another, for example, to start a family. I believe it might also reduce the number of young lawyers leaving practice. It is envisaged that like doctors, the locums will also be useful for general practitioner's work, particularly in areas like conveyancing, family law, personal injury and debt recovery.

Sir, there will be safeguards in place. Locum lawyers will be covered by insurance taken out by the law firms or corporations engaging them. A locum lawyer will not be allowed to deal with client's moneys and must have at least three years' legal experience. He may be required to complete a professional development course prescribed by the Council of the Law Society if his experience is not within three years of the application for a PC. He must also be a permanent resident or citizen of Singapore, and must practise under the supervision of a lawyer in the Singapore law firm or law corporation that engages him.

In addition, holders of de-linked practice certificates will continue to be practitioner members of the Law Society, and therefore subject to the jurisdiction of the Society and the Supreme Court in ethical and disciplinary matters.

In closing, Sir, let me say that we are confident that this new scheme will strengthen our legal industry, and I believe it will ultimately be for the benefit of those who require legal services.

Sir, I beg to move.

Question proposed.

Mr Chiam See Tong: Sir, I rise to support this Bill.

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At this juncture, I must declare my interest. I am a newly retired lawyer and I am eligible for application for a locum solicitor practice.

I understand that it was only last year, at the opening of the Legal Year, that the Law Society mooted the idea of allowing locum practice in local law firms. In England, of course, locum solicitors have been in practice for more than 10 years. When the Law Society suggested to introduce locum practice in Singapore, its object was mainly to allow small and medium-sized law firms to tap the specialist knowledge of the more senior lawyers who have retired and who can still contribute to a project taken up

by the small and medium-sized legal firms which otherwise would not have been able to do so. And being small, these firms do not have the requisite expertise in that area of the law. However, it is noted that a lawyer can practise as a locum only if, within the last five years, he has an aggregate practice for not less than three years as a solicitor. I think the three-year period as a solicitor can hardly make one a specialist or expert in any area of the law. Such a lawyer is probably more suited to practise as a locum in a general practice. This section of the law seems not to be in line with the intention of the Law Society as regards tapping the expertise and legal knowledge of old retired lawyers.

The rules, which I understand that the Law Society has drafted, are comprehensive and they cover all aspects of locum solicitor practice, including prevention of conflicts of interest. The definition section allows a locum solicitor to work in more than one firm at the same time. Under such a situation, a conflict of interest can easily arise for that solicitor. Therefore, a set of strict rules for locum practice is necessary to prevent problems of conflict of interest and other problems.

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There must be many retired lawyers who have expert knowledge of certain areas of the law but are too tired to work full-time. Their expert knowledge is still very marketable. The locum practice will allow them to take on temporary jobs which may suit them very well and also at the same time, meet the needs of small and medium-sized firms when there is a surge of work and they need lawyers with specialist knowledge.

With the availability of expert professional help from locums, small and medium-sized firms need not forgo business which may not be their regular line of work. I welcome the locum practice especially at this time when many lawyers choose not to go into practice. They said that legal practice is too stressful. This Bill will help to make up for the dwindling numbers of lawyers who want to go into legal practice. I hear that the Law Society has already drafted a set of rules to govern and control locum practice. The rules, I understand, cover the areas of clients' money, risk management, insurance and indemnity, confidentiality, privileged information, supervision and special licence in relation to locums.

I hope that when this Bill is finally enacted, the Law Society shall allow locum solicitors to take up half-yearly practising certificates and the membership fee shall only be a token fee, to encourage more young lawyers who are not in practice to take up locum practising certificates to give them a chance to keep in touch with the law.