APPRAISERS AND HOUSE AGENTS (AMENDMENT) BILL

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APPRAISERS AND HOUSE AGENTS (AMENDMENT) BILL: Order for Second Reading read.

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The Minister of State for Finance (Mrs Lim Hwee Hua): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill will amend the Appraisers and House Agents Act to remove the licensing requirement for appraisers of motor vehicles, cargo and marine surveys, plant and machinery, as well as those categorised under "others".

Sir, I shall now explain the amendments in the Bill.

Removal of licensing requirement

Appraisers are currently licensed individually by IRAS under the Appraisers and House Agents Act, based on criteria, such as academic qualifications and membership of industrial associations. Doing away with the licensing requirement will reduce red tape and regulatory burden on businesses. There already exists sufficient market discipline to ensure that the interests of customers are protected.

Motor vehicle appraisers

Sir, motor vehicle appraisers are engaged for damage assessment relating to accident insurance claims. Hence, their customers are mainly large insurance firms. Insurance companies have been taking active steps to protect their own interests. In 2002, the General Insurance Association established the Independent Damage Assessment Centres to prevent errant workshops from inflating claims. In recent years, IRAS has not received any complaints against these appraisers. Thus, it is timely to remove the licensing requirement for motor vehicle appraisers.

Other appraisers

Like motor vehicle appraisers, appraisers of cargo and marine surveys,

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as well as plant and machinery, also serve businesses within their respective sectors. These businesses can look after their own interests and resolve disputes through the legal system. Likewise, IRAS has not received any complaints against these appraisers in the last 5 years.

Appraisers categorised under "others" include appraisers of gold, jewellery as well as works of arts. Again, these persons serve specialised niche markets which have the ability to assess the credibility of the appraisers.

There is, thus, no need to license such appraisers.

Sir, I beg to move.

Question proposed.

Mr Chiam See Tong (Potong Pasir): Sir, I would like to ask a point of clarification.

Mr Deputy Speaker: Okay, Mr Chiam.

Mr Chiam See Tong: Sir, I would like to make a clarification on clause 4 (new section 9(d)) which reads, "any appraiser of any movable property listed in the Second Schedule to take out a licence under this Act for that purpose.". I would like to ask the Minister of State whether or not the licence awarded to the appraiser entitles him to appraise all the 15 items listed in the Second Schedule or only the items that are listed in his licence.

Mrs Lim Hwee Hua: Sir, the effect of this amendment is really to exclude only the class of property valuations. In other words, with the passage of this Bill, there will be no requirement for licensing, and therefore the categorisation.

Mr Chiam See Tong: Can the Minister of State please read clause 4 again? I thought he is entitled to appraise all of those items as listed. It says here, "any

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appraiser of any movable property listed in the Second Schedule to take out a licence under this Act for that purpose.".

Mrs Lim Hwee Hua: Sir, this is so drafted to remove the entire classification so that the only category that remains is actually immovable property.

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. - [Mrs Lim Hwee Hua].

Bill considered in Committee.

[Mr Deputy Speaker in the Chair]

The Chairman: The citation year "2004" will be changed to "2005", as indicated in the Order Paper Supplement.

Clauses 1 to 5 inclusive ordered to stand part of the Bill.

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