TRUST ACCOUNTS FOR AUCTIONEERS

Manawatu Times, Volume LIII, Issue 6672, 27 July 1928, Page 6

TRUST ACCOUNTS FOR AUCTIONEERS

Introduced in House MEMBERS FEAR INCREASED . CHARGES Per Press Association.' WELLINGTON, Last Night. , In . the House to-night Hon. J. V. Holiest on moved the second reading of the Auctioneers Bill. He said;the existing law was somewhat out of date as this ' was only the third time the ; subject had been legislated upon,in 86 years. They had to go back to Provincial Council legislation for the fixing of the licensing fee at £4O and that was the foe to-day. The reason for tho Bill was that conditions were, changed and it was necessary to change the law;. Instead of tho local authority licensing auctioneers it was now proposed that--they should go before a Magistrate and. provide a fidelity bond in' exactly the same way as land agents do now. The foes would remain the same and the money would still go to the local authority in tho town or district, where tho auctioneers’ business is established. This he thought, was .an : ;ec|ttitabl.e~ basis. As a protection to the-public il ’ was provided that all monies received by auctioneers on behalf of f clients .must bo paid into-a trust account. He was prepared to refer the Bill to tho Statutes revision Committee before which .auctioneers, could come and give evidence. ■Mr Harris urged that auctions at church bazaars should be exempt from tho provisions of the Bill. , - . Mr Vcitch considered that if there ' was to bo a tightening up of the law in cases of auctioneers in-the matter of trust funds the. same provisions should bo made‘in respect of solicitors. \\ Mr D. Jones (Ellersmere) urged'that auctioneers should bo compelled to disclose; tho name of tho vendor and the purchaser of stock. Failure to’;insist on this had led to most unsatisfactory conditions in the stock, market. Ho thought insistence upon the establishment of a trust account -by auctioneer* would result in a heavy increase is the cost;to tho public. .Ho hoped there would bo no undue haste in passing- the. Bill, v .v ■ -.'{.s-v;-V Mr Sullivan feared that if. the" Government took over the. licensing of' auctioneers they might be tempted id ' interfere, with other licenseq usually ’> leftito local'bodies. Ho preferred tho , strengthening of the hands of local bodies rather than weakening them in this respect. . " i . Mr. J. E. Hamilton favoured the license fee going to the, country local - ; body in tho district where.the auction-. 'ccr actually did -his business '. rather . ■ than to the town in which his office was • , ■situated. ;' "*. ■{ \■ t , Mr. A. Hamilton- (Wallace) feared tho establishment-of a trust account by auctioneers , would result,; in "heavy charges being put upon clients., The Minister, in reply, said he would bo prepared to consider the point; raised regarding trust funds, bUt;in a‘ general , way he believed the principle was perfectly sound and workable. , The Bill was read a second time and referred to the Statutes; Revision Commitec and the House rose at 12.7 till . ■ 2,30 p.m. Friday. ;