AUCTIONEERS’ FUNDS

Sun (Auckland), Volume II, Issue 417, 27 July 1928, Page 12

AUCTIONEERS’ FUNDS

SHOULD TRUST ACCOUNTS BE KEPT?

NEW BILL DISCUSSED

(THE SUN’S Parliamentary Reporter.) WELLINGTON, To-day. . The danger of increasing auctioneering costs by compelling auctioneering firms to pay all sales proceeds into trust accounts was emphasised by Mr. D- Jones in the discussion on the Auctioneers Bill last evening. In addition to consolidating the legislation specifying that auctioneers be licensed and registered, the Bill stipulates that the proceeds of every auction sale be paid into a separate trust account, from which, apart from payments to vendors, only expenses and commission may be withdrawn. This clause, said Mr. Jones, would compel large auctioneering firms to carry large trust accounts with banks. On the money thus tied up they would receive no interest, and the inevitable result would be higher auctioneering costs. In addition, farmers who allowed stock firms to handle their banking would not be able to command interest on money on which the firms themselves could not secure interest. Mr. Jones pointed out that big stock firms were essentially sound. There had been few if any failures; therefore this safeguard was unnecessary. He also considered the disclosure of the name of the vendors, as well as the names of the purchaser, at all sales should be made compulsory. Mr. Hamilton agreed with Mr. Jones, stating that stock firms could not afford to tie up hundreds and thousands of pounds. The provision would be quite unworkable. The opposite point of view was taken by Mr. Thomas Forsyth, who warned the Government ag’ainst legislating for large stock or station agents. Others who discussed the Bill were Messrs. A. Harris, M. J. Savage, W. Veitch, D. G. Sullivan, W. D. Lysnar, and J. R. Hamilton. Mr. Harris hoped that sales at church bazaars, and other charitable efforts, would be excluded from the need of being conduced by a registered auctioneer. The Hon. F. J. Rolleston, replying, said that critics of the clause providing for trust funds were viewing it only as it affected stock firms. There were numerous others to whom the provisions would apply where the need of such trust funds was very clear. “There is no desire,” he said, “to impose a hardship on auctioneers or farmers, but we have to proceed on safe lines.” Referring to Mr. Jones’s suggestion that the names of vendors and purchasers be disclosed, the Minister said that this was new. Mr. W. S. Glenn: But it's very desirable. Mr. Rolleston promised to consider the proposal. The Bill was read a second time and referred to the Statutes Revision Committee. AUCTIONEERS’ PROTEST A protest against making any pror>osed amendments to the Auctioneers’ Act before auctioneering interests had had an opportunity to discuss them was raised, at a meeting of Auckland auctioneers last evening. Members of 14 auctioneering firms were present representative of all branches. Mr. T. B. Arthur presided. It was stated that no draft of the proposed amendments had been received in Auckland, the first information the auctioneers had had, coming tlirought the Press on Wednesday. A resolution of protest was carried unanimously and was immediately telegraphed to the Prime Minister.