WEDNESDAY, NOVEMBER 6, 1985
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DOUBLING OF MONETARY LIMIT OF CHIT-FUNDS PROPOSED
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THE MONETARY LIMIT IMPOSED ON PRIVATE CHIT-FUNDS AND FINES FOR CERTAIN OFFENCES UNDER THE PRINCIPAL ORDINANCE SHOULD BE INCREASED IN LINE WITH INFLATION, FROM $10 000 TO $20 000, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE CHIT-FUND BUSINESSES (PROHIBITION) (AMENDMENT) BILL 1985 IN THE LEGISLATIVE COUNCIL, HE SAID THAT TO SIMPLIFY THE PROCEDURE FOR AMENDING THE MONETARY LIMIT IN FUTURE, HE FURTHER PROPOSED THAT THE LIMIT BE CHANGED BY RESOLUTION OF THE COUNCIL.
SIR JOHN SAID THE OPERATION OF COMMERCIAL CHIT-FUND COMPANIES WAS BANNED BY THE CHIT FUND BUSINESSES (PROHIBITION) ORDINANCE 1972, BUT, +GIVEN THE LONG TRADITION AND POPULARITY OF PRIVATE CHIT-FUNDS, THEY WERE ALLOWED TO CONTINUE TO BE LAWFULLY OPERATED PROVIDED THEY MEET FOUR CONDITIONS.+
THESE CONDITIONS WERE THAT THERE WERE NOT MORE THAN 30 PARTICIPANTS; THE OPERATOR WAS NOT OPERATING ANOTHER CH IT-FUND; THE COMMON FUND PUT UP FOR SALE OR PAYMENT TO THE PARTICIPANTS DID NOT EXCEED $10 000; AND NO BENEFIT ACCRUED TO THE OPERATOR OTHER THAN A RIGHT TO RECEIVE THE FIRST SUBSCRIPTION FREE OF INTEREST.
+THESE LEGITIMATE PRIVATE CHIT-FUNDS HAVE BEEN RELATIVELY WELL REGULATED SINCE THE ENACTMENT OF THE ORDINANCE.
+BUT IN ORDER TO ENSURE THE LAW REMAINS REALISTIC AND WORKABLE AS IT WAS WHEN ENACTED, IT IS PROPOSED THAT THE MONETARY LIMIT ON THE COMMON FUND BE INCREASED IN LINE WITH INFLATION, FROM $10 000 TO $20 000, + SIR JOHN SAID.
THE OTHER CONDITIONS WOULD HOWEVER REMAIN UNCHANGED.
THE BILL, SIR JOHN SAID, ALSO PROPOSED TO RAISE FINES FOR CERTAIN OFFENCES UNDER THE PRINCIPAL ORDINANCE FROM $10 000 TO $20 000.
HE ADDED THAT PROVISIONS DEALING WITH TIME-EXPIRED TRANSITIONAL ARRANGEMENTS WOULD BE REPEALED.
DEBATE ON THE BILL WAS ADJOURNED.
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