XN000022-1982-06-02 — Page 29

WEDNESDAY, JUNE 1062

+EXPERIENCE HAS SHOWN THAT IN A LARGE NUMBER OF CASES WHEN DEALING WITH THESE UNREGISTERED DEALERS THE CUSTOMER LOSES A SIGNIFICANT PROPORTION OF HIS INVESTMENT, AND SOMETIMES ALL OF IT, HE SAID.

IT WAS DIFFICULT TO PROVE WITH THE NECESSARY CERTAINTY IN A COURT OF LAW THAT AN UNREGISTERED DEALER HAD BEEN FRAUDULENT.

HE BELIEVED, TOGETHER WITH THE COMMODITIES TRADING COMMISSION, THE COMMISSIONER FOR SECURITIES AND THE STANDING LIAISON COMMITTEE ON COMMERCIAL CRIME, OF WHICH HE WAS CHAIRMAN, THAT THIS PROBLEM COULD BEST BE TACKLED BY DISCOURAGING UNREGISTERED DEALERS FROM TRADING BY THE IMPOSITION OF HEAVY PENALTIES UPON THEM.

+IT IS SIMPLE AND QUICK TO PROVE IN COURT THAT A DEALER IS UNREGISTERED, HE SAID.

WHEREAS THE PRESENT MAXIMUM PENALTY CONSISTS ONLY OF A FINE OF $50 000, THE PROPOSED PENALTY FOR UNREGISTERED DEALING WOULD BE A MAXIMUM FINE OF $500 000, TOGETHER WITH A DAILY PENALTY OF $10 000, AND IMPRISONMENT FOR FIVE YEARS FOR CONVICTION ON INDICTMENT, AND A MAXIMUM FINE OF $50 000 AND A DAILY PENALTY OF $1 000 AND IMPRISONMENT FOR ONE YEAR FOR CONVICTION BEFORE A MAGISTRATE.

HEAVIER PENALTIES, INCLUDING IMPRISONMENT, ARE ALSO PROVIDED FOR CARRYING ON BUSINESS AS AN UNREGISTERED DEALER'S REPRESENTATIVE, FOR FRAUDULENT TRADING, AND OTHER OFFENCES.

DEBATE ON THE SECOND READING OF THE BILL WAS ADJOURNED.

GAS LEAKAGE GROUP FORMED

***

TO ENSURE THE QUICKEST REMEDIAL TREATMENT FOR SCHOOL CHILDREN AFFECTED BY GAS LEAKAGE, A MONITORING COMMITTEE COMPRISING REPRESENTATIVES FROM 10 GOVERNMENT DEPARTMENTS HAD BEEN ESTABLISHED IN JUNE 1980 TO CO-ORDINATE EFFORTS AND INVESTIGATIONS INTO SUCH INCIDENTS, THE SECRETARY FOR HOME AFFAIRS, THE HON DENIS BRAY, SAID TODAY (WEDNESDAY).

HE SAID THE COMMITTEE HAD ALSO PRODUCED DETAILED PROCEDURES FOR HANDLING SUCH INCIDENTS AND THAT OPERATIONAL PROCEDURES WERE CONSTANTLY REVIEWED AND CO-ORDINATED BY THE COMMISSIONER FOR ENVIRONMENTAL PROTECTION,

MR BRAY WAS REPLYING TO A QUESTION BY THE HOM SELINA CHOW IN THE LEGISLATIVE COUNCIL ON GAS LEAKAGE AFFECTING SCHOOL CHILDREN AND WHAT WAS THE GOVERNMENT DOING TO PRE VENT FUTURE OCCURRENCES.

THERE WERE 13 CASES OF ALLEGED GAS LEAKAGES AFFECTING SCHOOL CHILDREN DURING THE PAST 18 MONTHS, MR BRAY SAID.

ALTHOUGH, THERE WAS NO GUARANTEE THAT FUTURE CASES NOULD NOT OCCUR, THE PRESENT SYSTEM WAS CONSIDERED ADEQUATE FOR MONITORING ANY SUCH INCIDENT AND ENSURING THAT PROMPT REMEDIAL ACTION WAS TAKEN IN EACH CASE.