DISPOSAL OF UNCOLLECTED GOODS BILL (Hansard, 10 July 1952)

§ LORD MILNER OF LEEDS

My Lords, this Bill was introduced in another place by Miss Elaine Burton, the Member of Parliament for Coventry South, supported by members of all Parties. Happily, as has been the case with the Bills which preceded this one, it has the support of the Government and has had the advantage of the services of Government draftsmen. The Bill deals with a problem which I am bound to say was new to me and which, possibly, may be new to some other members of your Lordships' House. It deals with the disposal of goods left by customers with tradesmen for repair or other treatment, on which work has been done and which the customer has not collected, and on 1011 which he has not paid the charges. It happens in a number of trades that there are large quantities of articles left uncollected and unpaid for, in some cases for a number of years. This Bill enables tradesmen, after giving certain notices, to sell these goods, to appropriate that portion of the price representing the charges for work done and to retain the balance for the benefit of the customer if he eventually turns up. It appears that boot repairers, jewellers, tailors, bookbinders, cycle repairers, garage proprietors—even dentists and opticians, I am told—are left with goods to which this Bill relates. As your Lordships will appreciate, except in certain special cases, like that of pawnbrokers, for whom special statutory provision has been made, in the ordinary way tradesmen could not dispose of uncollected goods—at least, not without considerable risk.

I do not think that I need go into details. It may perhaps be convenient if I mention one or two points in the Bill, in order that your Lordships may be satisfied that there are safeguards for the customers whose goods it is proposed to sell in these circumstances. In Clause 1, power is given to the tradesman, termed the bailee, to enable him, in the circumstances set out in the clause, to sell the goods of a customer, the bailor, where the tradesman has accepted the goods and where the customer has failed either to pay the tradesman's charges or take delivery of the goods. That right of sale can be exercised, however, only under the conditions set out in subsection (3). The tradesman has to put up an appropriate notice on all his premises; when the goods are ready for delivery to the customer he has to give notice to the customer; and after the expiration of twelve months thereafter he must give notice that he proposes to sell the goods after a certain period. Your Lordships will appreciate that the goods cannot be sold until a period of at least twelve months after the goods are ready for delivery. The remaining provisions of the clause are largely a matter of machinery. Where there is a dispute between the customer and the tradesman, the tradesman's right to sell the goods shall be suspended until the dispute has been determined. Subsection (7) sets out the form of notice to be given to customers when the goods are ready for delivery and the form of 1012 notice to be given of the tradesman's intention to sell the goods.

Clause 2 lays down that the notice must be in writing, and that in the case where the tradesman intends to sell the goods notice must be sent by registered post. Subsection (5) of the clause makes provision as to the address of the customer to which notices have to be sent. Clause 3 deals with the disposal of the proceeds of sale: first, the proceeds have to go to meet the tradesman's charges—and under Clause 4 the tradesman is entitled to reasonable charges for storage, the costs of sale and the cost of insurance. Thereafter, any surplus has to be retained for a period of six years, so that in the event of the customer turning up and claiming his article, or the proceeds of sale, he may receive that surplus. The tradesman is required to keep a record for a period of six years and has to be in a position to give details to the customer. Clause 5 deals with goods which have already been accepted before the commencement of the Act. In these cases, notice has to be given by advertisement and notices have to be placed on the premises. The tradesman cannot sell the goods for a period of thirteen months from the commencement of the Act.

I hope that your Lordships may think that this is a useful Bill. It appears to deal with the most likely contingencies and is supported by a great number of trade associations. I venture to commend it to your Lordships and hope that it may receive a unanimous Second Reading. I beg to move that the Bill be now read a second time.