Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, I have the Governor's consent under Standing Order No. 33 (1) (a) to proceed with this Bill. Sir, the main purpose of this Bill is to repeal and re-enact with amendments the Municipal Ordinance and to provide for the local government of Singapore to be administered by the City Council and by District Councils which will replace the Rural Board, in accordance with the Government's White Paper on the Report of the McNeice Committee on Local Government. Sir, hon. Members will recall that the McNeice Report was presented to this Assembly on 8th February, 1956, as Sessional Paper Cmd. No. 10 of 1956. I feel sure that hon. Members will agree that much work had been put into it to provide an exhaustive examination of a complex problem and that it has been a very valuable contribution to the future reorganisation of the local government system in Singapore. At the Assembly sitting on 4th April, 1956, my hon. Colleague the Chief Secretary stated that the Government accepted the basic principles of the Report and that a White Paper would be tabled before the June sitting of the Assembly. This White Paper, which is a statement of Government's policy with regard to the McNeice Committee's recommendations, was presented to this Assembly on 2nd June, 1956, as Sessional Paper Cmd. No. 30 of 1956. In accepting the basic principles of the McNeice Report, the Government is convinced that a more democratic framework should be set up in which greater opportunities will be afforded to a larger number of the community to take part in Local government administration, which would never have been possible under the concept of a City and Island Council, as proposed by the Rendel Constitutional Commission, to be the only local government authority with jurisdiction over the whole island of Singapore. It endorses the view, Sir, of the McNeice Committee "that the democratic opportunities offered by the existence of five elected local authorities significantly outweigh the advantages of centralisation." As can be seen in Chapter II of the Report, the McNeice Committee has adduced very strong arguments why the basic pattern of future local government should be the City Council and four District Councils. This basic pattern brings the public in different parts of the island into closer and more intimate touch with local government bodies, whereas a single local authority on an all-island-wide basis could become an impersonal body to people living in areas on the island far away from the centre of activity. As the McNeice Committee pointed out: "There are few similarities, so far as. government is concerned, between the interests of the farmer in Lim Chu Kang and the shopkeeper in Telok Ayer or between the fisherman of Ayer Gemuruh and the clerk in Queenstown." This new basic pattern also extends to the citizen a greater opportunity to be of service to his fellow-men. I would also like to quote the following words of the Committee: "We are, moreover, in greater doubt than the Commission (the Rendel Commission) about the political advisability of constituting an Island-wide authority in addition to central government and investing it with wide powers, and financial resources which might well, at some future time, weigh more heavily than those of Government itself." Sir, Government has no doubt whatever that it is politically inadvisable to have such an island-wide authority on this island. Sir, as stated in the White Paper, Government has accepted the majority of the recommendations of the McNeice Report, in some cases with modifications and reservations. There are, however, a number of recommendations which have not been accepted, and in place of these, alternative proposals are made. From a perusal of the White Paper, hon. Members will have known which of these recommendations have been accepted by Government, with or without modifications, and which have not been accepted. The present Bill is largely an adaptation of the existing Municipal Ordinance in accordance with the statement of Government policy contained in the White Paper. The opportunity has also been taken to make certain changes which will remove difficulties encountered in administering the law and improve certain procedures found to have been defective. Care has been taken to make only those changes of the law which are not considered likely to prove controversial. The Explanatory Note attached to the Bill is given at some length and draws attention to the more important of the changes referred to in the preceding paragraph as well as to the major changes required by the White Paper. I should like, however, at this stage, to draw the attention of hon. Members to some of the more important features of this Bill. The provisions of this Bill extend only to Singapore Island and to the smaller islands to the north of Singapore, as Government agrees with the views of the McNeice Committee that the responsibility for the administration of the Southern Islands should remain with the Central Government. The administration of these Southern Islands will accordingly be taken over by Government, which feels, however, that consideration should be given to any future demand arising from some or all of the Southern Islands to be amalgamated into one or other of the District Council areas. With regard to the provisions made in the Bill for the constitution of the new local authorities, I am confident that Members will agree that the new proposals for the City Council are a far-reaching advance on the present constitution of that body, and that the constitution as proposed for the District Councils for an initial period will be best in the circumstances. In contrast to the present City Council, Sir, which consists of an official as President, 18 elected Members and 9 nominated Councillors, the City Council will have a totally elected membership of 32 Councillors one of whom they will elect annually to the office of Mayor with the right of re-election. The intention is that one Councillor will represent one constituency, making 32 constituencies in all, and not, as at present, six electoral wards returning 18 elected Members. The District Council will have an official Chairman, 12 elected Councillors and, for an initial period of 4 years, 3 nominated Councillors as well. It is considered that, as the District Councils will be new bodies in the rural areas, where the constitution of local government authority was limited in the past, and as the work and responsibility of these councils will be considerable, it would be appropriate for a strictly limited period to include some persons with experience in the management of local government affairs to the membership of these councils. The reasons, Sir, for the appointment of an official as Chairman during this initial period are, to quote the words again of the McNeice Committee, as follows: "We have said that membership of a local authority is a job to be learned and this is doubly so in relation to the position of Chairman. The experience required to conduct meetings of councils and to direct the day-to-day business of a local authority is not easily acquired and we think it would be unfair and unwise to require an elected or nominated member of a rural district council to bear this responsibility in the initial period." Sir, hon. Members will note that, in accordance with the White Paper, the present Bill has been drafted to allow the City Council to continue supplying the public utility services of water, gas and electricity on an island-wide basis for the present. The matter of the transfer of these services to a statutory corporation does not, therefore, arise at this stage. The present Bill preserves the status quo of the local authorities with regard to planning powers and control of buildings. Until the Singapore Improvement Trust ceases to exist and a new authority set up to replace it, it will continue to be the planning authority for the island of Singapore. It has not been possible to establish a new authority and prepare legislation for this authority and for comprehensive town planning legislation at the same time as the present local government legislation. In due course, Sir, legislation will be prepared to transfer planning powers to local authorities. In the meantime, building control will continue to be exercised under building by-laws by the local authorities in their respective areas. Likewise, although in the White Paper it was stated that the Government agreed in principle to the Committee's recommendation that an improvement rate should be levied over the whole island and paid into a fund administered by Government, in the present Bill authority is given to the City Council to continue to collect this rate in the city area only under section 22 of the Singapore Improvement Ordinance, as long as the Singapore Improvement Trust continues to exist and the conditions which led the Committee to make its recommendation have not yet arisen. Again, Sir, it was stated in the White Paper that Government agreed with the Committee's recommendation that the City Council should continue to administer the registration, licensing and mechanical inspections of vehicles on behalf of all local authorities, but has not finally decided whether the Registrar of Vehicles Department should remain a City Council department or be transferred to Government. In the present Bill, however, these responsibilities still remain with the Registrar of Vehicles as an officer of the City Council. With regard to the payment of rates by the Imperial Departments and by this Government, which the Committee recommended and the Government agreed to in principle, the present Bill, as drafted, continues to exempt them from payment of rates, since this question of payment of rates by the Imperial Departments must first be taken up and agreed with the United Kingdom Government, and the question of rating the Singapore Government's property will require more time in order to examine the full implications of this proposal. Amending legislation, Sir, can be introduced later when the matter has been settled. As explained in the Explanatory Note, provisions are made for District Councils to be run during the interim period after their constitution on lines similar to those of the present Board, particularly with regard to finance, staffing, vesting of properties, acquisition and disposal of land and other immovable property. It is clear that for some years to come District Councils will not be self-supporting and will require substantial assistance from the Government in the way of capital expenditure, annual grants and provision of staff. It would be best, therefore, to start each council off on Rural Board lines, namely, that the budgets will be subject to a measure of government control and incorporated in the Colony estimates. The staff will be Government servants and all land vested in or acquired by the councils will be vested in or acquired by the Crown on their behalf. When these councils have been set on their feet and have become financially viable, amending legislation will be introduced to enable them to function independently like the City Council. I feel sure that this House will agree with these interim provisions. Transitional provisions have also been included (see clause 324 of the Bill) which will allow any powers of the existing law to continue to be exercised despite the repeal of the Municipal Ordinance, and for the City Council or the Rural Board to continue to function in respect of any defined area whenever it is required by administrative exigencies. In particular, there is enabling provision for the Rural Board to continue to perform its present functions in the Rural Board area in the event of delay in the establishment of the District Councils and, if required, to administer those parts of the present city area which are to be merged into the new District Council areas. There is also a transitional provision for the districts of Bukit Panjang and Jurong to be merged into one district for a prescribed period for the purpose of this Ordinance. This is in keeping, Sir, with the recommendation of the McNeice Committee that these two districts should, in the first instance, be amalgamated and administered by a single council and that the municipal centre should be at Bukit Panjang. These two districts are too small in population to enable them to operate separately at the present time. Jurong especially, because of its small population, will have a weak financial position at the start, but there can be no doubt, Sir, that the population of these districts will grow rapidly in the future so that they can in time be administered by separate District Councils. The Bill also makes significant changes in the qualifications and disqualifications relating to candidates for election as Councillors. I would invite the attention of hon. Members to the notes given at some length in the Explanatory Note dealing with clauses 21 and 22 of the Bill. The opportunity has been taken to improve the arrangements of certain parts of the present Municipal Ordinance and to omit a number of provisions which it is considered can be better dealt with by means of by-laws. At the same time, the various existing provisions relating to the making of by-laws have been replaced by clause 322 of the present Bill and the Sixth Schedule which may be varied by the Minister from time to time. Every by-law or alteration, amendment or addition thereto, cancellation of or substitution therefore will have to be published in the Gazette and shall not have effect unless it is confirmed by the Minister and notice of such confirmation has been published in the Gazette. The boundaries of the new City and District Councils are described in the First and Second Schedules to the Bill. It has been thought desirable to provide for this detailed description in view of the substantial alteration in the present limits of the city that will result from the reorganisation of local government envisaged in the Bill, so that both hon. Members and the public will be fully aware of the changes to be made. Sir, hon. Members will recall that the McNeice Committee's boundary proposals were shown on the map attached to the Report. The Committee recommended that the city boundary should be extended to the West and withdrawn in the East, it also recommended that an Electoral Boundaries' Delimitation Committee be appointed to define exact boundaries for the local government districts and electoral divisions, and that electoral boundaries for the Legislative Assembly should be adjusted so that a common set of boundaries could serve all electoral purposes. The latter Committee was duly appointed, and in the White Paper Government stated that it accepted the recommendations which this Committee made for the boundaries of the local government areas. These boundaries were set out in a map attached to the White Paper. The White Paper map also showed where these boundaries differed from those proposed by the McNeice Committee. It was pointed out, Sir, that the boundaries as proposed by the McNeice Committee did not conform to existing Legislative Assembly electoral divisional boundaries. The Electoral Boundaries' Delimitation Committee's boundary proposals have kept as close as they possibly could to the boundary proposals of the McNeice Committee, while at the same time following the boundaries of the present Legislative Assembly electoral districts as closely as possible. Sir, Chapter IV of the McNeice Report contains the views of that Committee with regard to its boundary proposals. It will be seen that it has taken the Master Plan proposals into consideration in its deliberations. It is true that this plan has not yet been approved by Government, but it can be safely said that the general principles governing the Plan, which is the product of some years of expert study, aided by the valuable work of a number of competent study groups and working parties, have won general acceptance since its publication. Sir, I would also like to say that, by giving a detailed description of the new local government areas in the First and Second Schedules of this Bill, both Members of the Assembly and the public will be fully aware of the changes to be made. I would like to point out that until the exact boundaries of the city and districts are first defined and approved under the Local Government Ordinance, no action can be taken under the Local Government Elections Ordinance to specify the names and boundaries of the electoral divisions and to subdivide the divisions into polling districts for purposes of elections. Provision has been made for subsequent alterations of local government boundaries to be subject to the procedure set out in section 362 of the Municipal Ordinance. Sir, while I have made a somewhat lengthy speech which was unavoidable owing to the very nature of the Bill, I have tried, for the most part, to indicate to the House the principles and merits of the Bill. I have, at the same time, tried to avoid referring to matters of detail as far as possible. Matters of detail should, of course, be dealt with in the ordinary way in Committee and it is the Government's intention that after the Second Reading of this Bill, which is of such a comprehensive nature and of such importance to the people of Singapore, that it be committed to a Select Committee. I am confident, Sir, that the principles of the Bill will commend themselves to hon. Members and that they will give this Bill its Second Reading. Sir, I beg to move. Question proposed.