Hansard, 1961-12-15

ADJOURNMENT TO A DAY - OTHER THAN AN ORDINARY - SITTING DAY - (Motion) Resolved. "That at its rising today, the Assembly do stand adjourned to Saturday, the 16th December, 1961."- [The Deputy Prime Minister-Dr Toh Chin Chye].

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Order read for resumed consideration in Committee of Supply [7th Allotted Day]. Resumption of debate on Question (14th December, 1961), "That the sum to be allocated for Head D32 be reduced by $10 in respect of subhead 1.-(Dr Lee Siew Choh)."

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 2.34 p.m. DEVELOPMENT ESTIMATES, 1962 (Cont.) Head D32 - Question again proposed.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 (In Mandarin): Mr Speaker, Sir, yesterday I stated that one of the more important tasks of the Economic Development Board is to issue pioneer status certificates to industrialists. The Minister for Finance has issued many such certificates to industrialists investing in Singapore. A pioneer status certificate was issued to the Shell Company with a capital of about $10 million. This is quite a large investment. As I said yesterday, this company has employed only one new worker. In principle, we do not oppose the Minister for Finance and the Economic Development Board in their effort to promote industrialisation in Singapore, but we are doubtful about its success because the Shell Company has only engaged one new worker. In view of the fact that the Assembly has been asked to approve $20 million for 1962, we must be very careful to ascertain whether the desired results can be achieved. The Minister for Finance has given pioneer status for a period of five years to promote new industries. Let us take the example of Shell Company which has engaged only one new worker after the investment of the so-called $10 million. This shows that the unemployment situation in Singapore has not been improved and the problem has not been solved. The company invested such a large sum of capital and it obtained pioneer status for five years. This has been a great loss to the people of Singapore because the company has not contributed anything to the solution of the unemployment problem. I would like to ask the Minister whether other new industrialists seeking investment and pioneer status for their industries will be allowed to follow the same footsteps of the Shell Company. If such is the case, then it is very regrettable. The investment of $10 million by the Shell Company has not contributed anything to the people of Singapore. From this fact alone, we can see that the Government will not receive any taxation from these industries for some time and, generally speaking, this is a great loss to our country. I will use a Chinese saying to describe what advantages the people of Singapore will derive from such industries. It is a double loss. Not only do you lose your wife but you also incur defeat through a military manoeuvre. I hope the Minister will look into this question and review its policy so that pioneer industries and new investments will help solve the unemployment problem in Singapore. 2.40 p.m.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, for 2 ½ years, we have been listening to the Government talking about economic development and industrialisation. What has the Government done? Almost nothing. What it has done is to change the name of the Industrial Promotion Board to the Economic Development Board. What is the use of a change in name? The people want jobs and not a change of name. The failure of the Government in its so-called industrialisation plan is partly due to a lack of personnel with practical experience. If the Ministry of Finance and the Industrial Promotion Board had been staffed with people of practical experience instead of armchair economists and paper-flappers, I think the position today would have been much better. Sir, we must not depend entirely on foreign industrial missions. They are sometimes useful, but how can we expect them to do marvelous things by spending a few weeks here?

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 I trust the Member for Aljunied is not reading from a script.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 He is reading.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, we can form industrial advisory boards composed of local industrialists instead of depending on foreign industrial missions. Mr Speaker, Sir, the main emphasis on industrialisation should be on medium and small scale industries. The Government should undertake research into the types of products that can be manufactured in Singapore and readily supply such information to interested parties. The Government should relax immigration controls and allow people with manufacturing experience to come in and invest or work here. I ask the Minister to make a ministerial statement at some future date on his industrial programmes.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker. Sir, after the debate on the last Budget, I remember reading in the newspapers of Government's plan to start a steel mill with a capital of $50 million. What I want to ask the Minister is this. Of the $50 million authorised on nominal capital, how much would be paid up? It would not be useful if only $500,000 or $5 million of the $50 million is paid up. It strikes me that this so-called steel mill is not a steel mill. It is just like one of those factories which pull out steel bars and steel plates; from local scrap iron. We have such a factory in Bukit Timah Road. Sir, it seems to me that the particular person who is going to form this supposed steel mill has already got another concession from the Government by obtaining $ ½ million loan. From what I see of the activities, of the Industrial Promotion Board and the Economic Development Board, it seems they are all centred around this person. Is it because there are no other persons in Singapore who have applied for similar loans, or that their applications were not substantiated with enough facts to obtain the loans, or is it because their schemes were not practicable? But what I cannot understand is that two schemes - I have only been able to see two schemes - have been taken over by the same person. So, Mr Speaker, Sir, these are doubts in my mind which I hope the Minister will be able to clarify. 2.45 p.m.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, the Member for Choa Chu Kang made the point that since the Shell refinery at Pulau Bukom could give employment to only one new employee, that project, into which more than $10 million worth of capital has been sunk, did nothing to solve the unemployment problem in Singapore. I do not know from this whether one could infer the conclusion that this project should not have been proceeded with. I do not think that is the point that the Member was trying to make. If indeed it was, I say it is an extremely foolish conclusion to come to. Sir, the refining industry is what the economists call a "capital intensive" industry, indeed most industries connected with any form of chemical operations require a lot of capital as compared with labour. In the nature of things, that is the way production processes are made. It is not correct, however, to say that the oil refinery just gives a job to one person. That is a completely distorted way of representing the position. The refinery gives jobs to more than 70 persons, most of whom were already in the employment of Shell Company. But the Shell Company, through modernisation of its organisation, has found that there may be some 200 workers redundant. And this is in the nature of things. Every industry is trying to improve its methods of production; productivity per worker increases. And., therefore, unless there is scope for expansion, you will find the labour force of your existing industry getting smaller and smaller. By establishing this oil refinery, the Shell Company has been able to give jobs to more than 70 workers who otherwise might have been retrenched. Further, as a result of refining operations, they will branch out into other lines. I believe they are now contemplating the manufacture of pitch tar, which will require them to start a new factory to make drums for the packaging of this product. So once you have a major industry, it generates employment by creating a secondary industry linked up with it. That is why, when we discuss the total effects of any new industrial project, we have to take into account all the repercussions that the project leads to. The Member for Aljunied claims that the Economic Development Board is merely the Industrial Promotion Board under a new name. Sir, I have on previous occasions dealt at great length with the steps taken to start the Economic. Development Board; the expert personnel recruited from abroad, the extra new staff of economic engineers recruited from local sources, and the additional $40 million worth of capital which the Economic Development Board has and which the Industrial Promotion Board did not have. May I recapitulate some of the things said of the Economic Development Board? We have recruited a director who is a top-ranking economic planner in the Government of Israel. We have a former Permanent Secretary in my Ministry as Chairman of the Board. We have two young civil servants and one young local engineer to be in the promotion and technical branches of this Board. We are also recruiting some five to six experts through the United Nations and they should be here by about April next year at the latest. These are experts in various fields, such as chemical engineering, industrial cost accounting, and so on. At the same time, the Industrial Research Unit will be set up by the first quarter of next year. This Unit will be able to give technical and production advice to small and medium scale local industries. To say that this is just the Industrial Promotion Board under a new name is absolute nonsense. The problem that we are facing - let me repeat - is a most dangerous one. The Member for Choa Chu Kang brought up the point which allows me to bring out the fact that if in Singapore there is no expansion of industrial output, that does not mean that the number of workers will remain at the present level, because techniques of production are always improving. With improved methods, more machines are used and the labour force becomes smaller. And that is going on all the time. The United Nations mission calculated that within the next ten years some 12,000 workers would not be required in existing industries because of increased productivity and because of better methods of production; just to maintain the existing level of output, quite apart from giving new jobs to people looking for work. We have to find jobs for people who would be redundant because improved techniques of production are introduced in our industry. Sir, Members did say that we have announced our industrialisation plans in general terms. They say, "Well, what are the actual industries the Economic Development Board has in mind to assist and to promote?" This is the final test. It is no use saying chemical industries or metal industries or what have you. The United Nations industrial mission has made a number of specific recommendations. These recommendations are being studied by the staff of the Economic Development Board. Contacts are being made with local and foreign industrialists interested in pro ducing the goods recommended. There are to date three major fields that have been examined by this mission. They are, briefly, metal and engineering, where it is expected that an investment of $5 million could be made in Singapore in various industries which will create jobs for 200 people. The specific industries recommended are as follows: under metal and engineering - production of abrasives, bicycles, building, hardware, galvanishing of iron sheets, metal furniture for home use, steel bolts and nuts, steel wire rods, steel wire nails, steel wire netting, welded steel tubing. Under electrical equipment and appliances, 32 products have been recommended for immediate production in Singapore. They involve an investment of $13.5 million and would create employment for about 1,400 persons in the initial stages. The products recommended are as follows: - fluorescent light fittings, domestic plugs and socket outlets, switch gears and flat irons, motors and fans, accumulators, chokes, transformers, refrigerators, cookers, radios, television, insulated cables. As regards the chemical industries, a $26 million investment would be justified in creating employment for some 3,000 people. The products that could be produced in Singapore, according to the mission, are as follows:- insecticides and disinfectants, rubber processing, plastics industries, paints, oil processing, pineapple industry, soya bean processing, wheat mix, urban garbage disposal, sulphuric acid and aluminium sulphate, storage batteries, fire extinguishers, ceramics, certain categories of pharmaceuticals, cement, calcium carbide, alcohol distillation plant, foam plastics, washing powders, detergents and blues. Finally, there are a number of priority industries which the Economic Development Board is anxious to promote. These have been studied in some detail and the Board, as I have stated before, is making contact with local and foreign manufacturers who may want to produce them. The Board is prepared to assist these industrialists with all the resources at its disposal. The industries are, of course, first, the rolling steel mill which is in the course of construction; production of window panes, pans, rattan furniture, noodles and beehoon, woodwaste utilisation, reinforced plastics workshop, oil refining, sulphuric acid, detergents, matches, wheat mix, fruit juice canning, jams, sausages, and fish curing. So, you can see, Mr Speaker, Sir, that we have moved away from the stage of just framing a general policy and are going into the realm of actual project evaluation, actual work in promoting specific industries for which details of marketing costs, techniques of production and so on, have been worked out. As regards the steel mill, the Member for Hong Lim thinks that the Economic Development Board is staffed by people whose only experience is selling kachang puteh. I think I should inform the House of the progress to date. The United Nations Technical Assistance Board despatched a steel mission to Singapore, and this mission recommended that -

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Point of clarification, Sir. Dr Goh Keng Swee resumed his seat.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 When I raised the question of the steel mill today, I was asking about the steel mill which the Government announced in the papers last week, not about the United Nations report - which can come as a separate paper in the form of a ministerial statement to be made later perhaps. We want to know the details of what the steel mill is.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 On a point of order, Mr Speaker, Sir.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Point of order?

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Yes. I am anxious to get on with this business. The steel mill will come tinder subhead 4. Could all this be discussed then, Mr Speaker, Sir?

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Subhead 4 is "Industrial Estates including Jurong Project". I am completely in the dark as to what could be discussed under any of these subheads, but if the Minister says that this is the proper subhead, then this should be the proper subhead. 3.00 p.m.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 I will be very brief then. The reason why I brought up the United Nations mission is that this steel mill which we are putting up is in accordance with their recommendation. Briefly, they recommended that a steel industry could be developed in three stages. The first stage would be the establishment of a mill for smelting scrap, rolling steel ingots, re-rolling of ship scrap, with an output of 30,000 tons a year which could be increased to 60,000 tons eventually. This is the industrial project which is now being carried out by a group of local businessmen and the Economic Development Board. The Member for Hong Lim made certain statements which hinted rather darkly that the Board is showing favouritism to a particular person. For instance, we are lending this person half a million dollars for the steel project. I can assure you, Mr Speaker. Sir, that this is completely untrue. I do not know whether he has in mind the loan for ship-breakers. The ship-breaking firm, or the person interested in ship-breaking who carries out ship-breaking, who has a loan from the Economic Development Board, is also a partner in the steel mill. But he is by no means a major partner. He is rather a minor partner in the project. The main capital comes from a group of wealthy businessmen who are putting their money into it. The paid-up capital in the first stage is $6.5 million. This is a considerable sum.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, on a point of clarification. Dr Goh Keng Swee resumed his seat.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Ong Eng Guan.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, that is what we are trying to drive at. The Government should announce, with regard to last year's project, that the nominal capital is $50 million but that the paid-up capital is $6.5 million.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Order. That is exactly what the Minister is telling the House. There is no clarification. Dr Goh.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 That is all I have to say about the Economic Development Board. Only one concluding word, Mr Speaker, Sir, in view of the ignorance and malicious attack made on the Members and staff of the Board. I say that we have a fine team of men working on it and it deserves the full support of every citizen in this country. We cannot get a better team to tackle the problem ahead of us.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Sir, since the Minister has said that one could probably discuss the Jurong project under this item -

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Order. The item discussed, I think, is the steel mill only.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 (In Mandarin): Mr Speaker, Sir, I want to use very simple language to bring up my point. The Government has issued a pioneer status certificate to an enterprise with a capital of $10 million. But that enterprise employs only one extra worker.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 The Member for Choa Chu Kang brought up this point. He repeated the statement yesterday that Government gave $10 million to the Shell Company. This is completely untrue.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, this is due to a mistake in interpretation. What I said is that Government has given a five-year tax holiday to that enterprise. I do not mean that the Government has given a loan of $10 million to that firm.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 I do not think the Member for Choa Chu Kang should always blame the interpreter. I do not know what the report in today's Press has about this matter. But the interpretation that has come through all the time is that the hon. Member has stated that a loan of $10 million has been given to an enterprise.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Sir, that is exemption under pioneer status. If we were to follow what the Member for Choa Chu Kang recommends, then we would not have a Shell refinery here. We would find it in the Federation. That is the effect.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 (In Mandarin): Mr Speaker, Sir, I do not oppose the setting up of the oil refinery. But my point is that the Government has given tax exemption for five years to a firm with a capital of $10 million. But that firm employs only one extra worker. That does not solve the employment situation in Singapore.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 This is repetition. The Minister has answered the point. All the Minister has to do is to give the same answer. That is repetition.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, I will give my view on this oil refinery. The Shell Company have to establish an oil refinery in Singapore because a Japanese oil refinery has been established. If the Shell Company do not establish one, they are in no position to compete with the Marusan Toyo Company which has established one at Telok Blangah. Sir, my view is that there is no need to give tax exemption for five years to this Shell Refinery. If we want to give tax exemption, we should give it to more worthy enterprises. I am sure there are many who have applied for pioneer status and tax exemption, because they have to come into the market here. Otherwise, they are in no position to compete. Once we give tax exemption to the Shell Refinery, they can negotiate or arrange among themselves. I do not mean that they necessarily did. But I say they can have made arrangements among the Shell Group. There are three or four Shell companies in Singapore. One is exempted from tax; the profits are exempted from tax. The others are not. They can sell at the highest price. Suppose the oil refinery produces oil at $10 per ton and the market price is $30 per ton. This refinery can sell at $29.99 to the Company which has to pay tax, for the simple reason that the refinery which makes $19.99 a ton profit does not have to pay income tax for five years. Mr Speaker, Sir, I think that is what the Member for Choa Chu Kang was trying to drive at and the Minister for Finance should clarify this.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker. Sir, that was not the point the Member for Choa Chu Kang was driving at. although he nodded his head very wisely when an accountant made the point, which is supposed to be quite telling. The answer is quite simple, Mr Speaker, Sir. Surely we are not suckers. The Government has income tax experts and accountants. In the agreement which we signed with the Shell Company, this point was described in minute detail, not merely the cost of production and selling cost but also finally the distributing services. Also more important, the price at which they buy from outside and the price at, which they sell to their distributing agents outside Singapore. All these matters have been gone into in great detail. There are no loopholes for Shell. The answer is quite simple. If you say you do not give pioneer status to Shell, there is a bigger refinery in the Federation if you do not have one.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Just one line, Sir. I do not want waste the time of the House any furl I want to refer to one rather deceptive and twisted report from Radio Singapore last night. Radio. P.A.P. reported that Dr Goh said that a Member Barisan Sosialis had complained the Economic Development Board not having used $40 million. Therefore, he said, if he thought that the Board could spend $40 million within a short time, then Dr Lee was talking through his hat. Well, I think the News Division of Radio P.A.P. is here. They did take this down very cleverly and clearly -

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Order. There must be no direct reference to any stranger in the Strangers' Gallery.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 I just want to have this point clarified, Sir. The point that we have made, and which we are still making, is that the Minister for Finance has practised a deception on the House by giving the impression that $40 million will be spent by the end of this year. If the sum put down there is $5,000 or $10,000, we would not have minded so much. As it is, it is $40 million, and we have been given to understand that $40 million will be spent, whereas not a single cent has been spent.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 May I explain this thing in simple terms? These are the Estimates of the Government of the State of Singapore. We deal with the money estimated to be spent by the Government. It is incorrect to say that the money would not be spent. The $40 million has been spent by the Government. It has been given to the Economic Development Board.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 It seems to be clear enough.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 To continue. What the Economic Development Board does with this money will come out in the report.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Question on the amendment put, and negatived. The following amendments stood in the name of Dr Lee Siew Choh - That the sum to be allocated for Head D32 be reduced by $10 in respect of subhead 2. That the sum to be allocated for Head D32 be reduced by $10 in respect of subhead 3.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 I am not moving my amendments on subheads 2 and 3.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Amendment (3), Mr Rajah.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head D32 be reduced by $10 in respect of subhead 4.* *The same amendment also stood in the name of Dr Lee Siew Choh. "Industrial Estates including Jurong Project... $45,000,000." Sir, in the first column on page 29 of the Development Estimates, 1962, for the Ministry of Finance, under Head D32, item 4, Plan cost is given as $45 million. In the second column, Revised Plan Cost is $45 million. If I may refer to the Development Plan for 1961/64, at page 73, paragraph 7.62: "The total cost of the new town can only be estimated after detailed geological and other surveys. A provisional sum of $45 million has been allocated which will be supplemented as development progresses." 3.15 p.m. I take it that the total cost of these estates is not yet known to the Government, that this is merely the first instalment in the project, and that the Government's revised plan on the first instalment still remains the same at $45 million, of which the Government hopes to spend $600,000 by the end of this year. The estimated expenditure for 1962 is $20.4 million and the amount required to complete the project, i.e., the first phase of it, is another $24 million. Mr Speaker, Sir, when the Hon, the Minister for Finance first spoke to the House about the Jurong project, I get the impression from him that the whole of this scheme was attuned to the steel mill that was to be established in that area, that the steel mill was going to be the focal point around which subsidiary industries were to be established, and that this $45 million which the Government proposes to spend initially is to be spent on items which normally a government or a State would spend in order to put the site ready for private enterprise to come in and develop it. I take it that it is correct this $45 million does not include the cost of establishing the steel mill itself. Could the Minister tell us whether the Government still holds the view that the focal point of the industrial estates in the Jurong project is still the steel mill, and whether Government hopes that private industry will then cluster around this steel mill on objects subsidiary to it? That is the first point, Sir. The second point is whether the Government has made any progress in the establishment of the steel mill and what aid the Economic Development Board is going to give to any person or persons who wish to establish this steel mill; and whether the Minister is now in the position to give definite information to this House as to what exactly is going on in Jurong? The Government has estimated that they will spend $600,000 at the end of this year under subhead 4. Under subhead 6, Sir, land acquisition for industrialisation at Jurong, I take it, is $5 million of which $4.3 million has already been spent. So by that, I assume that all the land which the Government hopes to acquire in that vicinity has been acquired and possibly' paid for. So that over and above that they are now hoping lb spend $600,000. Could the Minister tell the House exactly on what he has spent this sum .of money whether it is on levelling the hills and filling the land there? The Minister also made a statement, Sir, a few minutes ago that the Jurong steel project is in the course of erection. I definitely heard him say that.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Construction.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Construction. Did the Minister mean by that that the walls of the steel mill are going up; that the site is being filled in, and did he mean construction by that? Or was it just a slip of the tongue?

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Dr Lee.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 The point has already been raised, Sir.

ESTIMATES OF EXPENDITURE AND DEVELOPMENT ESTIMATES - FOR 1962 Dealing with the last point first. When I said the steel mill is under construction, I meant two things. First, the site has now been levelled; second, members of the Board of Directors have gone abroad to order the equipment. The design of the mill itself has been made by the United Nations Mission. If all goes well, the mill should be established either at the end of next year or early in 1963. Whether the steel mill will be the focal point of the whole Jurong industrial project is something of which I am afraid we have to make a reappraisal. Our original plan was to start a mill on a very substantial scale in conjunction with Japanese steel mill interests. But both the United Nations Steel Mission and the Japanese experts themselves formed the view that we could do it in three stages, starting with a small smelting rolling mill, and it production problems have been overcome, markets established, then the question of eventual extension to the real thing, i.e., the mill, plant and furnaces. That could be considered. Now, aid to the mill. As I have said, this venture is a venture of local businessmen. They put up the capital. The Economic Development Board itself is just providing, I think, a small minority share, something like 15 to 20 per cent of the capital - no more than that. They are just appointing some two Directors to the Board of Directors of this enterprise. As regards the works in Jurong at present - I think I reported this rather briefly in my Budget Statement; perhaps there could be just some repetition - a considerable amount of earthworks are in progress. That part of Jurong is fairly hilly and hills have just been levelled; swamps have to be filled; roads have to be constructed. So at present, the works currently going on are levelling of hills, filling of swamps, construction of roads and also the construction of a culvert on the eastern shore of the Jurong River. This is necessary because a causeway will be built over the Jurong River which will dam the northern reaches of the river and turn it into a reservoir for industrial water. Then that causeway will, at the same time, provide communications between the Jurong industrial estates and the port of Singapore through Ayer Rajah Road. That part of the work of building roads and the causeway together with the industrial water reservoir is in progress. Also electrical supplies are being stepped up. We hope also to provide an adequate supply of water. But this is in some doubt now. I am not sure whether the Water Department could move fast enough to provide sufficient water, at any rate, by the first half of next year. The position of electricity seems to be all right. But as regards piped water, I think they are somewhat behind time. Now, if Members are interested in seeing what is going on in Jurong, the Government will be very pleased to arrange touring parties for them to have a look. I think it is worth a visit because the amount of work in progress there is quite substantial and will go on increasing in the next year or two.