Hansard, 1973-03-07

Under the provisions of clause 2 (d) of Article 30 of the Constitution of Singapore, I have granted permission to the following Members to be or to remain absent from sittings of Parliament (or any committee of Parliament to which they have been appointed) for the periods stated:- Mr Lee Kuan Yew (Tanjong Pagar), Prime Minister - on 7th and 8th March, 1973. Mr N. Govindasamy (Telok Blangah) - from 12th to 17th March, 1973. Dr Goh Keng Swee (Kreta Ayer), Minister of Defence - from 15th to 19th March, 1973. YEOH GHIM SENG Speaker, Parliament of Singapore

"to make provisions for the regulation and control of importation, manufacture, sale, disposal, transport, keeping and use of radioactive materials, irradiating apparatus and for other matters connected therewith", recommendation of President signified; presented by the Minister for Science and Technology (Dr Toh Chin Chye); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

"to provide for the proper maintenance and management of buildings and common property in Singapore", presented by the Minister for Law and National Development (Mr E. W. Barker); read the First time, to be read a Second time on the next available silting of Parliament, and to be printed.

"to amend certain Statutes of the Republic of Singapore", presented by the Minister for Health and Home Affairs (Mr Chua Sian Chin); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Insurance Act (Chapter 193 of the Revised Edition)", presented by the Minister for Finance (Mr Hon Sui Sen); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

Resolved, "That, notwithstanding the Standing Orders, both the First Supplementary Estimates and the First Supplementary Development Estimates for the financial year 1st April, 1972 to 31st March, 1973 (respectively contained in Papers Cmd 4 and 5 of 1973) be taken today."- [Mr Hon Sui Sen].

2.35 p.m. Order read for consideration in Committee of Supply [Allotted Day].

First Supplementary Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. 4 of 1973. The summary is at the foot of the Paper. No notice of amendment has been received in respect of these Supplementary Estimates. The sum of $97,000 for Head 0108 ordered to stand part of the First Supplementary Estimates of Expenditure for 1972-73. The sum of $30,000 for Head 0701 ordered to stand part of the First Supplementary Estimates of expenditure for 1972-73. The sum of $860,000 for Head 1203 ordered to stand part of the First Supplementary Estimates of Expenditure for 1972-73. Question, "That the sum of $987,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. 4 of 1973," put and agreed to. Resolution to be reported.

First Supplementary Development Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. 5 of 1973. The summary is on page 2 of the Paper. No notice of amendment has been received in respect of these Supplementary Development Estimates. The sum of $3,200,000 for Head 71 ordered to stand part of the First Supplementary Development Estimates of Expenditure for 1972-73. The sum of $30,000,000 for Head 91 ordered to stand part of the First Supplementary Development Estimates of Expenditure for 1972-73.

Question, "That the sum of $33,200,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Development Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. 5 of 1973," put, and agreed to. Resolution to be reported. Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. Resolutions reported - "That the sum of $987,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. 4 of 1973." "That the sum of $33,200,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Development Estimates of Expenditure for the financial year 1st April, 1972 to 31st March, 1973, contained in Paper Cmd. S of 1973."

Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions."

Question put, and agreed to. Resolutions accordingly agreed to.

Order for Second Reading read. 2.40 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Let me begin by giving a brief history of the Singapore Light Dues Board. The Board was established on 1st March, 1957, under the provisions of the Light Dues Ordinance, 1957, and is responsible for the provision and maintenance of marine navigational aids. The Board, which consists of a Chairman and eight members, operates five lighthouses, and some Ill beacons and buoys. The operation, maintenance and improvement of navigational aids for the safe navigation of ships in Singapore waters is clearly a port function and should logically come under the ambit of the Port of Singapore Authority (PSA) which has a Hydrographic Department dealing with surveys of Singapore waters. The Hydrographic Department, in conjunction with the Port Master's Department of the PSA, determines the location and recommends the type of navigational aids to be established. The purpose of this Bill therefore is to transfer these functions relating to navigational aids to the PSA. When the Light Dues (Repeal) Bill comes into force, the Board will cease to exist and all its functions, liabilities, assets and staff will be transferred o the Port of Singapore Authority (Clause 3). The staff will be transferred to the service of the PSA on terms no less favourable than those enjoyed by them immediately prior to the date of coming into operation of this Bill (Clauses 4 and 5). The transfer of the Light Dues Board's functions to the PSA will enable the Port to plan more efficiently its maritime activities within our waters and maintain the position of the Port of Singapore as one of the largest and safest ports in the world. Mr Speaker, Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Ang Kok Peng]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 2.43 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." First of all, permit me to give a brief background of this Bill. The operational functions of the Marine Department include the licensing of harbour craft, port clearance, the dissemination of navigational information and the recovery of wrecks. These functions should properly be exercised by the Port of Singapore Authority (PSA) whose Port Master is responsible for the seaward control of the harbour, harbour safety, tug services, berthing and piloting, as well as the supervision and direction of ships and shipping. The prime objective of this Bill is to rationalise the distribution of maritime functions between the Marine Department and the PSA. The Bill proposes the transfer of the following functions of the Marine Department to the PSA:-

Mr Speaker, Sir, I support most of the moves and the changes that are taking place in the PSA. But I am a little perturbed about one or two matters. Firstly, over the last two years, the PSA's work has increased. The Authority is taking over the function of the Light Dues Board. On one previous occasion I raised an objection to the Authority being in charge of pollution when we already have a Department in the Government to look into pollution problems. It is a well known fact that the PSA not only deals with matters concerning the port but it has also gone into business, like building houses for its staff and building hawker centres, not in conformity with the Government's policy of providing cheap housing for our citizens and of building cheap hawker centres for the hawkers. Can something be done about this? The other point I want to raise is the reduction of membership of the PSA. At the moment, the NTUC is represented in the PSA. Will the reduction of membership affect the NTUC representation in the PSA?

Mr Speaker, Sir, as regards cheap housing for the staff of the PSA, we will look into the matter to see whether the present housing scheme is really not sufficiently economical for them. As regards the second question, the NTUC will be represented in the reconstituted PSA.

Mr Speaker, Sir, the Minister of State missed the point about hawker centres.

Mr Speaker, Sir, when I gave my answer about housing, I meant to include hawker centres in our consideration.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Ang Kok Peng]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 2.56 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The amendments to be made to the Merchant Shipping Act (Cap. 172 of the Revised Edition) are a result of the transfer of certain functions of the Marine Department to the Port of Singapore Authority. This Bill proposes the following main changes: (i) the function of the Director of Marine in granting port clearance to vessels to be transferred to the Port Master (clauses 10 and 31); (ii) the examination and issue of certificates of competency as steersman to be the responsibility of the PSA (clauses 4 to 8 and 14); (iii) the PSA to have general supervision over all matters relating to wrecks in Singapore waters (clauses 15, 17, 18, 21, 23, 24 and 25); (iv) the PSA to have jurisdiction over the licensing of harbour craft which operate solely within port limits (clause 37); and (v) the Port Master to be empowered to detain or refuse port clearance to any ship which has failed to comply with our maritime laws (clause 33). The following other changes are also proposed:-

Mr Speaker, Sir, if I remember correctly, in the Light Dues (Repeal) Bill where provision is made for the staff of the Marine Department to be transferred to the PSA, the Minister of State said that the transfer will be "on terms no less favourable than those enjoyed by them" in the previous department. But in this Bill, the phraseology is a little different. The Minister of State said that the transfer will be "on terms as near as may be." I think that is not good enough because when staff is transferred, it should be on terms no less favourable than what they enjoy in the Marine Department. They are not responsible for the transfer from the Marine Department to the PSA.

Mr Speaker, Sir, the intention is that the transfer is to be carried out in such a way that the staff will enjoy the benefits no less favourable than what they are enjoying at the moment.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Ang Kok Peng]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.03 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill before the House is based on the existing Sale of Food and Drugs Act which was enacted in 1955. Major changes are, however, made in the new Bill to meet with changing circumstances and to provide for more effective control over the sale and preparation of food. The new Bill provides measures to ensure the quality and purity of food. It seeks to prohibit the sale or other disposition or the use of articles dangerous or injurious to health. It also seeks to prevent deception and fraud arising out of the sale of food. A complementary Bill, to be known as The Food Handlers' Regulations, is being drafted. Its main purpose is to exercise control over all persons involved in the sale or preparation of food. The Sale of Food Bill and The Food Handlers' Regulations will between them ensure that the required standards of health and hygiene are maintained. Control over advertisements relating to food and appliances connected with food has been extended to include printed or broadcast advertisements to prevent misleading of the public. There was no such provision in the existing Act, which controlled only labelling statements on packaged food. The Act also provides control over appliances connected with food. There have been instances in the past in which food appliances of an insanitary or dangerous nature have been sold or used, but as control of such appliances was not covered in the existing Act, the prohibition of their use or sale could not be enforced. A further inclusion in the new Act provides for the definition of "analysis" of food to include micro-biological assay. The previous definition permitted only chemical analysis. The time limit during which legal proceedings may be instituted in respect of offences has also been extended from the original 28 days to 56 days from the time of purchasing a sample of the article or food or appliance. This is to provide sufficient time for a detailed analysis to be carried out, as the standard of food technology has now advanced to a stage which allows more complex methods of analysis to be performed. The other provisions are, in the main, similar to those in the existing Act. Mr Speaker, Sir, I beg to move. Question proposed.

Mr Speaker, Sir, I would just like to enquire about the appointment of the number of analysts. I was just wondering whether the Ministry concerned has its own facilities to carry out microbiological and chemical analyses. If it has, will it then not be a duplication of facilities in the other Government departments, like the Chemistry Department or the Bacteriology Department?

Mr Speaker, Sir, in answer to the point raised by the Member for River Valley, of course, all these analyses or tests will be referred to the Chemistry Department or the Bacteriology Department.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the the Bill. - [Mr Wee Toon Boon]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.11 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Creche Establishments Bill was introduced in Parliament on 16th February, 1973. This Bill, now before the House, seeks to provide for the licensing, control and supervision of creches so as to ensure that the education, health, safety and welfare of young children who are sent to such creches are adequately taken care of. Recent enquiries made by the Social Welfare Department revealed that a number of private creches are operating in residential areas. A few of these creches offer day-care service for preschool children, and in addition some of them offer residential care for infants and young children. Some of these private creches are operated by untrained or unqualified staff. Most of these creches charge considerably high fees for their service. The demand for day-care facilities for children is expected to increase in view of: (a) greater job opportunities for women, arising from rapid industrialisation and economic expansion, and (b) the shortage of "baby amahs". With the trend towards smaller family units living in compact high-rise flats where other members of their extended family are not so readily available to render them any assistance, those families in which both the husband and wife have to be away from their homes to work elsewhere in the day will have to rely more and more on child-care services from outside the home. It is therefore likely that there will be a proliferation of private creches being established, particularly in private housing estates, to meet the needs and convenience of working couples. Although there are concrete plans to establish more Government creches, the policy is to encourage and help the private sector, especially the industrial organisations, to set up creches in their premises so as to reduce the high turnover in their female labour force and to induce more married women to take up employment in their factories. In fact, one leading industrial firm has already approached the Social Welfare Department for advice and assistance to set up a creche in its premises for children of its female employees. In view of the expected increase in the number of private creches, there should be some means of controlling and supervising these creches. At present, there is no Government authority responsible for the licensing, control and supervision of private creches, nor is there any legislation on the matter. It is therefore essential that appropriate legislation be introduced as soon as possible, setting out appropriate standards for the establishment and operation of creches, to ensure that the interests of the children attending these creches are adequately safeguarded. It is also necessary to ensure that the public is not exploited by creche operators through the inadequacies or neglect on the part of the operators or through the collection of excessively high fees. On the other hand, laying down the standards and rules for establishment and operation of a creche will facilitate and help the private sector or any individual to plan and operate any proposed creche establishment. In view of these reasons, my Ministry has proposed the enactment of this legislation. The views of concerned Government Departments, including the Ministries of Health, Education and Labour, the Public Works Department and the Singapore Fire Brigade, have been sought and incorporated in the Bill. All the authorities concerned have supported the proposal to introduce this Creche Establishments Bill and have agreed to liaise on matters pertaining to their respective areas of work. Their suggestions and requirements have been given careful consideration and, as far as possible, included in the Bill. It is intended that the Department of Social Welfare be the administrative authority for this legislation and its rules and regulations. Members will note that under the Bill a "creche" is defined as: "any premises where children under the age of six years are received, whether for reward or not, to be looked after during the whole or part of the day or night but does not include nursing homes and maternity homes as defined in the Nursing Homes and Maternity Homes Registration Act and preschool institutions registered with the Ministry of Education". A main provision in the Bill is to make it an offence for any person to operate a creche without a licence, thus disallowing any sub-standard and improper creches to be established. The Bill provides, inter alia, for the appointment of a Licensing Officer and Assistant Licensing Officers, the manner of the application for the licence, the duration of the licence and the inspection of creche premises. In addition, it empowers the Minister to make regulations to carry out the purposes and provisions of the Act. In view of the increasing number of creches being established or to he established and to protect the interests of the young children who will be sent to such creches, there is a pressing need to enact this legislation in order to license, control and supervise establishment of creches on the one hand, and to provide some guidelines for creche operators to follow by, on the other. Mr Speaker, Sir, I beg to move. Question proposed. 3.19 p.m.

Mr Speaker, Sir, I have listened with interest to the commendable objectives of this Bill, now being read a Second time by the Parliamentary Secretary. I would like to ask him if he can inform the House as to how many Government creches are being planned in the immediate or foreseeable future, especially in the densely populated housing estates, like Toa Payoh or Queenstown and even in the rural areas?

(In Mandarin): Mr Speaker, Sir, the introduction of this Bill is very timely. Basically, this is another example of our Government's good measures in looking after our young citizens. Although the Social Welfare Department has already been running some creches for the care of children of working women, most of them are situated in the city areas. Children of working women living in the kampungs are therefore not being looked after. Sir, in the process of rapid industrialisation, we need more and more creches because many factories need more female workers. Married women are therefore encouraged to come out of the kitchen to join the production team so as to take part in the industrialisation programme. This is not to encourage them to rebel against their husbands, but to enhance their social and economic position. Moreover, this will help to increase our national production and economic progress. Therefore, this is a wise measure on the part of the Government. But most housewives are faced with the problem of caring for their children in their absence, and there is also the difficulty of getting "baby amahs". Similarly, many women who are occupied in other fields of work, including teachers, also need to put their children in creches so that they can devote more time to their work. Therefore, on the implementation of this Bill, I hope that the Minister will consider setting up more creches in more areas, particularly in industrial and private residential areas, including Jurong and Sembawang constituencies, because this will help housewives to join in the industrialisation programme, and to reduce the dependence on "baby amahs".

(In Mandarin): Mr Speaker, Sir, what the Parliamentary Secretary had said just now, relating to the establishment of more creches, is very good. I give my whole support to this Bill. But on the one hand, he has said that he wants better facilities in these creches, and on the other hand he has said that the expenditure should not be too high. We cannot have both, of course. If we can achieve one objective, it is already good enough. So I hope that when the Bill is put into effect, the Government would not interfere with those private creches whose fees are high but they are able to provide better facilities.

Mr Speaker, Sir, the need for the establishment of more creches to be run by the Government has arisen because not all industries can afford to run creches of their own. I welcome this Bill because the intention is to set up more creches. But the complaints that are normally raised are that the creches close at a time when the mothers are still at work. Sir, even the newspapers' complaints mention that they close at 5.00 p.m. or 5.30 p.m. The solution to the problem during the course of drawing up the regulations for these creches is for the Ministry of Social Affairs to consider the possibility of extending their hours or of specifying various periods of service, so that working mothers who leave their children in the creche early may come to collect their children early. And those mothers who work in the afternoon can similarly call in the afternoon and collect their children late in the evening. If such arrangements can be made, it will certainly help a lot of working mothers. After all, the policy now is to encourage our women to work.

Mr Speaker, Sir, my question is one of clarification. Under the Bill, the definition of "creche" is "any premises where children under the age of six years are received." Question is whether this definition includes kindergartens. If it does, does it therefore mean that kindergartens run by private bodies, for example, the People's Association, or political parties, will henceforth need to be legislated?

(In Mandarin): Mr Speaker, Sir, let me answer the question asked by the Member for Kim Keat regarding the number of creches that we have. I can say that we have 11 creches now. This year we are planning to build two more creches, one at Toa Payoh and the other at Kallang Basin. In other areas, for instance, Jurong Town, Katong, Queens-town, Woodlands, if there is a need, we will of course set up more creches. So if the Member for Sembawang has any need for more creches, he can put in his proposal to me. The Member for Bras Basah mentioned about certain private creches charging, expensive fees. We can say that we are not exercising any control over these high charges, because it is a matter of supply and demand. So if parents want to send their children to such creches, it is their own business. If the charges of these private creches are too high, while the Government's creches charge too cheaply, perhaps these private creches will have to close down. The Member for Telok Blangah has said that the opening hours of the creches are rather short, so that certain mothers find it inconvenient because when they go back to fetch their children the creches are already closed. Perhaps we can suggest a 24-hour service in which the staff work in shifts so that working mothers can fetch their children from these creches at all times. The Member for Kim Seng asked whether the definition of "creche" includes kindergartens. This is a matter of age. The children are under six years of age, and it is run as a creche and not a kindergarten.

Sir, my question is relevant, because in kindergartens, the children are under the age of six. The definition in this Bill is very wide, and therefore it seems that a kindergarten falls within the definition. Sir, my question therefore again is whether, in fact, this definition includes kindergartens.

No, Mr Speaker, Sir.

Question put, and agreed to. `Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill.-[Mr Chan Chee Seng]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.30 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, there are about 7,000 acres of land designated as "Nature Reserves" under the Nature Reserves Act. This Bill proposes to amend the Act so as to reorganise and to strengthen the Board of Management constituted under section 5 of the Act. The amendment provides for the Board of Management to consist of a trustee as Chairman to be appointed by the Minister and not less than six but not more than nine other trustees, two of whom shall be appointed by the President and the others by the Minister. A new section 5A, under clause 4 of the Bill, empowers the Board to appoint committees and to delegate its powers, functions and duties. Clause 5 amends section 14 so as to enhance the penalty for offences committed under the Act, in order to deter trespassers from using these Reserves for illegal purposes; some like to fish, some like to camp, while others like to shoot animals or to cut down trees for firewood. Such activities in these Reserves must be prevented. Sir, I beg to move,

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr E. W. Barker]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.35 p.m.

Mr. Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Geneva Convention Bill is to give effect in Singapore to the four Conventions adopted at the Diplomatic Conference of Plenipotentiaries held in Geneva in 1949. It is the intention of the Singapore Government to accede to the four Conventions, the texts of which are set out in the Schedules to the Bill. To-date, the Conventions have been acceded to by 132 countries. It is considered desirable that Singapore should now formally join in with those countries in upholding the fundamental objective of the Conventions, which is the observance of certain principles of human rights in situations of armed conflict. Broadly, the Conventions lay down basic humanitarian rules, which should be observed by all contracting parties, in all cases of declared war or of any other armed conflict which may arise between two or more of the contracting parties, even if the state of war is not recognised by one of them. They also apply to all cases of partial or total occupation of the territory of a contracting party, even if such occupation meets with no armed resistance. The first Convention deals with the amelioration of the condition of the wounded and sick of the armed forces in the field. The second Convention deals with the amelioration of the condition of wounded, sick and shipwrecked members of armed forces at sea. The third Convention deals with the treatment of prisoners of war. The last Convention deals with the protection of civilian persons in time of war. The Conventions specify that persons taking no active part in hostilities and those out of action due to illness, wounds, captivity or any other cause, should be humanely treated and protected against inhuman treatment, and that those who suffer should be given relief and care without distinction. The Conventions also lay down certain minimum standards which contracting parties should also observe in the case of an armed conflict not of an international character occurring in the territory of one contracting party. However, the Conventions should in no way prevent a state from exercising its rights of sovereignty and punishing, on the basis of its own national law, any person guilty of undermining the security of the state. In accordance with the obligations prescribed in the Conventions, this Bill makes it an offence punishable with life or up to 14 years' imprisonment for any person to commit any of the grave breaches set out in the Conventions. The Bill also contains procedural safeguards for the trial and defence of a protected prisoner of war, a protected internee or a person accused of grave breaches set out in the Conventions. With the formal accession by Singapore to the four Conventions and the incorporation of the Singapore Red Cross Society by an Act of Parliament, the Singapore Red Cross Society will now be able to take its place in the League of Red Cross Societies at Geneva and participate with other national Red Cross Societies in the affairs of the League. Mr Speaker, Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Chua Sian Chin]. Bill considered in Committee.

3.42 p.m. Clauses 1 to 4 inclusive ordered to stand part of the Bill. Clause 5 - Amendment made: In page 5, line 21, after "and", to insert "at". -[Mr Chua Sian Chin]. Clause 5, as amended, ordered to stand part of the Bill. Clauses 6 to 12 inclusive ordered to stand part of the Bill. First to Fourth Schedules inclusive ordered to stand part of the Bill. Bill reported with an amendment; read a Third time and passed.

Order for Second Reading read. 3.44 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Singapore Red Cross (Incorporation) Bill when enacted will accord the Singapore Red Cross Society the status of the national Red Cross Society. This will enable it to take its place in the League of Red Cross Societies and be bounded by the International Committee of the Red Cross which administers the Geneva Conventions, on which I spoke a little while earlier. The Red Cross is dedicated to the prevention and alleviation of human suffering in peace and in war. In peacetime it is concerned with disaster relief. In addition to the Society's local activities in this respect it will, after the Bill is passed, be the national society which will participate in disaster relief operations which may be mounted internationally or regionally by the League of Red Cross Societies. In war-time it will be the agency for the protection of the wounded and sick of the parties in the conflict. Outside the periods of stress or national disasters, the Society also plays the role of medical auxiliaries to the public health and welfare authorities. Amongst the better known of its services are its ambulance service and assistance at accidents. It is hoped that its new role of a National Society will expand to other fields of activities which supplement the national medical services. The Bill also reserves to the Society the right to use the Red Cross emblem or title and provides a penalty of $1,000 or six months' imprisonment or both, for the use of the emblem or title by any other person. Mr Speaker, Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Chua Sian Chin]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.48 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Members will see from the Long title of the Bill and the Explanatory Statement that this Bill amends and consolidates the law with respect to the securities industry and repeals the Securities Industry Act, 1970 (No. 61 of 1970) which was passed by Parliament on 30th December, 1970, but for reasons which will be given later on, was not brought into operation. In my Second Reading speech at the time that that legislation was before Members, I dealt in considerable detail with the background to and the reasons for bringing in legislation to control the securities industry and trading in securities. This speech appears in the Hansard, Volume 30, cols. 461-7. I do not need to repeat at any great length what was said at that time for neither the reasons for, nor the background of, the proposed legislation have changed. The need, however, for such legislation being made operative has, if anything, become more pressing with the passing of time. We are continually being made aware from happenings in the market that investors need to be protected, so far as is possible to do so, by legislative intervention from unscrupulous manipulation and share rigging on the Stock Exchange. These are matters which stockbrokers with the best will in the world as a body are unable or not agreeable to control voluntarily. Needless to say, statutory provisions on these matters will not provide the universal panacea. The Government will still look to the Stock Exchange for its co-operation in exposing dishonesty and malpractices in share trading. In this and in other ways we anticipate that the Stock Exchange will justify the Government's policy in relying upon self-regulation on the Stock Exchange rather than imposing the strict forms of control implicit in a statutory body similar to the Securities Exchange Commission in the United States. In my earlier speech to which I have referred, I reminded Members that Singapore and Malaysia enjoy a common Stock Exchange which over the years has existed to the undoubted economic benefit of both countries. I went on to say that Members would be reassured to learn that it was the intention of both Governments that this common Stock Exchange should continue in existence, and to enable this to be done it was essential that Singapore and Malaysia should have a uniform approach in legislation dealing with the securities industry and share trading. To this end, consultations have taken place between us and the Malaysian Government, and I am most pleased to record that these consultations have come to a happy and fruitful conclusion. Members are aware that Malaysia introduced a Securities Industry Bill into their Parliament on the 22nd January, 1973. This Bill has been modelled on our earlier Securities Industry Act, but it also contains important additional provisions which were agreed to by the two Governments and which have been incorporated in the present consolidating measure. Since I last spoke to Members on this subject, I am glad to record that the Committee of the Exchange has implemented new rules to limit excessive speculation. Nevertheless, careful watch will need to be maintained to ensure that a resurgence of market euphoria does not carry speculation beyond reasonable bounds. If speculation becomes excessive, or if for other reasons the market becomes or is likely to become disorderly or unhealthy, appropriate corrective and remedial action will be called for. The delay in bringing our earlier Securities Industry Act into operation was due to the desire to reach full agreement with the Malaysian Government on this uniform approach. As things have turned out, the delay has been fortuitous for it has given us an opportunity to propose further measures with regard to regulation of dealers in securities and share trading in the context of the existing booming share market. These, like the earlier provisions, are designed to protect the interest of investors to the extent that this is practicable. The Malaysian Bill corresponds very closely with the Bill now before Members. We decided to introduce a consolidating measure on this subject rather than an amending Bill including the additional provisions I have mentioned since it was considered important that references to Parts and sections in our legislation should, for the convenience of the financial public and the administrators of the legislation, correspond with the same Parts and sections in the Malaysian legislation. The new proposals that distinguish this Bill from the earlier Act are mainly concerned-

Mr Speaker, Sir, before I make my observation on the Securities Industry Bill, I would like to make a proposal concerning the requirement of investment advisers and stock and share journalists to declare their interests before they can comment on the stock and share market. My proposal is that all Members in this House who wish to make a speech today against this Bill should also declare their interests, otherwise it will give rise to suspicion. In this way we would be fair to the investment advisers and so on. In so far as I am concerned, I speak in support of the Bill. So whether or not I have got any shares is a matter inapplicable to my proposal. It is my belief that whatever legislation is introduced by the Government, it is always done in the best interests of the people. That is the first consideration. Any proposed legislation that is at variance with the basic interests of the people will never get the support of the people. This means that it will be difficult for us to achieve our desired objective. The introduction of this Securities Industry Bill will, I believe, benefit the people in general, and the investors in stocks and shares in particular. The introduction of this Bill is timely. As we all know, the present boom in our economy has attracted increasing foreign interest in the local market. Coupled with the success of industrialisation in recent years, this has attracted the massive inflow of foreign capital. Our Republic is regarded by foreign industrialists and investors as an ideal place for investment. It is against this background that our Stock Exchange has become so active and the market heated up. Current developments, however, have given rise to a misconception among some people that they can reap handsome profits just by dumping their money into the share market; just like a gold mine. Actually, an active and heated share market is not in itself an undesirable phenomenon, but the question is whether this sort of frenzy has been the work of speculators and manipulators and not the result of normal development. The idea of getting easy money in this way, instead of through normal hard work, has attracted many people to try their luck at the Stock Exchange. If the situation is allowed to continue, unchecked, it will not only weaken the will and spirit of our people to work hard but it will also impede our industrial development. Take Hong Kong, for example. There, the share market is probably more active and more heated than that in Singapore. Professional people, and even domestic servants, have seen fit to abandon their regular jobs and take to share speculation. As a result, Hong Kong industrialists have expressed concern over the industrial future of the colony. This may well be a good lesson for us. In order to protect our people's interests and to encourthem to make bona fide investments, the introduction of this Bill is absolutely necessary. In order to implement this piece of legislation in accordance with its true spirit, the co-operation and assistance of the responsible officials of the Stock Exchange and the sharebrokers will be necessary. They will play an important part in this respect. If these people were to go their own ways without regard for the true spirit of the Bill, they will do no good to themselves and to the people in general. On the other hand, if they are willing and ready to co-operate and assist in ensuring the smooth implementation of the provisions of the Bill, they will do a good service to the national economy and the interests of the people, including themselves. As a global city and a prosperous society, Singapore cannot go without an active Stock Exchange in operation. The Stock Exchange provides the vital link in a prosperous and economic society. An economically prosperous country, without a share market in operation, will be just like a modern city without electrical currents. Therefore, while the activities of the share market should be strictly regulated, I believe it can be made even more active and booming through sound and proper administration, so that the people will be able to enjoy a more wholesome atmosphere of investment in stock and shares.

Mr Speaker, Sir, the Bill before the House is generally considered to be an enlightened piece of legislation on a very complicated subject. The Minister is to be congratulated for this. However, for the Bill to take effect on implementation, it seems to me that it will be necessary for the Ministry to provide a staff with sufficient knowledge of market operations to assist the Minister and the Registrar of Companies in fulfilling their functions. I should appreciate it if the Minister would inform the House as to what administrative arrangements are being made or will be made in this direction. The market trends in recent months have very clearly shown that there is perhaps too much money chasing too few stocks. In view of this, I am wondering what steps are being taken to encourage more companies to go public, and whether the Minister would consider directing some of the Government-backed or Government-owned companies to go public. In this connection I have in mind companies such as Singapore Airlines, Sembawang Shipyard, and Jurong Shipyard. All these are capital intensive undertakings, with tremendous group potential. At the present juncture of their development, I should have thought that an injection of fresh capital from the public will help in their expansion programme.

Mr Speaker, Sir, in view of the fact that there is really nothing but support from the House, I do not think there is very much for me to answer. Let me first take the enquiry of the Member for Jalan Kayu. He asked whether there were any arrangements made for an effective implementation of the Bill. I hasten to assure him that we will make all the necessary arrangements to ensure that staff will be adequate to deal with the very essential problems of administration. I believe the Registry of Companies will be moving into new premises in the newly erected building behind the City Hall, and the Monetary Authority of Singapore will also have in that same building some of their offices dealing especially with companies. I think the combination should be sufficient to allay any doubts or anxieties about our being serious in implementing the present legislation. As to the question of more companies going public, I believe I have expressed my views on this matter, in asking as many companies as possible to go public. As far as Government-owned companies are concerned, I think a number of them will be examining the position after the end of the year. It is necessary in order to enable the companies to be floated to prepare the accounts so that public issue prospectuses can be prepared. I do not think the Member for Bras Basah requires any answer, but I am glad to note that he is for the Bill and it does not matter whether he owns any shares or not. I agree with him that an active Stock Exchange is very necessary for the development of Singapore.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill.-[Mr Hon Sui Sen]. Bill considered in Committee.

4.16 p.m.

In addition to the proposed New Clause which appears in the supplementary Order Paper Supplement, copies of further amendments to the Bill have been handed out to Members. All the amendments may be moved subject to the consent of the Speaker and the general assent of Members, for notice to be dispensed with. I give my consent. Is it the pleasure of hon. Members that notice of the amendments be dispensed with? Hon. Members indicated assent. Clause 1 ordered to stand part of the Bill. Clause 2 -

Sir, I beg to move, In page 2, line 32, to leave out "value" and insert "price". This amendment is to improve the wording of the clause. The word. "value" is somewhat ambiguous, and the word "price" is more appropriate. Amendment agreed to.

May I seek your advice, Sir? Do we go through these amendments clause by clause?

Yes, that is so. There is a note, In page 3, line 33, to leave out the comma. This will be done. Amendments made: In page 4, line 18, after "for", to insert "giving the advice or for". - [Mr Hon Sui Sen]. In page 5, line 1, to leave out "investment". -[Mr Hon Sui Sen].

There is a further note, In page 5, lines .1 and 2, to reset as follows :- "(c) a representative's licence, under Part IV;". This will be done. Clause .2, as amended, ordered to stand part of the Bill. Clauses 3 to 6 inclusive ordered to stand part of the Bill. Clause 7 -

There is a note, In page 8, marginal note, to leave out "Registrar" and insert "Minister". This will be done. Clause 7 ordered to stand part of the Bill. Clauses 8 to 21 inclusive ordered to stand part of the Bill. Clause 22 -

Sir, I beg to move, In page 12, line 19, to leave out "specifies" and insert "may specify". This is just an improvement to the wording of the clause. Amendment agreed to.

There is a note, In page 12, marginal note, to leave out "court" and insert "Registrar". This will be done. Clause 22, as amended, ordered to stand part of the Bill. Clause 23 -

There is a note, In page 12, marginal note, to leave out "Appeal" and insert "Appeals". This will be done. Clause 23 ordered to stand part of the Bill. Clauses 24 and 25 ordered to stand part of the Bill. Clause 26 -

There is a note, In page 14, line 38, to leave out "this" and insert "his". This clerical error will be remedied.

Sir, I beg to move, In page 15, to leave out lines 9 to 12 and insert "(4) A person who ceases to be a person to whom this Part applies shall, within fourteen days of his so ceasing, give notice of the fact in the prescribed form to the Registrar.". Sir, this amendment is merely an improvement to the arrangement of words. Amendment agreed to.

Sir, I beg to move, In page 15, lines 13 and 14, to leave out "If he fails or neglects to give notice as required by this section he" and insert "A person who fails or neglects to give notice as required by this section". Sir, this is similarly an improvement to the arrangement of words. Amendment agreed to. Clause 26, as amended, ordered to stand part of the Bill. Clause 27 ordered to stand part of the Bill. Clause 28 -

Sir, I beg to move, In page 15, line 40, after "person", to insert "authorised by or under subsection (1)". Sir, this is just to correspond with subsection (1) which states that the Registrar or any person authorised by him may require any person to produce for inspection the register required to be kept pursuant to section 25. Amendment agreed to. Clause 28, as amended, ordered to stand part of the Bill. Clauses 29 to 41 inclusive ordered to stand part of the Bill. Clause 42 -

Sir, I beg to move, In page 20, line 19, to leave out "constitutes" and insert "may constitute". The phrase "or constitutes" is inappropriate as at that point it is not an adjudged issue that the matter actually constitutes a breach. Therefore, the phrase "may constitute" is preferred. Amendment agreed to. Clause 42, as amended, ordered to stand part of the Bill. Clause 43 -

Sir, I beg to move, In page 20, line 33, to leave out "the authority thinks proper it" and insert "it thinks proper, the relevant authority". This is just to improve an awkward construction of the sentence. Amendment agreed to. Clause 43, as amended, ordered to stand part of the Bill. Clauses 44 to 47 inclusive ordered to stand part of the Bill. Clause 48 -

There is a note, In page 22, line 43, to leave out the comma. This will be done.

Sir, I beg to move, In page 23, line I, after "Minister," to insert "or". The word "or" is required, because the provisions are for action in the alternative and, therefore, the conjunction "or" is in order. Amendment agreed to. Amendment made: In page 23, line 3 to leave out "and" and insert "or". - [Mr Hon Sui Sen]. Clause 48, as amended, ordered to stand part of the Bill. 4.30 p.m. Clauses 49 and 50 ordered to stand part of the Bill. Clause 51 -

Sir, I beg to move, In page 24, line 24, after "exchange", to insert "from". This amendment is to improve the language. Amendment agreed to. Clause 51, as amended, ordered to stand part of the Bill. Clauses 52 to 64 inclusive ordered to stand part of the Bill. Clause 65 -

Sir, I beg to move, In page 29, line 31, to leave out "one at least being" and insert ", at least one of whom is". This is an improvement in the drafting. Amendment agreed to. Clause 65, as amended, ordered to stand part of the Bill. Clauses 66 to 82 inclusive ordered to stand part of the Bill. Clause 83 -

Sir, I beg to move, In page 40, line 3, after "has", to insert "or have". Sir, this amendment, together with the next amendment, refer to "an order or orders", and therefore it is necessary to include "or have" after "has". Amendment agreed to. Further Amendment made: In page 40, line 10, after "has", to insert "or have". - [Mr Hon Sui Sen].

Sir, I beg to move, In page 40, line 22, to leave out "these" and insert "those". The substitution of the word "those" for "these' `is a drafting improvement. Amendment agreed to. Clause 83, as amended, ordered to stand part of the Bill. Clause 84 ordered to stand part of the Bill. Clause 85 -

Sir, I beg to move, In page 41, line 20, to leave out "of", where it secondly occurs, and insert "by". This amendment makes for better reading. Amendment agreed to.

There is a note, In page 41, line 14, to leave out the comma, and after "securities" to insert a comma. This will be done. Clause 85, as amended, ordered to stand part of the Bill. Clause 86 -

There is a note, In page 41, line 25, to leave out "security" and insert "securities". This will be done. Clause 86 ordered to stand part of the Bill. Clauses 87 and 88 ordered to stand part of the Bill. Clause 89 -

There is a note, In page 42, marginal note, to leave out "licensee" and insert "licence holder". This will be done. Clause 89 ordered to stand part of the Bill. Clauses 90 to 97 inclusive ordered to stand part of the Bill. New Clause - `Power (1) In deciding whether a dealer or his of the representative or an investment adviser Registrar or his representative is a fit and to enquire proper person to hold a licence under into share this Act the Registrar may enquire into trans- any transactions involving the purchase actions or sale of securities entered into by that person, whether directly or indirectly, during any period of twelve months preceding the application for a licence or renewal of a licence, as the case may be (referred to in this section as "the relevant period") to ascertain if that person has in such transaction or series of transactions used dishonest, unfair or unethical devices or trading practices, whether such devices or trading practices constitute an offence under this Act or otherwise. (2) For the purposes of subsection (1) the Registrar may, in such form and within such time as he may specify by notice in writing, require a dealer or his representative or an investment adviser or his representative to submit detailed information of all or any transactions involving the purchase or sale of securities, whether such transactions were completed - during the relevant period - before or after the date of the coming into operation of this Act. (3) Any person who fails or refuses to submit information to the Registrar within the time specified in the notice referred to in subsection (2) or who give false or misleading information shall, in addition to any other penalty that may be imposed under this Act, be liable in the case of an application for renewal of a licence to have his licence cancelled under section 22 and in the case of first application for a licence to have his application rejected.' - [Mr. Hon Sui Sen]. Brought up, and read the First time.

Sir, I beg to move, "That the clause be read a Second time." The purposes of this amendment is to enable the Registrar, in deciding whether a dealer or his representative or an investment advisor or his representative is fit and proper person to hold a licence under the Act, to enquire whether that person has conducted his business in a fair and proper way and according to accepted business standards. In order to do this, it is considered that the Registrar should have the power to look into any transaction involving the purchase or sale of securities entered into by that person during any period of 12 months preceding the application for a licence or renewal of a licence. If, as a resultof this enquiry, he finds that a person has in the course of his business used dishonest, unfair or unethical devices or trading practices, this would be a point of consideration for the Registrar to bear in mind in deciding whether that person was a fit and proper person to be licensed to carry on his business. It can, of course, be argued that the inclusion of such a provision is not really necessary, since the Registrar would have an implied power or authority to do what the proposed provision enables him to do in any event. But the way a person has recently carried on his business must be a vital consideration in deciding whether he is a fit and proper person to be allowed to continue to carry on his business. And naturally, there are other considerations; for example, if a person has had a conviction for a criminal offence, or has been declared a bankrupt, he would not on the face of it be considered to he a fit and proper person to hold a licence under the Act. The provision is inserted to facilitate the making of enquiries by the Registrar in this matter and to avoid the raising of doubts as to the exercise of his power. The new provision is intended to cover an application for a licence, in the first instance, and an application for renewal of a licence. Licences will, under the Bill, be valid for a period of 12 months.

Question put, and agreed to. Clause read a Second time and added to the Bill

It is intended, that this new clause be inserted immediately after clause 16. Amendments are, therefore, required to be made to re-number the clauses, consequent on the addition of the new clause. These will be done. Bill reported with amendments; read a Third time and passed.

Resolved, "That Parliament do now adjourn."-[Mr Barker]. Adjourned accordingly at Seventeen minutes to Five o'clock p.m.