Hansard, 1979-12-11

Under the provisions of clause 2(d) of Article 30 of the Constitution of Singapore, the following Members have been granted permission 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:- Dr Koh Lip Lin (Nee Soon) - from 27th September to 3rd October and from 20th October to 2nd November, 1979. Mr Tang See Chim (Chua Chu Kang), Deputy Speaker - from 27th September to 3rd October and from 19th October to 30th November, 1979. Mr Phua Bah Lee (Tampines), Senior Parliamentary Secretary to the Minister of Defence - from 27th September to 4th October, 1979. Mr Tan Soo Khoon (Alexandra) - from 27th September to 13th October, 1979. Mr Bernard Chen (Radin Mas), Minister of State, Ministry of Defence - from 1st to 4th October, from 16th to 30th October, from 17th November to 3rd December and from 11th to 16th December, 1979. Mr Sia Kah Hui (Upper Serangoon), Minister of State, Ministry of Labour and Government Whip - from 11th to 22nd October and from 16th November to 15th December, 1979. Dr Lau Teik Soon (Serangoon Gardens) - from 15th to 27th October, from 30th October to 2nd November and from 15th November to 3rd December, 1979. Mr Phey Yew Kok (Boon Teck) - from 16th to 22nd October and from 26th November to 1st December, 1979. Mr Lim Kim San, D.U.T. (Cairnhill), Minister for the Environment - from 16th to 28th October, 1979. Mr Goh Chok Tong (Marine Parade), Minister for Trade and Industry - from 16th to 28th October and from 25th to 28th November, 1979. Mr S. Dhanabalan (Kallang), Senior Minister of State, Ministry of Foreign Affairs - from 16th to 28th October and from 13th to 16th December, 1979. Mr Lim Chee Onn (Bukit Merah) - from 16th to 28th October and from 11th to 29th November, 1979. Dr Tony Tan Keng Yam (Sembawang), Senior Minister of State, Ministry of Education - from 16th to 29th October, 1979. Mr Chan Chee Seng (Jalan Besar), Senior Parliamentary Secretary to the Minister for Social Affairs - from 17th to 26th October, 1979. Mr Ong Teng Cheong (Kim Keat), Minister for Communications and Acting Minister for Culture - from 18th to 29th November, 1979. Mr A. Rahim Ishak (Siglap), Senior Minister of State, Ministry of Foreign Affairs - from 19th October to 5th November and on 11th December, 1979. Dr Augustine H.H. Tan (Whampoa) - from 25th to 27th October, 1979. Mr P. Selvadurai (Kuo Chuan) - from 29th October to 2nd November and from 1st December, 1979 to 2nd January, 1980. Mr Eric Cheong Yuen Chee (Toa Payoh) - from 29th October to 2nd November and from 21st November to 5th December, 1979. Dr Ong Leong Boon (Kim Seng) - from 29th October to 12th November, 1979. Mr Howe Yoon Chong (Potong Pasir), Minister of Defence - from 31st October to 7th November, 1979. Mr Sia Khoon Seong (Moulmein) - from 12th November to 1st December, 1979. Mr C.V. Devan Nair (Anson) - from 12th to 26th November, 1979. Mr Lee Yiok Seng (Bukit Paniang), Parliamentary Secretary to the Minister for National Development - from 15th November to 12th December, 1979. Encik Sidek bin Saniff (Kolam Ayer) - from 15th November to 4th December and from 9th to 21st December, 1979. Dr Tan Eng Liang (River Valley) - from 17th November to 17th December, 1979. Dr Ow Chin Hock (Leng Kee), Parliamentary Secretary to the Minister for Culture - from 24th November to 17th December, 1979. Mr Chin Harn Tong (Aijunied), Parliamentary Secretary to the Minister for Home Affairs - from 26th November to 7th December, 1979. Mr Chor Yeok Eng (Bukit Timah), Senior Parliamentary Secretary to the Minister for the Environment - from 26th November to 8th December and on 11th December, 1979. Dr Goh Keng Swee (Kreta Ayer), Deputy Prime Minister and Minister of Education - from 1st to 11th December, 1979. Mr Ong Pang Boon (Telok Ayer), Minister for Labour - from 3rd to 31st December, 1979. Mr Ng Kah Ting (Punggol) - from 3rd to 31st December, 1979. Mr Ch'ng Jit Koon (Tiong Bahru) - from 3rd to 31st December, 1979. Encik Mansor Haji Sukaimi (Kampong Kembangan) - from 5th to 14th December, 1979. Mr Eugene Yap Giau Cheng (Mountbatten) - from 5th to 14th December, 1979. Mr Chua Sian Chin (MacPherson), Minister for Home Affairs - from 7th to 20th December, 1979. Dr Toh Chin Chye (Rochore), Minister for Health - from 12th to 18th December and on 20th and 21st December, 1979. Mr S. Rajaratnam (Kampong Glam), Minister for Foreign Affairs - from 13th to 16th December, 1979. Mr Yeo Toon Chia (Ang Mo Kio) - from 17th to 24th December, 1979. Mr Chai Chong Yii (Bukit Batok), Senior Minister of State, Ministry of Education - from 18th to 26th December, 1979. Mr Tan Cheng San (Paya Lebar) - from 22nd to 26th December, 1979. YEOH GHIM SENG Speaker, Parliament of Singapore

The following Bills were assented to by the President of the Republic of Singapore on the date stated:- 28th September 1979 (i) Co-operative Societies Bill; (ii) Evidence (Civil Proceedings in Other Jurisdictions) Bill; (iii) State Immunity Bill; (iv) Money-Changing and Remittance Businesses Bill; (v) Registration of Births and Deaths (Amendment) Bill; (vi) Pharmacists Registration Bill; (vii) Cinematograph Film Hire Duty (Amendment) Bill; (viii) Civil Law (Amendment No 2) Bill; (ix) Housing and Development (Amendment) Bill; (x) Criminal Law (Temporary Provisions) (Amendment) Bill; (xi) Factories (Amendment) Bill; (xii) Misuse of Drugs (Amendment) Bill; (xiii) Road Traffic (Amendment) Bill; and (xiv) Skills Development Levy Bill. YEOH GHIM SENG Speaker, Parliament of Singapore

asked the Minister for Labour whether he will consider exempting both employer and employee from Central Provident Fund contributions if the employee is employed after he or she is 55 years old.

Mr Speaker, Sir, under the Central Provident Fund Act a worker who reaches 55 years of age can withdraw his CPF savings, irrespective of whether he continues working or not. If he continues to be employed, CPF contributions must be paid for him. An employee who has withdrawn his CPF savings at the age of 55 and who continues to work after that age can withdraw the additional CPF savings once every five years. He can also withdraw this additional savings earlier if he has stopped work for six months. We do not yet have sufficient data to enable us to know whether CPF contributions are an obstacle or a disincentive to the employment of older workers. The Ministry is gathering information on the matter. If the evidence shows that CPF contributions are a hindrance to the employment of older workers, the Ministry will consider reducing or abolishing CPF contributions for such workers.

Sir, this is not a supplementary question but a point of clarification. I would like to know whether the additional CPF contributions can be withdrawn only six months after the member ceases working.

I confirm what I have said - that after the contributor has reached the age of 55 he can withdraw his savings whether or not he is working. Subsequent to that, he can withdraw once in every five years. But if he stops work, then he can withdraw six months after he has stopped work. I thought that is clear enough.

What happens after the five years? Can he withdraw as and when he wants?

After five years if he continues working he can withdraw once every five years. If he reaches the age of 55 and he continues working, then at 60 he can withdraw once; at 65 he can withdraw another time; and at 70; and so on. But if he stops work at any time, then six months after he stops work he can withdraw whatever additional savings he has.

Sir, a supplementary question. What sort of evidence is the Acting Minister considering gathering in respect of people older than 55 years? He was mentioning the possible penalty effect of having to pay CPF in deterring employers from engaging such workers. So what sort of evidence is he thinking of gathering?

Sir, evidence to prove that in fact CPF contributions are a hindrance. This would involve studies of CPF data as well as representations or interviews with employers and employees' unions; all kinds of evidence that can support a conclusion either way, whether CPF in fact is a hindrance, whether it is a disincentive to older people working. If the Member can suggest other ways in which this can be proved, he is welcome to do so.

Sir, is the Minister not aware that if a simple question were to be put to employers that, "Is the CPF a hindrance to your employing a person older than 55 years?" the answer is going to be yes? Would he then take that as evidence that there is a penalising effect of CPF on the employment of such workers?

Sir, obviously the matter is not so simple. I said "various kinds of evidence". That example will be just one type of evidence which has to be weighed against other types of evidence that can be obtained.

The following Question stood on the Order, Paper -

To ask the Minister for Labour (a) what is the rationale for the stipulation that an undischarged bankrupt is not allowed the use of his Central Provident Fund contributions to purchase a Housing and Development Board flat; (b) what is the number of persons affected; and (c) whether he will consider amending the aforementioned stipulation as there is already adequate safeguard that the vendor of an HDB flat will have to repay into his account in the CPF the monies withdrawn by him. Mr Ch'ng Jit Koon being on leave of absence -

Question No. 2, Sir.

Mr Speaker, Sir, under section 13(3) of the Central Provident Fund Act the CPF savings of an undischarged bankrupt are deemed to be impressed with a trust in favour of the persons entitled to the savings upon his death. The purpose of this provision is to protect the savings of the undischarged bankrupt from seizure by his creditors. Such protection is in the interest of persons entitled to the savings upon the death of the undischarged bankrupt. Because of this provision an undischarged bankrupt has not been allowed to withdraw his contributions. However, under section 44(2) of the Housing and Development Act, a flat purchased by an undischarged bankrupt is protected from seizure by the official assignee to satisfy creditors. The same protection is afforded by section 41 (2) of the Jurong Town Corporation Act for JTC flats purchased by an undischarged bankrupt. Since there is this specific protection from seizure of an HDB or JTC flat, the Government will be amending section 13(3) of the Central Provident Fund Act to allow an undischarged bankrupt to use his CPF savings to purchase such a flat. Should the undischarged bankrupt sell his HDB or JTC flat, he is required to return to the CPF the savings withdrawn with interest, or the proceeds of the sale, whichever is less. At the end of November 1979 a total of 69 CPF members who are undischarged bankrupts have not been allowed to withdraw their savings to buy HDB or JTC flats. They will be allowed to do so when the amendment is passed.

asked the Minister for the Environment if he will consider allocating hawker stalls to licensed farmers who are affected by resettlement.

Mr Speaker, Sir, markets and food centres are built essentially to resite licensed street hawkers. As it is Government's policy to contain hawkers, no new hawker licences will be issued except on grounds of financial hardship. Another exception is made for vacant stalls in what are called "cleared markets", which are not required for resettlement of hawkers. These stalls will be liberally given to applicants who are Singapore citizens and are between 40 and 60 years of age. Licensed farmers affected by resettlement may apply for hawker licences on grounds of hardship and for vacant stalls in "cleared markets".

The following Question stood on the Order Paper -

To ask the Minister for Home Affairs whether his Ministry has plans to install "green man" signals at all road junctions. Mr Eugene Yap Giau Cheng being on leave of absence -

Sir, Question No. 4.

Mr Speaker, Sir, all traffic lights installed since 1977 include "green man" signals. The Public Works Department in consultation with the Traffic Police is installing "green man" signals at traffic lights installed earlier. Priority will be given to junctions where pedestrian flow conflicts seriously with vehicular flow. Todate 198 or 71% of the road junctions which have traffic lights also have "green man" signals. At junctions which do not have "green man" signals, pedestrians should only cross the road when traffic is flowing parallel to the road crossing which they wish to use. Since there is still confusion over the right of way between a pedestrian and a motorist at road junctions which do not have "green man" signals, I wish to clarify that under the Pedestrian Crossing Rules 1977 the pedestrian has precedence over all vehicular traffic at pedestrian crossings. A motorist who is in the process of turning his vehicle at a road junction must stop to give way to any pedestrian who is crossing or starting to cross the path of the motorist.

To ask the Minister for Home Affairs if he will consider making it compulsory for the headlamps of motor vehicles to be lit after a certain time of the day.

Question No. 5, Sir.

Sir, statistics show that about 40% of fatal road accidents occur between 7.00 pm and 7.00 am. The Traffic Police Accident Study Unit together with the Registrar of Vehicles and the Public Works Department are, therefore, studying the frequency of road accidents caused by poor visibility including inadequate lighting of some roads, poor lighting by vehicles and poor visibility of objects and persons on the road. The use of headlamps will not only help the driver to see better but also make the car more visible to other road users. If the study shows that it is necessary to require motorists to switch on their headlamps when driving after dark, the Motor Vehicles (Lighting) Rules will be suitably amended to make the practice compulsory.

asked the Minister for Communications and Acting Minister for Culture why approval has been given to certain local car dealers to import reconditioned second-hand cars from Japan; how many such cars have been imported to date; and whether the importation of such cars is contrary to the policy of keeping down the car population in Singapore.

Mr Speaker, Sir, restrictions on the import of used cars were lifted in May 1976 as it was thought then that, with import duty at 45% and Additional Registration Fee at 100% of the value of the car, not many such cars would be imported. Until this year, sales of imported used cars were small and did not give cause for concern. However, with rising affluence and with new cars becoming more expensive, sales of imported used cars, especially of reconditioned cars from Japan, have increased substantially. The number sold in 1976 was 62, 65 in 1977, 173 in 1978 and 622 during the first 10 months of this year. If unchecked, the rising imports of used cars will undo all our efforts to restrain the growth in the car population. We are closely monitoring the import of used cars and considering various measures to curb the growth in imports.

Sir, can the Minister clarify whether the imported second-hand cars have to meet a certain requirement or test for roadworthiness before they can be sold in Singapore, and whether our requirement is less strict than the Japanese such that cars which are not accepted in Japan are now imported into Singapore?

Mr Speaker, Sir, any reconditioned or used cars imported into the Republic will have to be inspected at the ROV for roadworthiness before registration. We are not aware of the standards or criteria set by the Japanese inspection authorities for reconditioned cars for export purposes, and I am in no position to say whether they are more strict than we are at this stage. But, as I have said, these cars have to pass the inspection test for roadworthiness by the ROV before they can be put on the roads.

Sir. does the Hon. Minister have any evidence of the export of second-hand cars from Singapore to other countries?

Sir, I do not have physical evidence, if that is what the Member is asking. But I know that our used cars have been exported to other countries. And I can say this from my personal knowledge that many of our friends inside and outside this House have had their used cars exported.

Sir, would the Minister not consider that if the export of such second-hand vehicles from Singapore is on a substantial scale, say, in the order of at least 600 cars per year, it will be a counter-balancing factor to the import of similar second-hand vehicles from Japan?

Sir, I do not know the exact figures of second-hand cars exported from Singapore. Of course, the import of 622 reconditioned cars from Japan is a large figure compared to the previous year's figure of 65 or 62. But when we consider this in terms of the total number of new cars registered during the same period of 10 months this year, i.e. more than 18,000; then it is a very small figure. It is less than 3 1/2%. Nevertheless, we are keeping a close watch on the registration of these reconditioned cars.

Sir, would the Hon. Minister not agree with me that, from the point of view of the economy, it is cheaper to import second-hand vehicles rather than brand new vehicles because it means a saving in terms of foreign exchange?

Sir, I think the Member's question is contrary to the argument put up by the Member for Thomson. It is our policy to discourage the rapid growth in car population. [n that respect the national economy and foreign exchange do not come into the argument.

Sir, is the Hon. Minister not aware that there are other alternative measures which could achieve the same aim of keeping down the car population and yet, at the same time, permit Singapore to save on foreign exchange?

Sir, I am fully aware of that.

Mr Speaker, Sir, I am just wondering whether the Hon. Minister has considered the effect of his statement to this House this afternoon, i.e. it is likely to cause a greater number of second-hand cars being imported within a short space of time.

Sir, I am aware of that. And if that actually happens, then the importers are forcing the Government to kill the goose earlier, the goose that lays the golden eggs. As I have mentioned, we are studying the various measures taken to curb the growth in imports of second-hand cars. This is being discussed actively between the officials of my Ministry and the Ministry of Trade and Industry.

Mr Speaker, Sir, will the Minister not consider imposing a quota on the import of second-hand cars to Singapore?

Sir, the officials do not exclude any possible measures that would lead to a curb in the importation of second-hand cars. It is premature for me to reveal or to go into details of these various measures at this stage.

asked the Minister for Communications and Acting Minister for Culture what is the progress of the implementation of the bus interchange scheme for Telok Blangah and when the implementation will be completed.

Mr Speaker, Sir, Stage I of the new bus plan for Telok Blangah will be implemented this month. Under this stage, a feeder service will be introduced to link Depot Road to Bukit Merah Central and four trunk services will be shifted from Jalan Bukit Merah to Bukit Merah Central. Bukit Merah Central is close to the site of the proposed new Bukit Merah Interchange. Eventually, all these services will be shifted to the Interchange, which is expected to be completed by the middle of 1980. SBS will implement the subsequent stages of the new bus plan when the Interchange is completed.

2.55 p.m.

Mr Speaker, Sir, I am making this Statement on Professional Services on behalf of the Prime Minister. Introduction 1. Following the Ministerial Statement on the Singapore Administrative Service in Parliament on 15 May 1979, a Professional Services Review Committee was constituted to examine the pay and career advancement prospects in the professional and equivalent services in the Singapore Civil Service. For record purposes, I am placing on the Table an Annex (Cols. 529 - 530) to my statement which gives the composition and terms of reference of the Committee. The Committee submitted its Report to Cabinet on 8 October 1979. I will dwell only on the major recommendations of the Committee. Annex - COMPOSITION AND TERMS OF REFERENCE OF THE COMMITTEE (Cols. 529 - 530) Purview of the Committee 2. The Committee reviewed only those services which meet the definition of "professional and equivalent services". These are services which are comparable to the Administrative Service in two respects: (a) Appointment is confined to candidates with either a good Honours degree (First Class or Second Class Upper) or a professional qualification; and (b) Their existing salary structure is similar to that for the pre-revised Administrative Service. These services are the Dental, Engineering, Medical and Legal Services and the senior echelons of the Accounting, Audit, Civil Aviation, Computer, Education, Foreign, Inland Revenue, Management Services, Meteorological, Parks and Recreation, Planning, Primary Production, Scientific, Statistics and Survey Services. 3. The uniformed services are not included by the terms of reference. The Government places the highest priority on the recruitment and retention of high calibre officers for the Singapore Armed Forces (SAF) and the Police. The Ministry of Finance will, in consultation with the Ministry of Defence and the Ministry of Home Affairs, review the pay and promotion prospects of senior echelons of the uniformed services so that the pay schemes will be equal to, and the promotion prospects better than, those for the professional services or the Administrative Service. This will enable the SAF and the Police to recruit and retain some of the best of each year's crop of scholars. Principles of Review and Recommendations 4. In its review of the professional and equivalent services the Committee adopted the following general principles: (a) The Administrative Service will remain the premier service in the Civil Service: and (b) The time-tested pattern of internal relativities existing between the various services should not be disturbed, unless adjustment is compelled by a wide salary gap between a particular service and its analogous profession in the private sector. 5. The Committee concludes that, except for the Medical and Legal Services, the earnings of most officers in the Government professional services are comparable to their counterparts in the private sector. No salary revision for these services was necessary. Instead, the Committee recommends measures which will assist the recruitment and retention of able officers in these services. These measures also apply to the Medical and Legal Services. 6. I shall describe these measures. Career Opportunities for Professionals 7. Professionals in the Civil Service should have career prospects comparable to those of their colleagues who opt for the private sector. Their promotion will be faster than in the past, determined by their own ability and contribution to the performance of their services, and by the rate of progress of their peers in the private sector. Early Promotion of Bright Young Recruits 8. To facilitate early promotion of bright young recruits a Timescale Intermediate Grade similar to the Senior Administrative Assistant Grade ($1640x65A-1835/ 1900x65A-2420) will be introduced for all the professional services. Promotion Prospects for All Professionals 9. To improve the promotion prospects of all professionals in Government Service: (a) full-scale promotion exercises will be held at least once in every two years; (b) there will be an annual review when the respective Appointing Authority and Head of Department (or Permanent Secretary) concerned take the initiative to identify deserving officers for promotion outside the normal promotion exercises; (c) officers away on study leave or official duty overseas will be considered during promotion exercises; their promotion will not be jeopardised because they cannot be interviewed by the Public Service Commission; and (d) the practice of promotion on trial will be discontinued. Top Grades for Outstanding Professionals 10. Every professional service must have a few outstanding officers in charge, if its performance is to be maintained and improved upon. Our aim is to attract and retain able and dedicated officers by faster promotion. The outstanding few will be able to proceed beyond their present topmost grades. Therefore: (a) Outstanding officers in the professional services can be promoted on a personal-to-holder basis to Superscale A. In the Education, Engineering (PWD), Foreign, Inland Revenue, Legal and Medical Services where the existing topmost grade is Superscale C. one outstanding professional from each of these services at any one time can be promoted beyond Superscale A to the Staff Grades. (b) in addition to the above advancement opportunities: (i) outstanding professionals with proven administrative ability can be absorbed into the Administrative Service; and (ii) suitable professionals can be transferred to university appointments to further their careers, without loss of their accrued Civil Service pension benefits. Other Terms and Conditions of Service 11. The Government accepts the Committee's view that other terms and conditions of service in the Civil Service should, given the nature of salaried employment in a large bureaucracy, be comparable to employment in the private sector. It cannot, however, reproduce the same individual variations of private practice for professionals, which penalises the unfortunate mercilessly and rewards the lucky few fabulously. Improvements have been made recently to the leave, car loan and housing loan schemes. Nevertheless, the Ministry of Finance will consider the following further improvements: (a) extending the repayment period for housing loans from 20 to 25 years so that the maximum quantum of housing loan can be increased from four to five times that of an officer's annual salary; and (b) paying pension benefits to the dependants of a pensionable officer for a reasonable period in the event of his death in harness after serving a minimum number of years. Recommendations Specific to the Legal, Medical, Dental and Education Services 12. Of the professional services in Government, the Medical, Dental and Legal Services experience the greatest difficulty in retaining staff because of the higher earnings of similar professionals in private practice. The Committee has, therefore, made special recommendations for the Legal, and Medical and Dental Services.

13. For the Legal Service a scheme of special non-pensionable allowances will be introduced. These allowances will narrow the gap in earnings between lawyers in the private and public sectors. They will be paid on a personal-to-holder basis and will be reviewed from time to time to take into account the gap in earnings between lawyers in the two sectors. These allowances will be payable as follows: Upper Timescale $250 pm Superscale H $500 pm Superscale G $750 pm Superscale F $1,000 pm Superscale E $1,250 pm Superscale D $1,500 pm Superscale C $2,000 pm Superscale B $2,500 pm Superscale A $3,000 pm No allowances will be payable to Legal Officers in the Staff Grades. 14. The Chief Justice, the Attorney-General and the High Court Judges are outside the Legal Service. They are not subject to the ceiling of Superscale A. These appointments represent additional avenues available to members of the Legal Service to advance beyond Superscale A. 15. For Medical and Dental Services a new Consultation Fees Scheme will allow consultants to choose between retaining consultation fees up to 60% of their consolidated salary or continue their existing fixed specialist allowances. This should retain enough consultants in the Government Service despite the current financial pull of private practice. These allowances or fees, however, will not be paid to Medical and Dental Officers in Staff Grades. 16. As for the Education Service the Committee found that a further revision was unnecessary since the recently revised salaries for this service are in line with the Committee's recommendations for professional services. Future Salary Review 17. Salaries in the professional services will be reviewed after each review of Administrative Service to take into account Singapore's economic growth and the comparable opportunities and pay levels in the private sector. Conclusion 18. Finally, I must point out that the primacy of the Singapore Administrative Service is the bedrock of Government policy. The pre-eminence of this Service is in the role of Administrative Officers and will be reflected in their greater number in Staff Grades. The outstanding and the exceptional in the professional services will also retain their relative lustre because those with the qualities comparable to the best in Administrative Service can aspire to the new Staff Grades.

3.06 p.m.

"to provide for the control, licensing and inspection of private hospitals, medical clinics and clinical laboratories, to prohibit trading in human blood, and for purposes connected therewith, and to repeal the Nursing Homes and Maternity Homes Registration Act (Chapter 163 of the Revised Edition)", presented by the Minister for Health (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 amend the Arbitration Act (Chapter 16 of the Revised Edition)", presented by the Minister for Law and Science and Technology (Mr E.W. Barker); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.

"to amend the Defamation Act (Chapter 32 of the Revised Edition)", presented by Mr E.W. Barker; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Weights and Measures Act, 1975 (No. 51 of 1975)", presented by Mr E.W. Barker; read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.

"to amend the Bretton Woods Agreements Act (Chapter 61 of the Revised Edition)", recommendation of President signified; 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.

"to amend the Architects Act, 1976 (No. 14 of 1976)", presented by the Minister for National Development (Mr Teh Cheang Wan); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.

"to make better provisions as to the constitution duties and powers of the Singapore Fire Service and to make provisions for the prevention and fighting of fires and for matters connected therewith; and to repeal Part IV of the Local Government Integration Act (Chapter 210 of the Revised Edition)", presented by the Acting Minister for Social Affairs (Dr Ahmad Mattar); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.

"to amend the Ngee Ann Technical College Act (Chapter 179 of the Revised Edition)", presented by Dr Ahmad Mattar; read the First time: to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Singapore Polytechnic Act (Chapter 80 of the Revised Edition)", presented by Dr Ahmad Mattar: read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

Order for Third Reading read. 3.11 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." The Singapore Broadcasting Corporation Bill was committed to the Select Committee after the Second Reading on 21st September, 1979. The Committee received three written representations. These are shown in Appendix II to the Committee's Report which was presented to the House on 28th November, 1979. Arising out of consultations between the Auditor-General, the Attorney-General and the Ministry of Culture, the Select Committee considered and recommended amendments to the financial and auditing provisions contained in clauses 15, 21, 22, 23, 24 and 25 of the Bill. These amendments, incorporated in the Bill at Appendix I to the Report, will improve the accountability of the Corporation and will ensure that the Corporation complies with standard accounting and auditing procedures for statutory boards. Of the three written representations received, two identical memoranda submitted by the Association of Accredited Advertising Agents and the Singapore Advertisers Association proposed that their Chairman be appointed as members of the Singapore Broadcasting Corporation. It is inadvisable to specify in the Act who should sit on the Board. At present there is a good working relationship between the two advertising associations and the Commercial Section of RTS. I have no doubt that this relationship will continue when the Singapore Broadcasting Corporation has been established. However, should there be a need for the appointment of a member representing the advertisers, this could be considered in due course. The third written representation was submitted by the Tamils Representative Council, which suggested amendments to the Singapore Broadcasting Corporation Bill, seeking appointment of representatives of the three major racial groups as members of the Corporation, as well as to ensure that sufficient air time was given to the different language programmes. The Tamils Representative Council feared that when the Singapore Broadcasting Corporation was established as a commercial enterprise, and had to generate sufficient income to sustain itself through sale of air time, Indian programmes would suffer because they did not have a large enough viewership to make them commercially viable. I understand the anxiety of the Indian community; but such anxiety is unfounded. It has always been the Government's policy to provide air time for different language programmes. This policy will not change after the establishment of the Singapore Broadcasting Corporation. As I had informed the House during the Second Reading of this Bill, the Government will retain control over the policy of the Corporation in the pub!ic interest. While there may be adjustments to improve the presentation and quality of programmes, I can assure the Indian and other minority communities that the quantum of air time they are having now on television will not be reduced. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Third time and passed.

Order for Second Reading read. 3.16 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The present system of levying development charge for rezoning and for increases in plot ratio and density is based on flat rates. These rates were prescribed in 1965 and are now grossly unrealistic. In addition, the fixed-rate system does not accurately reflect the change in land value arising from rezoning since it does not take into account the original zoning and other factors such as location and accessibility which affect land value. Under the system, development charge is payable on rezoning even though there may be no increase in land value. The Bill seeks to give effect to a new and equitable system of levying development charge. Under the new system, development charge will be at a prescribed percentage of the appreciation in land value or at revised fixed rates, whichever is higher. The percentage to be prescribed, under subsidiary legislation, will be 70%. This valuation method will reflect more accurately the increase in land value. The revised fixed rates are intended to serve as a guide to landowners who wish to submit proposals which require rezoning. The Bill requires the development charge to be paid only if there is an appreciation in the value of the land. It empowers the Chief Valuer, or such other person as the Minister may appoint, to determine the amount of appreciation in the value of the land arising from the g!ant of planning permission which involves rezoning and increases in plot ratio or density. The Bill also provides that appeals shall be submitted within 30 days of the notice of the development charge. An appeal fee which will be prescribed must be paid before an appeal can be considered. The appellant will be allowed to proceed with the development without waiting for the outcome of the appeal, if he pays up the development charge. If the appeal succeeds, the difference between the amount paid and the development charge determined by the Minister shall be refunded to the appellant. The valuation system represents a rational approach to meet the demands for development which require rezoning. It is an equitable system and gives an incentive to the developer who retains 30% of the increase in land value. With the new system, Government will be more flexible when evaluating development proposals which involve rezoning or increases in plot ratio or density, especially in areas which are suitable for rezoning. 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 Teh Cheang Wan]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 3.20 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Under Part IV of the present Act, 90% of the qualifying profits of an export enterprise are exempted from income tax for a specified period. The purpose of this incentive is to encourage manufacturing investment to produce for the world markets. The Comptroller of Income Tax's interpretation of section 32 regarding the deduction of capital allowance was, however, challenged in Court by one of the firms given the incentive. This firm considered that the whole of the capital allowance should be deducted against non-qualifying profits and none against qualifying profits, although the plant and machinery for which the incentive is given are used to produce both types of profits. The Comptroller's interpretation was that the capital allowance should be allocated proportionately between the non-qualifying and the qualifying profits. The Comptroller's interpretation reflected the intent of the Government when enacting the legislation in 1967, whereas the firm's interpretation gave it additional tax benefits. The dispute was first brought before the Courts 10 years ago. The Comptroller's interpretation was upheld in the Board of Review, High Court and Court of Appeal. However, in March 1979, the Privy Council, which is the final tribunal, ruled in favour of the company. While accepting the verdict of the Privy Council in the particular case, the Government has to consider what it should do regarding a decision which gives the affected companies additional benefits against its intention and against an interpretation of the legislation by the Comptroller of Income Tax which has been widely known to investors, particularly because it has been disputed in the Courts. The present Bill is therefore necessary to ensure that in computing the export profit of an export enterprise which qualifies for tax relief provided by section 32 of the Act, such part of the capital allowance as may be attributable to the export profit qualifying for the tax relief must be deducted. The Amendment will come into effect from the year of assessment 1980. The Government's view is that the Amendment does not change the incentives that it is granting or have granted to approved companies. What it does is to correct an imprecision in drafting that has required the full judicial process of 10 years to settle. The Government has received representations from some companies that the Bill should not apply to those already granted export enterprise certificates, as they claim it undermines the basis on which they agreed to establish manufacturing plants in Singapore. We regret we cannot accede to their request as it was never our intention to grant the additional benefit. However, if it is proven that some were indeed misled by the uncertain wording of the present unamended Act into making investments, and hardship would fall on them by the Amendment, we are prepared to look at their case on an individual basis. I would like to reassure the investment community that the Government does not go back on any explicit commitments made by itself or its agencies. Credibility is the cornerstone of its investment policy and it will continue to demonstrate this. But it cannot be expected to preserve something which its actions through the judicial process show it never intended to give in the first place. 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 Goh Chok Tong]. Bill considered in Committee; reported without amendment: read a Third Time and passed.

Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr E.W. Barker]. Adjourned accordingly at Twenty-seven minutes past Three o'clock p.m. to a date to be fixed. Annex - COMPOSITION AND TERMS OF REFERENCE OF THE COMMITTEE (Cols. 529 - 530)