ARMS AND EXPLOSIVES (AMENDMENT) BILL

ARMS AND EXPLOSIVES (AMENDMENT) BILL: 5.32 pm

The Deputy Prime Minister and Minister for Home Affairs (Mr Wong Kan Seng): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, increasingly, terrorists are using explosive precursors like ammonium nitrate as substitutes for explosives. Palestinian terrorists started using these in the 1990s when controls on access to conventional explosives were tightened. The local Jemaah Islamiyah network that ISD disrupted in 2001 and 2002 had planned to procure 17 tonnes of ammonium nitrate for the manufacture of truck bombs to carry out attacks in Singapore. Overseas, the Jemaah Islamiyah successfully used explosive precursors, nitrate-based chemicals and potassium chlorate mixtures respectively, to carry out the Bali and Jakarta Marriot bombings in Indonesia. The seizure of

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large quantities of ammonium nitrate in London in March 2004 and the theft of 1,200 kilograms of the same material from storage facilities in France in May 2004 highlight the need for control over explosive precursors. The foiled UK airline plot, with the intended use of such precursors, uncovered in August 2006 further reinforces the need to control explosive precursors in Singapore.

Background to the control of explosive precursors

The Arms and Explosives Act currently regulates the dealing in, importation, transportation, storage, purchase and disposal of explosives. It does not include explosive precursors, such as ammonium nitrate and potassium perchlorate. Explosive precursors are oxidizing agents with legitimate industrial use that, unfortunately, can also be easily converted into improvised explosive materials. After a study in 2002 for dual use goods, a list of explosive precursors was identified for control. The explosive precursors that have been identified are widely used for research, industrial and agricultural purposes. However, despite their legitimate uses in different industries, they pose a security risk should they fall into the wrong hands. Explosive precursors were assessed based on their chemical properties and their widespread usage in Singapore and also on their potential for use by terrorists in improvised explosive devices. However, in determining effective enforcement controls over these substances, security has to be balanced against stifling the commercial and research activities related to their usage.

Establishing a new licensing structure

With these amendments to the Arms and Explosives Act, the Singapore Police Force will take over the control of explosive precursors from the National Environment Agency. The amendments

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will establish a new licensing structure for explosive precursors to prohibit the possession, storage, importation, exportation, manufacture of or dealing in any explosive precursor unless the person is authorised by the Police. To ensure that the appropriate security measures are in-place to safeguard the precursors, Police will conduct threat and risk assessments on the applicants and storage sites prior to the approval of the licences. New sections 21A to 21H will provide for the licensing of explosive precursors, with sections 21A to 21E providing for the regulation of explosive precursors while sections 21F to 21H set out the provisions that apply generally to licences issued under the Act.

The types of licences required will depend on the activity that a licensee will be involved in. A single licence will cover all the explosive precursors for each type of activity, eg, storage, and it will state the description of the explosive precursors as well as their quantity cap. However, if a licensee is involved in more than one type of activity, eg, storage and deal in, the licensee will require different licences, one to store the explosive precursors and another to deal in the explosive precursors. This is because of the current limitations in the Police Licensing Computerised System. Police will be reviewing this and make it easier for applicants to apply for only one licence for all types of explosive precursors and activities. The detailed regulatory provisions will be set out in the Arms and Explosives (Explosive Precursors) Rules.

As new chemicals will be introduced in the market, and new synthesis methods will be developed with the advancement of technology, we will constantly review the list of explosive precursors and make appropriate changes when necessary. A new Schedule will be introduced to specify the explosive precursors that are

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to be regulated by the Act. There are currently 15 chemicals of concern locally, including ammonium nitrate, which are common explosive precursors used by terrorists. The Minister will have the power, by order published in the Gazette , to amend the Schedule, with the amendment of section 45, to add or delete chemicals according to the threat situation. Those chemicals currently controlled under Environmental Pollution Control Act will be taken off the Schedule once these amendments are brought into force. The Minister will have the power, by order published in the Gazette , to grant exemptions under the new section 44B, and make rules to regulate explosive precursors by the amendment of section 46.

However, Sir, not everyone who uses fertilisers and the related chemicals of interest will have to be licensed. To illustrate, only ammonium nitrate fertilisers with nitrogen concentrations of more than 28% will be controlled. This 28% threshold is consistent with the approach in other developed countries with similar legislation, such as the United Kingdom, which has identified ammonium nitrate with less than 28% of nitrogen content as not normally presenting an explosion hazard. The European Fertilisers Manufacturers Association grades ammonium nitrate with less than 28% nitrogen as Type C fertilisers and these are considered non-hazardous and non-dangerous. Moreover, there are also alternatives, such as calcium sulphate, that users can easily switch to so that the impact on the public will be negligible. For more information about the chemicals to be controlled, members of the public may contact the Police Arms and Explosives Branch or visit its website.

Penalty for corporations or persons

Sir, while it is not our intention to stifle the legitimate industrial application of explosive precursors, for example, in

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agriculture as fertilisers, the penalties for mishandling these must be commensurate with the possible threat it poses to society if it falls into the hands of terrorists.

Owing to their dual use nature, explosive precursors could be licensed to corporations and companies or directly to individuals. Having separate penalties for corporations and individuals is to hold them accountable for securing and preventing the misuse of explosive precursors. Corporations may be fined up to $100,000 if they contravene any sub-provision. For individuals, the fine is $50,000 or/and a jail sentence not exceeding two years. The penalties are consistent with that of the Chemical Weapons (Prohibition) Act and the Environmental Pollution Control Act. This, however, is still lower than the penalties for offences relating to breaches of licences for explosives, which attract a maximum sentence of three years' imprisonment. For offences with criminal intent, other legislation will be used.

Definition of arms, electronic dart guns and stun guns

The Ministry of Home Affairs is also updating other provisions in the Act to take into account changes in our security landscape. New definitions of “arms”, “electronic dart guns” and “stun guns” will be amended or introduced to provide for a wider range of new “arms”, “electronic guns”, “stun guns” and new weapon accessories in the market. The Minister will have the power, by order published in the Gazette , to specify any weapon, accessory, article or thing to be “arms” for the purpose of this Act.

District Courts to have jurisdiction to hear offences

Currently, offences under the Act can be heard in a District Court or a Magistrate’s Court. However, a Magistrate’s

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Court can only award fines not exceeding $2,000 or imprisonment not exceeding six months. This restriction curtails the punitive effect of the Act. With the amendments, the offences under the Act will be heard only in a District Court, and the Court will be given jurisdiction to hear and determine all prosecutions for offences under the Act, and to impose the full penalty or punishment prescribed under the Act, notwithstanding the provisions of the Criminal Procedure Code.

Impact on industry

Sir, MHA has consulted the industry players extensively and has taken into consideration their feedback. One example is the three-month grace period that will be given to all non-licence holders who possess, import, export, manufacture or deal in any of the explosive precursors to apply for a licence after the amendments come into force. During this period, they will be deemed to hold a licence until their application for licence is approved or the application is refused or withdrawn. For persons who do not wish to apply for a licence under this Act, they will have a six-month grace period

to use up their stock of explosive precursors or terminate their trade dealings in explosive precursors. For existing licence holders under the Environmental Pollution Control Act, they will be deemed to hold a licence under this Act.

Conclusion

Mr Deputy Speaker, Sir, in the current security climate, we cannot afford to be lax about the control of explosive precursors. Time and again, terrorists are known to have exploited the ease of acquiring common dual use chemicals for nefarious purposes. We need to tighten and put in place a comprehensive regime to regulate security sensitive material.

Sir, I beg to move.

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Question proposed.

Dr Teo Ho Pin: Mr Deputy Speaker, Sir, I rise in support of the Bill.

The proposed amendments to the Arms and Explosives Act will expand regulatory control of explosive precursors such as ammonium nitrate and potassium. As part of our efforts in strengthening our security infrastructure against terrorism, it is necessary that a legislative framework be put in place to regulate the use of chemicals which can be used to make explosives.

Many of these explosive precursors have dual uses, meaning they can have both peaceful and hostile applications. To provide additional safeguard to our people, we must set up measures to control the use of explosive precursors in Singapore.

Sir, however, there are two concerns in the Bill which I would like to highlight.

First, licensing structure. Clause 6 of the Bill spells out the licensing structure for persons dealing with explosive precursors in situations such as possession, importation, exportation, storage, transportation and manufacture. In order to prevent the hostile use of explosive precursors, we need to control the entire supply chain of such chemicals ranging from its source to its end-user point. Therefore, we must have a single point control and have only one type of licence for all persons dealing with explosive precursors irrespective of their activities in the supply chain. This will ensure better accountability and facilitate monitoring and enforcement by the authorities.

To further minimise the security risks, we should classify the various types of explosive precursors according to their likelihood of converting into explosives, and the quantity used by commercial or

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Government agencies. A classification of licence by the types of explosive precursors and quantity handled would provide a more efficient and effective "risk-based" approach to regulate explosive precursors. Sir, as the control of explosive precursors forms a critical pillar in our security infrastructure, I would urge the Ministry to allocate resources to set up the licensing structure as soon as possible, including upgrading the IT system in the Police Force.

Sir, I hope that the Minister can also further clarify on how the licensing structure can help to better control the use of explosive precursors in Singapore.

The second point is on the monitoring regime. Sir, at present, explosive precursors is used in many applications. This, coupled with the introduction of new compounds with potential of converting into explosives, will pose challenges to the authority to enforce the Act and prevent hostile uses of explosive precursors. Sir, it is difficult to monitor the movement, storage and use of these explosive precursors at different locations at different times. This will increase the risk of having these compounds being put into hostile uses. Sir, I would urge the Ministry to set up a traceability regime where explosive precursors can be tracked closely without imposing too much cost on businesses. We can adopt the procedures as set up in the control of poisons as laid out in the Poisons Act.

Sir, firms dealing with explosive precursors should also set up control systems to monitor such compounds in their respective activities. A reporting structure, similar to the Secondhand Goods Dealers Act, should be put in place where persons dealing with explosive precursors must immediately report to the authority of any loss or missing explosive precursors so that appropriate action can be taken to prevent any hostile attacks.

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Sir, may I ask the Minister how is the Ministry planning to monitor the use of explosive precursors in commercial applications.

Sir, I support the Bill.

Mr Wong Kan Seng: Sir, I thank Dr Teo for raising his concerns. In fact, I have given some information that is required by Dr Teo in my Second Reading speech. Indeed, Sir, the Police will adopt a risk-based approach to regulate the explosive precursors. The explosive precursors that have been included in the regulation were assessed based on their chemical properties and the widespread use in Singapore and also on potential use by the terrorists to make improvised explosive devices. We know that for some kind of explosive precursors, for example, ammonium nitrate, certain concentration levels are required in order for that to be useful. I have given examples of ammonium nitrate when we say that those with 28% or more concentration will be controlled. This is the same standard that other countries use. When we determine the kind of materials to be controlled, we will bear in mind the cost to the business in compliance.

In terms of the control of explosive precursors, Police will be the licensing authority and they will be the single point of control to regulate the people who want to import, manufacture, export or to deal in such explosive precursor materials. Right now, of course, we have a system that only allows one type of activity to be reported and controlled. We will look at it. As I have said earlier, I have asked the Police to see how we can further improve the licensing process so that they only need to approve one licence for the purpose of either storage, transport, sale, etc, of all these explosive precursors.

There will be regulations to control and monitor the movement and use of these explosive precursors. Dr Teo referred to it

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as the "traceability regime". In fact, that will be so. The dealers and the storage licensees will be required to maintain proper records for inspection by the Police. And in the event when they lose an item or when an item is stolen, they will have to report immediately to the licensing officer about the circumstances leading to the loss and to explain what further measures will be taken to tighten the security to safeguard the explosive precursors.

There will also be specific requirements set down in the transportation of such explosive precursors so that they do not just go all over the place, like we require hazardous material vehicles or vehicles that convey hazardous materials. We can also impose further conditions, such as requiring them to have armed escorts, as we now do for the conveyance of arms, explosives and guns, for example. We can require them to get armed security guards to escort them. The Police will also implement an audit regime. That means, they will go round auditing, checking and ensuring that the licensees comply with all the conditions imposed on the licensees when they carry out their trade. This will be done on a surprise basis.

We are very mindful that explosive precursors can be misused by those who have no reason to use it other than to cause harm to Singapore. Therefore, we will take steps to ensure that the problems arising from such misuse can be minimised by having a stricter control of the use of such precursor materials.

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 Wong Kan Seng].

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Bill considered in Committee.

[

Mr Wong Kan Seng: ]

The Chairman: The citation year "2006" will be changed to "2007" as indicated in the Order Paper Supplement.

Clauses 1 to 22 inclusive ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.