EDUCATION ENDOWMENT SCHEME (AMENDMENT) BILL

EDUCATION ENDOWMENT SCHEME (AMENDMENT) BILL: 5.55 pm

The Minister of State for Education (RAdm (NS) Lui Tuck Yew): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, the Education Endowment Scheme Act establishes the Edusave Endowment Fund (EEF). The interest income earned by EEF is used to finance the contributions to the Edusave accounts of eligible students, grants to schools and awards given to schools and students.

In its 2006 Budget Statement, the Prime Minister and Minister for Finance announced that Government would give a one-off grant of $48 million to Government and Government-aided schools, junior colleges and centralised institutes, independent schools, the Institute of Technical Education and MOE supported special education schools, to set up opportunity funds to level up co-curricular development opportunities for Singaporean students from lower-income households.

Except for 1993 when the EEF was first set up, the Act only allows funding voted by Parliament to be paid into the EEF as capital money which cannot be

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used for any purposes other than for investment. The Attorney-General has advised that section 6(2) of EEF Act needs to be amended to allow the Government the flexibility to inject funds directly into the EEF as income for disbursement to schools, colleges and institutes.

Once this clause is amended, the Government will transfer the $48 million into the income of the EEF and the income can then be disbursed as grants to schools, colleges and institutes for the purpose of setting up the opportunity funds.

In conclusion, Mr Deputy Speaker, Sir, the amendments proposed in the Bill will allow the Government to inject funds directly into the EEF as income for disbursement to schools, colleges and institutes.

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. - [RAdm (NS) Lui Tuck Yew].

Bill considered in Committee.

[

The Minister of State for Education (RAdm (NS) Lui Tuck Yew): ]

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

Clauses 1 and 6 inclusive ordered to stand part of the Bill.

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