SINGAPORE TELEPHONE BOARD

Mr Hart: Mr Speaker, Sir, I beg to move,

That this Assembly, pursuant to subsection (1) of section 102 of the Income Tax Ordinance, 1947 (No. 39 of 1947), as amended by the Income Tax (Amendment) Ordinance, 1948 (No. 20 of 1948), the Income Tax (Amendment) Ordinance, 1950 (No. 44 of 1950), the Income Tax (Amendment No. 2) Ordinance, 1950 (No. 46 of 1950), the Income Tax (Amendment) Ordinance, 1952 (No. 29 of 1952), the Income Tax (Amendment) Ordinance, 1953 (No. 40 of 1953) and the Income Tax (Amendment) Ordinance, 1954 (No. 34 of 1954), resolves that the Singapore Telephone Board be added to the First Schedule to the Income Tax Ordinance, 1947.

Sir, an application has been received from the Singapore Telephone Board for exemption from income tax under section 13 (1) (e) of the Income Tax Ordinance. This exemption is effected by inclusion of the name of the Board in the First Schedule to the Ordinance. For this purpose, a resolution of this Assembly is necessary, in accordance with section 102 (1) of the Ordinance.

The Singapore Telephone Board was set up under the Singapore Telephone Board Ordinance, 1953 (No. 21 of 1953). The Board consists of five persons - a Chairman, a Deputy Chairman, two members appointed by the Governor in Council, and the Financial Secretary.

The main functions of the Board are, firstly, to operate a good and sufficient telephone service in the Colony for the Government, public bodies and the public generally; secondly, to promote the economic development of the telephone service in accordance, as far as practicable, with the recognised international standard practice as public demand; thirdly, to make regulations governing the telephone service.

It is the duty of the Board to exercise and perform its functions under the Ordinance so that the total revenues of the Board, which consist mainly of charges for telephone services and the hire of equipment, are sufficient to meet its total expenditure properly chargeable under revenue account, including depreciation and interest on capital. Any surpluses of revenue over expenditure left after the obligations laid on the Board under section 23 (1) of the Ordinance have been fulfilled, will be applied to set up such reserves as the Board considers necessary, and, thereafter, to the payment of such interest on shares and stock issued by the Board as the state of the undertaking and financial position of the Board appears to warrant, but not exceeding an average of 6 per cent, taking one year with another.

The Board is required to keep proper accounts and to prepare an annual statement of accounts for audit and trans-mission to the Minister for Communications and Works. It has also to transmit to the Minister annually a report of its activities. A copy each of the accounts and the report will be laid on the Table of the Legislative Assembly.

The Board is a non-profit making public body whose activities are directed by a Board nominated by the Government of the Colony.

Precedents for inclusion of such a public body in the First Schedule are, amongst others, the Malayan Railway Administration, the Singapore Harbour Board, the Penang Harbour Board and the Central Electricity Board.

The Malayan Board of Income Tax, constituted under the Ordinance, has recommended that the Singapore Telephone Board may properly be included in the First Schedule to this Ordinance with effect from 1st January, 1955, and the Government accepts this recommendation.

Sir, I beg to move.

Mr Braga: I second it.

Question put, and agreed to.

Resolved,

That this Assembly, pursuant to subsection (1) of section 102 of the Income Tax Ordinance, 1947 (No. 39 of 1947), as amended by the Income Tax (Amendment) Ordinance, 1948 (No. 20 of 1948), the Income Tax (Amendment) Ordinance, 1950 (No. 44 of 1950), the Income Tax (Amendment No. 2) Ordinance, 1950 (No. 46 of 1950), the Income Tax (Amendment) Ordinance, 1952 (No. 29 of 1952), the Income Tax (Amendment) Ordinance, 1953 (No. 40 of 1953) and the Income Tax (Amendment) Ordinance, 1954 (No. 34 of 1954), resolves that the Singapore Telephone Board be added to the First Schedule to the Income Tax Ordinance, 1947.