COMPANIES (AMENDMENT) BILL

Order for Second Reading read.

Mr Butterfield: Mr Speaker, Sir, I have to move, "That the Bill be now read a Second time."

Sir, the provisions of the Companies Ordinance relating to the winding-up of companies include provisions which correspond to those contained in the Bankruptcy Ordinance providing for preferential payments to certain classes of creditor, in particular, employees. I referred in some detail, Sir, to those provisions of the Bankruptcy Ordinance when I was moving the Second Reading of the amending Bill which was before the Assembly a few moments ago. I think, therefore, there is very little that I need add to what I have already said in that connection in moving this Second Reading. I therefore propose, Sir, to say no more than this: that this Bill is complementary to the Bankruptcy (Amendment) Bill which has just been given its Third Reading by this Assembly, and, shortly, what it does is this. It proposes, firstly, to increase the amount of an employee's wages to which priority over other debts of the company, on being wound-up, will be given, from $250 to $l,000; and, secondly, it proposes to give priority in the winding-up to arrears of income tax.

Sir, I beg to move.

Question proposed.

Mr Lee Kuan Yew (Tanjong Pagar): Mr Speaker, Sir, we congratulate the Labour Front Government on its concern -

The Chief Minister: Coalition Government!

Mr Lee Kuan Yew: - the Coalition Government on its concern over the welfare of the workers in Singapore, particularly on the sad occasion when the employer goes bankrupt. We also congratulate them on their foresight in seeing that no employer, not in 1956 at any rate, should ever go bankrupt by the burden of taxation.

Question put, and agreed to.

Bill accordingly read a Second time.