CITY COUNCIL (LOAN)

Mr Speaker: Hon. Members will have noticed the words in italics on the Order Paper which read:

"(With Mr Speaker's consent, under Standing Order 23, but subject to the general assent of Members present to the dispensation with the requisite one clear day's Notice.)".

May I know if I have the general assent of Members that this motion be made?

Hon. Members indicated assent.

Mr T. M. Hart: Thank you, Mr Speaker, Sir. I move,

That this Assembly, in accordance with section 343 of the Municipal Ordinance (Chapter 133), sanctions the raising of a loan not exceeding $30 millions by the City Council for the purposes stated and under the conditions specified in Sessional Paper No. Cmd. 12 of 1956.

As indicated in the Sessional Paper, this money is required by the City Council mainly for the purpose of continuing the extension of its Electricity, Gas and Water undertakings. These works have been approved in the City Council's budget for the year and are essential to the further development of the island, the expansion of industry, the improvement of living conditions and the erection of more housing accommodation.

The City Council has given notice of its intention to redeem the Singapore Municipal 5 per cent Debenture Stock, 1926, on the 1st of May, 1956, and the City Council proposes, in the first instance, to offer approximately $18� millions of this new loan to the external holders of the 5 per cent loan of 1926 as a conversion operation. This offer will be made at par. It is hoped that the offer will meet with a favourable response. The terms of the new loan are attractive.

The whole or such part as may be thought fit of the $30 millions of the 5 per cent loan of 1956 which may remain after this conversion operation has been dealt with, will be offered to institutions and the general public in one or more instalments at a time or times to be agreed.

The Sessional Paper shows that the City Council is empowered under the Municipal Ordinance to borrow a further sum of $124 millions. Sir, I beg to move.

Inche Abdul Hamid: I second the motion.

Question put, and agreed to.

Resolved,

That this Assembly, in accordance with section 343 of the Municipal Ordinance (Chapter 133), sanctions the raising of a loan not exceeding $30 millions by the City Council for the purposes stated and under the conditions specified in Sessional Paper No. Cmd. 12 of 1956.