SINGAPORE CITY COUNCIL (Loan)

11.38 a.m.

The Acting Financial Secretary (Mr Oon Khye Kiang): Mr Speaker, Sir, beg to move,

That this Assembly, in accordance with section 343 of the Municipal Ordinance (Chapter 133 of the 1936 Edition), sanctions the raising of a loan to be effected by increasing the issue of Singapore City Council 5 per cent Debenture Stock 1956 from an amount not exceeding $30,000,000 as sanctioned by a resolution of the legislative Assembly on the 7th March, 1956, to an amount not exceeding $50,000,000 for the purposes stated and under the conditions specified in Sessional Paper No. Cmd. 12 of 1957.

Sir, hon. Members will recollect that at a previous sitting of the Assembly on the 7th March, 1956, the City Council was authorised to raise a loan not exceeding $30,000,000 for the purpose of continuing the extension of its Electricity, Gas and Water Undertakings. This amount of $30,000,000 has now been fully taken up and the Council requires further money to carry on with these extension works in accordance with the proposals which have been approved in its Budget for this year. The extensions 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.

It is considered that the money required by the City Council for the current year may best be raised by an extension of the authorised amount of the 1956 Loan from $30,000,000 to $50,000,000 rather than by the floatation of an entirely new loan. This method will lead to considerable savings in floatation costs and also obviate other difficulties which would have to be faced in the floating of a new loan.

Apart from getting the loan money, the Council will be enabled to accept any money which might be offered for investment, especially from the Central Provident Fund, which might otherwise have to invest overseas. The Council therefore now applies for the sanction of the Legislative Assembly to the further borrowing up to a limit of $50,000,000.

As indicated in the Sessional Paper, the City Council is empowered under the Municipal Ordinance to borrow a further sum of $151,000,000. Sir, I beg to move.

Mr J. M. Jumabhoy: Sir, I second it.

Question put, and agreed to.

Resolved,

That this Assembly, in accordance with section 343 of the Municipal Ordinance (Chapter 133 of the 1936 Edition), sanctions the raising of a loan to be effected by increasing the issue of Singapore City Council 5 per cent Debenture Stock 1956 from an amount not exceeding $30,000,000 as sanctioned by a resolution of the Legislative Assembly on the 7th March, 1956, to an amount not exceeding $50,000,000 for the purposes stated and under the conditions specified in Sessional Paper No. Cmd. 12 of 1957.