PINEAPPLE INDUSTRY BILL

Order for Second Reading read.

11.10 a.m.

The Minister for Commerce and Industry (Mr J. M. Jumabhoy): Mr Speaker, Sir, I have the consent of His Excellency the Officer Administering the Government to proceed with this Bill and I beg to move, "That the Bill be read a Second time."

Sir, under the present Pineapple Industry Ordinance an advisory body known as the Pineapple Joint Industrial Council was set up on a pan-Malayan basis to advise both the Governments of Singapore and the Federation of Malaya on all matters affecting the pineapple industry, but the executive functions of registering pineapple canneries were vested in Registrars appointed in each territory by the respective Governments, and inspection of these canneries was made by inspectors jointly appointed by both the Governments.

The present Pineapple Joint Industrial Council has power to negotiate agreements on prices and grades of pineapples for sale to canneries, to regulate the production, grading and marketing of canned pineapples, and to make recommendations to both Governments on other matters affecting the industry.

The present Bill, Sir, proposes that a statutory Board should be set up on a pan-Malayan basis by identical legislation in both territories to replace the present Joint Industrial Council, and that this Board should be given executive powers on all matters affecting the industry.

The Board, when constituted, will take over the present functions of the Pineapple Joint Industrial Council and the powers of registering canneries now vested in the Registrars appointed in each territory by the respective Governments, and would, in addition, be empowered to conduct research into the cultivation and processing of pineapples and their by-products, to register canners, can suppliers, exporters and marketing societies, and to issue a certificate of registration in respect of each cannery owned by a registered canner (persons aggrieved by refusal to register being enabled to appeal to a Tribunal), to register a distinguishing mark or marks for the product of each or all of the registered canneries, to employ staff including a chief executive officer and a pineapple inspectorate, and to enforce discipline in the industry.

In order to enforce discipline, an executive committee is to be established and if this committee finds any person registered under the Ordinance guilty of contravening or failing to comply with the provisions of the Ordinance and the regulations made by the Board, the committee is empowered under clause 23 (a), (b) and (c) to cancel his registration or to impose a fine not exceeding $10,000, or to order costs payable to the Board not exceeding $1,000. It may impose all or any one or two of these punishments, and persons who are aggrieved can appeal to a Tribunal set up under clause 24 of the Bill to which I shall refer later.

Canners, can suppliers, growers and exporters will be required to belong to an association to be notified in the Government Gazette as representative of the canning, can supplying, marketing and exporting branches of the pineapple industry before they are eligible for registration. But in order to prevent a monopoly, no association can be specified by the Board by notification in the Gazette as a representative association unless it freely permits the admission of a member on his complying with the articles and rules of the association, and unless the rules of the association are not prejudicial to the interests of the pineapple industry and are first approved by the Board.

Representative associations which are specified by the Board by notification in the Gazette will be empowered to appoint members to the Board.

The power of the Registrar under the existing Ordinance to refuse to register a cannery, on the ground that there already exists a sufficient number of pineapple canneries, has not been given to the Board, and therefore it will be impossible for a limit to be set to the number of registered canneries on this ground.

Although there is provision for the registration of marketing societies in the Bill, these societies, whether they are in the form of smallholders' associations or growers' co-operatives, are not to be subjected to the disciplinary powers of the executive committee because the purpose of requiring the registration of marketing societies is only to enable financial assistance to be given to them by the Board, and, except for registration, the other provisions of the Ordinance do not apply to these registered marketing societies.

As I said earlier, Sir, there is provision, under clause 24, for appeals to a Tribunal and the appeal can be (a) from the decisions of the executive committee cancelling registrations or imposing a fine or ordering the payment of costs; (b) from the refusal of the Board to effect registration of canners. Exporters, can suppliers or marketing societies; and (c) from the refusal of the Board to approve the articles and rules of a representative association.

Power is given to the Minister for Commerce and Industry, on the recommendation of the Board, to impose a cess or cesses on the export of canned pineapple, the proceeds of which will he paid into a Pineapple Industry Fund to be established under the Ordinance. The cost of administering the industry and maintaining an inspectorate, as well as the cost of organising agronomic, processing and market research, will be met from this Fund.

The Pineapple Industry Ordinance (Chapter 180) is to be repealed but the provisions of this Ordinance relating to the Pineapple Joint Industrial Council will be kept in force for so long as it is necessary for this Council to discharge its liabilities, if any, and until it is able to transfer its functions to the Board.

As the Explanatory Note points out, the amendments proposed in this Bill have been discussed in and approved by the Pineapple Joint Industrial Council which at present advises both Governments on all matters affecting the Malayan pineapple industry.

Members of this House will be aware that an identical Bill was enacted by the Federal Legislative Council at its meeting on 8th May, 1957, together with an amendment to clause 24 (1) which I shall move in Committee stage later.

Sir, you will see from the Comparative Table attached to the Bill that the amendments proposed are to a very great extent modelled on the existing provisions of the Rubber Shipping and Packing Control Ordinance (Chapter 183), and that these proposals are therefore not new.

Regulations made by the Board to carry into effect the objects of the Ordinance have to be approved by the Governor in Council.

This Bill does not involve Government in any financial expenditure. Mr Speaker, Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time.