PROGRESS IN UNIFYING PASSENGER TRANSPORT SYSTEM

Mr John Ede asked the Minister for Communications and Works with reference to paragraph 10 of the White Paper (Sessional Paper No. Cmd. 48 of 1956), what progress has been made in the implementation of the various stages of the Government's policy of unifying the passenger transport system; what stages remain to be carried out; and on what dates will they be completed.

Mr Francis Thomas: Mr Speaker, Sir, the hon. Member will recall that in paragraph 8 of the White Paper, Government agreed with the principal conclusions of the Hawkins Commission which were summarised in Chapter 27 of the report. The first matter for decision was therefore whether preparations should be made for the direct establishment of public ownership by means of a specially constituted public authority or whether as an intermediate step the formation of a statutory limited liability company should be aimed at. On this, the following progress has been made. Enquiries have been made as to whether the necessary capital for the formation of a statutory limited liability company was likely to be forthcoming from an overseas company with experience of transport administration as was suggested in paragraph 234 of the report. It soon, however, became apparent that a satisfactory solution was unlikely from such a source. Mr Hawkins himself then held a series of personal and informal discussions with members of the Chinese Bus Owners' Association. These members at one time showed considerable interest in the idea of amalgamation into a single company but the present indications are that the Chinese bus owners are not yet prepared to amalgamate into a single company. They have, however, undertaken to prepare and submit to me a memorandum containing alternative proposals for amalgamation. I understand that this memorandum can be expected at any time. The proposals will be carefully examined and the Government will then decide whether the alternative of a statutory limited liability company must be abandoned and, if so, the pace at which unification through a public authority should be pursued. This decision will be taken in the very near future and it would be made in the light of the demands made by other important development projects on the funds likely to be available in the next few years.

The stages which remain to be carried out will, of course, depend on the decision to which I have just referred. They will vary according to the choice made. I do not think at this stage I can give any very useful information about them but I can, however, say that in the event of the decision being taken to establish a public authority, the first step will be the acquisition of the Singapore Traction company and we have commissioned accountants, with the concurrence of the company, to examine the records of the company and to submit a report which will form the basis of any subsequent negotiations for acquisition. The accountants have been pressed to complete this report as soon as possible. I am waiting to hear from them when the report may be expected. We have also anticipated the event by making a first draft of the legislation which will be required for the purposes of establishing a public authority. In the meantime, the statement in paragraph 10 of the White Paper (that the assumption by a unified undertaking of responsibility for operating any bus services in Singapore will not be possible before the middle of 1958) still stands.

Mr John Ede: Mr Speaker, does that long answer mean that the Government have abandoned their policy of nationalisation of public transport?

Mr Francis Thomas: The answer means what it says.