INDUSTRIAL PROMOTION BOARD (Progress, and number of applications received, approved and rejected)

Progress, and number of applications

received, approved and rejected

Mr Lim Choon Mong asked the Minister for Commerce and Industry to make a statement regarding the progress made by the Industrial Promotion Board, and also to state

(i) how many applications for aid have been received;

(ii)the number of applications that have actually received financial aid;

(iii)the number of applications still under consideration; and

(iv) the number of applications for aid that have been rejected.

Mr J. M. Jumabhoy: The Board has held 13 meetings, Sir, since its inaugural meeting on 1st March, 1957, and the fourteenth meeting will be held on the 30th of this month. The Manager was appointed on 11th April and the Board is at present housed in my Ministry. The Board has so far sanctioned loans of $70,000 at 7 per cent interest on long-term credits. Its powers are clearly defined by the Ordinance.

In answer to sub-question (i), Sir, 45 applications for funds have been received by the Board and each applicant has been interviewed by the Manager. So far only 24 of these applicants have completed the questionnaire sent to them by the Board.

The Board has also been asked for advice by five concerns and technical assistance is now being given to all five applicants.

In answer to sub-question (ii), two applicants have received financial aid and also assistance with their technical, legal and managerial problems.

In answer to sub-question (iii), eight applications are now under investigation. There are also 21 outstanding applications where the applicants have not yet returned the questionnaire to which I referred. The premises of six of these have been visited by the Manager of the Board.

In answer to sub-question (iv), 14 applications have been rejected but it is likely that at least three of these will be reconsidered if the applicants adopt suggestions made to them by the Board.

Mr Lim Choon Mong: The Hon. Minister previously assured the Beehoon Association people of help. I would like the Minister to inform the House whether such application has been considered favourably.

Mr J. M. Jumabhoy: Sir, the assurance I gave to the House was that I would do my best to see whether the Board would consider favourably the application of the Beehoon Co-operative Society. However, it would be very impolitic for me to put pressure on the Board because it is a statutory board, and I think it is not to the interests of Singapore that a Minister should exert pressure on such a Board. If the Board feels that it is not in its interests to grant a loan to any applicant, then it is at liberty to refuse.

However, regarding this Beehoon cooperative's application, it has been under consideration and the Manager has met the members of the co-operative and given them some advice on how to reorganise their factories. The problems are very complex. For instance, if they are to install mechanical driers they will have to acquire land and abandon squatter production methods. It is now up to the Cooperative to satisfy the Board that it can produce Beehoon economically and that any loan granted by the Board it will be able to repay.

Mr Lim Choon Mong: On the first part of the answer, Sir, does it mean that opinions and assurances of Ministers are next to useless and may be rejected at will?

Mr J. M. Jumabhoy: Sir, the hon. Member has either completely misunderstood my assurance when I gave it or is trying to take a different meaning. The assurance I gave was that I would try and see if the Board would give the application favourable consideration. That is all. I cannot - I stated that when I moved the Second Reading of the Industrial Promotion Board Bill - put pressure on the Board, and I will not do it - even if I am in a position to do so; I will not do it.