GOVERNMENT LOAN TO CITY COUNCIL OF $4,000,000

11.03 a.m.

Mr Hart: Mr Speaker, Sir, I have His Excellency the Governor's authority to move,

That this Assembly approves the loan by the Government to the City Council of $4,000,000 free of interest and to be repaid by equal annual instalments over a period of ten years.

Sir, while the proposal to build the Merdeka Bridge and connected road-works was under consideration, discussions were held with the City Council about the apportionment of liability for the cost of the undertaking. After lengthy discussions, it was agreed that Government should meet the cost of the bridge, while the City Council, which was responsible for the construction and maintenance of roads and bridges within the city area, should meet the cost of the new roads leading to the bridge, the Guillemard Road and other necessary roundabouts and the bridge over the Stamford Canal. The cost of this work was estimated at $4 million. As the City Council had no surplus funds available and would find difficulty in raising a loan for this particular work in addition to the loan funds required for its other essential development projects, Government agreed to lend the sum of $4 million to the Council free of interest and repayable over a period of ten years. This decision was taken by the Governor in Council in July 1954 but owing to an oversight was not put to the Legislative Council for formal approval at that time. The Director of Audit has now drawn attention to this oversight and has suggested that the Legislative Assembly as successor to the Legislative Council should be asked to give formal approval to the loan. This is the reason for this motion.

Hon. Members are aware that the work to be met from this loan has already been completed and I think it would be generally agreed that the money devoted to the bridge and connected works has been well spent.

Hon. Members will also recall that sometime ago, I moved that all long-terms loans to the S.I.T., the City Council and other authority should be charged to expenditure. This loan was included in the total sum involved in that motion.

Sir, I beg to move.

Mr Chew Swee Kee: I second the motion.

Question put, and agreed to.

Resolved,

That this Assembly approves the loan by the Government to the City Council of $4,000,000, free of interest and to be repaid by equal annual instalments over a period of ten years.