DEVELOPMENT FUND BILL

Order for Second Reading read.

4.01 p.m.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I have His Excellency's recommendation to proceed with the Bill. I beg to move, "That the Bill be now read a Second time."

Mr Speaker, Sir, the changes in our constitutional position have rendered necessary a number of changes in our financial practice, and this Bill is one of a series of legislative measures setting out in detail and simplifying the procedure to be adopted.

The purpose of the present Bill is to provide by law for the authorisation and control of all capital expenditure under one process, the approval of a Development Budget by estimates laid before the Assembly of expenditure to be paid out of a Development Fund. The Bill is a simple one, and I do not think I need to enlarge on the Explanatory Statement. Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill. - [Dr Goh Keng Swee].

Bill considered in Committee.

[Mr SPEAKER in the Chair]

Clause 1 to 5 inclusive ordered to stand part of the Bill.

The Schedule -

Question proposed, "That the Schedule stand part of the Bill."

Mr A. P. Rajah (Farrer Park): On a point of explanation, Mr Speaker, Sir, I wonder if the Minister would be good enough to explain. In paragraph 1 of the Schedule, it says, in the third line, "replacement of other capital assets (including vehicles, vessels, aircraft)" etc. I was always under the impression, Mr Speaker, Sir, that replacement of vehicles and things like that would be provided for out of other funds rather than out of loan moneys, like a depreciation fund.

Dr Goh Keng Swee: That is true as a general practice. When vehicles and other types of transport equipment need replacement, they do appear in the ordinary estimates under Other Charges Special Expenditure. But there may be development projects in furtherance of a scheme where it would be necessary to incur such expenditure.

Question put, and agreed to.

The Schedule ordered to stand part of the Bill.

Bill reported without amendment: read the Third time and passed.