WAR SAVINGS CERTIFICATES (WINDING UP) BILL

[Mr Deputy Speaker (Mr G. Kandasamy) in the Chair]

7.47 p.m.

Order for Second Reading read.

The Minister for Finance (Dr Goh Keng Swee): Mr Deputy Speaker, I have the Yang di-Pertuan Negara's recommendation that this Bill be proceeded with.

The Parliamentary Secretary to the Minister for Finance (Mr Low Por Tuck): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

As hon. Members can see from the explanatory statement, this winding up Bill seeks to repeal the War Savings Certificates Ordinance of 1940. The principal Ordinance was passed on 30th August, 1940, to authorise the Governor of the Straits Settlements to raise a loan from the public as a gift to the British Government for the prosecution of the Second World War. This was to be done through the sale of War Savings Certificates in units of $15 each, and the Government was authorised to sell up to $20 million worth of such certificates. However, only $9,724,440 worth of certificates were sold from 1st September, 1940, to 15th February, 1942. These $15 unit certificates had a redemption value of $20 on maturity of 10 years from the date of issue. Compound interest at 3 per cent per year was paid on certificates which were redeemed before maturity. The latest balance sheet as at 31st December 1958, shows that the biggest liability item is a sum of $359,436 outstanding to purchasers of savings certificates as repayment for principal sums and payment of interest sums. On balance, however, there is a favourable credit of $424,547.30 on the surplus and deficit account.

The Bill contains provisions which are largely procedural. For instance, clause 5 (1) of the Bill provides that all outstanding principal and interest payments due on unredeemed certificates shall be settled within six months after the coming into operation of the Ordinance out of the assets of the War Savings Certificates Sinking Fund. Where payments are outstanding in dispute, the Minister may pay the amount into court or may make other appropriate provisions for them. This is provided for in the proviso to clause 5. After all claims have either been paid or provided for. the balance of the assets of the War Savings Certificates Fund shall be disposed of according to the direction of the Yang di-Pertuan Negara and the Yang di-Pertuan Agong of the Federation of Malaya.

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-[Mr Low Por Tuck].

Bill considered in Committee.

[Mr Deputy Speaker in the Chair]

7.53 p.m.

Clauses 1 to 3 inclusive ordered to stand part of the Bill.

Clause 4-

Mr Low Por Tuck: Sir, I beg to move,

In page 2, line 23, to leave out "the".

This minor amendment is made for greater clarity of expression.

Amendment agreed to.

Mr Low Por Tuck: Sir, I beg to move,

In page 2, line 25, to leave out "the" and insert "such".

This is also a very minor amendment made for the same reason.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Clauses 5 to 12 inclusive ordered to stand part of the Bill.

Bill reported with amendments; read the Third time and passed.