PINEAPPLE INDUSTRY (AMENDMENT) BILL

3.10 p.m.

The Minister for National Development (Mr Lim Kim San): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Ordinance to amend the Pineapple Industry Ordinance, 1957 (No. 15 of 1957)."

I have here a Certificate of Urgency signed by the Yang di-Pertuan Negara.

Certificate of Urgency handed in.

Mr Lim Kim San: I hand in to the Clerk His Excellency's permission to proceed with the Bill under a Certificate of Urgency.

Mr Speaker: Would you take your seat for a while, Mr Minister?

Mr Lim Kim San resumed his seat.

Mr Speaker: Mr Lim Kim San, you have produced a Certificate of Urgency signed by His Excellency. It seems to be in order. But you have also to signify his recommendation that this Bill can be proceeded with under Article 43. Have you got that recommendation? If you will so signify from the Floor?

Mr Lim Kim San: I have received His Excellency's recommendation.

Mr Speaker: Very well. You may proceed.

Mr Lim Kim San: Mr Speaker. Sir, I beg to introduce a Bill intituled "An Ordinance to amend the Pineapple Industry Ordinance 1957."

Bill read the First time

Mr Speaker: I would like to draw the Minister's attention to Article 79 of the Constitution of Malaysia, which reads as follows:

`(1) Where it appears to the presiding officer of either House of Parliament or of the Legislative Assembly of any State that a Bill or an amendment to a Bill proposes a change in the law relating to any of the matters enumerated in the Concurrent List, or to any of the matters enumerated in the State List with respect to which the Federation is exercising functions in accordance with Article 94, he shall certify the Bill or amendment for the purposes of this Article.

(2) A Bill or amendment certified under this Article shall not be proceeded with until four weeks have elapsed since its publication, unless the presiding officer, being satisfied that the State Governments, or as the case may be, the Federal Government, have been consulted, allows it to be proceeded with on the ground of urgency.'

Now the position is this. The Bill has now been presented to this Assembly. It requires my certification as Speaker that the Bill relates to a matter enumerated in the Concurrent List. The Bill deals with such a matter, and I certify that this Bill relates to a matter enumerated in the Concurrent List.

Having certified that, the provisions to subclause (2) now arise and as the Minister - as I understand it - wishes to proceed with the Bill on a Certificate of Urgency today, he will have to satisfy me that the Federal Government has been consulted on this matter so that I may be satisfied and allow the Bill to proceed.

Before the Minister proceeds with the Second Reading, perhaps he will satisfy me that the Federal Government has been consulted.

Mr Lim Kim San: Mr Speaker, Sir, the Federal Government have been consulted and they have no objections to this Bill being proceeded with under a Certificate of Urgency.

Mr Speaker: Very well, please proceed.

Typed copies of the Bill distributed to hon. Members.

Second Reading

Mr Lim Kim San: Mr Speaker, Sir, this Bill provides for amendments to be made to the Pineapple Industry Ordinance, 1957, in order to provide for the establishment of a marketing corporation which shall be responsible for the promotion, management and control of the marketing of canned pineapple.

The Corporation is to be set up by regulations under the provisions of the Ordinance which will provide it with the necessary powers for carrying out the said purposes. The establishment of the Pineapple Industry Marketing Corporation was among one of the recommendations made by a Commission of Inquiry appointed in 1959 jointly by the Federal and Singapore Governments following a crisis in the Malayan pineapple industry. The Commission recommended the establishment of a marketing corporation in order to handle sales of canned pineapple on behalf of the packers so as to eliminate competition among themselves and thereby introduce stability in the pineapple industry.

The Singapore Government has given careful thought and consideration to the recommendation and is satisfied that such an establishment would be of benefit to both the pineapple industry and trade.

The functions of the corporation will be to promote, manage and control the marketing of canned pineapple. For this purpose, the proposed corporation will act as the sole marketing agent for registered canners in the sales of canned pineapple. All registered canners will be required to sell their canned pineapples through the corporation which will fix minimum prices. In this way, the corporation will be able to eliminate unhealthy competition and price-cutting, as has often happened in the past. It is generally believed that the establishment of an orderly market will assist in creating confidence in Malayan canned pineapple in overseas markets and enhancing the reputation of the Malaysian product. Furthermore, the proposed corporation will be able to overcome financial difficulties of some canners during the slack period of sluggish sales at the end of each year by making loans to them.

Singapore's interest in such a corporation is enhanced by the fact that over 95 per cent of canned pineapples produced are exported through Singapore. In 1964, for instance, out of 2,450,000 cases valued at $38½ million produced, 2,351,000 cases valued at $37 million were exported through Singapore. Although Singapore's share of production of canned pineapple is only slightly over 20 per cent, it is the seventh most important commodity in Singapore's exports, in addition, there are two canneries in Singapore supporting employment for about 450 workers.

The membership of the corporation will be confined to six existing pineapple canneries: two in Singapore and four in the States of Malaya, including the newly established Pineapple Cannery of Malaya, Limited, at Pekan Nanas, Johore. The corporation will be managed by its members and the Chairman of the Malayan Pineapple Industry Board.

Government financial backing is required during the initial running-in period of the corporation so that it may be in a position to assist canners as mentioned before. For this purpose, both the Central and Singapore Governments have to underwrite an initial working capital guarantee of up to a maximum of $2 million to the corporation through the Malayan Pineapple Industry Board before the corporation can build up its own capital from members' subscriptions. The Central Government has already agreed to undertake 75 per cent of the $2 million guarantee and the Singapore Government has agreed to underwrite the balance of 25 per cent or $½ million. The corporation will make loans to canners against stock of canned pineapples. Any monies borrowed by the Malayan Pineapple Industry Board will be a debt due to the Singapore Government and shall be a first charge on the assets of the Board.

The Central Government presented its amendment Bill to Parliament and it was duly passed on 15th July, 1964. As trade and industry are concurrent subjects, it is desirable, therefore, that Singapore should introduce parallel legislation so that the corporation can be established here as soon as possible.

Sir, I beg to move, "That the Bill be now read a Second time."

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 Lim Kim San]

Bill considered in Committee; reported without amendment; read a Third time and passed.