TIMBER EXPORT INDUSTRY BOARD (INCORPORATION) BILL

3.07 p.m.

The Minister for Finance (Mr Lim Kim San): Mr Speaker, Sir, I have the recommendation of Mr President to introduce the Timber Export Industry Board (Incorporation) Bill. Mr Speaker, Sir, I beg to introduce a Bill intituled, "An Act to establish the Timber Export Industry Board for the purpose of regulating and improving the timber export industry and to provide for matters connected therewith."

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Mr Lim Kim San: Now, Sir. Mr Speaker, I lay upon the Table a Certificate of Urgency signed by Mr President in respect of the Timber Export Industry Board (Incorporation) Bill.

Certificate of Urgency handed in.

Mr Speaker: The Certificate is in order. Are copies of the Bill available for the use of Members?

Mr Lim Kim San: Yes, Sir. The typed copies are with the Clerk.

Typed copies of the Bill distributed to hon. Members.

Mr Speaker: Please proceed.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill seeks to set up a statutory board to control and improve the timber export industry. Sawmilling is one of the oldest industries established in Singapore and at present provides employment for some 2,500 persons engaged in a total of 78 sawmills. Apart from direct employment in the sawmills, the export of timber provides a livelihood for many other persons in the timber export trade, transport industry and at the docks. In 1964, export of timber amounted to $44.3 million and was the fifth largest single export. For 1965, exports increased to $48.7 million and advanced from the fifth to the fourth position.

Despite the progress shown, the timber export industry is not without its many difficulties. One of its problems is that of part-time exporters and mala fide traders who indulge in unscrupulous practices and whose only interest is in quick profits without any regard to the prestige and long-term interests of the Singapore timber industry.

There were also complaints from overseas importers arising from non-fulfilment of contracts due to time lapse, delay in shipment, disputes regarding quality of timber supplied and disruption of overseas markets caused by unrealistic quotations by part-time exporters without any regard for local costs of production.

The timber industry associations and the Government authorities in both Singapore and the States of Malaya recognised these common problems and a Working Party formed to consider the matter has recommended the establishment of a Pan-Malayan Timber Export Industry Board under parallel legislation in both territories to control and promote our timber export industry.

As Singapore and the States of Malaya sell timber to the same markets and a good part of the log supplies for our sawmills come from the States of Malaya, it is clear that close co-operation between Singapore and the States of Malaya is necessary.

The Timber Export Industry Board which this Bill seeks to set up is based on similar principles adopted for the Malayan Rubber Export Registration Board set up under the Rubber Shipping and Packing Control Ordinance, and the Malayan Pineapple Industry Board set up under the Pineapple Industry Ordinance. The essential features of these Boards are:

(a) they are set up under parallel legislation in Singapore and in the States of Malaya;

(b) each Board has a chairman who is jointly appointed by both territories, and with representatives of both Governments and the trade associations concerned as members; and

(c) they have powers to regulate the trade concerned and to impose fees or cesses to provide funds for expenses of the Board.

These Boards are not only good examples of economic co-operation between the two Governments but also of common effort and understanding between the Government and the industry.

Apart from provisions for the setting up of the Board and rules for conduct of its meetings, the Bill provides for the regulation of export of timber by the following two types of export registration certificates:-

(a) An ordinary export registration certificate to be issued to a person who has exported not less than 1,500 cubic tons of timber during the preceding year and not less than 3,600 cubic tons of timber during the three years preceding the year of application; and

(b) A temporary export registration certificate to be issued to a person who has been assured of a supply of, or of producing not less than, 500 cubic tons of timber. A holder of a temporary export registration certificate will have to furnish a bank guarantee for the due performance of contract between the holder and the overseas buyer.

The Board is given the discretion in clause 16 to cancel, refuse to issue or renew an export registration certificate and persons aggrieved by the decision of the Board will be allowed to appeal to a Tribunal of Appeal consisting of a Chairman and two members to be appointed jointly by the President and the Yang di-Pertuan Agong of Malaysia.

Part IV of the Bill provides for a levy of cesses on the exportation of timber to meet the expenses of the Board which are estimated at $160,000 per annum. But for the first year of operation, until the Board has collected sufficient funds from cesses, expenditure will be met from an overdraft of a maximum of $50,000 to be jointly guaranteed by the Governments of Singapore and Malaysia.

As I have mentioned earlier, Mr Speaker, Sir, the present Bill is an example of parallel legislation. Representatives of both Governments of Singapore and Malaysia considered and agreed on a draft Bill. This Bill is therefore identical in substance to the Malayan Timber Export Industry Board (Incorporation) Act, 1966, passed by the Malaysian Parliament in January this year.

Sir, I beg to move.

Question put, and agreed to.

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

The House 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.