RUBBER ASSOCIATION OF SINGAPORE (INCORPORATION) BILL

Order for Second Reading read.

4.06 p.m.

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

This Bill is designed to incorporate the Rubber Association of Singapore (hereinafter called "the Corporation") as a corporate body.

Since its inception in 1963, the Rubber Association of Singapore has been responsible for regulating transactions in the Singapore rubber market. Its responsibilities were inherited from its original sponsors, the Rubber Trade Association of Singapore and the Singapore Chamber of Commerce Rubber Association. The Association not only deals in the day-to-day operation of the clearing house, regulation of trading, shipping and fixing of prices, but also in the fields of contracts, arbitration, packing standards and disciplining of the market.

The Association's income depends entirely on members' subscriptions, tender fees and commissions on auction sales. In recent years, the Association's income from these sources has declined. To enable the Association to function effectively and competitively and to maintain and approve the high standards of conduct of the Singapore rubber market, it is clearly necessary that the Association should have adequate finances. With this in mind, the Association approached Government with a proposal that it should be authorised to levy a cess on rubber exportation from Singapore and to use the proceeds of the cess to cover its expenditure. Since there were, however, legal objections to empowering the Association, as incorporated under the Societies Ordinance, to collect a cess, it was considered that the most appropriate means of overcoming these objections was to constitute a Corporation to replace the Association. The assets and property of the Association would then vest in the Corporation. This is offered under clauses 3 and 4 of the Bill.

The principal objects of the Corporation are to promote sales and exports of rubber from Singapore, to collect a cess on rubber exports for this purpose, and make rules and regulations governing the marketing of rubber (clauses 4 and 14). The management of the statutory body is vested in a Management Committee, which consists of 15 members, seven of whom are nominated by the Rubber Trade Association of Singapore and seven of whom are nominated by the Singapore Chamber of Commerce Rubber Association. The remaining member is a public officer. It is proposed that this public officer will be the Director of Trade of the Ministry of Finance. This officer will not, however, be concerned with the day-to-day operations of the Rubber Association. The Chairman and Deputy Chairman will be appointed by the Minister from the 14 members of the Committee representing the two component associations mentioned above (clause 10).

[Mr Lim Cheng Lock in the Chair]

4.10 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr S. Ramaswamy): All the powers of the Corporation are subject to the provisions of the Act and the rules made thereunder, vested in the Management Committee. The Committee will, subject to the directions of the Minister, control the Singapore Rubber Fund which is established under clause 13 of the Bill. All moneys received by the Committee, including the proceeds of any cess collected under clause 14, will be paid into this Fund and the Fund will be used to pay the expenses of the administration of the Committee and for carrying out the purposes of this legislation generally. The accounts of the Fund will be subject to audit. The Minister under clause 14, acting on the recommendation of the Corporation, has power to make orders for the imposition, collection, variation or cancellation of a cess on rubber exported from Singapore. Any orders made by the Minister under this provision are to be published in the Gazette and presented to Parliament. It is made clear in the Bill that all expenses incurred by the Corporation in the administration of this legislation shall be borne by the Corporation.

The Corporation may, with the approval of the Minister, make rules for the purpose of this legislation. The Corporation may revoke, amend or add to the rules, but such revocation, amendment or addition will not be effective until ratified by the Minister and published in the Gazette (clause 17).

It is intended that the existing Rules of the Association will, with certain modifications, form the basis of the rules to be made under this proposed legislation. This will ensure continuity. assist the Association in its transition to a corporate body, and cause the minimum of disruption to the rubber industry in Singapore.

Sir, I beg to move.

Question proposed.

4.13 p.m.

Mr Lim Soo Peng (Havelock): Sir, the Rubber Association of Singapore was originally formed by the Rubber Trade Association of Singapore and the Singapore Chamber of Commerce Rubber Association to represent most of the Chinese and European communities in the rubber business. Problems common to both the communities in the trade have to some extent been successfully dealt with by the Association in the past. This move to incorporate the Rubber Association of Singapore as a corporate body with perpetual succession is indeed timely. This intention to provide for the conducting of a rubber market in Singapore, the regulation of the rubber trade and to establish a Singapore Rubber Fund is very commendable in view of the importance of the commodity to Singapore's trade and of the importance of Singapore in the rubber business. But what strikes me most is that the matter does not seem to have been given more careful thought in the drafting of the proposed Bill. Under the present practice, one might become a member of the Rubber Association of Singapore only if he were sponsored by either one of the two component Associations and duly proposed by two existing members of the Rubber Association of Singapore.

[Mr Speaker in the Chair]

4.14 p.m.

Mr Lim Soo Peng (Havelock): The proposed Bill now provides for membership to the corporation as laid down in clause 7, whereby any person carrying on or intending to carry on business in such classes of the rubber trade or industry may be admitted. Members of the two existing component Associations of the present Rubber Association of Singapore are automatically members of the proposed Corporation. In view of the fact that under the Bill before the House membership is being thrown open to all and sundry in the trade in accordance with clause 7, I see no reason at all why any member of the Corporation who is admitted in accordance with clause 7 of the Bill needs to be nominated by either one of the two component Associations in order to be eligible to serve in the Management Committee. The proposed Bill sets up a corporate body with wider membership qualifications. It is to be a national body charged with the task of regulating the rubber trade to the best advantage not only to the trade itself but also to the national good. The proposed Bill provides that the Minister has the final say in all appointments. I fully support the Bill, but the fact still remains that members of any organisation should have the right and privilege to nominate from amongst its own members a Committee to manage the affairs of the organisation. I regret to say that clause 10 (2) of the proposed Bill denies members of this proposed Corporation this right and privilege which is rightly theirs.

Sir, we are a nation in which every citizen is given equal opportunities. In view of what I have said, I see no justification in granting the Rubber Trade Association of Singapore and the Singapore Chamber of Commerce Rubber Association the sole right and privilege of nominating 14 out of a committee of 15 members to manage the affairs of a corporation which admits members from any one in the rubber trade.

Sir, I now propose that paragraphs (a) and (b) of clause 10 (2) be deleted and substituted by the following paragraphs -

Mr Speaker: Order. Mr Lim, on the Second Reading, only the general merits and principle of the Bill can be discussed. In any event, to move amendments at the Committee stage, you should have given notice under Standing Orders. No notice has been given. Therefore, I am afraid that even it you try to move your amendment at the Committee stage, I may have to reject it. But there is no objection to your making the criticism that you want to make without attempting to move an amendment.

Would the Member like to proceed with the debate on the general merits and principle of the Bill?

Mr Lim Soo Peng: No, Sir, I would not like to proceed now.

Mr Ramaswamy: Mr Speaker, Sir, I have listened to the criticisms made by the Member for Havelock. He should note that the Government wants the rubber industry to be run without any disruption and that we want continuity. That is why the present setup is continued in the new Bill.

The hon. Member's criticisms will be looked into and considered in due course.

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 Ramaswamy].

Bill considered in Committee.

[Mr Speaker in the Chair]

4.20 p.m.

Clause 1 ordered to stand part of the Bill.

Clause 2 -

Mr Ramaswamy: Mr Speaker, Sir, I beg to move,

In page 2, line 25, after "of", to insert "any".

This is a printing error.

Clause 2, as amended, ordered to stand part of the Bill.

Clauses 3 to 9 inclusive ordered to stand part of the Bill.

The Chairman: In view of the matter raised by the Member for Havelock, I propose to give him a few minutes to consider the position. So although it is 4.25 p.m., I propose to take a 15-minute suspension at this stage.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker: I will suspend the sitting now and take the Chair again at 20 minutes to five.

Sitting accordingly suspended at 4.25 p.m. until 4.40 p.m. Sitting resumed at 4.40 p.m.

[Mr Speaker in the Chair]

Consideration in Committee resumed.

[Mr Speaker in the Chair]

Clause 10 -

The Chairman: We have dealt with clauses 1 to 9. Clause 10, Mr Ramaswamy.

Amendments made:

In page 9, line 13, to leave out "Chambers" and insert "Chamber". -[Mr Ramaswamy].

In page 9, line 22, to leave out "Board" and insert "Committee". -[Mr Ramaswamy].

Question proposed, "That clause 10, as amended, stand part of the Bill."

Mr Lim Soo Peng: Mr Speaker, Sir, clause 10 stipulates that -

(1) The management of the Corporation shall be vested in a Management Committee.

(2) The Committee shall consist of -

(a) seven members nominated by the Rubber Trade Association of Singapore;

(b) seven members nominated by the Singapore Chamber of Commerce Rubber Association; and

(c) a public officer,...'.

Sir, what I do not understand is this: clause 7 of the Bill provides for membership whereby any person carrying on or intending to carry on business in the rubber trade or industry may be admitted. Members of the two existing component Associations of the present Rubber Association of Singapore are automatically members of the proposed Corporation. I see no reason at all why any member of the Corporation, who is admitted in accordance with clause 7 of the Bill, needs to be nominated by either one of the two component Associations in order to be eligible to serve in the Management Committee.

I think that members of any organisation should have the right and privilege to nominate from amongst its own members a committee to manage the affairs of the organisation. But with clause 10, I regret to say that it denies members of the proposed Corporation this right and privilege which is rightly theirs. And I can see no justification in granting the Rubber Trade Association of Singapore and the Singapore Chamber of Commerce Rubber Association the sole right and privilege of nominating 14 out of a Committee of 15 members to manage the affairs of the Corporation, which admits members from any one in the rubber trade.

The Chairman: Mr Ramaswamy, any reply?

Mr Ramaswamy indicated none.

Question put, and agreed to.

Clause 10, as amended, ordered to stand part of the Bill.

Clauses 11 to 20 inclusive ordered to stand part of the Bill.

Bill reported with amendments: read a Third time and passed.