ECONOMIC DEVELOPMENT BOARD (TRANSFER OF ASSETS) BILL

2.57 p.m.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker. Sir, I have the President's recommendation for the introduction of the Economic Development Board (Transfer of Assets) Bill.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to transfer certain assets of the Economic Development Board to the Minister for Finance."

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Mr Tang See Chim: Now, Sir.

Mr Barker: Mr Speaker, Sir, I lay upon the Table a Certificate of Urgency signed by the President in respect of the Economic Development Board (Transfer of Assets) Bill.

Certificate of Urgency handed in.

Mr Speaker: The Certificate is in order. Are typed or printed copies of the Bill available for distribution to Members?

Mr Tang See Chim: Yes, Sir.

Typed copies of the Bill distributed to hon. Members.

Mr Tang See Chim: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Economic Development Board (E.D.B.) which was established in 1961 has done valuable work in promoting industrial growth, developing industrial estates, financing industrial enterprises and providing technical training and consultant service to manufacturing industries. The scale of operations of the E.D.B, has expanded greatly since 1961, and this has magnified the basic conflict of the various functions which the E.D.B, was originally called upon to perform. Investment promotion, industrial financing and development and management of the industrial estates are functions each incompatible with the other and are best performed by separate organisations. Accordingly, on 1st June, 1968, the Jurong Town Corporation was Set up under an Act of Parliament and commenced operations. The Corporation has taken over the ownership of the industrial lands and development functions of the E.D.B.

A further separation of the functions of the E.D.B. took place on 1st September, 1968, when the Development Bank of Singapore (the Bank, for short), a private limited company, commenced operations. The Bank has taken over the industrial financing functions of the E.D.B.

Since the E.D.B, is not now concerned with industrial financing but is concentrating on its main function of industrial promotion, clauses 2 and 3 of the Bill provide respectively for the transfer back to the Government of loans and debentures made, and stocks and shares subscribed, by the E.D.B, in industrial enterprises. Clause 4 provides for moneys invested in securities or deposited by E.D.B, to be transferred back to the Government according to the directions of the Minister for Finance.

The E.D.B, loan portfolio, when returned to the Government, will be assigned by the Government to the Bank. The equity investments and all other assets will be retained by the Government. The transfer to the Bank of the E.D.B, loan portfolio is made via the Government, so that the total value of this loan portfolio can be treated as a loan from the Government to the Bank on which a reasonable rate of interest will be charged.

The transfer of the assets of the E.D.B, to the Government is made in the name of the Minister for Finance, who is a corporation sole, a legal entity established by law to hold investments of the Government.

It will be noted from clause I of the Bill that the operation of the Bill is with retrospective effect as from 1st September. 1968, which is the date of commencement of operations of the Bank.

With the establishment of the Jurong Town Corporation and the Development Bank of Singapore, the rationalisation of the structure of the E.D.B, is now complete. The E.D.B, will henceforth concentrate on its major functions of industrial promotion as well as of assistance in overcoming technical and managerial problems of individual firms. Funds to run the E.D.B, will be provided annually as a subvention from the Government.

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

Question proposed.

3.02 p.m.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker. Sir, will the Parliamentary Secretary please give the reasons for the urgency to bulldoze the Bill through the House?

Mr Tang See Chim: Sir, I appreciate the hon. Member's anxiety on this score. As he will notice, the Bank is now in operation and to facilitate its running, this Bill should become law as quickly as possible.

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 Tang See Chim].

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