LIGHT DUES BILL

Order for Second Reading read.

3.06p.m.

The Parliamentary Secretary to the Minister for Communications (Mr Phua Bah Lee) (for the Minister for Communications): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Prior to the formation of the Light Dues Board in 1957, Government was responsible for the provision and maintenance of lighthouses and navigational aids. Ships using the port did not pay any light dues. During 1956 the shipping industry, however, agreed in principle that light dues could be levied on shipping in accordance with international practice and that a statutory board should be established to take over the maintenance, operation and improvement of navigational aids. For this purpose, the Light Dues Ordinance was enacted in 1957 under which the Light Dues Board was established.

Experience has shown that the Ordinance does not provide the necessary powers for the Board to carry out its functions efficiently and, in particular, there are no powers for the Board to invest its surplus funds, to own property, or to provide for pension schemes, gratuities or provident fund benefits for its staff.

The Bill now before the House seeks to amend and consolidate the existing Ordinance so that the Board can operate and carry out its functions more effectively.

Clause 8 of the Bill provides the Board with wider powers so that it may undertake activities that may be deemed necessary or expedient, including the acquisition of property and the provision of additional services.

Clause 10 provides for the transfer of Government property to the Board, which transfer has been approved, in principle, by the Government. These properties consist mainly of lighthouses, land for same, and other navigational aids.

Under clauses 18 and 19 the Board is required to submit an annual report as well as an audited annual statement of accounts for presentation to Parliament. This requirement is in line with the other statutory boards.

I have also pointed out earlier that there is no provision in the existing Ordinance for the Board to invest its surplus funds. The Board has at present $1.45 million in reserve funds invested in Treasury Bills ($1.435 million at cost), although the existing Ordinance does not provide for this. It is only appropriate that funds not immediately required should be invested in approved securities, and clause 21 authorises the Board to do so accordingly.

Under clause 22, "native sailing ships" are no longer exempted as a class from light dues. This class of ships, although fast dying out, actually use navigational aids and there are no grounds for such ships to be exempted. However, exemptions may be granted if a case is made out for them.

Under the existing Ordinance, light dues may only be altered by Parliament. The new clause 29, however, empowers the Minister to alter the scale of light dues, after consultation with the Board. This is in line with the Port of Singapore Authority Ordinance, 1963.

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 Phua Bah Lee].

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