POST OFFICE SAVINGS BANK (AMENDMENT) BILL

Order for Second Reading read.

3.08 p.m.

The Minister for Communications (Mr Yong Nyuk Lin): Mr Speaker, Sir, I beg to move. "That the Bill be now read a Second time."

This Bill has a threefold purpose. Members may recall that a Gift Voucher Scheme was introduced in May last year with the object of encouraging newly-weds, national servicemen and others to save in the Postal Savings Bank. It has been found necessary to provide legislative authority in connection with this Scheme and, therefore, a new section 7A is inserted in the Ordinance to empower the Postmaster-General to sell Post Office Savings Bank Gift Vouchers and to accept them as deposits into Post Office Savings Bank accounts. Section 21 is also amended to empower the Minister to prescribe conditions for the sale, issue, refund, etc, of such vouchers. These amendments are to be back-dated to 2nd May, 1969, the date of introduction of the Gift Voucher Scheme.

The other purposes of this Bill are to amend sections 9 and 11 (1) which deal with the prescription of interest rates and the investments of Post Office Savings Bank funds respectively. At present, section 9 allows a variation in the interest rates to be paid on savings deposits after giving three months' notice in the Government Gazette. For greater flexibility, this requirement of three months' notice is being deleted. Similarly, section 11(1) is amended to allow flexibility of investments. The amendment confers wider powers upon the Minister to direct investment of Post Office Savings Bank deposits in stocks, funds and securities as he may approve.

Mr Speaker, 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 Yong Nyuk Lin].

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