TELECOMMUNICATION AUTHORITY OF SINGAPORE BILL

Order for Second Reading read.

2.42 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."

Members may recall that in October, 1970, I announced the Ministry's decision to transform the Telecommunications Department into a statutory board not later than April 1972. This Bill seeks to establish a statutory board known as the Telecommunication Authority of Singapore. Before I elaborate on the provisions of this Bill, may I give a brief summary o the developments that have taken place and are taking place in the Telecoms Department, and the rationale for reconstituting the Department into a statutory authority?

The growth of telecommunication services in Singapore over the last 10 years has been at a rapid rate. In the international telegraph service, the number of messages handled increased by 65 per cent in 1971 over 1966. The international telex service and the international telephone service increased by 630 per cent and 503 per cent respectively over the same period. In 1966, the Department's revenue was only $19.5 million, but last year (1971) revenue increased to $54.7 million.

The number of countries with which Singapore has established traffic service has also increased. In 1966, Singapore had international telephone service with 74 countries, and this increased to 147 countries last year. In the international telex service, the number of countries increased from 64 to 126. The public telegraph service is, however, on a world-wide basis.

In the international telegraph service, the growth is expected to be maintained at a steady rate of 7 to 9 per cent per annum over the next five years and around 4 to 6 per cent after 1977. The growth in international telex service is expected to be maintained at the high rate of 30 per cent per annum over the next five years, and thereafter we may expect a growth rate of about 25 to 30 per cent per annum, as in the case of most developed countries. The growth rate of the international telephone traffic in other parts of the world is about 20 per cent per annum, and we can expect our own growth to be around this figure, too.

To meet these demands, the Department has implemented certain projects, including subscriber trunk dialling to West Malaysia, automatic national telex exchange, and the establishment of an earth satellite station at Sentosa. In the near future, the Department will also be providing an automatic international telex exchange and an automatic message switching system. A second earth station working to the Pacific Ocean satellite is already in the final planning stage.

With the high rate of growth and fast changing technology in communications, it is clear that there must be radical changes in the organisation and management to cope with the rapid changes and challenges in the years ahead. An expert from the International Telecommunications Union was invited to advise us on the reorganisation of the telecommunication services and his firm recommendation was that the Telecorns Department should be converted into an autonomous statutory organisation, which was accepted.

I will now summarise the main features of this Bill. The Telecommunication Authority shall consist of a Chairman, a General Manager and such other members totalling not less than five and not more than nine, in accordance with Clause 5.

The Authority shall have the exclusive privilege of operating telecommunication services in Singapore with the exception of broadcasting and television services and the domestic telephone service and telecommunication services operated by the Singapore Armed Forces and the Police. The main object of the Authority is to provide, operate, and develop telecommunication services within and outside Singapore, and to co-operate with other international authorities for the expansion and improvement of such services. The Authority has power to decide on charges, rates and fees for providing telecommunication services.

The Authority may, with the approval of the Minister, borrow, raise capital and also invest its surplus funds.

It is provided in clause 42 that the Authority shall issue to Government ordinary stock of a total nominal value to be agreed upon between the Minister for Finance and the Authority.

The Annual Report and audited Statement of Accounts of the Authority shall be presented to Parliament under clauses 33 and 34. The staff of the Telecorns Department shall be transferred to the service of the Authority on terms no less favourable than those they enjoyed immediately prior to transfer.

With the conversion of the Department into an autonomous statutory body, I am confident that the Telecommunication Authority of Singapore will be able to provide Singapore with a more efficient telecommunication service, and thus enhance continued economic and commercial development of Singapore.

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.