NGEE ANN KONGSI (INCORPORATION) (AMENDMENT) BILL

Order for Second Reading read.

4.55 p.m.

The Minister of State for Education (Dr Lee Chiaw Meng): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Ngee Ann Kongsi was incorporated by the Ngee Ann Kongsi (Incorporation) Ordinance of 1933 to administer its incomes and properties for various worthy public purposes, including the support of education.

The Kongsi established the Ngee Ann College (now Ngee Ann Technical College) in 1963 and initially housed it in the Kongsi's premises at the Teochew Building in Tank Road. In i 967 a new campus for the College was built from public donations on the Kongsi's land in Clementi Road.

In 1968, with massive financial support from the Government, the College was reorganised into a technical college offering diploma courses in engineering and commerce. This reorganisational change was incorporated in the Ngee Ann Technical College Act. Section 17 of that Act provides that the income and property of the College shall include such contributions as the Kongsi shall make.

The land in Clementi Road on which the campus now stands and the building thereon were given to the College by the Kongsi through a conveyance on 26th March, 1971, in accordance with section 20 of the Ngee Ann Kongsi (Incorporation) Ordinance.

The Kongsi currently donates 50 per cent of its net income or $100,000, whichever is the more, to the College for its running expenses. This contribution is made in accordance with a resolution passed by the Committee of Management of the Kongsi at a meeting held on 5th May, 1967. To cover the remaining major part of its annual increasing budget, the College has also been receiving grants from the Government since the Act came into force.

Since the reorganisation in 1968, the Kongsi has contributed $400,000 to the College, as against financial assistance from the Government totalling over $2.5 million. With the proposed development plan, the administrative expenditure of the College is expected to rise very substantially from its present level of $2 million per annum.

The Committee of Management of Ngee Ann Kongsi at a recent meeting adopted another resolution that the quantum of its contribution to the Ngee Ann Technical College be increased from 50 per cent to 75 per cent of its income. The Committee of Management also decided that these resolutions, that is, to donate 75 per cent of its income to the College, should be embodied in its Ordinance. In this respect, Sir, the term "income" assumes the normal commercial interpretation which is the total receipts less the normal direct operational costs.

This move follows from the fact that the Kongsi proposes to develop its land along Orchard Road which, when materialised, holds promise of very substantial future income.

The property along Orchard Road was originally a burial ground, but was allowed to be converted for residential and commercial uses by the former Government.

I would like to congratulate the Ngee Ann Kongsi for this decision which is in full accord with the spirit of the Prime Minister's remarks made recently over the use of burial grounds in general, to the effect that it is not proper that private and sectional groups should benefit from the gains in value or productivity of land resulting from the public developments taking place around it, but rather that the society, as a whole, should benefit.

I would, therefore, like to compliment tile Ngee Ann Kongsi for this bold and progressive approach to educational support by the direct application of property and business income. The decision of the Kongsi to commit 75 per cent of its income for the Ngee Ann Technical College represents the most concrete and enduring way in which any association can apply its revenues for the support of education. I would like to take this opportunity to urge other similar organisations and groups to emulate this example and to take the positive step of pledging permanent endowment to other educational institutions in Singapore, such as the Nanyang University.

The Bill now before the House seeks to embody in the Ngee Ann Kongsi (Incorporation) Ordinance, the resolutions passed by the Committee of Management of the Ngee Ann Kongsi with respect to its financial contribution to the Ngee Ann Technical College established by the Kongsi itself in 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.-[Dr Lee Chiaw Meng].

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