SENTOSA DEVELOPMENT CORPORATION BILL

Order for Second Reading read.

6.31 p.m.

The Minister of State for Finance (Mr Tang See Chim): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Annual Budget Statement mentioned our intention to further develop the tourist industry to increase the flow of foreign exchange earnings and to strengthen the balance of payments position. It was indicated that though there are encouraging signs of success in our efforts in promoting tourism, we still need an intensive programme to .attract more tourists to Singapore. The programme would include the laying of a tourist infra-structure by the provision of additional amenities and facilities and the development of projects which would help to encourage a greater flow of tourists and to increase the length of their stay in Singapore.

The Government decided as early as 1969 to develop Sentosa as a tourist resort. An internationally known firm was asked subsequently to study the feasibility of so developing Sentosa. This study, which was completed in September 1970, confirmed that the proposal was a viable one and that it would play an important role in substantially increasing the rate of growth of tourists coming to Singapore. The study envisaged that the development of Sentosa into a tourist resort would require Government investment to the extent of $68 million spread over a period of nine years until the whole project is completed. The private sector too is expected to play an important role by investing about $56 million. These sums will have to be spent on the development of infra-structure and the creation of facilities for tourist attraction. The proposals include a vacation complex comparable to the best in the world, centralised shopping facilities, recreational amenities such as a golf course, an open-air theatre, a gun museum, a maritime museum, a marine complex consisting of a corallarium, a pirates cove, and an aquarium, together with first-class hotels and restaurants. In the creation of these facilities, the greatest care will be taken to ensure that there will be no conflict between tourist facilities on Sentosa and tourist facilities on the mainland. I should mention perhaps that, in fact, a few of the essential projects such as the golf course, the cable car and beach facilities are already in various stages of implementation. It is anticipated that by March 1973, there should be adequate attractions on Sentosa to make a visit to the island worthwhile.

It will be appreciated from the above remarks that the development of Sentosa is a major undertaking. This requires the establishment of a permanent organisation which will be responsible not only for the implementation of the numerous projects but also for the efficient administration of the island after the expected completion of all projects by 1979. It is, therefore, proposed in the Bill now before the House that there should be established a Sentosa Development Corporation with responsibilities for the control and administration of Sentosa, and for the development of services and amenities for tourists and the public. This will reduce the burden shouldered hitherto by various Government Departments such as the Jurong Town Corporation and the Urban Renewal Department which, despite their stretched resources, have hitherto been responsible for the implementation of the initial projects on Sentosa.

The Sentosa Development Corporation will be placed under the guidance of the Economic Development Division of the Ministry of Finance, under whose purview is the development of our tourist industry. The Corporation will be run by a Chairman, a Deputy Chairman and such number of other members as the Minister may from time to time determine, provided that there will not be less than eight or more than 15 members. For the day-to-day administration of the Corporation, a General Manager will be appointed.

Apart from the development and administration of Sentosa, provision has also been made to enable the Corporation to develop other areas in Singapore as touristy centres to complement the work performed by the Tourist Promotion Board which, due to lack of physical resources, may not be able to undertake such development.

With regard to financing, the Corporation may, with Ministerial approval, borrow funds for its operation. Further, provision has also been made for loans and grants to be made to the Corporation from the Government for capital and recurrent expenditure. As for its surplus funds, the Corporation is empowered to invest these in trustee securities. The Corporation's accounts will be audited by auditors appointed with Ministerial approval. An annual report of the Corporation, together with its annual audited accounts, shall be submitted to the Minister and presented to Parliament.

The Bill has general provisions to exempt the Corporation from stamp duty and income tax and also provisions to appoint committees and, with Ministerial approval, to establish superannuation schemes for its employees. Clause 25 of the Bill empowers the Minister to make such regulations for carrying out the provisions of the Act.

When the Corporation is established, all immovable and movable properties in Sentosa will be transferred to it on such terms and conditions as the Minister may determine. Prior to this date, the Minister is empowered to make such contracts and agreements on behalf of the Corporation for the development of Sentosa and such contracts or agreements shall be deemed to have been made by the Corporation when it is established.

The immediate task of the Sentosa Development Corporation will be to, take over the implementation of numerous projects which have already been launched and are in various stages of implementation. It will also have to evaluate, reassess and implement the many other projects proposed for Sentosa. In the long run, it is anticipated that the Sentosa Development Corporation would, at the least, be self-supporting.

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 Tang See Chim].

Bill considered in Committee.

[Mr Speaker in the Chair]

6.39 p.m.

Clauses 1 to 5 inclusive ordered to stand part of the Bill.

Clause 6 -

The Chairman: Mr Tang, there is a clerical error here. The word "or" appearing in page 3, line 31, should read "in".

Mr Tang See Chim: Yes, Sir. Mr Speaker, Sir, may I have your consent and the general assent of Members present to move an amendment to correct this small clerical error?

The Chairman: I give my consent. Does the Minister of State have the general assent of hon. Members?

Hon. Members indicated assent.

Mr Tang See Chim: Mr Speaker, Sir, I beg to move,

In page 3, line 31, to leave out "or" and insert "in".

Sir, this is just to correct a clerical error.

Amendment agreed to.

Clause 6, as amended, ordered to stand part of the Bill.

Clauses 7 to 26 inclusive ordered to stand part of the Bill.

Bill reported with an amendment; read a Third time and passed.