TIMBER EXPORT INDUSTRY BOARD (INCORPORATION) (AMENDMENT) BILL

Order for Second Reading read.

6.42 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 Timber Export Industry Board was established under the Timber Export Industry Board (Incorporation) Act passed by Parliament in 1966. This is a joint Singapore-Malaysian Board and is an example of the close cooperation between our two countries. Since its establishment, the Board has been doing a good job in regulating and improving the timber export industry.

The principal source of the Board's funds comes from the collection of cess on the export of timber. Section 20 of the 1966 Act provides for the establishment of the Timber Export Industry Fund into which all monies collected by the Board are to be paid. There is, however, no provision in the Act for the investment of the surplus funds. At present, the Timber Export Industry Board has accumulated some $960,000 of surplus funds which are held in fixed deposit accounts because of the lack of power of the Board to invest these surplus funds in other forms of securities.

An amendment to the 1966 Act is, therefore, necessary to enable the Board to invest its surplus funds. And this Amendment Bill seeks to do just that. A new section, section 20A, is to be added to the 1966 Act to empower the Board to invest its surplus funds in investments or securities authorised for the investment of trust funds. The Minister may also direct the Board to invest in any of these authorised investments and securities as he may think fit.

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: reported without amendment; read a Third time and passed.