CROSSING AT KALLANG BASIN AND FUTURE OF THE SHIPYARDS AND INDUSTRIES IN THE AREA (Statement by the Minister for Law and National Development)

3.15 p.m.

Mr Barker: Sir, on hte 4th August, 1971, I stated in an oral answer to a question by the Member for Mount-batten on the future of the shipyards and slipways at Kallang that "It is likely that existing shipyards and slop-ways in hte Kallang Park Industrial Estate will have to be resited elsewhere in five to eight years' time" [Hansard, Vol. 31, cols. 196-7]. Subsequently a petition was received from 28 shipyards in the locality appealing for reconsideration.

A new major traffic highway to link the City with the eastern part of the island is now under construction along the East Coast reclaimed land. This Expressway entails a crossing at the entrance to the Kallang Basin to link Tanjong Rhu with the City Centre. The Consultants, who carried out a feasibility study on the basis of economic considerations, the construction of a three-lane carriageways at an estimated cost of $19 million. A section of the bridge could be opened at specific times to allow for the passage of ships, thus enabling shipyards and industries situated there to continue operations.

An alternative proposal to constuct a dam for the proposed crossing and to convert the Kallang Basin into a stoage reservoir cum scenic lake has also been investigated. It has been ascertained that the densely populated catchments of the Kallang and Geylang Rivers yield highly polluted water which is discharged into the Kallang Basin. Pre-treatment of the water would be neccessary before storage in hte proposed lake.

To the costs fo this dam, pre-treatment and maintenance, must be added the costs of resettling the 28 shipyards, two electrial companies, one flour mill and 148 small establishments, like firewood and charcoal firms, timber yards and small boat builders. Their gross fixed assets are estimated at $35 million, with their contribution to Government revenue approximating $3 million per year. These industrial and commercial enterprises together employ about 8,610 workers. Their annual industrial production is estimated at $73 million.

Because of the heavy costs for benefits not commensurate to the costs, the Government has decided not to construct a dam to convert Kallang Basin into a reservoir. Instead, a drawbridge will be built and is expected to be completed by about 1976.

The owners of shipyards, slipways and industries in the Basin will be glad to know that they can continue and even expand their operations .at their present sites. They will be given the opportunity to make representations as to how this drawbridge will affect their operations, so that the minimum of hindrance is caused, whilst allowing a second East Coast highway to be built.

Mr Conceicao: Mr Speaker, Sir, may I be given an opportunity to say a few words, because some of the shipbuilding and ship repairing concerns as well as the other small operators are sited in my constituency? I am sure the shipyard operators will consider this a very pleasant surprise. Many of the shipyard operators, including local entrepreneurs using local capital, have expended many tens of millions of dollars on the establishment of these shipyards and their development. In the construction of the small ships, sophisticated lines of development too have been observed. There has been displayed considerable ingenuity and hard work in the exploitation of the limited space available in the area to build such a progressive industry as the shipbuilding and ship repairing industry.

I hope that this decision on the part of the Government in regard to the continuance of the industries in the Tanjong Rhu area will also imply a continuing and constructive relationship between the Government and the shipbuilding and ship repairing firms, so that further development will lead to the benefit of both the community as well as the entrepreneurs there. It is hoped the shipbuilders and ship repairers, and those having industries there, will observe the rules of keeping the atmosphere and the environment clean and pollution free. At the same time, I am glad, Sir, that the Government will look into the problems of such dislocating effects to the industries at Tanjong Rhu, which may be brought about by the building of the bridge. On the other hand, I hope that the expansion of shipbuilding and ship repairing activities will not adversely affect the development of recreational and other provisions in the area.