BUS SERVICES LICENSING AUTHORITY (AMENDMENT) BILL

Order for Second Reading read.

4.35 p.m.

The Minister of State for Communications (Dr Ang Kok Peng): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Hon. Members may recall that on 11th April, 1971, the 10 Chinese bus companies regrouped into three companies, namely, Amalgamated Bus Company (ABC), Associated Bus Service (ABS) and the United Bus Company (UBC). The Singapore Traction Company (STC) was the fourth bus company and when it ceased operation in December, 1971, its routes were taken over by these three companies which in due course built up a fleet of over 2,000 buses deployed in 143 bus routes.

With the recent amalgamation of the three companies into a single company known as the Singapore Bus Service Ltd (SBS), which we understand was registered on 11th July, 1973, it will be necessary for the Bus Services Licensing Authority to monitor closely the progress of the new company, its affairs and its financial position.

The existing Bus Services Licensing Authority Act has provisions requiring bus companies to submit audited accounts. However, it is not mandatory for the bus companies to do so within a stipulated period of time after the close of the financial year.

The amendment Bill, therefore, proposes to make it mandatory for the bus companies to submit audited accounts, including Statements of Revenue and Expenditure, to the Bus Services Licensing Authority within three months after the close of each financial year. Every Director and Manager of the company will be held responsible for failure to submit the accounts within the stipulated period. On conviction, they will be liable to a fine of up to $10,000.

The Bill also empowers the Minister for Communications to appoint Inspectors to investigate into the affairs of the company. This power is necessary to ensure that the bus company is responsibly managed. In addition, I wish also to inform hon. Members of this House that separate action is being taken to increase the performance bond of $100,000 presently required from each of the three bus companies to $500,000.

All these measures are taken in order to safeguard the interest of the public in a bus transport system operated by a single bus company which in effect has a de facto monopoly of an essential public service.

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. -[Dr Ang Kok Peng].

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

Mr Speaker: I propose to take the Suspension now. I suspend the sitting and shall take the Chair again at ten minutes past Five.

Sitting accordingly suspended at 4.42 p.m. until 5.10 p.m. Sitting resumed at 5.10 p.m.