RUBBER INDUSTRY BILL

Order for Second Reading read.

4.21 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill is the result of a change in policy by the Malaysian Government in regard to joint Malaysian and Singapore Government control of the industry in rubber and its packing and shipping for export purposes. The Malaysian Parliament has now passed an Act to set up the Malaysian Rubber Exchange and Licensing Board, which will replace the existing Malayan Rubber Export Registration Board (MRERB), the joint Malaysia/Singapore statutory body, and the Malayan Rubber Exchange.

With the imminent dissolution of the MRERB, which has been regulating and improving the rubber industry, it is necessary that the functions of the MRERB continue to be performed here in Singapore. In addition to the MRERB, we have since 1967 established in Singapore one other body connected with the rubber trade. This is the Rubber Association of Singapore (RAS) which helps to control and promote the rubber trade, protecting the interests not only of the exporters, but also of the producers and consumers of natural rubber. It would seem appropriate, therefore, that the RAS should be asked to assume functions not unrelated to what it is already doing.

The Bill which is now before the House accordingly seeks to repeal the Rubber Shipping and Packing Control Act which constituted the MRERB and to confer upon the RAS the functions now carried out by the MRERB. It also seeks to amend the Rubber Association of Singapore (Incorporation) Act (Chapter 200 of the Revised Edition) to enable the Association to perform these functions.

Under the provisions of the Bill, the RAS will carry out the following functions:

(a) Issuing of licences to rubber packers, shippers and manufacturers of technically specified rubber;

(b) Ensuring the quality of rubber exported; and

(c) Exercising disciplinary control on the natural rubber industry.

I shall elaborate a little on these functions.

When an application is made for a licence to pack or ship rubber for export, the RAS will grant the licence if, after consideration of the character and financial position of the applicant and the interest of the public, it is satisfied that the applicant is a fit and proper person to hold the licence. The RAS will prescribe the rules that must be followed before an applicant for a licence to manufacture technically specified rubber can be approved. Such rules will include testing and quality control procedures to be adopted by the manufacturer of technically specified rubber and the conditions upon which the licence is to be issued. Any person whose application for a licence is rejected may appeal to the Minister whose decision shall be final.

To ensure that all rubbers including technically specified rubbers exported from Singapore are of the specified quality, the Bill provides the RAS with powers to inspect books, documents and rubbers and to cancel the licence if the holder has contravened any of the provisions of the Bill or any of the rules made thereunder. A person whose licence has been cancelled will have the right to appeal to the Tribunal of Appeal which shall be established under clause 11 of the Bill.

The repeal of the Rubber Shipping and Packing Control Act will not prevent the existing registered shippers and packers of rubber for export from continuing operation until the date of expiry of their present licence. Moreover, any manufacturer of technically specified rubber will be allowed to continue with his manufacturing operation for two months from the date of coming into force of the Rubber Industry Act, during which time the manufacturer should apply for a licence under the new Act.

This Bill also provides for the vesting in the RAS of all assets and property belonging to the MRERB and all the rights, obligations and liabilities of the MRERB will be assumed by the RAS.

A great deal of effort has been put in by both Malaysia and Singapore traders to shift the rubber market from London and New York to this region. This Government can do no less than to help our traders consolidate the position of Singapore as a reliable market for quality rubber by enacting this Bill. I hope that both the markets in Kuala Lumpur and Singapore will continue to work closely and co-operate for their mutual benefit.

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 Hon Sui Sen].

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