CONTROL OF ESSENTIAL SUPPLIES BILL

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to provide for the control and rationing of essential supplies and to repeal the Food Control Act (Chapter 246 of the Revised Edition) and the Control of Petroleum Fuel and Lubricants Act (Chapter 242 of the Revised Edition)".

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Mr Hon Sui Sen: Now, Sir.

Certificate of Urgency signed by the President in respect of the Bill, laid upon the Table by the Minister.

Typed copies of the Bill distributed to Members.

Mr Hon Sui Sen: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The international economic situation is not encouraging. In recent months, Singapore, like other countries in this region, has suffered from high rice and bread prices because of poor harvests and export bans by producing countries, themselves short of such supplies. The recent Middle East War has led to crude oil shortages. Unless the supply situation improves, crude oil shortages will lead to reduced supplies of petrol, fertilisers, plastics and other petroleum products. There will also be a slowdown in the production of high energy content manufactured goods, such as steel and cement. Shortages of essential commodities will dislocate all economies, including our own very badly.

In the current economic uncertainty, all that Singapore can do is to take steps to reduce adverse effects as far as possible. The Government is therefore raising the rice stockpile from 25,000 tons to 90,000 tons, sufficient for at least six months' consumption. While there appears to be some improvement in the world food grains situation, a reasonable rice stockpile still appears to be a prudent precaution. Six months' stocks will tide Singapore over should harvests fail and shortages occur again.

Similarly, the Government and the oil industry are taking steps to safeguard oil stocks to meet Singapore's own direct needs and also to supply, with bunker fuel and aviation gas, ships and international airlines calling regularly at Singapore. However, crude oil supplies to our refineries have been reduced and it will be necessary for all Singapore households, industries and business firms to exercise the greatest economy in the use of oil and electricity. While Government will do its best to ensure security of supplies, Singapore, not being a producer of rice nor of oil or other primary products, will have to pay competitive prices in the international market place. Otherwise, supplies to Singapore would just dry up. So long as we can pay internationally-competitive prices, adequate, if perhaps because of more restricted production, somewhat reduced supplies will keep flowing and our economy will be able to function, though it may grow more slowly. International events can, however, take a turn swiftly for the worse, entirely outside Singapore's control. Should there be a rapid deterioration, there could be actual shortages of essential commodities for Singapore. In such a situation, it would be the duty of Government to ensure fair and equitable distribution of scarce commodities.

This Control of Essential Supplies Bill, 1973, when enacted will give Government powers to control, including possibly by rationing, the domestic sale of essential commodities. These, however, are emergency powers to be exercised only when the situation demands, and then only with the consent of the President. The Minister, on his own, will not be able to invoke such powers.

I would also like to stress that this Bill will regulate the distribution only of essential commodities and not of any other article. The Government has no intention and, indeed, it can have no effective means of regulating domestic and international trade.

Finally, I would like to repeat that these are emergency powers which will enable Government to act firmly and decisively in a crisis. There are no indications as yet that stocks of any essential commodities will fall to critical levels. The public should therefore not allow themselves to be panicked into unnecessary purchases at excessively high prices. The public should treat rumours of shortages with great scepticism. If they allow themselves to be persuaded by such rumours, they run the danger of bringing about the situations they fear and of benefiting those who, in the first place and for their own purposes, started these rumours.

Sir, I beg to move.

Question proposed.

3.20 p.m.

Mr Ho See Beng: Mr Speaker, Sir, just a small point of clarification. Will this Bill consequently lead to the control of prices of essential foodstuffs?

Mr Hon Sui Sen: No, Sir. The Bill is not intended to control prices. But there is another Bill which enables us, if necessary, to do that.

Mr Ho See Beng: Mr Speaker, Sir, as you know, with the present high cost of living - to use a Chinese expression, Tsai mi chu hsin kui ter shih ho - if the Government still does not think that now is the time to introduce some kind of price control, I would like to know what is the reason for it, and when would be the proper time to introduce such control.

Mr Hon Sui Sen: Sir, the answer is very simple. The prices of essential food supplies are determined not by what is done in Singapore but what happens in the Middle East, or what happens to the weather in Thailand, or in other areas, or in the wheat-growing areas in the United States. The prices which we have to pay are the prices which our importers have to pay in other markets to bring them to Singapore, so that the ability to control prices is certainly not within the hands of either the Singapore Government or even the consumers. Of course, consumers can control prices to a certain degree if they refuse to buy at prices which they regard as too high.

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.