RESTRICTIONS ON THE SUPPLY, DISTRIBUTION AND USE OF PETROLEUM AND ELECTRICITY BILL

2.55 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to make temporary provision for the imposition of restrictions on the supply, distribution and use of petroleum and electricity."

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."

With all the gloomy reading in the news these days, Members of the House will need no reminder of the grave situation facing many countries, including Singapore, as a result of the reduction in oil production by Middle East producing countries. While we must all hope that international discussions in the near future will lead to some alleviation of the situation, it would be foolhardy to assume that there will be any early resumption of the normal supplies of petroleum products to consuming countries. Many countries in the world have already begun to introduce compulsory measures to conserve all energy resources. Singapore itself has started a Save Energy Campaign, with active participation by the public, the Public Utilities Board and all the oil companies. But while there has been a useful drop of electricity consumption since the start of the campaign, we have not achieved anything like the 12 to 13 per cent savings required by the present level of restriction in petroleum supplies. We must expect this level to go progressively higher in the coming months. It is clearly unlikely that voluntary restraints alone would be effective in cutting down the often unnecessary consumption of energy to the desired extent. Compulsory measures must therefore be considered.

The Government already has certain powers under various Acts enacted by Parliament. The Control of Essential Supplies Act, 1973, approved by this House at its last sitting, gives powers for control of the domestic sale, including possibly rationing, of essential commodities but it is not entirely suitable for the control of petroleum and electricity consumption. Under the Petroleum Act also, action can be taken against hoarders of petroleum. Under the Public Utilities Board Act, measures to restrict the use of electricity can be imposed. And under the Road Traffic Act, prohibition on the use of public roads can be introduced. But these Acts will have to be amended if, as announced in Government's press statement sometime ago, compulsory measures to conserve energy have to be implemented and heavy deterrent penalties imposed, such as the suspension of driving licences and the cancellation of vehicle licences. It is desirable, therefore, that all the necessary measures to cope with the current situation be provided under a single Bill and not by amendments to several existing Acts.

The Bill now before the House will provide the Government with the necessary powers to restrict the supply, distribution and use of petroleum and electricity. It also provides for the imposition of severe penalties for the prohibited use of cars or hoarding of petrol or the excessive use of electricity. Penalties include the cancellation of vehicle and driving licences and the cutting off or reduction of electricity supplies to premises. Offences may be compounded however, in appropriate cases, for a sum not exceeding $500.

The public need have no fear that the wide powers under the Bill will be permanent. The sweeping measures contained therein are intended for use only during the current energy crisis, and it is therefore provided that the Act will be in force for an initial period of one year only. It can, however, be extended for one year at a time if the situation so demands.

Sir, I beg to move.

Question proposed.

3.00 p.m.

Mr P. Govindaswamy: Mr Speaker, Sir, today, we have to consider this emergency Bill. We have no choice but to accept it if we want to avoid the dark days ahead.

At this time last year, we did not anticipate that an energy crisis would occur and would affect many developing countries. We were making tremendous progress both in our social and economic fields. But now, because of this energy crisis, our economic growth for the coming years is going to be bleak.

This Bill appears to be drastic as restrictions are provided for the use of petroleum and electricity. However, looking at the world's supply of oil, it is apparent that the supply of oil will never meet the demand of the consumers even if the producing countries were to increase their exports in later years. I wonder whether the Minister has any plans to obtain alternative sources, like building a tidal barrage in the sea to generate electricity, or to utilise gaseous vapours as substitutes for petroleum for our daily requirements.

Statistics have shown that our major oil users are as follows: electricity 45 per cent; transport 38 per cent; industry 14 per cent and domestic heating 3 per cent. Our main users are electricity and transport, while the industrial sector only utilises 14 per cent. We must be careful not to restrict the industrial sector too much or else our economy will be greatly hit.

However, the implementation of the law should be carried out carefully. We should not be penny-wise and pound foolish, because there may be avenues where a small percentage of oil and electricity may be saved but in terms of production we may lose heavily. On the other hand, there may also be areas where electricity and petroleum are heavily used, but the profits are nominal.

Whilst implementing the Act, consideration should also be given to the safety of our shift workers in the factories and industries who may have to go to work in blacked-out streets. In this regard more security personnel should be provided in those blacked-out streets.

Sir, I support this Bill.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, in view of the importance of conserving fuel and the need to cut down the consumption of electricity, it appears to me that the Government is not setting a positive lead. Take this Chamber, for instance. Do we need to light up these two chandeliers? Why has this Chamber always got to be kept cold at this temperature? And I think there must be a great number of Government offices air-conditioned to a pretty low temperature. We should set an example. These two chandeliers are merely for ornamental purposes. There are also other areas where electricity can be saved. Why should our television programmes still go on to 12 midnight? Cannot we cut them short to 10.00 p.m.?

Mr L. P. Rodrigo (Serangoon Gardens): Mr Speaker, Sir, I would like to join this debate by making a particular appeal to a special sector in our society. It is perhaps unfortunate that this Bill has to be passed in this Chamber. But it serves to emphasise the gravity of the crisis in the world at the moment. While there is no cause for panic, Sir, I think there is need for many of us to tune in to the disorders of the day resulting from this international oil crisis and grasp their meaning in so far as they relate to us.

Many of us have benefited from a bouyant economy in recent years which resulted from investment and industrial activity in the State. With affluence and additional income, people sought to gain higher standards of living and, in fact, gained them. In transport, the scooter, the motorcycle, the car, has been bought. In home convenience and comfort, the electric oven, the washing machine, the vacuum cleaner, the air cooler or air-conditioning plant, has been bought. Additional lighting for sophisticated effects has been installed, complete with solid state stereophonic system.

A high standard of living means a high consumption of fuel and electrical power. It is imperative that our industries do not drag and it is also imperative that the entire industrial infrastructure supporting our economy is fed with sufficient energy in order that it operates smoothly.

In order to help ensure this situation, Sir, those of us who have benefited from the economy and become high fuel and energy consumers as a result of being able to afford cars, energy-consuming appliances, comfort devices and amusement gadgetry, should be the first to restrain ourselves in our daily manner and tempo of living.

Not only does the Government accept this but I think I may say that the greater number of the less well-off people expect such self-imposed restraints from those who can afford to bear such restraints.

We are a compact nation and should easily jell around a slogan for survival to achieve the necessary measure of social discipline in the face of national threats or difficulties. I think here lies a strength peculiar to ourselves with which we can withstand hardships falling upon us from time to time. Our experience has shown that collectively we can respond and discipline to national difficulties. We have done so in regard to the 1971 anticipated recession, the Employment Act, National Service and flat-dwelling in urban conditions. And we have responded to these difficulties satisfactorily.

We need but to retain in us a sober and rational approach to national problems, and if we are prepared to transcend beyond self-interest, we should be able to contain the difficulties ahead of us.

Mr J. F. Conceicao (Katong): Mr Speaker, Sir, I just want to say a few words to balance any impression that may have been perhaps unwittingly conveyed by the hon. Member for Jalan Kayu.

I agree with him entirely that Government should take a lead in setting the example of saving electricity, and that this should start with the various Ministries, Government offices, statutory boards, and so on. But where Parliament is concerned, I would like to correct the impression that perhaps this institution is not setting an example. If anybody were to come here on a non-sitting day, he will have to grope his way through dark passages and feel the presence of a musty odour affecting him wherever he goes, because all the lights and the air-conditioning are turned off. In this case, Mr Speaker, Sir, I think you are also at a disadvantage because the air-conditioning here is turned on for one hour only a day and you have to work in these musty conditions. I say this, Sir, just to correct any wrong impression that may have been conveyed to the public by reference to this Parliament.

Mr Cheong Yuen Chee: Sir, I would like to ask the Minister a few questions. To what extent are we dependent on the Middle East for our oil supplies, and what efforts have been made by the Government to look for alternative sources of supply? The next question is: Has the Government sought the co-operation of the Malaysian Government for such alternative sources of supply?

Mr Hon Sui Sen: Mr Speaker, Sir, I am much obliged to all the Members of this House who have spoken and given us their views on the conservation of energy. It is very necessary that all of us pay attention to the requirements for saving which will be necessary in the coming months. I am therefore gratified that this particular Bill has attracted so much comment in the House.

With regard to the various questions which have been asked, I think one which has received the attention of more than one Member is the question of whether we can have alternative energy sources and whether we can formulate any plans for replacing petroleum as the energy source. The answer to this is, in the short-term, "No" because - and this is in answer to another question - the main sources of oil supplies come from the Middle East. Of course, there are some supplies from nearer Singapore, but the amount is relatively small, and the proportion of energy which comes from oil is also very high. The amount that we can get from wood or charcoal is really quite negligible. In the long term, of course, it would be to Singapore's advantage to try and diversify our sources of supply and I have no doubt that this is a matter to which we ought to give some attention. The Public Utilities Board and my Ministry have, between them, set up a committee to study the feasibility of setting up a nuclear power station. This will to some extent help us lessen our dependence on oil as the source of energy for Singapore. There is also a possibility that coal may be used and may be fired in the boilers for the power station. But this is a matter which, I have no doubt again, my Ministry and the Public Utilities Board will give some attention in the future.

With regard to the various comments on the need for ensuring that Government, including Parliament, should take the lead in the possibilities of reducing electricity consumption, I should like to say that it is really necessary that the business of Singapore should be carried on and I would suggest that the business of Parliament in the passing of this Bill is as important as any other activity in trying to reduce electricity consumption in Singapore. But I quite agree with the Member for Jalan Kayu and other Members that it is very necessary that we should always be on the look-out for ways and means of saving electricity, for example, raising the temperature of rooms cooled by air-conditioning and thereby saving electricity.

I also agree with the Member for Serangoon Gardens that with our very high standards of living and perhaps a very lavish use of energy, which is a manifestation of our standard of living, we can all afford to make some sacrifice against our high standards of living. This is, in fact, the position in many other very developed countries in the world to-day. I also concur with him that in a cohesive and homogeneous society like Singapore's, we ought to be able to co-ordinate our efforts in the campaign to save a lot more energy.

I think I have answered all the questions, except perhaps those raised by the Member for Toa Payoh. I think his first question was, "What is our dependence on the Middle East?" I have answered that we are almost wholly dependent on the Middle East oil for our sources of energy. What alternatives have we got? It is possible, of course, that the sources nearer Singapore, i.e. Indonesia and Malaysia, may be available. I think suggestions had already been made by ASEAN countries that additional supplies of oil should perhaps be made available first to ASEAIN countries. But in regard to his question as to whether we have approached the Malaysian Government, the answer is no. I do not think the Malaysian Government at the moment has any additional supply of oil to spare. If they do have, I shall have no difficulties in making an approach to that Government.

Mr Hwang Soo Jin: Mr Speaker, Sir, I would just like to tender my apologies to you and your staff for my hasty remarks, and to thank the Member for Katong for putting me right.

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.

[Mr Speaker in the Chair]

Clauses 1 to 6 inclusive ordered to stand part of the Bill.

Clause 7 -

Mr Hon Sui Sen: Sir, I beg to move,

In page 5, line 35, to leave out "for" and insert "from".

This is a typographical error.

Amendment agreed to.

Clause 7, as amended, ordered to stand part of the Bill.

Clauses 8 to 13 inclusive ordered to stand part of the Bill.

Bill reported with an amendment; read a Third time and passed.