TIMBER INDUSTRY BOARD (INCORPORATION) BILL

Order for Second Reading read.

3.33 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."

The Timber Export Industry Board was established in 1968 under the provisions of the Timber Export Industry Board (Incorporation) Act, 1966, as a joint Singapore-West Malaysian Board. It had ten members, three from Singapore and seven from West Malaysia. These members were drawn from representatives of the Government and the timber industry from both sides of the Causeway.

During its existence, the Board did good work in promoting, regulating and improving the timber export industry in both countries. It was always self-financing through cess collection on exports of sawn timber and logs and the Singapore Office of the Board has till today a substantial amount of liquid assets.

This position has now changed to the extent that the Malaysian Government on its own initiative has decided to have a separate Timber Board for the timber industry of Malaysia only. Consequent upon this decision, the Malaysian Government repealed the Malaysian Timber Export Industry Board (Incorporation) Act, 1966, thus dissolving the joint Board. A new Malaysian Timber Industry Board (Incorporation) Act, 1973, was passed and came into force with effect from 1st June, 1973.

So far as the Singapore industry is concerned, it is encouraging to note the large and increasing exports of sawn timber. The f.o.b, value of this timber, both graded and ungraded, rose from $67.9 million in 1968 to $132.8 million in 1972, an increase of 95 per cent during the last four years. Owing to an unprecedented demand and consequent high prices for this commodity, our exports for the first six months of this year for sawn timber topped $140.5 million - more than the value of our 1972 exports. In view of the importance of the timber industry and its major contribution to our external trade, it is considered that it should continue to be controlled and regulated by a statutory body as in the case of the rubber industry. It will therefore be necessary for Singapore to establish its own Timber Industry Board.

Under the existing Timber Export Industry Board (Incorporation) Act, 1966, the now defunct joint Board was responsible only for problems and operations affecting the export of sawn timber and logs only. It is proposed, however, under the present Timber Industry Board (Incorporation) Bill, that the functions of the new Board will be extended to cover all matters pertaining to the timber industry, which include not only logs and sawn timber but also veneer, plywood, wood mouldings and other wood products.

The Bill provides for the establishment of a Timber Industry Board which shall consist of a Chairman, a Deputy Chairman and eight members to be appointed by the Minister. Of the eight members, four will represent the Government and four the timber industry. There will be one representative each from the Singapore Sawmillers' Association, The Singapore Plywood and Veneer Manufacturers' Association, the Singapore Timber Exporters' Association and the Singapore Manufacturers' Association.

The Bill will also provide for the establishment of "The Timber Industry Board Fund of Singapore". Income for this Fund will come mainly from cess collections levied on the export of sawn timber and logs. It is not proposed to vary the existing rate of 55 cents per cubic metre for sawn timber and 45 cents per cubic metre for logs. The new Board will have, as its share from the joint Board, liquid assets of $1.45 million.

There will be no change as far as staff matters are concerned except that the present Assistant Secretary of the joint Board will be renamed the Executive Secretary of the new Board.

This Bill also provides for the new Board to make rules and regulations to govern its day-to-day functions and to submit its Annual Report and Accounts to Parliament.

Sir, I beg to move.

Question proposed.

3.39 p.m.

Mr Cheong Yuen Chee: Mr Speaker, Sir, the Timber Industry Board (Incorporation) Bill is a timely measure, being much more comprehensive in scope than the Timber Export Industry Board (Incorporation) Act which is now to be repealed. A fundamental defect of the existing legislation is that it confines itself, as the Minister has just said, to the regulation of timber export.

The proposed legislation, I am happy to note, has done away with the impractical distinction of regulating timber for export and ignoring timber for local consumption. All timber sold, processed or manufactured in Singapore, whether for export or local use, are henceforth to come within the purview of the proposed Bill. Similarly, the registration of timber exporters, graders, suppliers, packers or manufacturers - that is, everyone who has anything to do with the timber trade or industry in Singapore - provides a firm basis for the proper control of the timber trade or industry.

My only regret is that, under clause 4 of the Bill, the proposed Board seems to be constituted of the representatives of the Government and the timber exporters, suppliers, packers or manufacturers. The Second Schedule to the Bill lists out the four recognised associations for the purpose of clause 5 of the Bill. Nowhere in the Bill has any reference been made to the representation of the interest of the timber graders in the proposed Board.

As it would not be practical for the proposed Board itself to employ all the timber graders required in the timber industry in Singapore, most of the graders would be and are, in fact, in the service of the timber exporters, suppliers, packers or manufacturers themselves. As such, the timber graders represent a vital group of persons in the timber industry who can make positive contributions towards the further improvement and rationalisation of the timber industry. But at the same time they also constitute a body of persons who are extremely vulnerable to any conflict that may arise between the interest of their employers and the objective of the proposed Board. Many timber graders are members of a trade union affiliated to the National Trades Union Congress for their own protection. Under the Bill it appears that whatever scant trade union recognition or protection the timber graders may presently have would not be given expression to in the proposed Board.

Mr Speaker, Sir, I hope the hon. Minister for Finance would be able to give an assurance that a member would be appointed under clause 4 (1) (a) of the Bill to represent the timber graders indirectly through the NTUC or, alternatively, since there are provisions for five members to be appointed under clause 4 (1) (b), to list the NTUC as the fifth recognised association in the Second Schedule to the Bill.

3.43 p.m.

Mr Lee Yiok Seng (Bukit Panjang): (In Mandarin): Mr Speaker, Sir, I am happy to note that important changes have been made by this Bill which, among other things, repeals the existing legislation.

I would like to speak on the question of timber grading in Singapore. In the past, as the Minister has mentioned, timber grading was based on the criteria set down in Malaysia. Sources of timber for Singapore are diversified. We cannot solely depend on Malaysia for our timber supply. In fact, over the past few months we have imported timber from Indonesia and other sources. Sir, some sawmillers have made representations to me that timber and logs from Malaysia and Indonesia have different criteria for grading. As a result, if our local timber graders are to grade the timber from Indonesia according to the criteria laid down in Malaysia, there will be difficulties. In fact, difficulties have been faced, and I hope the Minister will take note of this.

Mr Hon Sui Sen: Mr Speaker, Sir, I note and welcome the Member for Toa Payoh's support for this Bill. With regard to his comment on representation, I will consider whether timber graders should also be represented on the Board. As he has pointed out, there is provision for adding to the number of representatives, and it may be that, after investigation, there is reason also to appoint a representative of timber graders on the Board.

With regard to the Member for Bukit Panjang, I noted his suggestion about timber grading and the fact that it is based on Malaysian timber. I will take note of his suggestion for the future operations of the Board.

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]

3.46 p.m.

Clauses 1 to 3 inclusive ordered to stand part of the Bill.

Clause 4 -

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

In page 3, line 21, to leave out "five" and insert "tour".

The word "five" is a drafting error. The intention is to appoint at present only four representatives to the Timber Industry Board, as shown in the Second Schedule to the Bill.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Clauses 5 to 40 inclusive ordered to stand part of the Bill.

Clause 41

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

In page 17, after line 21, to insert -

"(4) The Board's auditor may at any time report to the Minister through the Board upon any matter arising out of the performance of his audit.".

Sir, this amendment is being inserted at the suggestion of the Auditor-General. While there appears to be nothing in the present Bill to prevent the Board's auditor from reporting to the Minister through the Board upon any matter arising out of the performance of his audit, I am advised that the amendment will strengthen the hands of the Board's auditor and give him positive encouragement to report to the Minister.

Amendment agreed to.

Clause 41, as amended, ordered to stand part of the Bill.

Clauses 42 to 54 inclusive ordered to stand part of the Bill.

First and Second Schedules ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.