TELECOMMUNICATION AUTHORITY OF SINGAPORE BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

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."

Before I elaborate on the provisions of this Bill, may I give a brief summary of the background? Prior to April, 1972, the Telecommunications Department was a Government department providing external telecommunication services while the Singapore Telephone Board was a Statutory organisation providing domestic telephone services. With very high rates of growth and fast changing technology in communications, it was clear that radical changes in the organisation and management were required to cope with the developments and challenges in the years ahead. An expert from the International Telecommunications Union was therefore invited to advise the Ministry on the reorganisation of the telecommunication services and his recommendation was that the Telecommunications Department should be converted into a statutory organisation. This recommendation was accepted and implemented on 1st April, 1972, with the Telecommunications Department becoming a statutory body known as the Telecommunication Authority of Singapore (TAS).

This Bill seeks to provide for the second stage of reorganisation, namely, the merger of the Singapore Telephone Board with the Telecommunication Authority of Singapore into a single organisation to be known as the Telecommunication Authority of Singapore (new TAS), i.e, both domestic and external telecommunications are to work as one and not as two separate entities.

I will now summarise the main features of this Bill. The Bill essentially re-enacts the provisions of the Singapore Telephone Board Act and the Telecommunication Authority of Singapore Act, 1972, both of which will be repealed. The new TAS shall consist of a Chairman, a General Manager and not less than five and not more than seven other members all of whom shall be appointed by the Minister.

The new TAS shall have the exclusive privilege of operating telecommunication services in the Republic and, in addition to the functions of the existing TAS, the new TAS will also perform the functions of the STB. There are pro, visions for the appointment of staff and the appointment of a General Manager. The General Manager is to be appointed by the TAS with the approval of the Minister and will be chief executive of the organisation. The persons presently employed by the STB or TAS shall be transferred to the service of the new TAS on the same terms.

The new TAS will be empowered to raise funds by the issue of stocks or loans from banks and to levy charges, rates and fees. The new TAS will acquire the existing assets and liabilities of the STB and TAS.

The new TAS has power to acquire land and to enter upon land for the purpose of its installations, and compensation is payable for the exercise of such powers. The accounts of the new TAS shall he audited by the Auditor-General or by an auditor appointed by the Minister in consultation with the Auditor-General. The audited accounts as well as the annual report shall be presented to Parliament.

The new TAS will be commanding substantial manpower of over 5,000 staff and financial resources exceeding $150 million in annual gross revenue. With such resources and an integrated organisation, we can expect more vigorous development, increase in efficiency and higher quality of telecommunication services. To ensure that our Republic will continue to be a leading communication centre, the new TAS will continually keep abreast of latest technological innovations and developments. Hon. Members may wish to note that a five-year development programme costing more than $560 million has already been prepared for implementation by the new TAS.

Before I conclude, Mr Speaker, Sir, I wish to add that all necessary steps have been taken to ensure that the merger will proceed as smoothly as possible, and an extensive internal reorganisation has already been put into effect.

Sir, I beg to move.

Question proposed.

2.38 p.m.

Mr Ong Teng Cheong (Kim Keat): Mr Speaker, Sir, there are instances where occupants of offices and commercial buildings which are ready for occupation have to wait for months for the provision of telephone services. Clause 6 of the Bill says that it shall be the function and duty of the Authority to provide, operate and maintain a good and sufficient telecommunication service, and also to promote the economic development of the telecommunication service in accordance with public demand. I also note that clause 6 (1) (f) provides for the further advancement of telecommunication technology and the development of telecommunication in Singapore in co-operation with the broadcasting and television authority and tertiary technical institutions. I would like to see closer co-ordination and also streamlining of the administrative structure of the Authority to ensure that this long wait for telephone services is avoided. As we know, in the past the reasons usually given to applicants for the long wait are either there are no spare lines available or there is a shortage of equipment. Because of this, commercial premises without telephone services are, therefore, in many cases left unoccupied for months because they are unsuitable for business operations although they are certified fit for occupation in every respect. I am sure the Minister will agree that this state of affairs is obviously undesirable because it means a waste of usable facilities and also a restriction of commercial activities. I would, therefore, like to see this part of the administrative structure streamlined in the new Authority.

Dr Ang Kok Peng: Sir, I would like to assure the hon. Member for Kim Keat that all efforts will be exerted towards closer co-ordination between the various parties concerned to ensure speedy installation of the necessary telephone services. But I would like the Member to note that the increase in the number of telephones installed has been averaging at about 14 per cent per annum. This is a very high rate of growth compared with the world average of about 8 per cent. So it is sometimes difficult to meet immediate demands and some delay is unavoidable.

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.