NEWSPAPER AND PRINTING PRESSES BILL (As reported from Select Committee)

Order for Third Reading read.

4.02 p.m.

The Minister for Culture (Mr Jek Yeun Thong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time."

The Bill that is now before the House was sent to Select Committee and the report of the Select Committee has been circulated to all Members. There is, accordingly, no need for me to go through this Bill clause by clause as no doubt hon. Members would have read this report of the Select Committee. There are, however, certain important recommendations in the report of the Select Committee which I would like to bring to the attention of Members.

In my view, one of the most important recommendations made by the Select Committee is in respect of the proposed management shares that will have to be issued by newspapers required to go public. These will have to be paid for at the prevailing market price of the ordinary shares of a newspaper company, that is, such price as would prevail at the date of the issue of the management shares. It follows, accordingly, that if a particular company's shares are quoted on the Stock Exchange, it is the market price ruling on that day that would be taken as the value to be attached to management shares so issued. Where, however, the company's shares are not so quoted, there would be no ready yardstick which can be applied. The recommendation of the Select Committee, therefore, is that such shares of unquoted companies would be issued at such fair and reasonable value as may be determined by the Minister. In order that the valuation of such shares may not be arbitrarily imposed, it has been suggested that that valuation be made subject to review by the courts. Accordingly, the Bill in accordance with the Select Committee's recommendation, now makes the Minister's valuation subject to appeal to the courts. Even without such provision in the law, I would like to assure hon. Members that such valuation as may be given by the Minister would have to be based on expert advice from persons such as qualified accountants who would be required to go through recent accounts and annual reports of newspapers. The Minister would also have in mind various other considerations such as up-to-date valuations of immovable property, machinery, fixtures and fitting of a newspaper company when seeking to arrive at a fair and reasonable valuation of such shares. However, with this specific provision allowing shareholders of newspaper companies, or the companies themselves to seek such redress as they may require on valuation, there should be adequate safeguards against arbitrary values placed upon these unquoted shares of companies involved.

The second recommendation of the Select Committee which I would like to touch upon is in regard to the greater voting rights conferred on management shareholders. Such superior voting rights can only be used in respect of any resolution touching upon the appointment or dismissal of any director or any member of the staff of a newspaper company. In regard to other matters, the holder of management shares will rank pan passu with the holder of ordinary shares of a company. This recommendation gives effect to Government's declared policy that it is not its intention to upset the commercial operations of newspaper companies nor to interfere in the routine management of newspapers.

Another useful recommendation of the Select Committee is the transitional provisions contained in clause 36 of the Bill. As in all probability some newspapers that are required to go public will find it difficult, if not impossible, to comply with all the provisions of this Act before it comes into operation, it is thought necessary that transitional provisions be inserted. It is to provide for the possibility of newspaper companies finding it difficult to suitably amend their memorandum and articles of association in time and to the satisfaction of the Registrar of Newspapers, and to accommodate them in regard to other procedural requirements which they might have to comply in the issue of shares, these transitional provisions have been devised. Although ample notice has been given to the newspapers of Government's intention to require newspapers in Singapore to become public limited companies, it is to ensure that such requirements that may be imposed may not unduly interfere with the ordinary business of a newspaper, that these transitional provisions have been inserted. To this end, clause 36 of the Bill in particular provides that the chief editor of any newspaper required to comply with the requirements of Part III of this Act shall be granted a permit authorising the publication of a newspaper up to and including 30th June, 1975, on the undertaking by the chief editor of such newspaper in writing that he will convert his newspaper into a newspaper company. Even so, any newspaper that is unable to meet this deadline of 30th June, 1975, may apply for further period or periods of extension, subject to such conditions as the Minister may see fit to impose.

Lastly, the Select Committee has recommended that appeal should lie to the President in respect of every decision made by the Minister in the exercise of discretionary powers, for example, whether to refuse or grant his approval under Part III of the Act or whether to grant or refuse further extensions of time under clause 36. It is hoped that this will allay any fears of the Minister acting arbitrarily when exercising his powers of discretion under the Newspaper and Printing Presses Act.

Mr Speaker, Sir, I am glad that the committal of this Bill to a Select Committee has provided an opportunity for interested parties to air their views. It has enabled the Select Committee to recommend some very important and useful amendments. The Bill as amended is in conformity with Government's declared policy. I would like to assure Members that the Government has no intention whatsoever of taking over the press nor does it want to upset the commercial operations of any newspaper. The sole purpose of this legislation is, and I emphasise, merely to safeguard our national interest and the well-being of our citizens by preventing our newspapers from being used as instruments for subversion.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Third time and passed.