WORKMEN'S COMPENSATION BILL

Order for Third Reading read.

5.50 p.m.

The Minister of State for Labour (Mr Sia Kah Hui): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time."

The Workmen's Compensation Bill was committed to a Select Committee on 26th March this year. The Select Committee received four written representations. It decided to amend clause 8 (1) (a) of the Bill to take into consideration the payment of the annual wage supplement or bonus made outside the six months' period when computing the average monthly earnings of a workman. This will ensure that the workman whose annual wage supplement or bonus was paid earlier than six months immediately preceding the accident would not lose out in the computation of his compensation.

It also decided to amend clause 8 (1) (b) of the Bill which `provides that in the case of a workman who was employed at the time of the accident for less than six months his average monthly earnings will be computed on the basis of the six average monthly earnings of a co-worker who has been doing similar work for the same employer for a continued period of not less than six months. The Ministry of Labour has experienced difficulties in finding such a co-worker. It is felt that for those workmen who had worked for a period of one to less than 12 months immediately prior to the accident the monthly earnings should be the average of the earnings during that period, and for those who had worked for less than one month immediately prior to the accident their monthly earnings should be calculated on the basis of the earnings they would have received for that month if the accident had not happened. These have now been incorporated in the amended clause 8 (1) (a) and (b) respectively. Except for the abovementioned amendments, the Bill in its present form is very much the same as it was originally before the House.

To recapitulate, the new Bill aims mainly to remove the time-consuming procedures for claims laid down in the 1971 Act and replace it with a new and effective procedure of administration and enforcement. Under the new Bill there is now expeditious and adequate payment of compensation. The long delays caused by the need to ascertain the dependency status of the victim, the need for the parties to sign a memorandum of agreement and to wait for a period of seven days for the registration of an agreement and common delays associated with the insurance companies are eliminated.

In addition, the quantum of compensation has been increased and the range of compensable industrial diseases extended. A Workers' Fund is also incorporated in the new Bill which aims inter alia to finance rehabilitation schemes for injured workers. This is not a legislation intended to prevent accidents or to offer remedies to the problems of safety and health regulations but an attempt to strike a reasonable balance between the needs of the victims and their families and what industry can bear.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Third time and passed.