BUS SERVICES LICENSING AUTHORITY (AMENDMENT) BILL

Order for Second Reading read. 3.14 p.m.

The Acting Minister for Culture and Senior Minister of State for Communications (Mr Ong Teng Cheong): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Ministries of Communications and Finance have announced recently that the new bus company SBS (1978) will soon go public and have its shares listed on the local stock exchange. A widespread ownership of SBS (1978) by the public particularly the bus company's employees and bus commuters is encouraged.

With the public flotation of SBS (1978), Government intends to ensure through the Bus Services Licensing Authority (BSLA) that SBS (1978) will be managed well enough to enable it to pay an annual dividend of not less than 7 1/2%. To put this into force the proposed amendments to the Bus Services Licensing Authority Act are therefore needed.

Presently, the Authority has six members who are from the Ministries of Communications, National Development and Defence. With the additional responsibility for the Authority to see to the proper management of SBS (1978), clause 2 seeks to enlarge the Authority's membership from six to seven with the appointment of a representative from the Ministry of Finance.

Although Government will continue to provide management assistance to SBS (1978) through the Government Team of Officials (GTO), as it had done for the old SBS since August 1974, this arrangement cannot go on indefinitely. The GTO will run the bus company until such time when a new management team is able to take over. To be certain that SBS (1978) is properly managed at all times, clause 3 seeks to give the Authority the power to ensure that bus company licensees like SBS (1978) shall appoint directors who are approved by the Authority. In this way, company affairs of SBS (1978) will come under the direct control of a board of directors consisting of persons approved by the Authority.

The opportunity is also taken to repeal section 11 of the Act and substitute it with that described in clause 4. The new section 11 will give the Authority greater flexibility in the imposition of penalties in cases of violation by licensees, and enable the Authority to delegate its powers under this section to the Registrar of Vehicles or the Deputy Registrar of Vehicles.

Sir, I beg to move.

Question proposed.

Mr Ivan Baptist: Mr Deputy Speaker, Sir, I would like to make a couple of points on SBS (1978). The first point is that when SBS (1978) is formed there will be no increase in bus fares, I believe there are rumours and, strangely enough, these rumours turn into facts faster than a lot of facts that we Members have been able to get from time to time. I remember the last time when we were talking about rumours on increases in A & E charges during the Budget debate, it was fantastic the way the Hon. Minister turned that rumour into fact. I am just hoping that the present rumour will not turn into fact because at the moment commuters are already paying a high price for bus fares to and from work. Longer distances make it more difficult and more expensive. This is especially true if there has been a movement of population from their former abodes to new Housing Board estates. The Hon. Senior Minister of State for National Development, who is not here at the present moment, may be able to tell us that there are so many vacant flats in Woodlands because very few people want to take them as they are very far away from their place of work. If bus fares go up and they are forced to take flats in Woodlands, it will be a tremendous drain on their pockets.

The other point on which I would like to seek clarification is which organisations or individuals will be represented on the board of directors, because we need people who know how commuters feel and organisations which are actually involved in running a commuter service. This would, of course, involve consumers, trade unions and business enterprises that have the acumen and the capacity to run a good SBS (1978).

Mr Ong Teng Cheong: Mr Deputy Speaker, Sir, the experience of SBS in the past, especially since the Government Team of Officials moved into SBS in August 1974, has shown that with a sound management and motivated staff, SBS can provide a reliable and efficient service and, at the same time make a fair return on capital so long as the bus fares are not fixed at an unrealistic level. When the Minister for Finance made the announcement earlier he touched on this point. The Minister for Labour has also said earlier on that he is unable to assure the Member that the fares will not be increased or the fares will remain as they are forever. It is a question of time.

As to who will sit on the board of directors, this is being looked into and is being finalised. I myself do not know who will be on the board at this stage but I suspect that officials from the Ministry of Finance and the Ministry of Labour will be invited. It is too early for me to say who will sit on the board at this stage. A proper announcement will be made at the appropriate time.

Mr Ivan Baptist: Sir, could I ask a direct question then? Would trade unions and consumers be represented? That is very important.

An hon. Member: You will be represented.

Mr Ivan Baptist: In addition to that, could the Hon. Senior Minister of State give us an assurance that bus fares will remain as they are for at least three years?

Mr Ong Teng Cheong: Sir, as I said earlier, the announcement on the formation of the board of directors will be made at the appropriate time. I am not in a position to advise him at this stage.

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 Ong Teng Cheong].

Bill considered in Committee; reported without amendment; read a Third time and passed.