RUBBER INDUSTRY (AMENDMENT) BILL

Order for Second Reading read. 7.05 p.m.

The Minister for Trade and Industry (Mr Goh Chok Tong): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, the Bill before this House seeks to improve the administrative machinery of the Rubber Association of Singapore (RAS) and to empower the Association with more authority to deal with members who contravene the Rubber Industry Act.

Presently, the Rubber Shipping and Packing Control Ordinance, 1949, of Malaysia permits persons holding shipping licences issued under Singapore's Rubber Industry Act, 1973, to export rubber from Malaysia. However, the Rubber Industry Act of Singapore does not provide for reciprocal validity of shipping licences issued under the Rubber Shipping and Packing Control Ordinance of Malaysia.

Sir, the amendment under clause 2 of the Bill is advanced to provide reciprocal treatment. The proposed amendment exempts a person who is holding a valid shipping licence issued under the Rubber Shipping and Packing Control Ordinance of Malaysia from applying for a similar licence issued under the Rubber Industry Act to export rubber from Singapore so long as the reciprocal arrangement remains in force between Malaysia and Singapore.

Under the present Act, an applicant for a licence to pack or ship rubber or to manufacture Technically Specified Rubber is not required to be a member of the RAS. This is undesirable as a licensee who is not a member of the RAS will not be bound by the rules, by-laws and regulations made under the Rubber Association of Singapore (incorporation) Act, 1970.

The Bill seeks to remedy this by providing that a licence will not be granted or renewed unless the applicant is a registered member of the RAS and is also holder of a valid licence issued under section 4 of the Rubber Dealers Act.

As a safeguard against discrimination, my Ministry has also made provision in the Bill to enable a person whose application for a licence has been rejected to appeal to the Minister.

Under the present Act, a licence is valid for a period of one year from the date of issue. To simplify the issue and renewal of licences, my Ministry has proposed that this provision be amended to allow for licences granted to expire on the last day of the year in which they are issued.

Sir, the penalties that the RAS may impose on its members who have contravened the Act or its rules include, among other things, the imposition of a fine. The maximum fine is limited to $10,000 which is insufficient to deter malpractices. My Ministry has, therefore, proposed to raise the fine to a maximum of $25,000. In addition, it is proposed that the quantum of security which may be imposed on an offender to ensure his future compliance with the Act be raised from $10,000 to $25,000.

Finally, it is proposed under clause 6 of the Bill that powers be given to the RAS to warn a person of the consequences of further contravention of the Act or any rules made under it.

Sir, I beg to move.

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 Goh Chok Tong].

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