STATE IMMUNITY BILL

Order for Second Reading read. 3.30 p.m.

The Minister for Law and Science and Technology (Mr E.W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill deals with a highly complex and technical area of law important to international trade and finance. It codifies the law on sovereign immunity whereby foreign States can claim immunity from the jurisdiction of civil courts and tribunals in Singapore.

At present, the matter is governed by common law, where under the doctrine of absolute immunity, a foreign state or any of its agencies is immune from virtually all legal proceedings before our courts. This doctrine has been the subject of a great deal of criticism in the courts in the United Kingdom as well as the Privy Council. These courts have shown a tendency to modify the doctrine to prevent injustice and to bring the common law more in accord with present-day conditions. Many states and agencies of state are nowadays engaged in commercial or trading activities and there is little justification to preclude persons dealing with these states or state agencies in such activities from any legal redress.

Both the United States and the United Kingdom have enacted legislation to replace the common law rules of sovereign immunity in application to foreign states or state agencies when engaged in commercial or trading activities. It is considered desirable, not only as a measure of law reform but also to promote Singapore as a financial and commercial centre, that the law on the subject, so far as it concerns commercial or trading activities by states or state agencies, should be clearly established by legislation.

It is to be noted that since section 5 of our Civil Law Act provides that the law of England is to be applied in all questions or issues which arise or which have to be decided in Singapore with respect to commercial matters, it is possible that the United Kingdom State Immunity Act can be held to apply to Singapore. As there are certain provisions in the United Kingdom Act which are not appropriate to Singapore, particularly those concerning the European Convention on State Immunity, it is preferable to enact our own legislation so as to preclude the application of the United Kingdom Act to Singapore. This Bill is based on the United Kingdom State Immunity Act, 1978, but has been modified to suit our needs and circumstances.

Members will note that the Explanatory Statement to the Bill sets out clearly and fully the cases and circumstances in which foreign states or state agencies will not be able to plead immunity before our courts and tribunals. Lastly, I would draw attention to the fact that this Bill is not concerned with diplomatic immunities and privileges or immunity from criminal jurisdiction.

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 E.W. Barker].

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