BRETTON WOODS AGREEMENTS (AMENDMENT) BILL

Order for Second Reading read. 4.06 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bretton Woods Agreements Act, the principal Act, makes provision for Singapore's membership of the International Monetary Fund and the International Bank for Reconstruction and Development.

Clauses 2 and 3 of the Bill amend the definition of "Fund Agreement" in the principal Act to take account of the two amendments that were made to the Articles of Agreement of the International Monetary Fund, one in 1968 and the other in 1976.

Clause 4 of the Bill repeals sections 3 and 4 of the principal Act, under which subscriptions and other payments to the IMF are charged on the Consolidated Fund and any increase in subscription beyond US$37.5 million requires the approval of Parliament. The substituted section 3 provides for the Monetary Authority of Singapore to pay for and to take into its own account Singapore's subscription to the IMF and, with the approval of the Minister for Finance, to accept future increases in Singapore's subscription. It is the international practice for transactions with the IMF to be reflected in the books of central banks and not in the books of governments.

Clause 4 also introduces new sections 4 and 4A to empower the MAS to acquire, hold and deal with Special Drawing Rights and to authorise the MAS to participate in the operations of the General Resources Account of the IMF. Singapore became a participant of the Special Drawing Rights Department of the IMF in October 1978.

Clauses 5 and 6 of the Bill introduce consequential amendments to the principal Act.

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 Hon Sui Sen].

Bill considered in Committee.

[Mr Speaker in the Chair]

Clause I -

The Chairman: The citation year will be altered from "1979" to "1980".

Clause 1 ordered to stand part of the Bill.

Clauses 2 to 6 inclusive ordered to stand part of the Bill.

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