NEWSPAPER AND PRINTING PRESSES (AMENDMENT) BILL

Order for Second Reading read. 5.20 p.m.

The Minister for Foreign Affairs and Minister for Culture (Mr S. Dhanabalan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Section 9A of the Newspaper and Printing Presses Act deals with newspaper companies with a paid-up capital exceeding $4 million, while section 9B deals with smaller newspaper companies with a paid-up capital not exceeding $4 million. Both sections stipulate that no person shall hold either directly or indirectly through his nominees more than 3% of the ordinary shares in a newspaper company. However, while section 9B contains a provision empowering the Minister to exempt the small newspaper company from the 3% restriction on the holding of ordinary shares, there is no similar provision for Ministerial exemption for the bigger newspaper companies under section 9A.

The two sections enacted in 1977 did not anticipate the establishment of other major newspaper companies. They also do not provide for the increase of share capital by smaller newspaper companies originally registered with a capital of less than $4 million and exempted from the 3% restriction on ownership of ordinary shares.

Situations can arise where it is desirable to waive the 3% restriction. This can happen in respect of both small and large newspaper companies. There may be specialized newspapers which require expertise from certain specific sources. The Minister may consider it desirable to allow the organizations that can provide such expertise to hold more than 3% of the ordinary shares. Then there may be new newspaper companies which, being newcomers, are unable to go public because there is no assurance of good dividends for some time from the new investment. Organizations which have the necessary financial resources to invest in such newspaper companies may have to be allowed to hold more than 3% interest, at least in the initial stages.

This amendment that we are proposing does not mean that organizations holding the surplus shares will be able to control the policy of the newspaper or act in a manner prejudicial to the interest of Singapore. The Minister's approval would still be required for the holding of management shares, each of which commands 200 votes in any resolution relating to the appointment or dismissal of directors or any member of the staff of a newspaper company. The approval to hold management shares can also be revoked at any time by the Minister. Thus the main safeguards contained in the present Act will not be diluted in any way by this amendment.

This Bill seeks to amend the Act to empower the Minister to approve the holding of more than 3% ordinary shares in any newspaper company irrespective of its paid-up capital. Section 9B of the Act is repealed as there is no need to differentiate between newspaper companies with different paid-up capital.

The new section 9A deals with all newspaper companies, as I have said, irrespective of their paid-up capital. No person shall hold directly or indirectly through his nominees more than 3% of the ordinary shares of the company except with the approval of the Minister. In approving the holding of surplus shares, the Minister may impose any conditions that he deems fit. He may also revoke the approval at any time without assigning any reason.

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 S. Dhanabalan].

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