STATUTORY BOARDS (TAXABLE SERVICES) (AMENDMENT) BILL

Order for Second Reading read. 4.11 p.m.

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

On 3rd August, 1979, new Building Regulations aimed at conserving use of energy in buildings, came into operation. The Regulations prescribe, among other things, a maximum Overall Thermal Transfer Value (OTTV) which is a measure of the ability of a building envelope to keep out external heat, of 45 measured in watts per square metre for air-conditioned commercial buildings.

To encourage owners of existing air-conditioned commercial buildings to make the necessary renovations to comply with the energy conservation standard, the costs of renovation are deductible for income tax purposes for corporate owners and 40% of the costs of renovation are deductible against annual property tax for individual owners. The Income Tax Act and Property Tax Act will be suitably amended to provide for these deductions.

In addition to these incentives, a disincentive in the form of a surcharge of 20% of the electricity bill will be imposed on owners who fail to achieve the energy conservation standard by 1st January 1982.

The Bill makes the necessary amendments to sections 3 and 4 of the Statutory Boards (Taxable Services) Act to give legislative authority to the imposition of the surcharge.

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