PRICE-FIXING ACTIVITIES (Legislation to curb)

Mr Goh Chee Wee asked the Minister for Finance and Minister for Trade and Industry whether the Ministry of Trade and Industry has made any progress in the preparation of legislation to prohibit the formation of cartels and to curb price-fixing activities.

The Minister of State for Trade and Industry (Dr Wong Kwei Cheong) (for the Minister for Finance and Minister for Trade and Industry): Mr Speaker, Sir, the Ministry of Trade and Industry has made further progress in the preparation of legislation to prevent price-fixing by trade associations. The Ministry has completed a study of legislation on restrictive trade practices in other countries. Arising from this study, the Ministry has drafted a Bill which is now being discussed with the Attorney-General's Chambers and other Government bodies.

As my Minister has said in the Budget Debate last year, legislation on restrictive trade practices are intricate and complex. It has taken countries like the United Kingdom, Australia, Japan and the United States of America, many years to draft and o refine the system of legislation to make hem comprehensive in scope and practicable in enforcement. Similarly, we should take great care in the drafting of our own legislation in order not to disrupt the free market mechanism that has been the basis for our economic well-being. Nevertheless, I would like to assure the Member that my Ministry is as concerned as he is with the problem and will introduce the Bill as soon as it is ready.