PORT OF SINGAPORE AUTHORITY (AMENDMENT) BILL

Order for Second Reading read. 6.50 pm

The Minister for Communications and Information (Dr Yeo Ning Hong): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill seeks to update the Act last amended in 1975 to meet current needs and practices. I shall outline briefly the background to enable a clear understanding for the amendments to the Bill, explanations of which are already given in the Explanatory Statement to the Bill.

Sir, published data showed that in 1984 the Port of Singapore was the busiest port in the world with the largest amount of shipping tonnage calling at the Port of Singapore. That year, 264 million GRT (gross registered tons) of ships called at Singapore compared with 256 million GRT at Rotterdam, the second busiest port. Each year, more than 30,000 ships above 75 GRT called at Singapore, giving an average of about 100 ships per day. Ships from over 500 lines, flying the flags of some 80 countries converge here, and in turn provide Singapore with links to over 300 ports around the world.

Our strategy is to ensure that our port remains an attractive port of call to the shipping lines serving the Asia-Pacific countries and Japan on the one hand, and the Middle East, Europe and the United States on the other. We must also attract more new lines to call here. This we can do by maintaining the highest levels of service at the most competitive prices. Since 1984, the PSA has given several reductions in fees and concessions. These reductions have now amounted to approximately $110 million a year. Such large reductions are only possible as a result of increased productivity and efficiency. These are clearly demonstrated by our very short turnround time for ships calling at Singapore which is among the lowest in the region. Our port charges are also among the lowest in the region.

As a result, large numbers of ships call at Singapore. So freight rates have been kept low. This has benefited our local businessmen, manufacturers, importers, exporters and, of course, the population at large. The end result makes for a more buoyant economy. Our position at the top of the league has to be fought for strenuously through maintaining our international competitiveness. Ease of movement and safety in our port, rapid responsiveness to market demands and high productivity, these must be maintained and upgraded continuously to achieve the above objective. This Bill helps us to do just that.

The Bill also seeks to amend the Act to include agents together with owners and masters of ships to be responsible for paying port, pilotage and other dues, providing correct information relating to the vessels and their cargo and obtaining the necessary port clearance. The amendments reflect the current practice in Singapore where the shipping agent arranges for berths, pilotage and port clearance for the vessel. This is also the practice in most major ports in the world, including London and Rotterdam.

Besides updating the Port of Singapore Authority Act, the Bill seeks to incorporate into the Act provisions of the Merchant Shipping Act which relates to port clearance and control of harbour craft and shipping in Singapore waters. PSA currently administers these provisions while the other provisions in the Merchant Shipping Act are administered by the Marine Department.

Sir, after the tragic accident involving the collision of the Eniwetok with the Sentosa cableway three years ago, the PSA has introduced several measures to prevent a similar occurrence and to increase safety in our port. These include the requirement for vessels to give accurate information regarding their heights, and the declaration of the area in the vicinity of the cableway as a Height Restricted Area. Vessels entering or manoeuvring in the Height Restricted Area are required to comply with stringent safety regulations. Vessels with heights exceeding 52m are prohibited from this Area.

In line with the recommendations of the Commission of Inquiry into the Sentosa Cableway Accident, the penalties under sections 64(4), 66(1) and 107(1) of the Act have been enhanced to ensure scrupulous compliance with these safety measures. Most of the other penalties under the PSA Act have not been changed over the last 20 years. These penalties have now been enhanced to maintain their effectiveness in encouraging compliance with port safety measures. This will help ensure safe, efficient and orderly shipping in our port and help us maintain our reputation and international competitiveness, thus contributing to the overall development of our economy.

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. - [Dr Yeo Ning Hong].

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