PUBLIC UTILITIES (AMENDMENT) BILL

Order for Second Reading read. 12.22 pm

The Minister for Education (Dr Tony Tan Keng Yam)(for the Minister for Trade and Industry): Mr Deputy Speaker, Sir, I am moving this Bill, and the next one, on behalf of the Minister for Trade and Industry who is away from Singapore.

Sir, I beg to move, "That the Bill be now read a Second time."

In November last year, Members were informed that the Government would amend the law to increase substantially the maximum fine for damaging electrical cables. This is the principal purpose of the Bill now before this House.

The Bill proposes to amend the Public Utilities Act (Chapter 261) to:

(a) license cable detection workers;

(b) make provisions to prevent the damage to electrical cables; and

(c) streamline the operations of the Public Utilities Board, and allow greater flexibility in the administration of the Board's affairs.

Cable damage by contractors is the most frequent cause of power failure in Singapore. Between 1984 and 1987, it accounted for over 60% of the total number of power failures which affected sizable parts of Singapore. In the first six months of this year, another 42 cases of power failures were caused by contractors damaging electric cables.

The cost of these power disruptions to the nation is considerable. It is far greater than the actual cost of repairing the damaged cables. During a blackout, factories have to stop production; offices cannot function; shops lose business; homes suffer inconvenience, and the smooth operation of our economy is affected. But what is regrettable is that this loss of millions of dollars in production and business is entirely avoidable. Damage to cables can be prevented if only contractors follow the proper procedures, verify the locations of underground cables and take basic precautions before doing excavation works.

The Bill will therefore make it compulsory for contractors intending to dig holes near electrical cables to hire the services of a qualified person, duly licensed by the PUB, to advise them where and how deep they can dig.

A new Part VIA is added to the Act to make it an offence to carry out earthworks near PUB cables without employing a licensed cable detection worker to do the necessary detection work. It will also be an offence for any person not licensed by the PUB to hold himself out as a cable detection worker or to carry out detection work. The maximum fines for these offences are $5,000 and $250 per day for a continuing offence.

Currently, the maximum fine for damaging PUB cables is $5,000. This amount is clearly not adequate and not in proportion to the gravity of the offence that has been committed. There is a need for a more deterrent penalty to curtail such damages and the Bill according amends Section 74 so that in future anyone found guilty of causing damage to electrical cables will be liable to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year or both.

The Bill seeks to give fair treatment to contractors who have conscientiously followed the proper procedures and taken due precautions. A new section 74A is added to the Act which sets out a defence to any prosecution for damaging electrical cables. An accused will not be guilty if he can prove that he has taken all reasonable precautions and exercised due diligence, which include engaging and acting on the advice of a licensed cable detection worker.

Sir, the Bill also proposes to amend section 77 of the Act to increase the maximum fine for theft and unlawful supply of utilities from $5,000 to $50,000. Sir, theft and unlawful supply are serious offences. Theft of water in particular has been a problem, especially at construction sites, where it is easy to tap water mains without PUB permission. The diversion often goes undetected, since the PUB cannot inspect every construction site every day. The crime is difficult to prevent, and the losses of revenue are considerable. The $5,000 fine is inadequate, and a higher fine is needed for effective deterrence.

Section 90(3) is amended to revise the penalty for refusing to give information to a police officer or employee of the Board from $50 to $100. This penalty was last revised in 1963. Section 94(4) is amended to raise the fine for continuing contravention of regulations made under the Act from $150 per day to $250 per day. This will bring it in line with other similar fines in the Act.

Sir, the Bill amends section 89 of the Act to give the District and Magistrate Courts the jurisdiction to try the offences and to impose the enhanced fines and penalties. A new section 74B is proposed to allow compensation awarded for damage to the Board's property to be recovered as a judgment debt.

The opportunity is also taken, Sir, to make the following amendments to streamline the Board's operations and bring them in line with the practices of the other major statutory boards:

(a) Section 4 of the Act is amended to allow the Director of Finance instead of the Chief Executive Officer to sign loan documents.

(b) Sections 5 and 13 of the Act are amended to give the Board the discretion to determine the designation of the Chief Executive Officer and to appoint Directors of Finance, Water, Gas and Electricity without seeking the approval of the Minister and the Public Service Commission. It will also give the Minister flexibility to determine the terms and conditions for the appointment of Board members and to appoint the Chief Executive Officer as a Board member. This, Sir, is consistent with the practice in the other statutory boards.

(c) Sections 69 and 70 are deleted to relinquish the Board's power to request the President to acquire private land. These powers are not needed as all past cases of acquisition have been made under the Land Acquisition Act.

(d) Section 75 is amended to enable the Board to safeguard its symbol and prevent it from being misused to mislead the public.

(e) A new subsection 93A(3) ia added to allow the Board to retain the fees collected for compoundable offences.

The PUB requires one year to train up a sufficient pool of cable detection workers. The Government therefore intends to bring into effect the amendments relating to electrical cable damage and licensing of cable detection workers once a sufficient number of workers have been trained. The other amendments can come into operation immediately.

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 Tony Tan Keng Yam].

Bill considered in Committee; reported without amendment; read a Third time and passed. 12.30 pm