FINANCIAL PROCEDURE (AMENDMENT) BILL

Order for Second Reading read. 2.25 pm

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Constitution of the Republic of Singapore (Amendment) Act 1991 was passed by Parliament on 3rd January 1991 and assented to by the President on 18th January 1991. Arising from this, it is necessary to amend the Financial Procedure Act (Chapter 109) to take into account the newfinancial provisions introduced by the constitutional amendments. As Members know, the purpose of these new financial provisions is to protect Government's reserves.

This Bill seeks to make the necessary consequential amendments. It also proposes some other amendments that either reflect current practice or are of a drafting nature.

With your permission, Sir, I will now highlight the principal amendments.

The words "other than land" in the long title of the Act are proposed to be deleted. This is so that public property referred to therein would include immovable public property. This is necessary as immovable public property such as land will be included in determining Government's reserves.

A new section 2A is proposed to provide for the appointment of the Accountant-General. This is in line with the new Article 22 of the Constitution. New section 2B spells out the duties of the Accountant-General.

Section 7 of the Act is proposed to be amended to include gold and bullion in the list of assets that public funds may be invested in, and to disallow investment in any stock, bond, fund or security issued by the Government. This is to reflect current practice.

Section 8(1) of the Act is proposed to be amended to allow the creation of deposit accounts for the proper accounting ofmoneys received but which are not revenues of Singapore. Currently, there is no specific authority for the opening of deposit accounts for accounting of moneys like confiscated gambling money and security deposits.

Section 9 of the Act is proposed to be amended to reflect the current practice of including moneys for the purpose of making advances in the Annual Estimates submitted to Parliament for approval.

An amendment is proposed to section 11(2) to provide that the Minister may make advances from the Contingencies Fund only with the concurrence of the President. This amendment is consequential to Article 148C of the Constitution.

Consequential amendments are also proposed to section 12 of the Act to provide that the Minister may authorise issue of moneys from the Consolidated Fund in the following circumstances:-

(a) to meet expenditure appropriated by a Supply or Supplementary Supply law or any other law or approved by resolution of Parliament in accordance with Article 148A(2) of the Constitution;

(b) to meet expenditure approved by a resolution of Parliament in accordance with Article 148B(1) or Article 148B(2) of the Constitution with which the President concurs;

(c) to meet expenditure approved by the Cabinet in accordance with Article 148B(4) of the Constitution should there be no Supply Law by the first day of a financial year.

Section 15 of the Act is proposed to be repealed and re-enacted to provide that no guarantee shall be binding on Singapore unless it is given with the written authority of the Minister with the President's concurrence or in accordance with law. The section also provides that no loan raised by the Government shall be binding unless it is raised in accordance with Article 144 of the Constitution.

Finally, section 18 of the Act is proposed to be amended in keeping with Article 147(5) of the Constitution. This imposes a duty on the Minister to furnish, togetherwith the annual financial statements, a statement of outstanding guarantees and other financial liabilities of Singapore at the end of the financial year. It also requires the Minister to present to the President the audited accounts and financial statements together with a statement stating whether the audited accounts and statements show any drawing, or likelihood of drawing, on the reserves of the Government not accumulated by the Government during its current term of office.

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 Richard Hu Tsu Tau].

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