GOVERNMENT SECURITIES (AMENDMENT) BILL

Order for Second Reading read.

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 Bill is related to the Local Treasury Bills (Amendment) Bill which the House has just passed. It seeks to amend the Government Securities Act such that all proceeds raised under the Local Treasury Bills Act on or after the commencement of the Local Treasury Bills (Amendment) Act may be paid to the Government Securities Fund instead of the Consolidated Fund.

The Bill amends section 3 of the Government Securities Act to provide for the proceeds from the issue of treasury bills to be paid into the Government Securities Fund.

The amendment to section 5 of the Act is to allow the redemption of treasury bills and other related expenses to be met from the Government Securities Fund.

The Bill also amends section 6 of the Act such that if the Government Securities Fund proves deficient in meeting the principal payments on treasury bills, the deficiency will be charged to the Consolidated Fund. This provision is similar to the existing provision in the Government Securities Act which allows the Consolidated Fund to be drawn upon when the moneys in the Government Securities Fund are insufficient to meet any obligations arising from the Act.

Sir, I beg to move.

Question proposed.

Dr Ow Chin Hock (Leng Kee): Sir, I support the Bill but I would like to seek one clarification. What is the size of the Government Securities Fund at this moment?

Dr Richard Hu Tsu Tau: The total issue is in billions of dollars. I do not recall the exact figure. But the Government Securities Fund accounts for all Government bonds issued which have maturities exceeding one year, two years, five years and seven years and all bonds issued to the CPF Board. So it runs into billions of dollars.

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.

[Mr Speaker in the Chair]

Clause 1 -

The Chairman: In page 1, line 4, the citation year "1995" will be changed to "1996". This will be done.

Clause 1 ordered to stand part of the Bill.

Clause 2 -

The Chairman: In page 2, line 8, the citation year "1995" will be changed to "1996". This will be done.

Clause 2 ordered to stand part of the Bill.

Clause 3 -

The Chairman: In page 2, line 13, the citation year "1995" will be changed to "1996". This will be done.

Clause 3 ordered to stand part of the Bill.

Clause 4 -

The Chairman: In page 2, line 22, the citation year "1995" will be changed to "1996". This will be done.

Clause 4 ordered to stand part of the Bill.

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