SENTOSA DEVELOPMENT CORPORATION (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The main objective of the Bill is to enable the Sentosa Development Corporation, or SDC for short, to administer the Sentosa Cove development. The Bill will also make some minor amendments to the SDC Act to enhance the administration of Sentosa island and the Corporation.

Sentosa Cove project

Let me begin by giving Members of the House some information on the Sentosa Cove project.

Sentosa Cove, which used to be known as Buran Darat, is located on the eastern end of Sentosa island. It will have a total land area of 116.5 hectares. SDC will turn Sentosa Cove into an integrated waterfront development, comprising a marina, a hotel, shops and a major residential housing development with bungalows, townhouses, condominiums and apartments. The concept was modelled after Port Grimaud on the French Riveria. Sentosa has subsequently studied other newer waterfront developments elsewhere in the world and incorporated concept and design features from these newer projects which suit our local environment.

The Government decided on the Sentosa Cove project for three reasons. Firstly, to realise the economic potential of Sentosa Cove. Secondly, to provide in Singapore an unique waterfront development. Thirdly, to enhance the tourism product of Sentosa. Port Grimaud attracts many tourists because of its unique development. We expect Sentosa Cove to be equally successful as a tourist attraction, both to locals as well as to tourists.

The project will be implemented by SDC's fully-owned subsidiary, Sentosa Cove Pte Ltd, which will operate as SDC's agent. SDC is now in the process of finalising the detailed plans for the entire development. It intends to parcel out the lots in a variety of sizes, ranging from single bungalow lots, to multi-bungalow, townhouse and condominium developments. The lots will be tendered out on 99-year leases. This approach will enable private individuals and developers to participate in the tender exercise.

In drawing up the development plans for Sentosa Cove, my Ministry and SDC have recognised the importance of preserving the ambience and charm of Sentosa. This has been Sentosa's unique feature, and makes the island special to its many visitors. As such, we plan to limit Sentosa Cove to a total of 2,300 residential units. Vehicles travelling to and from Sentosa Cove will not be permitted into other parts of Sentosa.

SDC's target is to launch the land sales in the second half of next year. The land sales phasing will of course take into account prevailing market conditions.

Major amendments

Let me now take Members through the SDC Amendment Bill. The major amendments to the SDC Act are those pertaining to the Sentosa Cove project.

Under the existing SDC Act, SDC's charter is restricted to managing, developing and promoting Sentosa proper as a tourist attraction. Clauses 5 and 6 of the Amendment Bill will enlarge SDC's charter to include developing and administering Sentosa Cove for residential, commercial and recreational purposes. The clauses will also allow SDC to venture into the region, or provide consultancy services, if suitable business opportunities come along.

Clause 9 of the Bill will give SDC the necessary powers to administer Sentosa Cove. The powers are in three main areas.

Firstly, powers to lay down conditions under which building works, including structures on water, can be undertaken on Sentosa Cove. Successful tenderers will be required to clear their designs with SDC before commencing building works. This is necessary to ensure that the external facade of buildings on Sentosa Cove will blend in with the ambience on Sentosa.

Secondly, powers to levy "estate maintenance contributions" on properties on Sentosa Cove for maintaining common areas on Sentosa Cove. SDC will set up a maintenance fund to maintain common areas such as canals, canal walls, sluices, gates and other land-based facilities on Sentosa Cove. Property-owners will bear the cost of such maintenance and improvements through a regular contribution to SDC.

Clause 9 of the Bill will also empower SDC to recover arrears in conservancy charges through the sale of properties. This is similar to the provisions under the Land Titles (Strata) Act. There are stringent safeguards in the Bill to avoid abuses by SDC.

Thirdly, powers to regulate the use of Sentosa Cove marina basin and inland waters. These powers are necessary for safety, navigation and environmental reasons, and to allow the marina to operate efficiently. The marina basin and inland waters will be policed by SDC staff. Clause 9 of the Bill provides for SDC's appointment of a "Harbour Master" who will be given the necessary powers to control the navigation and use of vessels in the Sentosa Cove waterways. It also prescribes the penalties for vessels which navigate in the Sentosa Cove waterways carelessly or dangerously.

Terms like "Harbour" and "maritime" are used in the Maritime and Port Authority Act with their own meanings. To avoid confusing the maritime community, I am proposing minor amendments to the Amendment Bill to replace these terms. The term "Harbour Master" will now be replaced with "Marina Superintendent". I will take the House through these amendments later at the Committee stage.

New Regulations

Sir, new regulations are also necessary to enable SDC to manage Sentosa island more effectively. Existing SDC regulations were promulgated in the 1970s. Since then, there have been many changes to the island. The most significant change was the construction of the causeway bridge which opened in December 1992.

SDC currently allows businesses operating on Sentosa and members of the Sentosa Golf Club to drive into Sentosa on a very restrictive basis. SDC controls the entry of such vehicles at its causeway checkpoint and administers a system of vehicle permits. But once on the island, some of these vehicles are driven around the island instead of to their designated locations. Some drivers park their vehicles in non-designated areas, inconveniencing Sentosa visitors and authorised vehicles.

Clause 14 of the Bill will allow SDC to rectify this situation. It provides for new SDC regulations to regulate traffic and the parking of vehicles in Sentosa. Drivers on Sentosa must recognise that driving into Sentosa is a privilege, and they should not abuse this privilege.

Minor Amendments

Let me now take the House through the proposed minor amendments to the SDC Act. They are necessary to facilitate the administration of Sentosa island and the SDC. Clauses 4 and 11 will allow SDC to redesignate the General Manager of SDC to Chief Executive of SDC, to reflect his enlarged job scope with SDC taking on the development of Sentosa Cove.

Clause 6 will allow SDC to grant loans to its subsidiary companies, such as Sentosa Cove Pte Ltd, subject to the written approval of the Minister for Trade and Industry.

Clause 7 will allow SDC to issue bonds, if necessary, to raise funds in the future. The bonds would supplement existing instruments like loans and debentures.

Clause 8 will extend the period by which SDC must present its Annual Report and financial statements from the current four months to six months from the end of the previous financial year. This will give SDC sufficient time to audit its financial accounts, and is in line with the practice in other statutory boards.

Clause 10 will allow SDC to appoint professional committees to assist the Corporation. This is in addition to existing provisions for SDC to appoint advisory and technical committees.

Clause 13 of the Bill will allow SDC to compound offences under the SDC Act and Regulations with fines of up to $500. Currently, SDC can only take actions against minor offenders through the Courts. The proposed provision will give SDC greater flexibility in dealing with minor offenders.

Sir, the proposed amendments to the SDC Act are necessary to allow SDC to administer the Sentosa Cove development, and to facilitate the administration of Sentosa island and the Corporation.

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. - [Mr Yeo Cheow Tong].

[Mr Speaker in the Chair]

Clause 1 ordered to stand part of the Bill.

Clause 2 -

The Chairman: There are four amendments. Mr Yeo, amendment No. (1).

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 2, to leave out lines 9 to 13.

Sir, the term "Harbour Master" is used in the Maritime and Port Authority (MPA) Act with its own meaning. To avoid confusing the maritime community if the term "Harbour Master" is also used in the SDC (Amendment) Bill, I am proposing to delete the term "Harbour Master" from this Bill.

Amendment agreed to.

The Chairman: Amendment No. (2), Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 2, after line 15, to insert -

" "Marina Superintendent" means the Marina Superintendent appointed under section 18H and includes any Deputy or Assistant Marina Superinten- dent appointed under that section;".

Sir, I propose to replace the term "Harbour Master" with the term "Marina Superintendent". This is to avoid any confusion with the MPA Act.

Amendment agreed to.

The Chairman: Amendment No. (3), Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 2, line 16, to leave out "maritime" and insert "marine".

Sir, the term "maritime" is used in relation to sea navigation and shipping in the MPA Act. I am proposing to replace the term "maritime" with "marine" in order to avoid any confusion with the MPA Act.

Amendment agreed to.

The Chairman: Amendment No. (4), Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 3, lines 17, 23 and 24, to leave out "tidal and".

Sir, deleting the words "tidal and" will make it clearer that the powers which SDC needs to operate the marina effectively are confined to the Sentosa Cove marina basin and inland waters, and do not extend into port waters.

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 3 -

The Chairman: There is one amendment. Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 4, line 7, to leave out ", employee or" and insert "or employee".

Sir, this is to correct a drafting error.

Amendment agreed to.

Clause 3, as amended, ordered to stand part of the Bill.

Clauses 4 and 5 ordered to stand part of the Bill.

Clause 6 -

The Chairman: There is one amendment. Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 6, line 11 and in page 7, line 5, to leave out "maritime" and insert "marine".

Sir, I have explained the reasons in the earlier amendment.

Amendment agreed to.

Clause 6, as amended, ordered to stand part of the Bill.

Clauses 7 and 8 ordered to stand part of the Bill.

Clause 9 -

The Chairman: There are four amendments. Amendment No. (1), Mr Yeo.

Mr Yeo Cheow Tong: Sir, may I have your permission to move amendments (1) and (3) together?

The Chairman: Yes, please proceed.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 9, lines 28 and 31, in page 10, lines 11, 18 and 21, and, in page 11, lines 3, 5 and 15, to leave out "maritime" and insert "marine".

In page 17, line 30 and in page 18, lines 8 and 9, to leave out "maritime" and insert "marine".

Sir, I propose to replace the word "maritime" with the word "marine". I have explained the reasons earlier.

Amendments agreed to.

The Chairman: Amendment No. (2), Mr Yeo.

Mr Yeo Cheow Tong: Sir, may I seek your permission to move amendments (2) and (4) together?

The Chairman: Yes.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 17, lines 17, 18, 24 and 25, to leave out "Harbour Master" and insert "Marina Superintendent".

In page 19, lines 14 and 16 and in page 20, lines 1, 32 and 38, to leave out "Harbour Master" and insert "Marina Superintendent".

Sir, this is to replace the term "Harbour Master" with the term "Marina Superintendent". I have explained the reasons earlier.

Amendments agreed to.

The Chairman: The following two consequential amendments will be made:

(i) To delete "maritime" and insert "marine" in the marginal note to section 18C.

(ii) To delete the marginal note to section 18H and insert "Appointment of Marina Superintendent and Deputy and Assistant Marina Superintendents."

Clause 9, as amended, ordered to stand part of the Bill.

Clauses 10 to 13 inclusive ordered to stand part of the Bill.

Clause 14 -

The Chairman: There is one amendment. Mr Yeo.

Mr Yeo Cheow Tong: Sir, I beg to move,

In page 23, line 13, to leave out "maritime" and insert "marine".

Sir, I propose to replace the word "maritime" with the word "marine". I have explained the reasons earlier.

Amendment agreed to.

Clause 14, as amended, ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.