CARRIAGE BY AIR (AMENDMENT) BILL

Order for Second Reading read. 5.02 pm

The Minister of State for Communications (Dr John Chen Seow Phun): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, the Bill seeks to amend the Carriage By Air Act (Chapter 32A of the 1989 Revised Edition) to give effect to the provisions of the Montreal Protocol No. 4 which amend the Warsaw Convention (relating to international carriage by air) as amended by the Hague Protocol (which is referred to in the Bill as the "Warsaw (Hague) Convention").

The Montreal Protocol No. 4, which deals with the international carriage by air of cargo and baggage, amends the Warsaw (Hague) Convention to allow electronic air waybills to replace the traditional paper air waybills, thus removing the need for air waybills to physically accompany shipments. This provides greater convenience to shippers, freight forwarders, consignees and airlines. It also reduces cost and increases efficiency of the shipment of air cargoes.

The Protocol also amends the Warsaw (Hague) Convention to introduce strict liability for the carriage of cargo and expresses the limit of the carrier's liability in terms of the IMF's Special Drawing Rights (SDR) instead of US dollars, without changing the limits of the carrier's liability.

In today's trade environment, manufacturers increasingly seek just-in-time delivery and related strategies as ways of enhancing efficiency and reducing business costs. To exploit these innovations, it is more efficient to use electronic air waybills via Electronic Data Interchange (EDI) in place of the traditional paper air waybills.

The electronic approach is not only less expensive, but also faster and less of a hassle to customers. By making better use of EDI as allowed under the Protocol, carriers and shippers can maximise the productivity of their resources.

These issues are addressed by the ratification of the amendments to the Warsaw Convention by the Montreal Protocol No. 4. Singapore acceded to the Protocol on 31st October 1997 and the Protocol came into force for Singapore on 12th September 1998.

Sir, let me now address the key provisions of the Carriage By Air (Amendment) Bill. The Warsaw (Hague) Convention, as amended by Montreal Protocol No. 4, is referred to in the Bill as the Warsaw (Hague) (Montreal) Convention.

Clause 1 relates to the short title and commencement. The clause deems the Bill to have come into operation on 12th September 1998 and provides that the Bill should not affect rights and liabilities arising out of an occurrence which took place before that date.

Clause 2 amends the long title to incorporate the reference to the Montreal Protocol No. 4.

Clause 3 reorganises the definitions in section 2 by replacing the existing definitions of "Convention" and "amended Convention" with the new definitions of "Warsaw Convention" and "Warsaw (Hague) Convention" respectively and further inserts 2 new definitions of "Montreal Protocol No. 4" and "Warsaw (Hague) (Montreal) Convention".

Clause 4 amends section 3 to provide that the provisions of the Warsaw (Hague) (Montreal) Convention shall have the force of law in Singapore; and if there is any inconsistency between the text of the Warsaw (Hague) (Montreal) Convention as set out in the Third Schedule and the Montreal Protocol No. 4, the authentic French text shall prevail.

Clause 5 amends section 4 to empower the Minister to certify who are the Parties to the Warsaw (Hague) (Montreal) Convention.

Clauses 6 to 14 deal with consequential and drafting amendments.

Clause 15 inserts a new Third Schedule containing the text in English of the Warsaw (Hague) (Montreal) Convention.

In conclusion, Sir, the amendments of the Carriage By Air Act to give effect to the amendments made by the Montreal Protocol No. 4 to the Warsaw (Hague) Convention would benefit our air cargo industry by facilitating the transition to a fully electronic trading environment for air cargo in Singapore. The result is significant gains in efficiency and greater convenience to shippers, freight forwarders, consignees and airlines. The efficient use of EDI would enhance our Changi Airport's status as a major air hub in the region and further increases its international competitiveness.

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 John Chen Seow Phun.]

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