CISCO (DISSOLUTION) BILL

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CISCO (DISSOLUTION) BILL: Order for Second Reading read.

The Minister for Home Affairs (Mr Wong Kan Seng): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, the Commercial and Industrial Security Corporation, or CISCO, was formed in 1972 as a statutory board under the Ministry of Home Affairs to provide, on a commercial basis, guards and security services to the private and public sectors. In this way, regular police officers could be freed up, to focus on core duties relating to the preservation of public peace and order.

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Developments in the armed security industry

Since CISCO's formation in 1972, the armed security industry in Singapore has changed in many ways. CISCO has evolved, diversifying from its origins as an armed security provider to become a "one-stop shop" for a full range of physical, IT and data security services. Some of the other Auxiliary Police Forces (or APFs) have also developed to become more sophisticated and reliable security providers. These changes in the industry, coupled with the demand for armed security services arising from the current security climate, prompted the Ministry to introduce competition into the armed security sector.

A new framework for the armed security industry was put in place with the introduction of the Police Force Act 2004 in October last year. As Members would be aware, a key aspect of this new framework is the provision to allow Auxiliary Police Forces in Singapore to now compete for armed security services islandwide, as long as they meet the necessary requirements set out by the Singapore Police Force. Through regulated and open competition, the standards and performance of the Auxiliary Police Forces in Singapore would be raised, so that they could better support the Singapore Police Force in the provision of armed security service to buildings and premises to raise the overall security of Singapore.

Reasons for corporatising CISCO

With these changes, it is no longer tenable for CISCO to remain a statutory board under the Ministry of Home Affairs competing with other commercial Auxiliary Police Forces. In June last year, I informed this House that, with the

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introduction of competition into the armed security industry in Singapore, the Government would be corporatising CISCO.

Sir, with its corporatisation, CISCO will be freed from various obligations and restrictions placed upon it as a statutory board under the Ministry. It need not follow the various directives that are meant for Government departments and statutory boards, which might have hampered its ability to provide competitive services.

Similarly, the other Auxiliary Police Forces can also be assured that CISCO will not enjoy any preferential treatment. For example, CISCO will no longer share the same insignia as Police and, upon corporatisation, CISCO's Auxiliary Police Forces will no longer don the same uniform as the Police. Our intention is to create a level playing field for all players in this armed security industry.

Updates on corporatisation of CISCO

Sir, I will now give a brief update on the latest developments on the corporatisation of CISCO.

MHA has decided to transfer all of CISCO's assets, liabilities, staff and contracts to the new company. This will ensure that the new company has the necessary staff and equipment to continue providing its services, so that disruptions to the existing security operations will be minimal.

The new company will operate as a wholly Government-owned company and will take over and continue to operate in all the business areas that the CISCO Statutory Board is engaging in today. Going forward, the new company can choose to enter new areas or exit existing areas of businesses based on market forces.

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MHA will not be giving CISCO a moratorium. This is in the best interests of CISCO, the other Auxiliary Police Forces (APFs) and the armed security industry in general. Today, CISCO is already operating some services commercially. A moratorium is thus not required.

The Ministry and CISCO will work with all the relevant parties to ensure a smooth corporatisation. The date of transfer and dissolution of CISCO will be announced when the groundwork has been completed.

Mr Deputy Speaker, Sir, before I conclude, I would like to recognise CISCO's contributions to Singapore as a statutory board over the years. CISCO has played a key role in maintaining safety and security in Singapore all these years, and has been an important member of the Home Team. CISCO has provided security for many of our key installations. Most recently, during the SARS episode, CISCO responded very quickly to our needs, such as when we needed officers to assist in giving out SARS Home Quarantine Orders and in monitoring the compliance of those served with the Home Quarantine Orders. I believe that even after it is corporatised, CISCO, together with the other APFs, will continue to play their role in ensuring the safety and security of Singapore, responding as key partners of the Home Team, when they are called upon.

Sir, the corporatisation of CISCO is a key step in the liberalisation of the armed security industry in Singapore which, in turn, is a necessary response to the prevailing security challenges. The corporatisation of CISCO will allow the Auxiliary Police Forces in Singapore to compete on a level playing field. I am confident that the standards of the APFs in Singapore will improve with competition. This would lead to enhanced physical security and protection of our critical infrastructure and key installations,

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and help to free up the Singapore Police Force to focus on its core duties.

Sir, I beg to move.

Question proposed.

Mr Low Thia Khiang (Hougang): Sir, I refer to clause 10(2)(a) of the Bill which reads: "in accordance with the Police Force Act 2004 where the employee is an auxiliary police". I wonder whether the word "officer" should be added after the word "police", and read as: "...where the employee is an auxiliary police officer". Just a clarification, Sir.

Mr Wong Kan Seng: Clause 10(2)(a) states: "...where the employee is an auxiliary police". Yes, it may be so, but it may be a drafting matter. If it needs to be corrected, we will correct it.

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 Wong Kan Seng].

[Mr Deputy Speaker in the Chair]

The Chairman: The citation year "2004" will be changed to "2005" as indicated in the Order Paper Supplement.

Clauses 1 to 16 inclusive ordered to stand part of the Bill.

The Schedule ordered to stand part of the Bill.

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