Hon Sui Sen
Singapore
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE.”
“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put…”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions.”
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“SISIR's main functions as provided in the Bill may, therefore, be summarised as follows:- (a) To promote standardisation in industry and trade with a view to improving not only the quality of commodities, but also industrial efficiency and productivity; (b) To operate a Certification Marking Scheme and other related schemes for locally made goods; (c) To operate a scheme of quality control of specified commodities exported from Singapore for the purpose of developing and promoting our export trade; and (d) To upgrade local skills and technology through the provision of technical consultancy services and through the application of industrial research. The Bill contains various provisions relating to the establishment, constitution and administration of the Institute. The Institute is to consist of a Chairman and eight other members, all of whom are to be appointed by the Minister. The Bill also contains provisions dealing with the Institute's financial year, the financial procedure to be adopted by the Institute, and the preparation of financial statements and auditor's report for presentation to Parliament. Provision is also made under the Bill for the Minister to make grants to the Institute of such sums of money that may be provided by Parliament for the purpose of enabling the Institute to carry out its functions. With the expanded powers conferred under the Bill, the Institute will be able to carry out its functions with greater efficiency and to play an increasing role in promoting the sustained growth of our local industry and of our export trade through its various quality schemes.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill which is now before the House seeks to establish the Singapore Institute of Standards and Industrial Research (or SISIR in short) as a statutory body. The Institute will take over from the Economic Development Board the latter's responsibilities in regard to the promotion of standardisation and the operation of a Certification Marking Scheme. The Bill will in addition give SISIR wider powers to establish and implement schemes that are necessary for the promotion of Singapore-made products. Presently, SISIR operates the Certification Marking Scheme for products and processes which conform to, the relevant Singapore standard or other international standards. This gives intending purchasers of a product an assurance by an independent body that the product conforms to the highest standards. Manufacturers join this scheme voluntarily. However, where Singapore's good name as a manufacturing nation may be affected because some manufacturers produce shoddy goods, SISIR is empowered, under the Bill, to make export inspection of certain types of goods compulsory. It is thus part of SISIR's function as a statutory body, to upgrade the technology in local industry and to ensure that the Made-in-Singapore label is synonymous with quality and reliability.”
“Sir, I beg to move, In page 6, to leave out lines 31 to 35 inclusive and insert "income of a shipping enterprise" means the income derived by a shipping enterprise from the carriage (other than within the limits of the port of Singapore) of passengers, mails, livestock or goods by sea-going Singapore ships and includes the income from the charter of such ships;"". Sir, it was the intention of clause 6 of the Income Tax (Amendment) Bill to remove any doubt that under the existing provision of section 13 (a) of the Income Tax Act, the exemption from income tax to Singapore registered ships does not apply to harbour craft, such as passenger ferries, fishing boats, tongkangs, etc., which operate within the Port limits of Singapore. Unfortunately, clause 6 of the Bill, as drafted, could also be construed to exclude any Singapore sea-going ship which does not call at Singapore. The purpose of the exemption from income tax is to encourage registration of all sea-going ships registered in Singapore, irrespective of whether they call at Singapore or not. Therefore, it is proposed by the present amendment to reword the definition in clause 6 to make it clear that there would be no change in the exemption from income tax of seagoing Singapore registered ships, but not of vessels which are used only within the Port limits of Singapore. Amendment agreed to. Clause 6, as amended, ordered to stand part of the Bill. Clauses 7 to 15 inclusive ordered to stand part of the Bill. Clause 16 -”
“Mr Speaker, Sir, I am indebted to the Member for Jalan Kayu for his valuable suggestions. As he has suggested, I will confer with the Minister for National Development to see whether or not any of his suggestions can be considered. I would, however, say that this provision in the Bill was intended really to apply to industrialised farming, which the future Singapore must get into, that is, to run the flatted factory farm in the way that an industry is run. I think this requires more skilled management than the individual farmer can provide, even on a collective basis. However, I do not think we can deal with the problems of agriculture while considering this particular Income Tax (Amendment) Bill, and the Member's suggestions therefore should be referred to and considered in other more appropriate areas. 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 Hon Sui Sen]. Bill considered in Committee. [Mr Speaker in the Chair] 4.49 p.m. Clauses 1 to 5 inclusive ordered to stand part of the Bill. Clause 6 -”
“Clause 10 will disallow income tax deductions by individual taxpayers on life insurance premiums, unless the insurance company concerned has a branch or office in Singapore. This amendment is logical and equitable as the Insurance Commissioner has no authority over foreign insurance companies not operating in Singapore and such companies do not pay any tax in Singapore. The proposed amendment will not, however, affect existing policy holders who pay premiums to insurance companies overseas. The present rate of penalty for late payment of tax is 5 per cent interest on outstanding arrears of income tax payments. This rate is too low to induce some taxpayers to make early payments. Clause 14 provides that the penalty rate of interest of 5 per cent will be increased by 1 per cent for every month that the tax remains unpaid up to a maximum of 12 per cent. This amendment should prevent delinquent taxpayers from wilfully delaying their payments. I shall now deal with the last category of amendments which are intended to remove any vagueness in the existing provisions. Clause 4 seeks to make it clear that interest paid by a local borrower to a foreign lender and interest on a loan, the funds from which are brought into or used in Singapore, are taxable in Singapore irrespective of where the loan agreement is made. Clauses 5 and 11 seek to remove any doubt that non-resident directors are liable to a flat rate of 40 per cent tax, irrespective of the period of their presence in Singapore. Clause 2 seeks to define the residential status of individual taxpayers and companies because of the changeover to the preceding year basis of assessing income tax. The remaining amendments are consequential and procedural in nature. Mr Speaker, Sir, I beg to move. Question proposed. 4.42 p.m.”
“These organisations and charities enjoy major concessions under the Income Tax Act, as they get full exemption from income tax on contributions of donors and on their own income. It would not be unreasonable, therefore, to require under the Income Tax Act that these organisations apply their tax exempt income solely for charitable purposes, that they do not engage in trade or business except in pursuance of their primary purpose, and that a reasonable part of their income is distributed every year. Clause 5 of the Bill provides that charitable organisations should distribute not less than 80 per cent of their income, unless it is otherwise agreed by the Comptroller of Income Tax which he will do if any reasonable grounds are presented why a lower proportion should be spent. To prevent one common abuse of its tax exemption status, any expenses which do not fall directly within the ambit of charity can be disallowed by the Income Tax department. As the proposed amendments will ensure that charitable organisations fulfil the objectives of their founders, I do not expect them to be other than generally welcomed. The Stock Exchange which witnessed a lot of speculative activity last year, also saw the emergence of "share option schemes". Such share option schemes allow directors and employees to take an option to buy shares in the company at often a nominal price. Clause 3 of the Income Tax Act will make it clear beyond doubt that gains or profits from share option schemes are liable to income tax. Clause 9 clarifies that income tax will be imposed on the profits made by a life insurance company on the sale of its investment. Such investment is an integral part of the day-to-day business of an insurance company.”
“It has been found that though the annual values of such rent controlled premises are already very low, some directors and employees receive even lower emoluments than the annual values of the houses, and pay very little income tax thereon, although they may be occupying very large and prestigious rent controlled premises. Clause 3 of the Bill, therefore, seeks to deem the full annual value of rent controlled premises provided to directors or employers by companies to be gains or profits of employment, and therefore subject to tax, if their remuneration is less than the annual value of premises provided. When the Income Tax Act was last amended in 1969, exemption from income tax was accorded for profits of Singapore registered ships. This was done to encourage more registration of ships in Singapore. The intention was to give income tax exemption to large sea-going ships only, but because the provisions are vague, passenger ferries, barges, fishing trawlers and tongkangs and miscellaneous local harbour craft have also been applying for exemption. Clause 6 will clearly restrict the exemption to Singapore sea-going ships. The Income Tax Act was amended to disallow carry-forward of losses on takeovers where a company with accumulated losses was bought purely for tax benefits. It is also proposed to bring into line with this amendment the carry-forward of depreciation allowances, which is also another source of tax manipulation. Clause 8 accordingly seeks to disallow carry-forward of depreciation allowances where the ownership of a company is changed substantially. Charitable organisations and charities in Singapore, unlike those in some countries, have hitherto been subject to very little scrutiny or supervision of their activities.”
“I may add here that, generally, only for loans which are sizable, and where the interest rate and the repayments are favourable and the loans are made by bona fide financial institutions, will the full exemption be accorded under the provision of clause 5 (d). In view of Government's efforts to modernise and encourage the intensive form of farming in "flatted" farm buildings, clause 7 will extend depreciation allowances to such buildings used for rearing livestock and poultry. Clause 10 provides for a deduction of $1,000 or the full-earned income if this is less, in respect of earned income relief from the year of assessment 1st January, 1972; full deduction in respect of insurance premiums and provident fund contributions up to $4,000 by deleting the limitation of 1/6th of assessable income from the year of assessment 1973; and certain changes regarding allowances for maintaining children from the year of assessment 1st January, 1974, which are given in detail in the new Fifth Schedule to the Bill. I need not take the time of hon. Members by spelling out these changes as these have been announced previously in Parliament. The next category of amendments in the Bill seeks to cut some benefits which a minority of taxpayers have in each case enjoyed. The first such amendment concerns changes in the taxation of benefits in the form of free housing accommodation provided to directors and employees by companies. The present practice is to regard the value of such benefit as equivalent to the full annual value of the housing, if this annual value does not exceed 10 per cent of the taxpayer's emoluments. This practice needs to be changed in respect of rent controlled premises.”
“In line with our policy of encouraging Singapore investment in Indonesia, profits repatriated to Singapore from approved projects in Indonesia have been exempted from income tax. The tax-free profits, however, presently become taxable when received by shareholders in the form of dividends. Clause 5 (f) seeks to allow such dividends to be distributed tax-free to shareholders. This "carry-through" provision will be consistent with the treatment of Singapore pioneer companies' profits. Dividends declared from these are tax-free in the hands of shareholders. The economic development of the Republic requires large amounts of capital to be borrowed for investment. Some of these borrowers are, for example, statutory boards and high skill and high technology industries in the private sector. At present, Singapore borrowers enjoy concessions in respect of income tax on interest payable to overseas lenders under the Economic Incentives Act and under Double Taxation Treaties which we have signed with many countries. The existing provisions may, however, be inadequate or may not be applicable in certain cases because we do not have Double Taxation Treaties with certain countries. It is intended, therefore, to make provision in the Income Tax Act to enable complete exemption to be given from tax on the interest payable to overseas lenders if the loans have the prior approval of the Government. Clause (5) (d) provides that such exemption from income tax on interest payable to overseas lenders will be considered where such a loan will promote economic or technological development of Singapore (in respect of the private sector or statutory boards) and in respect of all loans borrowed by the Government.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of the Income Tax (Amendment) Bill is, firstly, to seek legislative authority for a number of tax concessions, many of which have previously been announced and, secondly, to tighten up certain of the existing provisions of the Act, which, in the light of experience since the Income Tax Act was last amended in 1969, appear to need improvement. I shall first deal with those amendments which represent tax concessions. Clauses 5 and 12 of the Bill stem directly from the Government's policy of developing Singapore into a regional financial centre. To sustain the rapid and robust growth of the Asian Dollar Market, it is considered that, in addition to liberalisation of foreign exchange regulations and exemption from income tax on interest paid to non-resident depositors of Asian Dollars, further concessions from income tax are desirable to create profitable outlets for the Asian Dollar Market. Clause 5 of the Bill provides exemption from income tax on the interest payable to non-resident holders of Asian Dollar Bonds issued in Singapore where such bonds have the prior approval of the Government. This exemption should help in the flotation of more international bond issues in Singapore. Clause 12 of the Bill provides a reduction from the income tax rate of 40 per cent to 10 per cent or other special rate on offshore income of banks or other institutions in Singapore making loans to overseas borrowers from their Asian Currency Units. Details of the kind of loans, and their appropriate rates of tax and other conditions will be specified in regulations made under this clause.”
“The repeal of the Rubber Shipping and Packing Control Act will not prevent the existing registered shippers and packers of rubber for export from continuing operation until the date of expiry of their present licence. Moreover, any manufacturer of technically specified rubber will be allowed to continue with his manufacturing operation for two months from the date of coming into force of the Rubber Industry Act, during which time the manufacturer should apply for a licence under the new Act. This Bill also provides for the vesting in the RAS of all assets and property belonging to the MRERB and all the rights, obligations and liabilities of the MRERB will be assumed by the RAS. A great deal of effort has been put in by both Malaysia and Singapore traders to shift the rubber market from London and New York to this region. This Government can do no less than to help our traders consolidate the position of Singapore as a reliable market for quality rubber by enacting this Bill. I hope that both the markets in Kuala Lumpur and Singapore will continue to work closely and co-operate for their mutual benefit. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. INCOME TAX (AMENDMENT) BILL Order for Second Reading read. 4.29 p.m.”
“Under the provisions of the Bill, the RAS will carry out the following functions: (a) Issuing of licences to rubber packers, shippers and manufacturers of technically specified rubber; (b) Ensuring the quality of rubber exported; and (c) Exercising disciplinary control on the natural rubber industry. I shall elaborate a little on these functions. When an application is made for a licence to pack or ship rubber for export, the RAS will grant the licence if, after consideration of the character and financial position of the applicant and the interest of the public, it is satisfied that the applicant is a fit and proper person to hold the licence. The RAS will prescribe the rules that must be followed before an applicant for a licence to manufacture technically specified rubber can be approved. Such rules will include testing and quality control procedures to be adopted by the manufacturer of technically specified rubber and the conditions upon which the licence is to be issued. Any person whose application for a licence is rejected may appeal to the Minister whose decision shall be final. To ensure that all rubbers including technically specified rubbers exported from Singapore are of the specified quality, the Bill provides the RAS with powers to inspect books, documents and rubbers and to cancel the licence if the holder has contravened any of the provisions of the Bill or any of the rules made thereunder. A person whose licence has been cancelled will have the right to appeal to the Tribunal of Appeal which shall be established under clause 11 of the Bill.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, this Bill is the result of a change in policy by the Malaysian Government in regard to joint Malaysian and Singapore Government control of the industry in rubber and its packing and shipping for export purposes. The Malaysian Parliament has now passed an Act to set up the Malaysian Rubber Exchange and Licensing Board, which will replace the existing Malayan Rubber Export Registration Board (MRERB), the joint Malaysia/Singapore statutory body, and the Malayan Rubber Exchange. With the imminent dissolution of the MRERB, which has been regulating and improving the rubber industry, it is necessary that the functions of the MRERB continue to be performed here in Singapore. In addition to the MRERB, we have since 1967 established in Singapore one other body connected with the rubber trade. This is the Rubber Association of Singapore (RAS) which helps to control and promote the rubber trade, protecting the interests not only of the exporters, but also of the producers and consumers of natural rubber. It would seem appropriate, therefore, that the RAS should be asked to assume functions not unrelated to what it is already doing. The Bill which is now before the House accordingly seeks to repeal the Rubber Shipping and Packing Control Act which constituted the MRERB and to confer upon the RAS the functions now carried out by the MRERB. It also seeks to amend the Rubber Association of Singapore (Incorporation) Act (Chapter 200 of the Revised Edition) to enable the Association to perform these functions.”
“These include compiled statistics on the operation of an industry which may be published irrespective of the number of persons engaged in that industry, unless the industry is exempted by the Minister in charge. Information of a general nature which could be obtained from other sources can also be disclosed. The exceptions also apply in cases where the individual person cannot be identified and an appropriate time has passed, or if disclosure is for the purpose of any proceedings for an offence under this Bill, or any report of these proceedings. The exceptions as provided are meant to maximise the use of statistics for research and analysis without prejudicing the interests of the individual. Penalties in regard to offences under the Act have also been increased in line with present money values and penalties for impersonation of a Census Officer are now spelt out in the Bill. The repealing of the Census Act by the enactment of the present Census Bill would go a long way towards tidying up the law to enable the taking of census and through this make available accurate and comprehensive information for planning and policy making. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. RUBBER INDUSTRY BILL Order for Second Reading read. 4.21 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Census Bill seeks to revise the law relating to taking a census in Singapore from time to time, and to repeal the Census Act (Chapter 297 of the Revised Edition) which was enacted in 1930. With rapid economic development, it is necessary to have more comprehensive and accurate information not only of the population, but of housing, agriculture, trade industry and other sectors of the economy. The present Ordinance enacted 43 years ago is now out of date, and the present Census Bill is meant to revise and update the law for census taking. This Bill will enable the Minister to direct that a census be taken on any of the subjects indicated in the Bill or any other matters as he may consider necessary or desirable. It may be, for example, necessary to have an agricultural census or a census on building and construction to provide better benchmark data and to update such data from time to time. The present Census Act only allows a population census to be taken. On the same basis as the Statistics Bill, provision is made in the Census Bill with regard to restrictions on the disclosure of census information. Secrecy will be safeguarded in that in any report or abstract of information obtained under the Act, the information shall be arranged so as to prevent any identification of individuals, except with the consent of that individual person. In addition, the Bill provides that the Minister shall avoid disclosing trade secrets, trading profits or any other information, the disclosure of which is likely to prejudice the person furnishing the return. However, exceptions are provided to the general rule on secrecy.”
“In repealing the Statistics Act, the Statistics Bill has also incorporated the necessary changes to the quantum of penalties to bring it in line with current money values. Provision is also made for the compounding of offences. Penalties are also provided for the impersonation of Statistical Officers. Mr Speaker, 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. CENSUS BILL Order for Second Reading read. 4.15 p.m.”
“In any developing economy, and typically one like Singapore, where frequently one company may constitute an industry, this tends to impair the comprehensiveness of statistical information. The interest of the individual will be safeguarded in that in any compilation of any report, summary or other communication to the public of information obtained under this Bill, they shall be arranged so as to prevent any identification of individuals except with the previous consent of those individual persons. Moreover, the Bill provides that the Minister should avoid disclosing trade secrets, trading profits or any other information, the disclosure of which is likely to prejudice the person furnishing the return. The Minister is also given the power to further impose restrictions on the disclosure of information should he think it necessary. The Bill departs from the present Act in that exceptions arc provided to the general rule on secrecy. These exceptions include compiled statistics on the operation of an industry which may be published, irrespective of the number of persons engaged in that industry, unless the industry is exempted by the Minister in charge. Information of a general nature, such as products manufactured, size of establishment, number of employees and addresses and any other information which could be obtained from other sources can also be disclosed. Information can also be disclosed where the individual person cannot he identified and an appropriate time has passed or if it is for the purposes of any proceedings for any offence under this Bill or any report of those proceedings. These exceptions, as provided in the Bill, are meant to maximise the use of statistics for research and analysis without prejudicing the interests of the individual.”
“Authority is delegated to the Chief Statistician, Directors of Research and Statistical Units of Ministries and the Chairman of the National Statistical Commission to issue requisitions to any person to furnish particulars and supply information to them. Such requisitions would be in writing, and the legislation specifies the manner in which the requisitions should be served. The Schedule of subjects on which statistics may be collected has also been greatly extended to embrace subjects important to policy-making. This Bill also seeks, in clause 5, to amend the provisions on disclosure of information so that, without prejudice to the individual's interest, sufficiently detailed statistics can be made available for bona fide purposes, such as research and planning. The Inquiry Commission was of the view that present secrecy provisions were too restrictive so that available statistics are not put to the best possible use. It felt that the production of statistics per se would have little beneficial effect unless maximum utilisation is made of such statistical information. Under the present secrecy provisions, even general information such as addresses, products manufactured, or any other information which may be available from other sources cannot be disclosed by the collecting agency without previous consent of the affected individual. More important, it has not been possible to give as much detail as can be reasonably expected in published statistics. This is because the Chief Statistician has no powers to publish data where such data relates to a single individual or firm, lest it reveals its identities.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Statistics Bill seeks to amend and consolidate the law relating to statistics and to repeal the Statistics Act (Chapter 299 of the Revised Edition) which was enacted in 1921. Hon. Members may recall that a Commission of Inquiry on Statistical Activities in Singapore was appointed ort 23rd May, 1968, to review and recommend improvements to the existing Government machinery for the collection and compilation of statistics. The Commission of Inquiry submitted its report in July, 1969, which was accepted by the Government. The Inquiry Report recommended, amongst other things, the repeal of the existing Ordinance and the enactment of a new Act. Besides doing away with references and expressions in the legislation which have become obsolete with the passage of time, the new Act should also reflect the operation of the decentralised statistical system. The National Statistical Commission which was set up on 7th January, 1972, studied the Inquiry Commission's recommendations and the result is the present Statistics Bill, 1973. This Bill has two basic objectives. Firstly, it will provide the necessary legal authority to the decentralised statistical units for collection, preparation and publication of statistics. Secondly, and as recommended by the Inquiry Commission, the secrecy provisions will be amended to enable maximum use of compiled statistics. Under clause 3 of the Bill, authority is given to the Statistics Department, Research and Statistical Units of Ministries and the National Statistical Commission to collect, prepare and publish statistics relating to a wide range of subjects contained in the First Schedule.”
“Mr Speaker, Sir, I do not think there is anything specific for me to answer the Member for Sembawang. He has asked about the position of non-residents and non-citizens. As far as the law is concerned, they are required to comply with the Act just like any other citizens or residents. As for simplification of the procedure for the renewal of registration, I hope that it will be as simple as can possibly be devised by my Ministry. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. STATISTICS BILL Order for Second Reading read. 4.04 p.m.”
“Under the Bill, the Registrar will be given powers to compound offences by collecting a sum not exceeding $500 from the offender. It also provides that the Registrar and public officers may not be sued in respect of any errors or inaccuracies in the Register maintained. It is envisaged that these new provisions will bring about better administration of businesses, and see a more orderly development in this sector. With better control, the early detection of fraud would also be facilitated. Sir, I beg to move. Question proposed. 4.00 p.m.”
“In the case of those already in business prior to the date of commencement of this proposed Act, application for registration must be made within 30 days of an appointed date. The penalty for non-compliance will be a $1,000-fine and/or six months' imprisonment. The carrying on of a business under an unregistered business name is prohibited under clause 10, and any person convicted under this clause will be liable to a $5,000-fine. Clause 12 deals with changes, making it mandatory for changes in particulars of a business to be recorded with the Registrar within 14 days. In clause 13 a person who has ceased to carry on business is required to notify the Registrar within one month (instead of three months) of cessation. The provisions in the clause empower the Registrar to cancel the registration of businesses that have ceased. The Register of particulars kept by the Registrar will no longer be open to the public for inspection. Instead copies of Certificates of Registration and other particulars can be obtained from the Registrar at a prescribed fee. Clause 23 lists the following as offences punishable by a $1,000-fine and/or six months' imprisonment: (i) The carrying on of a business without a Certificate of Registration or after expiry or cancellation of a Certificate of Registration; (ii) Failure to submit changes of particulars to the Registrar; (iii) Failure to comply with any summonses or requisitions of the Registrar; (iv) The making of statements which are false in any material particular or by reason of the omission of any material particular; (v) Failure to exhibit the Certificate of Registration or a valid copy of the Certificate in a conspicuous position in the principal place of business; and (vi) Failure to comply with any regulation made.”
“The Bill will also confer upon the Registrar of Businesses the power to refuse to register or to cancel the registration of a person: (i) where such particulars or information as may be requested by the Registrar are not supplied to him by the applicant (clause 9); (ii) where the name of the business is identical to or closely resembles that of an existing business, or if the name is undesirable (clause 11); (iii) where a person registered under the Act has ceased to carry on business (clause 13); or (iv) where the business carried on is unlawful (clause 30). Another major change appears in clause 19 which enables the Registrar to appoint inspectors for the purpose of ascertaining whether provisions of the Bill are being complied with. The Registrar and appointed inspectors are given powers at all reasonable times to enter premises believed to be used in the carrying on of an unregistered business. A penal provision to be applied to those who resist or obstruct the Registrar or inspectors in the performance of their duties is also contained in the clause. Clause 22 prohibits an undischarged bankrupt, without leave from the High Court and without notifying the Official Assignee, from direct or indirect participation in the management of a business. The other provisions in the Bill which differ from those of the existing Act are less fundamental. Generally, tougher penalties have been fixed for non-compliance with the requirements of the Act, while notice periods for the submission of information, applications and returns to the Registrar have been shortened. Thus, clause 5 requires that persons be registered before commencement of business.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The existing Business Names Act was enacted more than 30 years ago, in 1940, and is limited in objectives and coverage, imposing only the minimum of formalities, fees and sanctions, and requiring few returns to be submitted to the Registrar of Businesses. To keep pace with Singapore's development as a major commercial and financial centre, it is necessary that up-to-date and accurate information on business firms, which are rapidly increasing in number, be readily available. It is also necessary to revise, up-date and strengthen the law to prevent the perpetration of fraud. The Bill, therefore, seeks to repeal the Business Names Act and to replace it with the Business Registration Bill. The provisions of the Bill differ from those of the existing Act in several major aspects. Persons now exempt from registration under the existing law, notably those carrying on business under their own names and those carrying on business in premises, the annual value of which is less than $360, will have to be registered under the new Act. Registration will no longer be a onetime affair; instead clause 9 of the Bill proposes to make it mandatory for registration to be renewed annually.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Provision for the payment of salaries of the Chief Justice and Judges in Singapore is made in the Judges' Remuneration Act (Chapter 7 of the Revised Edition). As a consequence of Government's decision to revise the salaries of Senior and Superscale officers from 1st March, 1973, the salaries of the Chief Justice and Judges have also been correspondingly increased. The salary of the Chief Justice has been increased from $3,500 per month to $7,500 per month, that of the most senior of the Puisne Judges from $2,700 per month to $6,000 per month, and the salaries of other Puisne Judges from $2,700 per month to $5,500 per month. These revisions have been effected administratively. The purpose of this Bill is to give legal effect to the above revisions. Mr Speaker, 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. BUSINESS REGISTRATION BILL Order for Second Reading read. 3.53 p.m.”
“Sir, I do not have very much to add to what I have said. The Member for Telok Blangah has said that the Minister was compasssionate with regard to property tax but not estate duty. I would only like to remind him that there is already a limit of $25,000 within which poverty-stricken people would not have to pay estate duty. But it was for an extension of this generosity that the suggestion was made. In the case of property tax, it may be that an attap hut owner, as the Member for Jalan Kayu says, has to pay $6 a year and he may not even be able to pay that. We may be concerned with those cases when perhaps the Minister can exercise his compassion of which he has some supply, if not very much. The Member for Jalan Kayu also touched on the problem of non-compliance with notification to the Comptroller. If a notice for payment has not been received by the owner within six months, and if he does not report that he is chargeable to tax, that constitutes an offence. Again, we would have regard to the circumstances of the case, and if it is found that there is deliberate evasion of property tax, then the full force of this particular section in the Property Tax Act will be made to apply. Otherwise, at least in the initial stages, we will view with some consideration any non-compliance with the Act. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. JUDGES' REMUNERATION (AMENDMENT) BILL Order for Second Reading read. 3.50 p.m.”
“The other amendments in the Bill are either consequential or are designed to tidy up procedural matters. Sir, I beg to move. Question proposed. 3.38 p.m.”
“Clause 20 introduces another section which allows payments of the tax by instalments with interest which shall not exceed ten per cent per annum. Clause 21 of the Bill seeks by an amendment to section 35 to give explicit powers to the Comptroller to execute the conveyance on properties sold pursuant to section 35 of the Act. It will not affect the application of section 123 of the Land Titles Act in relation to registered land. Without this amendment, the power to execute the conveyance of properties sold pursuant to section 35 has to be implied from the application of the provisions of sections 35 and 38 of the Act. The power under this amendment is also to apply to conveyances executed before the commencement of the Property Tax (Amendment) Act, 1973, as it is necessary to remove any possible doubt whatsoever as to the regularity or validity of the execution of past conveyances. Clause 22 amends section 59 of the Act to provide for maximum penalty for an offence under this Act, or any regulation made thereunder for which no penalty is expressly provided, to be increased from $500 to $1,000. Clause 23 introduces a new section to the Act by which the Comptroller may compound any offence under this Act by accepting the payment of a sum of money, and no further proceedings shall be taken against the person for the offence committed by him. There are at present no provisions in the Act for remission of property tax on the ground of poverty, or where it is just or equitable to do so. Under the provisions of the new section 59A, the Minister will be empowered to remit wholly or in part the tax payable by any person on the ground of poverty, or if he is satisfied that it is just and equitable to do so.”
“These proposals, it is hoped, will expedite assessment and reassessment of properties and collection of tax. Under section 16 of the Act, an owner who has not received a notice calling on him to pay within six months from 1st January, 1961, is required to notify the Chief Assessor within 14 days after the expiration of that period. The amendment proposed in clause 8 will require the owner to give notice of his charge-ability to tax, if he has not received a notice calling on him to pay tax in respect of his property within six months from the 1st day of January of each year. Section 17 (8) of the Act prescribes that whenever the rent of any property which is let is increased, the owner of such property shall give notice thereof to the Chief Assessor. However, some owners of properties do not report increase in the rentals on the pretext that the whole of the increase is attributable to furniture, fittings, service charges or maintenance fees, etc. In cases where an owner is in receipt of a premium paid by the tenant as a condition for the tenancy, and where an owner obtains planning permission for development or subdivision of land, there is presently no obligation to inform, the Chief Assessor. Accordingly, the amendment in clause 9 seeks to impose a clear obligation on the owners to inform the Chief Assessor as and when each such situation arises so that the Valuation List may be amended where appropriate. All these situations invariably give rise to an increased assessment. The new subsection to section 34 proposed in clause 19 provides that if any tax is not paid within the prescribed period, the Comptroller may in his discretion add thereto a sum not exceeding five per cent of the amount of the tax payable.”
“For example, if the Chief Assessor assesses a new property at an annual value of $10,000 and the owner claims it to be $5,000 the tax will be collected, in the first instance, on the assessment of $10,000. Subsequently, if the Valuation Review Board determines the assessment at (say) $8,000, the overpayment of tax will be refunded forthwith, and the Board will be empowered to award at its discretion interest at 6 per cent per annum. If in the opinion of the Board an appeal is frivolous or vexatious, it may order an appellant to pay costs to the Board. The proposed amendments will discourage objections and appeals made to defer payment of tax and will relieve valuers from work on such appeals for more productive work. Where arrears of property tax are sought to be collected under section 19 of the Property Tax Act, disputes may arise and such questions are, at present, resolved by proceedings initiated by either party in the High Court. It is proposed by clauses 12, 15, 16 and 17 to empower the Valuation Review Board to hear and decide on disputed cases of back-collection of property tax. This will expedite the resolution of these disputes as well as the collection of tax arrears. Section 14 of the Act empowers the Chief Assessor to elicit information from the owner, lessee and occupier of any property for preparing or correcting the Valuation List. The amendment of this section, proposed in clause 7, will enable the Chief Assessor to obtain such particulars as may be required from other relevant sources, such as architects, developers, contractors and management corporations. By the new section 19 proposed in clause 11, the Comptroller of Property Tax is given similar powers but for the purpose of determining the tax payable.”
“To avoid delay in the assessment and collection of tax on the occupied portions, it is proposed to permit the Chief Assessor to assess separately and include in the Valuation List each part of a partially completed building as it is used or let out. Consequentially, it is also proposed that the Comptroller of Property Tax be empowered to recover tax from the date of use of such part of a building. Clause 4 relates to the present practice in regard to an assessment under objection or appeal, which is to issue a notice of assessment for every ensuing year so long as the objection remains outstanding. This creates unnecessary work and, more often than not, confuses taxpayers as to whether their original objection would cover the assessment for the subsequent years. The amendment suggested in clause 4 will obviate the necessity of having to issue notices of assessment for ensuing years, unless it is intended to vary the original assessment. It is proposed that once an objection is determined, the decision thereof shall be made applicable to each year from the first assessment or reassessment. Clauses 5, 10, 12 and 17 deal with the situation under the Act at present, where owners of new properties do not have to pay tax when they object to the assessments of the Chief Assessor until a decision is reached by the Valuation Review Board. Some owners, therefore, resort to objections in order to delay payments. It is now proposed to require an owner to pay tax on the assessment of the Chief Assessor notwithstanding any appeal lodged; adjustments will be made as soon as the appeal against the assessment is resolved.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill proposes amendments to the Property Tax Act (Chapter 144 of the Revised Edition) which aim to protect revenue, rectify certain shortcomings in the Act, and streamline procedures. The main amendments deal with objections to assessment, delegation of more power to the Valuation Review Board, eliciting information for speedier assessment and tax collection, recoveries of tax arrears and remission of tax. Clause 2 relates to section 7 of the Property Tax Act under the existing provisions of which a refund of property tax may be allowed for any unbroken period of not less than 30 days during which the building is unoccupied. The intention was to refund where the building vacancy is a month or longer but, as presently worded, section 7 precludes a refund for the calendar month of February which has only 28 or 29 days. This anomaly will be removed by the amendments proposed in clause 2 of the Bill which will permit refund of property tax on an unoccupied building provided it has been unoccupied for any unbroken period of not less than 30 days or a calendar month. The Comptroller of Property Tax will also be given the discretionary power to extend the period of 14 days within which a written notice of such vacancy has to be given to qualify for refund of property tax paid. Clauses 3 and 11 will provide for the situation arising from the increase in recent years in the number of multi-storey commercial projects, where parts of such buildings are brought into occupational use whilst work on upper floors still remains uncompleted.”
“Regarding stamp duty, the policy has been for some time that all statutory bodies should pay the stamp duty to reflect their true cost of operation. Any exemption will in future be considered only on the merits of each case, for example, as an economic incentive towards the development of a financial centre. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. PROPERTY TAX (AMENDMENT) BILL Order for Second Reading read. 3.26 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Statutory bodies enjoy exemption from a number of taxes. However, there is no uniformity in respect of these exemptions. For example, some statutory bodies are exempted from stamp duty while others are not. Moreover, some of the statutory bodies have the exemption embodied in their own statutes, while other statutory bodies are granted exemptions under the parent legislation for the tax concerned. The main tax concessions embodied in the statutes of a number of statutory bodies are exemption from income tax, exemption from property tax, conferment of "institution of a public character" status whereby donations to the institution from the public may qualify for income tax deduction, and exemption from stamp duty. This Bill seeks to delete all such tax concession provisions contained in the statutes of the various statutory bodies concerned. In future, exemptions will be granted only under the appropriate tax legislation, namely, the Income Tax Act, the Property Tax Act and the Stamp Act. The centralisation of exemption under the parent legislation is logical and convenient and will enable any change in the policy on exemption to statutory bodies to be uniformly and comprehensively applied without the tedium of amending the Act for every statutory body. Exemption from income tax for statutory bodies will be centralised under the First Schedule to the Income Tax Act. As for "institution of a public character" status, this will be conferred by a Gazette notification issued under section 37 of the Income Tax Act. The policy regarding property tax is not to exempt statutory bodies from paying property tax.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The financial year of a number of statutory boards under the law is the calendar year. However, as the Government financial year is the period 1st April to 31st March in the following year, it may be more convenient for the purpose of control for statutory boards to adopt the same period for their financial year, particularly where they depend on Government funds for their operations. The Bill now before the House, therefore, seeks to amend the Singapore Telephone Board Act, the Nanyang University Act, the Housing and Development Act, the Hindu Endowments Act, and the Commercial and Industrial Security Corporation Act, so as to enable the statutory bodies created by the said Acts to adopt as their financial year a period of twelve months ending on the 31st day of March in each year and to prepare their accounts accordingly, to bring them in line with the financial year of the Government from whom these statutory bodies draw their funds. 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. STATUTES OF THE REPUBLIC OF SINGAPORE (MISCELLANEOUS AMENDMENTS) (NO. 4) BILL Order for Second Reading read. 3.21 p.m.”
“Resolved, That this Parliament pursuant to subsection (3) of section 7 of the Statistics Act (Chapter 299) resolves that the Migration Statistics (Revocation) Rules 1973, made on the 2nd day of May, 1973, and published as Notification No. S 169 in the Gazette Subsidiary Legislation Supplement No. 23 of 11th May, 1973 as contained in Paper S.L. 23 of 1973, he approved. ADJOURNMENT Resolved, "That Parliament do now adjourn to Wednesday, 25th July, 1973."-[Mr E. W. Barker]. Adjourned accordingly at Twenty-three minutes to Four o'clock p.m. to Wednesday, 25th July, 1973. WRITTEN ANSWER TO QUESTION ACCIDENTS INVOLVING STATUTORY BOARD VEHICLES 1. Mr J. F. Conceicao asked the Minister for Law and National Development, in respect of the various statutory boards which come under the general direction of Ministries, what has been the incidence for 1970, 1971 and 1972 of motor accidents involving vehicles belonging to those statutory boards and what has been the amount of compensation paid out each year.”
“Mr Speaker, Sir, I beg to move, That this Parliament pursuant to subsection (3) of section 7 of the Statistics Act (Chapter 299) resolves that the Migration Statistics (Revocation) Rules 1973, made on the 2nd day of May, 1973, and published as Notification No. S 169 in the Gazette Subsidiary Legislation Supplement No. 23 of 11th May, 1973 as contained in Paper S.L. 23 of 1973, be approved. Sir, the Department of Statistics has been collecting passenger statistics by sea under the Migration Statistics Rules. Passenger statistics by air, however, are compiled from the passenger manifests submitted by airlines to the Department of Civil Aviation. The Migration Statistics Rules were enacted in 1930 and over the passage of time returns drawn up under the Rules are outdated in a number of aspects, such as in the terminology used and the scope and coverage defined. There is, therefore, a need to revise the returns and the notes contained therein from time to time. This in turn would need prior amendments to be made to the Rules. In order, therefore, to avoid the necessity of having to amend the Rules each time, the Schedules under which the statistics are collected are revised, it is proposed to collect migration statistics under the powers contained in the Statistics Act itself. This is possible as migration is included in the Schedule of subject matters covered by the Act. The Migration Statistics Rules can, therefore, be revoked. Collection of statistics under the Statistics Act would enable administrative flexibility to vary the format, scope and coverage of returns as and when circumstances arise, without having to resort to changes in subsidiary legislation. Sir, I beg to move. Question put, and agreed to.”
“The usual practice is for the NSPB to submit the proposal for our consideration.”
“Sir, the NSPB is a Government agency for the provision of facilities such as the Member has in mind.”
“I have nothing to add to what I have already said, which is, that when a strategy for the development of facilities is provided, the matter would be looked into. This means that I am prepared to consider on an overall basis the provision of facilities for the whole of Singapore, including the rural areas.”
“The Government helps by giving tax exemption to donations to the Fund and by running the pool after its construction.”
“Mr Speaker, Sir, the necessary funds for construction of sports facilities including any swimming pool in Upper Serangoon/Punggol areas must come from the approved yearly Budget allocations to the National Sports Promotion Board, or from donations and contributions which, under its Acts, it is empowered to receive. The swimming pool must therefore vie for priority within the Budget allocations with all other projects which the NSPB will consider. The total need for facilities must depend on the overall strategy for the promotion of sports and healthy recreation. At the same time, it is necessary to determine also the total facilities already available including those developed by the Government, statutory boards, clubs, etc. With a plan and information on existing facilities, it will then be possible to determine the additional facilities that should be developed and the priority that should be assigned to each project. When such a plan has been formulated by the National Sports Promotion Board and the National Stadium Corporation, my Ministry will then be prepared to consider the financing aspects of such a plan. Total dependence on Government financing for the swimming pool at Upper Serangoon/Punggol, therefore, will mean delay, particularly if the funds required are large. If the Member for Punggol is anxious for the immediate development of sports facilities in his area, there are other ways of public or private involvement in the provision of such facilities. In this connection, I would suggest to him the method adopted by the Member for Queenstown. Through his initiative, a Queenstown Schools' Swimming Pool Building Fund was started. The Fund will be used to construct a swimming pool mainly for the use of school children in Queens-town.”
“Sir, if the Member could give me particulars of those companies that are delaying their liquidation, I assure him that I will look into the matter. SWIMMING POOL IN UPPER SERANGOON (Provision of funds) 12. Mr Ng Kah Ting asked the Minister for Finance, now that a site has been obtained for a swimming pool in Upper Serangoon for the benefit of the residents and in particular the thousands of school children in the Upper Serangoon/Punggol areas, if and when he will provide the necessary funds for the construction of the pool, bearing in mind that there is no public swimming pool in those areas.”
“Mr Speaker, Sir, 57 chit fund companies were granted licences on 1st July, 1972, under section 7 of the Chit Funds Act. Of these, 22 companies have had their licences renewed and are still in operation as at 11th July, 1973.”
“Sir, if the Member is speaking for the person who owns the house, the suggestion to implement measures to restrict the increase in the value of the property would be unappreciated by this owner. CHIT FUND COMPANIES (Particulars) 11. Mr P. Govindaswamy asked the Minister for Finance how many chit fund companies are licensed, and how many of them are operating.”
“Mr Speaker, Sir, I realise the consequence to someone leaving $200,000 to his family. But I would expect anyone who has such a valuable house to take the usual precaution of transferring the house during his lifetime to his beloved ones.”
“Mr Speaker, Sir, the hon. Member may remember that before 8th March, 1972, the exemption under the Estate Duty Act was up to $10,000. In my Budget statement for the year 1972-73, one of the tax concessions I announced was a remission from estate duty for estates worth up to $25,000. I am not inclined at present to consider any further concession. The Member for Katong's suggestion to amend the legislation to remit estate duty on a family house would result in an unnecessary sacrifice of revenue in the case of the wealthy. For example, if, as has occurred, a family house left by a deceased multi-millionaire is worth $8 million, the remission of the estate duty on such a family house would be $5 million. I consider also that it would not be desirable to give remission other than within the limit I have set, on a sole family house specifically in distinction to savings in different forms, such as insurance policies, deposits in banks, Post Office Savings Bank, Government bonds, shares, etc.”
“This will bring insurance agents and brokers for Lloyd's in line with insurance companies which are required to have, inter alia, a surplus of assets over liabilities of not less than $1 million in order to be eligible to apply for registration to carry on life business or general business, or $1 1/2 million for both classes; a deposit of $300,000 with the Accountant-General for one class of business; and to satisfy the Commissioner that they will be able to conduct the business in accordance with sound insurance principles. Clause 8 also provides for the payment by insurance agents and brokers for Lloyd's of such annual fees as may be prescribed. Clause 12 will facilitate payment even where the policies exceed $10,000, provided that such payment does not exceed nine-tenths of the policy monies or $10,000 whichever is the lesser. At present insurers cannot make any cash payment where the policies exceed $10,000 without production of probate or letters of administration. The provision will save the dependants of the deceased unnecessary hardship and expedite payment of a claim where the value of the life policy exceeds $10,000. The proposed amendments in this Amendment Bill are of a more urgent nature and will serve until a more comprehensive review of the Insurance Act, which will take some time to complete. Mr Speaker, 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 Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. JURONG (Jetty and Berth) 3.25 p.m.”
“Among the directions which the Commissioner may give include immediate suspension of business, taking all steps to avert future insolvency, making of reinsurance arrangements as the Commissioner specifies, removal of unsuitable persons from positions of authority in the insurance company, and prevention of unscrupulous and unfit persons being appointed as agents by the insurer. The other salient clauses are as follows: - Clause 2 will prevent firms and companies, particularly those carrying on business as insurance agents and brokers, from having misleading names containing the word "insurance" or any of its derivatives indicating the carrying on of business as an insurer, and thereby deceiving the public. Clause 3 enables the Commissioner to impose conditions on registration of an insurer, and clause 4 enables the Commissioner to add to, vary or revoke the conditions, or impose new conditions. Clause 5 provides for the annual renewal of registration by insurers and the payment of prescribed fees. This will place insurance companies on the same footing as banks and other financial institutions which are at present required to pay annual licence fees. Clause 8 relates to agents and brokers for Lloyd's underwriters carrying on general insurance business in Singapore. It is intended to ensure that the intermediaries placing business with Lloyd's underwriters are financially sound. The provision requires persons who carry on business in Singapore as insurance agents for Lloyd's to have a surplus of assets over liabilities of not less than $100,000, and in the case of insurance brokers who place business at Lloyd's to furnish a certificate of solvency and effect a professional indemnity cover of not less than $500,000.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In the light of experience gained from the operation of the Insurance Act, which came into force on 1st January, 1967, certain amendments to the Act seem necessary and desirable for: - (a) additional provisions to ensure that insurance companies conduct their business strictly in accordance with sound insurance principles; (b) powers to the Insurance Commissioner to deal expeditiously with insurance companies that become insolvent or are likely to become insolvent; and (c) more effective control and supervision of insurers and Lloyd's agents and brokers. The main objectives of the Bill are those contained in clauses 6 and 10. Clause 6 empowers the Commissioner to cancel the registration of an insurer under certain circumstances which include the failure of the insurer to effect satisfactory reinsurance arrangements, non-compliance with the Commissioner's order to make good any deficiency in its insurance fund, and failure to maintain a surplus of assets over liabilities of $1 million in respect of life business or general business, or $1 1/2 million in respect of both classes. The present Act gives the Commissioner the authority to register an insurance company, but it does not empower him to cancel the registration other than on the ground that the insurer itself, on account that it has ceased to carry on business, applies for cancellation. Clause 10 empowers the Commissioner to issue such directions as he considers necessary to an insurer if he is satisfied that the affairs of the insurer are being conducted in a manner likely to be detrimental to the public interest or the interests of the policy owners or prejudicial to the interests of the insurer.”