Singapore Law Blog

Speech by Mr Raymond Lim, Minister for Transport, at second reading of the Civil Aviation Authority of Singapore (Amendment) Bill, on 12 February 2007, 4.30 pm at Parliament.

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Ms Deputy Speaker, I beg to move that the Bill be now read a second time.

Introduction

2. This Bill amends the Civil Aviation Authority of Singapore Act (CAAS Act) to allow the Civil Aviation Authority of Singapore (CAAS) to:

a. raise loans from the Government;

b. raise loans within or outside Singapore from such sources as the Minister for Transport may direct, by:
i) mortgage, overdraft or other means with or without security;
ii) charge on any property vested or on any other revenue receivable; and
iii) debentures, bonds or any other instrument; and

c. raise loans through credit facilities for purchase of goods, materials, things or services;

3. I will now explain the proposed amendment.

Background

4. CAAS was set up in 1984 when the then Department of Civil Aviation was restructured from an MOT department into a statutory body. CAAS' powers for discharging its functions as the Civil Aviation Authority of Singapore, as set forth in the CAAS Act, include taking decisions on appropriate modes of capital financing.

Expansion of borrowing powers

5. Currently, the CAAS Act restricts CAAS to borrowing only from the Government, banks and other financial institutions. This does not clearly include the power to borrow by issuing bonds.

6. The proposed amendment will give CAAS more options to raise funds from the capital market. This will allow CAAS greater flexibility as it will be able to choose the option with the lowest borrowing cost to fund its projects.

7. The same powers had been granted to IRAS (Inland Revenue Authority of Singapore), NUS (National University of Singapore), NTU (Nanyang Technological University) and PUB (Public Utilities Board) when their Acts were amended in recent years.

8. Ms Deputy Speaker, I beg to move.