Mr Ang Wei Neng: Mr Speaker, I thank the Minister for Transport for the comprehensive replies to our queries. Can I just clarify with the Minister that he said that the Chairman and the CEO of the designated equity interest holder need approval by MOT? If so, does it mean that a foreign company, which is a holding company that majority owns a designated operating entity in Singapore, needs approval from MOT, even if the foreign company is a listed company in their home country? That means if they are listed and not in Singapore, they also require their Chairman and their group CEO to be approved by MOT?
Mr Chee Hong Tat: Mr Speaker, if the designated equity holder is designated, then yes, under our laws, the Chairman and the CEO appointments would require approval from the relevant authorities, not MOT. The relevant authorities.
Mr Speaker: Mr Dennis Tan.
Mr Dennis Tan Lip Fong: I would like to thank the Minister for the clarifications that he has provided. I am not sure the Minister has answered some of my questions. I will just ask them again.
Regarding my question, in a situation where there is no replacement operator willing to take over at short notice under Part 4, section 27DE, I asked whether LTA would be in a position to take over the operation. Currently, what is the position, whether they are able to do so or whether there is an actionable plan or roadmap towards such an outcome?
Also, followed by that, I did ask the Minister whether, since some of these Class 1 bus licensees and other companies, SMRT, PSA Corp are owned by Temasek, and CAG is owned by the Government, are there some redundancies in any way arising from this Bill and whether or not there are any plans for divestment of the Government's stakes?
Mr Chee Hong Tat: Mr Speaker, I think I have answered both questions actually in my response speech. I mentioned that the coverage includes companies that may be owned by Government, Temasek Holdings, but also other entities that may have other shareholders.
As to whether this then leads to the point that Mr Tan is making, I think probably a little bit of extrapolation on Mr Tan's part. This Bill, by itself, does not go anywhere near those further points that Mr Tan is making. It is just to provide the safeguards for our critical transport firms and our essential transport services.
For the first question that Mr Tan asked, certainly, we would, as part of the preparations for an extreme scenario like this, have to look at where are the capabilities that we need to build up, not just within LTA, but also within the industry ecosystem as a whole. Because as I mentioned in my response speech earlier, this cannot be done just by LTA alone. We will also have to work closely with, first and foremost, the employees and the staff who are working in the entity who know the operations best. Many of them will still be there, even if the entity were to run into trouble and we need to issue, in an extreme scenario, a Special Administration Order. We will have to work closely with them.
So, we will need support from the staff, the unions, and also for some of the sectors where there is more than one operator, the expertise from the other operators could also come in to help us. So, this is not just an LTA alone effort. This is a whole ecosystem effort. But certainly, we will need to make preparations and we will need to get ready to deal with all these different scenarios so that we are well prepared.
Mr Speaker: Ms Poh Li San.
Ms Poh Li San: Speaker, I thank Minister Chee for his comprehensive reply. Minister Chee assured us that only as a last resort in extreme scenarios will the step-in powers be exercised.
Given the scale and complexity of our transportation system, how likely is MOT or the agencies able to find replacement leadership with the right capabilities at short notice to lead the designated entities out of trouble, especially since this industry only has a few big players? For example, SMRT, we know, took quite a few years with all hands on deck to get back to where they were. So, I would like the Minister to further clarify this part.
Mr Chee Hong Tat: Mr Speaker, this is where perhaps I could borrow a phrase from the healthcare sector. Prevention is better than cure. So, a lot of the things that we do before that extreme scenario happens is to really help us to mitigate the risks to prevent those risks from turning into an extreme scenario so that we can avoid going to this last resort, if possible.
But we still need to be ready in case those risks were to emerge, those extreme scenarios were to happen in future. We do not want to be caught unprepared. So, that is why we wanted to have this Bill, to be future-ready. But as I clarified earlier, the approach that we want to take is actually to work in close collaboration with our tripartite partners.
So, using SMRT as a good example, SMRT's reliability challenges were fixed and maintenance was improved, reliability improved, performance improved, not through the issuance of a Special Administration Order, but through the close collaborations among LTA, SMRT and NTWU, our union, working together, fixing the problems and it remains a continuous work in progress. So, that is still the preferred approach. We will use the Special Administration Order as a last resort. If we really need to do that, yes, it is there, but we would prefer not to go down that path. We would prefer to use prevention rather than cure.
Mr Speaker: Mr Saktiandi.
Mr Saktiandi Supaat: I would like to seek a clarification from the Minister. I am not sure whether I missed part of his closing speech. I actually asked a question about OSIR in connection with SIRA, which serves as a dedicated one-stop touchpoint to engage all stakeholders and address their concerns and minimise the impact on them. But for this Bill, it is very sectoral based. Will MOT actually utilise OSIR to handle stakeholder questions or concerns going forward or will there be a separate sectoral-based entity?
Mr Chee Hong Tat: Mr Speaker, the office is set up for SIRA because SIRA is a broad-based legislation covering across the economy, different sectors. In our case, because we have the sectoral authorities – CAAS, LTA, MPA – they will be the ones who will play the role of this office to deal with the respective firms within their sector.