Augustine H.H. Tan
Singapore
“There are instances when reserves should be used, but the govern- ment has to make a case to the President and if good arguments are used, the President is expected to concur. I therefore end by asking you, as you have done in your speeches, to support this Bill with a very loud "Aye" when it comes to the vote. [Applause].”
“We must have confidence that in the end, as Singaporeans, we know what is overall best for ourselves. We are a community of free citizens committed to making Singapore a great city to live in and for foreigners to come visit and admire.”
“There is such a thing as initiative. Who initiated the project? What was the objective of the project? And there is such a thing as economies of scale, the benefits of which are passed on to the taxi drivers. Let us not forget those elements. An hon. Member: They do not pay tax on their income.”
“They can still enjoy the seafood regardless of the indigestion. They can do the shopping and do other things in Johor Baru. I believe that what is important for us is that we do not preclude ourselves the option of setting our own national policies.”
“Mr Speaker, Sir, the Minister stated that it is undesirable to employ foreigners to run child care centres because they affect the values of our children. Is it not also true that by having foreign maids in our homes that they too directly impact upon the values of our children?”
“It was a point which I brought out much earlier when a similar matter was debated here in Parliament. Because the government could borrow on the basis of the reserves even though the President has one key to the reserves because there is such a thing as credit-worthiness of the country.”
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“I am concerned with the economic aspect. The Chairman: It is the same. Anyway, please carry on.”
“I beg leave to withdraw, Sir. Amendment, by leave, withdrawn.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 1301 be reduced by $10 in respect of subhead 1373. I am only raising a point of clarification, Sir, because there was no similar provision for last year in respect of "Housing Allowance for Expatriate Engineers, Architects, Quantity Surveyors".”
“Sir, since it appears that I have won the argument, I beg leave to withdraw. Amendment, by leave, withdrawn.”
“Sir, in such matters I do not think we could, because we do not have enough top-grade people to train as good Masters and Ph.D.s. The question is: why do we not send them to the top? In Mathematics, there is a concept called the derivatives - the first derivative and the second derivative. If we send our bright people to, say, the top ten universities in the world where they have the cream of the professions, they become derived products of these top people. When these products, i.e., the first derivatives, come back, they train other people, and we then get the second derivatives, because very few people ever measure up to the qualities of their teachers. Sir, there is also the question of incentive, which may be lacking in Government service for Masters and Ph.D.s. I raised this point yesterday, and the Minister just brushed it aside and said, "Well, money is not the only thing that matters. What is two or four increments?", and so on. But to a young man starting out on a career, a few increments can make a great deal of difference.”
“Sir, yesterday I talked about Ministers passing the buck or the ball. Here is another example. I have asked the Minister why he has not started a scholarship programme for Ph.D. economists, and he has passed the buck to the University of Singapore. I think this is a very serious matter, jokes aside.”
“Sir, I notice there are a lot of engineers in the Economic Section. I do not see how engineers can perform the work of economists. There are economists and economists. I am concerned not just with the ordinary economist, but the economist spelt with a capital "E"; that means a well-trained economist. May I know from the Minister for Finance why he has not started a scholarship scheme or a fellowship scheme to send bright people abroad, and to maintain a corps of very competent top-grade economists who are well trained? Sir, we cannot just go on the present makeshift basis whereby we have people do an analysis that such and such a thing went up by so many percentage points or went down by so many percentage points. They should make a real analysis. 3.00 p.m.”
“I would like to find out from the Minister why there is only one such post.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 1301 be reduced by $10 in respect of subhead 1102. I would like to find out from the Minister for Finance what are the qualifications required for the post of Senior Economist, and whether this post is currently filled. I notice that in the entire Ministry of Finance there is only one post for an economist. Sir, economists are rather indispensable people. Hon. Members: Hear, hear!”
“Sir, does the Minister for Finance realise that he has thrown a red herring into the whole issue?”
“Mr Speaker, Sir, does the Minister for Finance not think that foreign investors should do in Singapore what the Singaporeans do in respect of bonus payments? In other words, should they not try to adopt a simple practice like that?”
“Sir, I am afraid the Minister has missed the point regarding the two increments for the Master's degree and four for the Ph.D. degree. I was not at any time implying that holding a Master's degree or a Ph. D. degree alone is sufficient to indicate quality. All I was saying was that you must take into account the marketability of such degree holders. If you do not pay them a sufficient number of increments, you are not likely to be able to attract better quality degree holders into the civil service. You end up with a mediocre one, from Timbuctoo or some other unknown university. 7.45 p.m. Sir, may I also vent my frustration, which I am sure my fellow Backbenchers also share, that Ministers seem to be in the habit of passing the ball from one to the other - from Health to Finance, now from Finance to the Public Service Commission. Sir, may we know the ultimate repository of power that we may have recourse to to get some of these things done? Mr Hon Sui Sen: Perhaps I can answer the last one, i.e., passing the buck or the ball. As far as the Public Service Commission is concerned, it is the ultimate authority. I do not think there is any question of its passing the buck any further. An hon. Member: The buck stops there!”
“In order to do this, we have to be prepared to pay the price for people with these qualifications. At present we pay Master's Degree holders two increments above the ordinary point of entry, and four increments in respect of Ph.D.s. It seems to me that it is just ridiculous to give two increments for a Master's degree and four for a Ph.D, degree, because, first of all, there are considerable earnings which a person has to give up when he pursues a Master's degree, which normally takes at least one year, if not two; and a Ph.D. degree takes at least two years, if not four, depending on which country he goes to. In addition, there is considerable effort behind the acquisition of a higher degree. It also presupposes a certain high enough level of qualifications in respect of the basic degree. All things taken together, Sir, the indication is that we need substantially more than two increments for the Master's degree and substantially more than four increments for the Ph. D. degree, and also rapid promotion for both.”
“Mr Speaker, Sir, in virtually every country civil service salaries lag behind commercial and industrial salaries, even more so in a situation of very rapid development as we find ourselves in. The danger that we are confronted with here in Singapore today is that the top calibre personnel in the civil service may be drawn away towards the commercial and industrial sectors, leading to shortages of the kind which are very serious indeed, namely, top-level personnel. In such a situation, there are two things which can be done. One is a quick revision of salary, but this cannot be done to a considerable extent, especially in the present context of our general wage restraint policy for industry and the commercial sector as well. The other possibility, taken in conjunction with some revision of salary, is rapid promotion of people. We have to get away from the kind of mentality which says that, because I took 20 years to become a Permanent Secretary, therefore anybody who becomes a Permanent Secretary must take 20 years to get up there. Why cannot a person do it in five years or seven years if he has the ability and is prepared to work hard? Let us change this kind of mentality. Promote people rapidly. If they have the ability, put them up there. If you put them in an acting capacity for three months or six months and they have shown themselves to be capable, confirm them in their positions. I have argued on at least two occasions for the upgrading of the quality of the civil service, especially in respect of the upper level and the professional staff. Our economy is getting more sophisticated, and in order to understand it, to comprehend it and to service it adequately, we need to have technical and professional people to monitor and service industry and commerce.”
“Sir, may I ask the Minister whether we are still using D.D.T. for mosquito control? If so, is he aware that in countries like the United States of America, they have noted that inordinate amounts of D.D.T. can cause all kinds of health complications?”
“Sir, this is getting to be a terribly fishy business!”
“If we take it to its logical conclusion.”
“We cannot live without water. We can live without fish and we can always buy fish from other places. If they catch the fish, they have to sell it. But they do not have to sell us the water.”
“Sir, if we appeal to intuitive arguments of the sort that because we are an island, therefore we must catch all the fish that we eat instead of importing three-quarters of it, it just does not make economic sense. If our fishermen can do better, can earn more in factories, in manufacturing and so on, let them do it. If they can build ships, let them do it. But if our neighbouring countries can get the fish cheaper than we can, let them do it and we import it and use our resources better. Why does not somebody stand up and ask, "Why cannot we plant rice, plant more vegetables? Why build Housing Board flats?" Because this does not make economic sense. Just because we are surrounded by water, we just cannot appeal to arguments of that sort.”
“Mr Speaker, Sir, this is a very serious economic question indeed and I must have some time to reply to this.”
“Mr Speaker, Sir, the Members for Sembawang and Jurong have raised two very serious questions: one, regarding the use of agricultural land, and the other, the promotion of fisheries. Just because the demand for agricultural products and the demand for fish are both likely to increase dramatically in the years ahead does not necessarily mean that it will be economic for us to produce more in respect of agricultural products and more fish ourselves; in other words, to be more self-sufficient. Much of modern economic life depends upon specialisation, a division of labour. Sir, you can imagine the kind of life each one of us would lead if we were to build our own houses, make our own clothes and so on. We would be back in the cave age. In similar fashion, a country has got to specialise too. If we can use our labour and our resources more profitably in manufacturing and so on, I say by all means give up fishing and agriculture. Of course, there is a short-term problem as well, to the extent that the farmers and the fishermen get penalised. I would join them in their plea for some kind of Government assistance accordingly. But let us not lose sight of the long-term perspective for both these industries.”
“I do not think we have the figures to prove or disprove the point. The Minister is trying to make out a case that the farmers are not poor on the basis of $200 million. That is not fair.”
“Mr Speaker, Sir, the fact that $200 million has been earned by the farmers does not necessarily prove that they are either rich or poor. It depends on the number of farmers among whom the $200 million is to be divided.”
“I understand the law, Sir,I am not advocating that the people should be allowed to violate the law. I am advocating compassion in the application of the law. It seems to me that when a person is earning $100 a month and he is fined $15 per offence, that is 15 per cent of his income. If a person from the middle income or upper income group were to face a fine of 15 per cent of their income, they would raise hell not just in this House but in the newspapers too.”
“Sir, we are a free and open society and people can choose any kind of job they want. And so does the Minister for Health!”
“Sir, may I make a further point on the question of hawkers' rentals? I do realise that at certain hawker centres the hawkers are so rich that they can afford to go round the world. But at the same time, there are other places where the hawkers are so poor that the rentals which they have got to pay are really exorbitant. What I would like to suggest is to apply the simple law of economics - supply and demand - to each and every hawker centre. Sir, with regard to unlicensed hawkers, we have to ask ourselves this question: why are there so many unlicensed hawkers? This is a situation which reflects upon the success or failure of our educational policy, our health measures, and our ability to educate the public on these matters. Sir, at one time I agreed with the Housing Board and the Hawkers Department in the Ministry of Health to control unlicensed hawkers in my constituency. But there came a time when several of them approached me, saying they were widows with seven or eight children each to take care of, and with tears in their eyes showed me summonses of $15 each. Sir, I cannot take any such action now nor can I support such action.”
“Furthermore, I think we ought to exercise leniency in regard to unlicensed hawkers. I know they are a nuisance, and I know their stalls do not look nice. They congregate in places where they might obstruct pedestrians, if not traffic, and so on. But until such time as we are able to educate or re-educate these people to turn to occupations that we want them to go into, that is, the factories, building construction, and so on, we have to let them earn their living. It is better they do unlicensed hawking than turn to crime or some other illicit business. Thank you, Sir.”
“Sir, it seems to me that for want of space the Housing Board is able to think only in terms of large hawker centres sited in rather remote places. This means that there is little business turnover for the large numbers of hawkers congregated at the newly-built hawker centres. Why cannot the Board think in terms of small hawker centres which although they can accommodate fewer hawkers, are sited at places more likely to attract business? The appropriate choices for these places can easily be known by observing where the unlicensed hawkers site themselves, usually at corners of buildings, as one can see them. The second point that I want to raise concerns the rentals charged for the hawker centres. It seems to me that the rentals are too exorbitant for some of these hawkers. It seems to me too that at some of these hawker centres, the charges are so high that the hawkers pass them on to the consumer in the form of higher prices for cooked food, resulting in a rise in the cost of living for the lower income group. I hope both Ministers will take due note of this.”
“Mr Speaker, Sir, may I raise two points concerning the economics of our hawker centres? I think the Minister for Health might be interested in this too.”
“Mr Speaker, Sir, I am not satisfied with the reply by the Parliamentary Secretary for Social Affairs. As a matter of principle, Sir, I refuse to withdraw.”
“For the record, the Member for Katong does sometimes represent the middle class.”
“Our statutory boards spend hundreds of thousands of dollars on such things as holiday bungalows and recreational clubs for senior officers. I have nothing against luxury, Sir, if the poorest classes are well taken care of. If this House will vote an increase for social welfare at the rate of at least two-thirds the rate of increase in national income, I promise to stop talking about penthouses here or elsewhere. I might even consent to open one. There is still a great deal that needs to be done in respect of social welfare. There could be improvements in the homes for orphans, for example. Let them have some pieces of chicken along with the curry instead of the curry alone. Our old people's homes could do with more attention too. In our society which is fast modernising, the extended family system is breaking down rapidly. Fewer older people are living with their children. The mother-in-law no longer commands the household in many homes. Probably our flats are too small to house more than two generations under one roof. Let us therefore have more and better homes for the aged. Sir, I hold no brief for the idle and the lazy. But people cannot compete if they are handicapped, and when such is the case, our society should have the compassion to care and to provide adequately if only because of our common humanity.”
“Sir, you will note that disbursements of only $4.9 million under the heading "Other charges, annually recurrent" require personal emoluments of $2.2 million. Sir, the rates of welfare assistance are paltry by any standard. The maximum receivable per family is on $60 per month, a rate which has remained unchanged since 1962, so I am informed by the Director of Social Welfare. As an economist, I am aware that too much public assistance can be a serious deterrent to individual motivations to work. However, in our situation, we are far below the disincentive point. Consider, Sir, the rent for Housing and Development Board flats is at least $20 per month for a one-room flat and public utilities probably cost $10 to $15 per month. Even if a distressed family receives the maximum amount of $60, there is not very much left to keep body and soul together. The biggest cut under the Social Welfare Department's Head is in respect of public assistance allowance from $5.2 million to $3.4 million. Next is the T.B, treatment allowances from $450,000 to $250,000. The item in respect of assistance to displaced and distressed persons is given only a token vote. I cannot believe that we have no more displaced and distressed persons. I may be able to understand and perhaps support an expenditure cut on social welfare if our economy is doing badly. But with the present boom, this is unwarranted and goes very much against our socialist principles. Sir, unlike other classes, the poor and the illiterate are not just inarticulate, they are voiceless. The employers have their representatives and the middle-class has the Member for Katong. But how many will speak up for the poor? I have seen some beautiful penthouses recently, not private ones too.”
“Mr Speaker, Sir, I note with great concern the almost $2 million cut in expenditure on social welfare. The Minister for Social Affairs has in recent months pointed proudly at the decline in the number of persons on social welfare as an indicator of economic development and increasing employment. As an economist, Sir, I naturally endorse such a reaction. As a socialist, however, I would want to say that the Government should give more in welfare aid per remaining person and perhaps lay down less stringent requirement for such aid. An hon. Member: Hear, hear!”
“Sir, is the Minister of State for Finance aware that he has not really answered both my questions?”
“Mr Speaker, Sir, two supplementary questions. First, is the Minister of State aware that the imposition of customs duties, in addition to raising the prices of imported goods, also leads to rises in the prices of domestically produced goods even though they may not rise to the same extent? Secondly, has the Minister forgotten the debate we had in the last two or three days on the question of the use of weights in the construction of the cost-of-living index? Mr Tang See Chim: What the Member for Whampoa said - that if we put a tax on imported goods, the prices of locally-manufactured goods could also rise - that could be true, yes. But with locally-made goods, we are in a better position to control the price level, whereas with imported goods we are not so able. On the second question, the Minister for Finance, in replying to Members on the budget debate, did say that he would consider a survey and see whether the weighting for the present price index should be adjusted.”
“Mr Speaker, Sir, I thank the Minister for his kind reply. I beg leave to withdraw. Amendment, by leave, withdrawn. The sum of $647,330 for Head 0302 ordered to stand part of the Estimates. Head 0401 -”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 0302 be reduced by $10 in respect of subhead 2012. Sir, I notice an increase of $2,000 for transport. I would like to find out from the Minister for Science and Technology why his chemists have to travel so much. Sir, I beg to move.”
“Sir, as an economist, I applaud that. I beg leave to withdraw. Amendment, by leave, withdrawn. The following amendment stood in the name of Mr Ng Yeow Chong - (4) That the sum to be allocated for Head 0201 be reduced by $10 in respect of subhead 3011.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 0201 be reduced by $10 in respect of item (3) of subhead 2051. Sir, I would just like to ask why there is such a great increase in the Prime Minister's Office in expenditure on newspapers, periodicals and books. I know that the Prime Minister is a prodigious reader, but I wonder whether he can really read that much!”
“Mr Speaker, Sir, Singapore has been first in many things and, for the future, I hope that we will dare to take first steps in new directions which other countries have not hitherto taken. But in view of the fact that there is hope for the future, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $1,523,430 for Head 0107 ordered to stand part of the Estimates. Head 0108 -”
“The handicaps to the poor students are already tremendous, if one thinks of the over-crowded living conditions and the cultural poverty of their homes, in addition to the financial hardships. Every bit of talent that we can salvage will be an asset to Singapore. We can hold our heads proudly when we can truly say that no one is poor because of undeveloped talents or lack of opportunity. I would like to see, therefore, greater efforts being made in future years to ensure the greatest possible scope for human development. Sir, I beg to move.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 0107 be reduced by $10 in respect of subhead 2003. I am very concerned about the drastic reduction in the provision of bursaries and other assistance for students of higher institutions by $521,500. In the Memorandum on the Estimates of Revenue and Expenditure, it is explained that this reduction is partially offset by provision for "industrial development scholarships", "scholarships, fellowships and .training courses" and "printing", though I cannot imagine how printing can substitute for bursaries! The Memorandum also mentions study loans. I would like to know, Sir, how much is being made available for study loans and the terms and conditions for the award of such loans. I would think that some provision is also necessary for special loans to students to help them support their families while they are studying. One comes across too many cases, Sir, where bright students have had to give up their studies even though they have scholarships or bursaries, because their families rely on them for financial support. I speak with some authority on the subject, Sir, because I very nearly became a casualty my. self. Fortunately, when I went to study for my Ph.D, under a fellowship, I was given an additional amount to help support my family. Mr Speaker, Sir, at a time when our economy is booming, it would seem to me to be unwarranted to reduce expenditure on such essential things as bursaries and scholarships. We should not only be increasing the number of awards available but also actively consider new schemes to enable people from poor families to obtain better education.”
“Mr Speaker, Sir, a point of clarification. May I know what the criteria for "clearly" are? Mr Hon Sui Sen: Mr Speaker, Sir, I do not think it is possible to establish criteria applicable to all industries. There is a committee on tariff matters in which the Economic Development Board, the Trade Division and my Ministry are represented. The committee considers all aspects of the industry. We will consider all aspects before making any decision. In many of the industries which are established in Singapore, the failures have been due more to the effect of bad management than to lack of markets or of proper equipment. In some cases, the Development Bank of Singapore tries to save an industry which could be viable with good management, and it is proper that we should try to rescue these industries where there is some possibility of their becoming viable. This is the reason why we have also promoted light industries. I do not know why the impression has been created that there has been no encouragement given to local industries. The Light Industries Services still remain. The D.B.S, has a fund for lending to light industries. Its total has run to over $3 million. I think more money is readily available where applications are made. The impression which the Member for Crawford has that we appear to encourage foreign industry and give very little encouragement to our local industries is not quite correct. I can assure him that if he has any local industry wanting any assistance, we shall give it - Mr Low Yong Nguan rose -”
“If past experience is any guide, I suspect also that some of the estimated tax revenues are under-estimates. Let us not forget, however, that this is not yet the time to relax. We should remain watchful to see how our workers imbibe the new skills and how our managers and executives learn the ropes of modern organisation and sales techniques. The more difficult phase of development lies ahead because quality is more difficult to achieve than quantity. Our concern in the years ahead must increasingly be with quality of skills, of products, of management, of institutions, and, above all, of the political leadership. At a time of relative peace and prosperity, the political challenge is not so much of courage hut of foresight in anticipating problems and of patient toil in the construction of an even better future. In such a setting, the temptation unfortunately is always to relax and grow flabby with age and over-indulgence. 4.00 p.m.”
“Part of the decline in entrepot earnings mentioned by the Minister probably reflects the reclassification of ship-repairing services as manufactures. However, so long as we can pull ahead in manufacturing activity, decreased dependence on entrepot earnings should induce no undue anxiety. Mr Speaker, Sir, let me now comment on the silver lining mentioned by the Minister. The hopeful factors raised by the Minister include the role of Japan in influencing the trade and investment in South-east Asian countries. Whether and how Japan will use her vast economic power to help South-east Asia develop is something which depends on her calculations. If she fulfils her social and economic responsibilities to the region, we stand to benefit substantially by way of increased trade and investment. Japan currently ranks as our largest supplier of imports and fourth as a market for our exports. The trade gap is overwhelmingly in her favour. There should be ample goodwill on her part, therefore, in allowing the entry of Singapore manufactures and we should take full advantage of this leverage. In terms of investment, we can benefit substantially as Japan moves on to higher technology industries; however, we should exercise selectivity and reject those industries with major pollution problems and cultivate those which build up our technical, managerial and marketing skills. In any event, we should not forget that the Japanese are hard bargainers. In conclusion, Sir, I applaud the decision not to raise new taxes as this would be the wrong strategy to pursue when we are trying to offset the expenditure reductions of the British bases. Our credit standing is strong, as the Minister rightly pointed out.”
“The more blatant forms of corruption are easy to detect, but the methods of corruption can grow in sophistication too - these are the more insidious and more difficult to identify. (4) Open-door policy on trade and investment: We are rightly emphasising export orientation and providing a hospitable climate for foreign investment. (5) Labour-force discipline: Last, but not least, we should not forget the discipline and the exertions of our workers. The co-operation of the unions in restraining wage demands, in accepting longer work hours, trimming of fringe benefits and curtailment of their bargaining powers, has been a major positive factor. Sir, now let me draw attention to the storm signals which the Minister talked about. The most proximate one concerns the run-down of the British military bases this year of some $250- 300 million. While the expenditure effects per se can be met by the counter-recessionary measures mentioned by the Minister, I think that in addition to the efforts of the Bases Economic Conversion Department, a more direct approach towards the absorption of the 15,000 civilian employees and the 2,000 locally-enlisted personnel is necessary. Many of these people, I suspect, are in clerical-type occupations and are not young. Consequently, they would have great difficulty in finding jobs with comparable pay and their adjustment problems to new kinds of occupations are not inconsequential. I would propose that all clerical and all unskilled job vacancies in Government and statutory boards in the next two years be reserved for these retrenched workers. Government bodies should refrain from taking in young people for such occupations because the younger people are more adaptable. So let them go elsewhere.”
“Investment in real terms requires not just a financial inflow but the actual importation of the machinery and the tools required for the production process. The ordinary layman's view is that balance of payments surpluses are good and deficits are bad; in economic terms, surpluses imply the transfer of real goods and services overseas in exchange for paper claims redeemable at some future date! Of course, a trade deficit would be bad if it comprises consumption type goods so that no productive capacity is added. Now I want to comment on the Minister's reference to Mr S. Okita's analysis of the causes of the high Japanese growth rates. It seems to me that the nine points listed are more descriptive than analytical. Sir, two of the points, the fifth on agriculture and the ninth, are either irrelevant or unclear as to the line of causation. In our context, our rapid growth can be attributable to five factors: (1) Political stability: This is something which people should not take for granted. In fact, we should use the period of relative calm to build a stronger political base to ensure continued stability and progress. Investors have a time-horizon for their calculations and need a degree of certainty for their returns, and hence the importance of this factor. (2) Economic infrastructure: We are now enjoying the fruits of the extensive investments in the economic infrastructure which were made in the Sixties. (3) Efficient administration: In countries where bureaucracy is stifling and corruption rampant, much entrepreneurial energy is wasted in merely securing legitimacy. Although we have a relatively efficient and non-corrupt civil service, we should not be too complacent. The current courtesy campaign is a correct step, but we should remain watchful against corruption.”
“Many of the small businesses depend on the location and the goodwill built up among the neighbouring clientele. I would expect severe economic difficulties to arise when such businesses are removed elsewhere. The solution would be to ensure, first of all, that suitable alternative sites be provided to the satisfaction of the people concerned, and, secondly, adequate compensation be given. Government has argued rightly that the subsequent rise in property values after redevelopment is due to the investment in roads and communications; however, I do feel that we should err in favour of people uprooted by urban renewal. In many cases, people do not have the means to sue the Government. In other cases, they probably feel it is a useless process because, to them, Government appears to be all-powerful. In the advanced countries we see the other extreme of urban renewal projects being held up because of numerous law suits brought against the authorities! While the going is easy for us, we should try to bend over backwards in accommodating people who are affected by our urban renewal schemes, especially the poorer people. Next, I would like to talk about our balance of payments. The Minister for Finance has done an admirable job of analysing the trade deficit. The deficit is a good and healthy thing because it is stimulated by a buoyant economy investing in machinery and plant, which will generate output and, therefore, the means for repayment in the future. Furthermore, for the first time in several years, our growth in Gross Domestic Expenditure exceeds that of our Gross Domestic Product, reflecting the fact that investments exceed our savings. Hitherto, we had saved more than we invested locally, resulting in accretions of Singapore investments and bank balances abroad.”
“The first is an economic one, namely, what is the optimal degree of development of the tourist industry? In other words, how many visitors can we optimally accommodate before the additional return to our dollar invested becomes negligible or less than economic? We should study carefully countries or states with tourism as a major industry. I feel that beyond a point, the strain on the infrastructure, in terms of demand for utilities, communications and transport becomes all too evident. The costs of providing such facilities will undoubtedly rise, which, in addition to the rise in the cost of personal services, means a rise in the cost of living. Furthermore, the industry is one which is particularly vulnerable to social and political disturbances - visitors may be disinclined to come here if there is trouble in neighbouring countries. The other question is a cultural one. So far, our attitude seems to be that virtually anything is tolerable, provided it helps bring in the tourists. On the one hand, we have institutions which frown even on a-go-go types of dancing, and, on the other, in the name of tourism, we allow the importation of the crasser types of night-club shows from western countries at great expense. I am told that more locals than tourists frequent such night-spots. Of more serious concern to us is the possible cynical reaction of our youth to the apparent adoption of double-standards in our approach to cultural matters. Now, I am not arguing for a puritanical approach to such things; rather, I am appealing for consistent standards to be applied. Mr Speaker, Sir, I would now like to touch upon the problem of urban renewal. I am concerned here about two things, one, the uprooting of business and, two, the question of adequate compensation.”