Goh Keng Swee
Singapore
“Sir, since that was not a supplementary question, may I be allowed to comment briefly on that. When we form a Committee of the House to inquire into an activity of the Government, the assumption must be that there has been something improper. In this instance, where is the impropriety?”
“The career of Brig-Gen Lee is well-known to the public. It has been published in the newspapers. Why then does he come out with all this drivel, other than to impute improper motives? Mr Jeyaretnam: Sir, I object to the term "drivel" as spelt out by the First Deputy Prime Minister. He should know better as a Member of this House.”
“Sir, this is getting most tiresome. So I will just say this - that Brig-Gen Lee Hsien Loong has proved himself in so many ways, both inside the Army and outside the Army, to be a person of outstanding quality. When the Member for Anson says the public are worried, he is again talking nonsense.”
“Sir, I rise to clarify. Actually, the limits are not set by me. I do not have a heavy hand. I regard the MAS as the implementing agency of Government, and in this respect I have to listen to the Minister for Finance and the Minister for Trade and Industry.”
“How you set them, how restrictive or how liberal, would determine two things: (1) the degree of imported inflation from abroad via goods and services from abroad, and (2), the degree of capital inflow from abroad which will affect our money supply in Singapore.”
“Sir, if the land could be more profitably used, say, for commercial or residential purposes and if the Minister for National Development requires such land, then, of course, the land will be acquired and the generous terms will apply.”
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“METRICATION BILL "to introduce the use of the International System of Units in Singapore, to enable necessary modifications of legislation to be effected and for matters connected therewith", presented by the Minister for Science and Technology (Dr Toh Chin Chye); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. WEIGHTS AND MEASURES (AMENDMENT) BILL "to amend the Weights and Measures Ordinance (Chapter 230 of the Revised Edition) to provide for the use of the International System of Units to be included in the use of weights and measures in Singapore", presented by Dr Toh Chin Chye; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. ENLISTMENT (AMENDMENT) BILL "to amend the Enlistment Act, 1970 (No. 25 at 1970)", presented by the Minister of Defence (Dr Goh Keng Swee); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. CENTRAL PROVIDENT FUND (AMENDMENT) BILL "to amend the Central Provident Fund Ordinance (Chapter 150 of the Revised Edition)", presented for the Minister for Foreign Affairs and Minister for Labour by the Minister of State for Labour (Mr Sia Kah Hui); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. MERCHANT SHIPPING (AMENDMENT NO. 2) BILL "to amend the Merchant Shipping Ordinance (Chapter 207 of the Revised Edition)", presented by the Minister for Communications (Mr Yong Nyuk Lin); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. NGEE ANN TECHNICAL COLLEGE (AMENDMENT NO. 2) BILL "to amend the Ngee Ann Technical College Act, 1967 (No.”
“Under the National Servicemen (Employment) Act, employers will be required to engage national service reservists unless they have obtained exemption from the Director of Employment. So the graduate officer throughout the whole period of his reserve liability will have a safety net should he decide to try his fortunes in the private sector. His contemporaries who were not enlisted will have to fend for themselves if, for instance, they lose their jobs in the private sector, as is not unknown to happen. There are several other implications in the change of period of enlistment, but my statement is already too long and these will have to wait for the Second Reading of the Bill. However, I want to make brief references to two consequences of some significance. The first is that officers commissioned under tht existing Act have to do three years' service as against 2« years for those enlisted from 1971 onwards. While many will not regard a difference of six months as of great moment, others, especially the graduates, may feel that their frustrations are being compounded. The other point is that the reduction to 2« years' service for officers creates very serious problems in support arms combat units, such as the artillery and the engineers. The training period for officers in these units is close on two years. I will deal with these matters and their possible solutions at some length in my Second Reading speech. I mention these in passing to register the point that they are being looked into. BILLS INTRODUCED 3.32 p.m.”
“Officers who are due to complete their national service next year may apply for vacancies in the government service while still in the Army, lf appointed to the civil service, their Army service will count as pensionable service and they will get full increments for the years of service in the Army. The Ministry of Defence is proposing to make available a number of scholarships for under-graduate and post-graduate studies in the local Universities as well as overseas Universities. Officers on completion of their national service who are willing to accept a regular commission will be eligible to apply for these scholarships. If they are awarded such scholarships, they will receive full pay as regular officers during the tenure of their scholarships. Conditions of service in the Army, which are at present governed by Malaysian regulations, will be revised to greatly improved levels. I will give more details of these subjects at the Second Reading of the Bill. There is another way in which the Government will be able to discharge its obligation to full-time national servicemen. This is by way of implementing the National Servicemen (Employment) Act which was passed by Parliament on 26th June, 1970. A Director of Employment has been appointed. He is Mr Lee Ong Pong, formerly Director of the National Productivity Centre. The Department is being established and should be in operation in two months' time. All national servicemen are covered by the National Servicemen (Employment) Act during the whole period of their reserve liability. University graduates who obtained a commission in the Army and who do not belong to the normal age group registration, have a claim for special attention of the Director of Employment.”
“The bond will be forfeited if the children do not return, but forfeiture of the bond will not preclude the Government from taking other steps to secure the return of the student to Singapore to do his full-time national service. I now deal with those graduates who were born before 1st January, 1949, and who are now doing full-time national service. They feel that they are being let down. Some have even asked to be discharged from the Army. There is, of course, no question of agreeing to this: if any redress is to be found for them, it must lie in the enlistment of those graduates who were due to be enlisted last month, but who had been let off. For the graduates now doing national service, especially those who have been commissioned as officers, I want to say that the Government acknowledges that it has a special obligation to them. Those with the requisite qualifications who wish to apply for appointments in the civil service, especially in the higher services such as the Administrative service, will find that their military service will be given due recognition by the Public Service Commission. I have the agreement of the Chairman, Public Service Commission, to say this. Furthermore, the P.S.C, will review examination requirements in the civil service for national service officers recruited into the civil service. It would be possible to exempt these officers from some, probably most, of the examination requirements. They will also be given special consideration in respect of requirements of probationary service.”
“Those most likely to be admitted to the University - this will be judged by their school examination results, since the H.S.C. results will not be known in time - will be taken into the January intake. This will enable them to complete the 2«-year service in time for admission to the Universities in July 1973. It is in the light of this new enlistment policy that I want to discuss the subject of exit permits for those children whose parents want them to do their secondary education overseas. At present, if they are less than 16½- years of age, they are not granted passports and there have been some complaints in the newspaper columns by parents who wish to send their children abroad. My colleague, the Minister for Home Affairs, will be introducing a new Passports Bill which will allow conditions to be laid down on the issue of passports. It will then be possible to issue such passports to children under the age of 16« intending to go abroad for secondary school education. So far as their national service liability is concerned, they will be treated exactly on the same footing as children who do their education here. Under no circumstances will these children be treated as a privileged group. The Government fully endorses the position recently taken by the unions affiliated to the National Trades Union Congress. Parents will be required to furnish adequate security by way of cash bond or bank guarantee that when their children reach their 18th birthday, they will return to Singapore to do full-time national service. Deferment will not be granted on grounds that the students have secured a place in a University, or, for that matter, on any other grounds.”
“In making a further review of enlistment policy, it is necessary to take into account two factors. The first is that the British presence will remain until at least 1975. This reduces the urgency of rapid and accelerated expansion. Secondly, progressively larger numbers of H.S.C, students will be enlisted for full-time service. Both these factors reduce the need to enlist University graduates for full-time national service. Sooner or later, a decision must be made on the liability of University graduates for full-time national service. The problem is a difficult one. To continue past policies indefinitely would serve the interests of equity, as much of the discontent arising among graduates in national service is that enlistment had been selective and not comprehensive. At the same time, it is clear that a decision on liability of graduates cannot be deferred for long. I decided to exclude graduates from the October 1970 intake unless they were of the age group liable for national service in any event, that is, if they were born on or after 1st January, 1949. The result of this decision has been unhappiness among graduates now serving in the Armed Forces. I will refer to this subject later. The new Enlistment Bill which I will soon be introducing reduces the period of service of national service officers from 3 years to 2 1/2 years. It increases the period of service of non-commissioned officers, corporals and above, from 2 years to 2 1/2 years. The period of service of other ranks remains at 2 years. The new Enlistment Bill will apply to national servicemen enlisted as from 1971. It will not apply to national servicemen already in the service. It is the intention of the Ministry of Defence to enlist H.S.C, students in the January and April intakes in 1971.”
“I am taking this opportunity today to publish rules that were laid down in January 1970 by my predecessor, together with an indication whether they still remain in force or not. A reference to this document(See Annex, cols. 359-68), which has been circulated to Members, shows that nearly all the rules laid down in January 1970 remain in force. Special arrangements have been made at the two Universities to enable H.S.C, students enlisted this year to enter the University with minimum loss of time. As from next year the university session will commence in the first week of July instead of May. H.S.C, students enlisted in January this year and subsequently commissioned as officers will be allowed a break in national service in July 1972 when they will join the University. They will complete their service liability, usually another additional six months, during the University long vacation. H.S.C. students enlisted in April will also be permitted to join the University in July 1972, and they will complete their service liability during two long vacations. Under the policy introduced in January this year, it was envisaged that progressively larger proportions of H.S.C, students would be enlisted before they join the University. In 1971, it is proposed to enlist three-quarters of them and defer one-quarter. By 1973, all H.S.C, students will be enlisted except for those awarded Colombo Plan and other overseas scholarships, whose selection rests with the Public Service Commission. They will commence their national service on their due dates but will be allowed to proceed overseas when their university term begins. They will complete their national service on their return to Singapore. That was the position earlier this year.”
“To make up for this, the Ministry of Defence recruited persons into full-time national service who entered Government service or the service of statutory authorities even though they were not of the age groups currently being enlisted. When early in 1968 the British announced their plan to accelerate the withdrawal of their military forces to he completed by the end of 1971, it was necessary to speed up the build-up of our Armed Forces, in 1968 and 1969, University graduates were enlisted whether or not they were recruited into the service of the Government or the statutory authorities. However, such enlistment was selective and not comprehensive. The policy of allowing boys to proceed to the University on completion of their H.S.C, examination continued in these two years. In January 1970, my predecessor decided to make a comprehensive review of enlistment policy. By that time, expansion of the Armed Forces was in full swing, and there was need to recruit an enlarged number of officer material to man not only the Combat Units but also the logistic bases that had to be established or expanded at great speed. Also there were many staff positions in the Defence Ministry which had to be filled. A major innovation which my predecessor introduced was to change the policy of granting exemption for students who had completed their H.S.C, examination and were proceeding to the University. The decision was made that for 1970, half of these would be enlisted and half deferred. The basis for deferment in respect of other categories of age registrants was examined in detail and rationalised. Contrary to popular opinion, clearly defined rules were laid down but the details were not then published. The rules were implemented by administrative measures.”
“Mr Speaker, Sir, in the normal course of events, detailed explanation of policy arising out of new legislation is given at the Second Reading of the Bill, not at the time of its introduction. In the case of the Bill which I am introducing today, the Enlistment (Amendment) Bill, I will not have the opportunity under Standing Orders to make a statement at the time of the introduction of the Bill. I am therefore making a Ministerial statement on the subject under Standing Order 10. Enlistment policy has been a subject of heated public debate in recent weeks. The extraordinary thing about this debate was that members of the Singapore Armed Forces joined in the fray with great zest. I can only assume that these soldiers were unaware of the existence of Regulation 680 of the Queen's Regulations. It is hardly possible under these circumstances for the Government to announce some major change in enlistment policy without a detailed explanation of its intentions. An explanation is all the more necessary as there seems to be widespread public misconception about Government's policy. When national service was introduced in 1967, it appeared that Singapore could depend on the extension of the British military presence until at least 1975. Accordingly, the rate of our military build-up was planned at a deliberate pace. Deferment and exemption from full-time national service were freely granted. Boys leaving school and admitted to the University were granted automatic deferment. Even those who were in employment were exempted from full-time national service. This liberal policy on exemption or deferment had the effect of restricting full-time national service intakes mainly to boys in the lower educational standards. There was a shortage of officer material.”
“Amendments will soon be made to the Workmen's Compensation Ordinance to increase the rates of compensation as well as to make certain occupational diseases eligible for payment of workmen's compensation. Mr N. Govindasamy (Telok Blangah): Mr Speaker, Sir, can the Minister of State for Labour indicate to the House when revision of the Workmen's Compensation Ordinance will take place? His answer "soon" is not good enough. As a matter of fact, this issue of revision of the Workmen's Compensation Ordinance has been brought up in this House often enough. During the last Budget debate, quite a furore was made over it. So will the Minister of State for Labour clarify what he means by "soon"?”
“The Workmen's Compensation Ordinance, however, is primarily concerned with compensation to workmen who are incapacitated by accidents. In the welfare parts of the Employment Act, the objectives are to ensure that workmen are not made to work excessively long hours, and employment of children, young persons and women is allowed only on certain conditions. Because of different objectives, the emphasis in the operation of each of these Ordinances is different. Whilst the emphasis in the operation of the Factories Ordinance is preventive and technical, that of the Employment Act is supervisory and that of the Workmen's Compensation Ordinance is administrative. Another good reason for not merging the abovementioned three laws is that not all accidents, the victims of which are eligible for compensation, fall within the category of industrial accidents, or occur in factories. Accidents to workmen are known to occur on the high seas or on the roads, in open fields, offices and other places of employment which do not fall within the ambit of the Factories Ordinance, but whose victims nevertheless are eligible for workmen's compensation. The Factories Ordinance will be amended to give power to the Minister to appoint a Council of Industrial Safety and Health to advise him on matters of safety and health in factories and to recommend lines of research on safety education programmes to be undertaken by the Factory Inspectorate. This Council will be an advisory body and not be empowered with executive functions since such functions are already exercisable by the Factory Inspectorate. Under the Factories Ordinance, penalties have been provided for breaches of the law by factory occupiers.”
“Inche Abdul Aziz Karim asked the Minister for Foreign Affairs and Minister for Labour if he will consider introducing a single piece of legislation to amend and consolidate the provisions of the Factories Ordinance, the Workmen's Compensation Ordinance and other pertinent laws for the promotion of the safety, health and welfare of workers; and if such legislation will, among other things, provide for (a) the establishment of a council of industrial safety and health with the responsibility of (i) making safety regulations; (ii) undertaking research and safety education programmes; (iii) carrying out inspection and enforcement; and (iv) the rehabilitation of victims of occupational hazards; (b) the establishment of a board to determine compensation; (c) the penalties on employers for committing breaches of the law; and (d) the establishment of safety committees at work places to ensure that safety regulations are implemented. The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Foreign Affairs and Minister for Labour): Mr Speaker, Sir, the existing legislation on the safety, health and welfare of workers is found in the Factories Ordinance, the Workmen's Compensation Ordinance and certain parts of the Employment Act. It will be fitting if the objectives of these Ordinances are similar for them to be consolidated. Since they are not, it will be inappropriate to consolidate them in a single piece of legislation. The Factories Ordinance is primarily concerned with the prevention of industrial accidents and the maintenance of conditions which will not adversely affect the health and welfare of workers in industrial establishments.”
“It is obviously undesirable that drivers should be subjected to such long stretches of duty. As a result of these and other measures, there are signs that the accident rate is going down. Between January and September this year, there was one accident for every 9,600 miles travelled by S.A.F, vehicles. Between October 1st and 15th, the accident rate was one accident for every 12,700 miles, It is still too early to say whether this represents a real improvement which will continue, but I am optimistic that if we continue to take resolute measures, the standards of driving of S.A.F, vehicles will improve and accident rates will go down. It is likely that the enforcement of these new measures will result in temporary shortages in transport for military units. If this happens, civilian transport can be used as a supplement. It is better that this happens than that we put up with the unsatisfactory state of affairs as at present. LEGISLATION FOR WORKERS' WELFARE 2.”
“Part of the difficulty here is that punishment for offences committed by military drivers has hitherto been dealt with in the civilian courts. Cases are heard after a long interval and quite often the penalty imposed by our magistrates is very light. For instance, an offence committed in December last year was dealt with last week and the driver was fined $45. With the agreement of the civil authorities, it is now proposed to deal with these offences under military discipline. Henceforth, all military drivers involved in accidents will be placed immediately under open arrest, unless it is self-evident from the nature of the accident that the drivers are blameless. The military and civilian police have agreed to co-operate to make evidence available with minimum delay. Drivers will be tried not by Company Commanders but by Unit Commanders who have wider powers of punishment. A standard scale of punishment is being worked out. Because of the increased demand for drivers, the period of training had to be reduced from eight weeks to six weeks. I have directed that the training period revert to eight weeks. Further, the number of trainees will be determined not by the demand for transport by units in the Army but by the training capacity of the driving school. Even on conclusion of eight weeks' training, it is incumbent on Unit Commanders to nurse these drivers and provide them with additional guidance and instruction. The question of duty hours of vehicle drivers is also being examined. It is not always the case that drivers are to blame. For instance, in an accident last month which received widespread publicity in the press, when an Army truck went off the road at Devil's Bend in Thomson Road, it was found that the driver had been on duty for 19« hours at a stretch.”
“Mr Speaker, Sir, the total number of traffic offences of every description involving Singapore Armed Forces vehicles during the period 1st October, 1969, to 30th September, 1970, is exactly 1,000. Of these 1,000 cases, seven resulted in loss of life and in 18 other cases injuries were of a serious nature to warrant hospitalisation. Of the seven fatal accident cases, one involved a member of the S.A.F, and the others were all civilians. The six cases involving the civilians are still pending. Compensation paid out for loss of life, injuries and damage to vehicles for the period in question amounts to $68,683.94 cents. Mr Speaker, Sir, the accident rate is deplorably high, about three times that of British Army vehicles in Singapore. There are many reasons for the poor performance of S.A.F, drivers. Among them are lack of experience, inadequate training and low levels of discipline in some instances. There is clear evidence from Unit records of mileages and accidents that combat units have a much lower accident rate than P.D.F., Logistics and Service Units. All these reasons stem from one basic cause, and that is the inordinately rapid expansion of the Armed Forces which we had to bring about in the last two years. This had resulted in a greatly increased demand for transport. It was difficult to meet this demand and, at the same time, maintain high standards of driving. The problem is a serious one and I am paying personal attention to it. I discussed the subject at a meeting with all Unit Commanders held on 17th of September this year. A number of measures have been introduced to improve driving discipline, to raise training standards and to reduce pressure of work.”
“PENSIONS (AMENDMENT NO. 2) BILL Order for Second Reading read. 4.34 p.m.”
“The rationale behind it is that if a pioneer firm has been running for some time and has had experience, it has got good value for its money. And if it really wants more concessions, then the size of the increment should be much greater than is the case with a new venture. We thought that $10 million was a convenient figure, but any other figure will do. The Member for Sembawang asked whether there would be any adverse effects on smaller industries. I assure him that there will be no adverse effects. Smaller industries will not be persecuted. They will still continue to flourish, one hopes. The Member also asked why we introduced this amending Bill. Perhaps I did not make it very clear in my Second Reading speech. The point is that the original Act has been too generous. We gave people 15 years' lax exemption, whereas we think now that with eight years' tax exemption we will get them coming in. Similarly, there is no reason why we should give pioneer status to very small companies as we are doing now. It is a lot of work and quite often these small companies do not profit anyway. So the pioneer status is quite meaningless to them. The Member for Sembawang also wants to know how much more revenue we will collect from this. I really do not know. There is no way of making this calculation because it all depends on how many new firms come in and what profits they make. The only thing that I know is that we will collect more revenue under this amending Bill than under the old one. 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. -[Dr Goh Keng Swee]. Bill considered in Committee; reported without amendment; read a Third time and passed.”
“The Member for Whampoa has made what, to me, appears to be quite a valid point. It is only a question of whether this is the right moment to apply the policy he recommends. For instance, he is recommending a clear distinction in treatment between the wholly foreign-owned enterprises and those in which local capital is allowed participation. I am wholly in sympathy with this policy. The only question is whether we should introduce it now or wait until our industrial base is so firmly established that we can afford to risk some adverse comment which is bound to arise in the investing countries. When the time comes, when we are more self-sufficient in technology and know-how, and possibly even in markets, this policy will not only make sense but can be introduced with less risk than is the position today. As regards giving preference for employment of local management personnel, may I say that the demand for management personnel is so much in excess of supply that, far from encouraging foreign investors to employ local personnel, I have often had to urge them to bring their own personnel and not to disrupt the tight market situation now existing. In fact, it has been necessary for me to enter into a gentleman's agreement with some of the larger American and British companies not to pinch each other's executive staff. Here again if the supply and demand position changes, we can have a try at it, but it is likely that the demand for good executives of ability and high engineering skills will remain in short supply for a very long time. The Member for Whampoa asked why $10 million for expansion when there is only $1 million for a pioneer firm.”
“This requires a major effort not only by the Ministry of Finance, whose work is really done by now, and the Economic Development Board and other agencies, but it will need sustained effort by the Technical Education Department of the Ministry of Education, the Polytechnic, the University of Singapore, Nanyang University, the National Trades Union Congress - indeed the whole community. Sir, I beg to move. Question proposed 4.22 p.m.”
“The value of the aggregate output of these plants by 1975 is expected to exceed $600 million. The range of products manufactured is very wide and includes consumer electrical supplies, home appliances, radios, tape recorders, production machinery, tools and dyes, cameras, lenses and optical equipment. These are production operations and not mere assembly. A training programme has already been started to produce the skilled craftsmen and technicians who are needed in these new enterprises. They are being trained both in Singapore and abroad. I am sure that Members will want me to express our appreciation to those who were responsible for getting these very large enterprises introduced in Singapore. The persons concerned are the very dedicated officers of the Economic Development Board, who have put in long and sustained hours of work both in Singapore and in promotion offices in Europe and America. Getting these large firms to agree to set up these big projects in Singapore does not mean that everything is over bar the shouting. In fact, the real work begins as from now. We have to ensure that large numbers of skilled workmen, technicians and engineers are made available in the quantity required and up to the standard of excellence which these companies have been led to believe we can achieve. If we fail to produce these workers with the requisite skills, diligence and ability, then the whole foundation of our industrialisation programme would be undermined.”
“Smaller enterprises may apply for export incentives, but if they produce only for the domestic market they will get nothing as it is not the policy of the Government to give Pioneer Certificates to manufacturers who produce for the domestic market, whatever their size. There are also amendments regarding depreciation allowances. Hitherto, these can be carried forward to the post-pioneer period at accelerated rates, which in effect means an extension of the pioneer period beyond five years to six years or even seven years. Of course, those who have been granted tax concessions under the 1967 Act will continue to enjoy them. The intention of the Government to make changes in our tax incentive laws has been known for some time both to local industrialists and industries abroad. This has been somewhat helpful to our investment promotion efforts. In the last four or five months, there have been a series of negotiations between the Government and a number .of large well-known international firms who wanted to take advantage of the 15-year tax incentive while the going was still good. I am happy to announce to Members that most of these negotiations have been successfully concluded, the last one at 4 p.m, yesterday. As a result, we shall see some very large manufacturing operations established in Singapore using advanced technology and employing large numbers of skilled workers, technicians and engineers. Among the larger and more important of these investors are General Electric of the United States of America, Philips of Holland and Rollei-Werke of Germany, producers of the famous Rolleiflex cameras. Each of these companies will establish enterprises in Singapore which will employ in their plants between 3,500 and 5,000 workers by 1975.”
“Mr Speaker, Sir,I beg to move, "That the Bill be now read a Second time." This Bill seeks to amend the Economic Expansion Incentives Act of 1967. The Act itself was intended to meet the situation prevailing in the years immediately preceding 1967, when the economic future of Singapore was clouded in some uncertainty as a result of our expulsion from Malaysia. More than two years have passed since the passage of the Act and these two years have seen some improvement, a great deal of which was the result of the operation of the Act itself. The time therefore has come to take a fresh look at the situation, more especially so as several observers from aboard, including the International Monetary Fund and a mission sent by the Massachusetts Institute of Technology, have commented on the generosity of our tax incentives. I will deal with the main changes which are provided for by this amending Bill and leave out minor and technical matters. The principal effect of the Bill, in so far as it affects intending investors, is a reduction in the period of tax incentives for export enterprises from 15 years to eight years. This will apply to the general run of business, but in exceptional circumstances as defined in the Bill, the 15-year period will still be available. These are for very large enterprises with a capital investment of $ I billion or more or those with a capital investment of $150 million, of which more than half is owned by permanent residents of the Republic. As regards the 5-year tax relief provided for pioneer industries, this incentive is henceforth available only to large enterprises with a fixed capital investment of not less than $1 million.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed. INCOME TAX (AMENDMENT) BILL Order for Second Reading read. 3.15 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to provide statutory authority in accordance with clause 2 of Article 85 and clause 2 of Article 87 of the Constitution of Singapore for additional provisions for expenditure in excess of the provisions authorised by the Supply Act, 1968. These additional sums have been scheduled as Supplementary Estimates which have been considered and approved by the House as Cmd. Paper No. 7 of 1970. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed. SUPPLEMENTARY SUPPLY BILL Order for Second and Third Readings read. 3.13 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Main Estimates of Revenue and Expenditure for the financial year 1st April, 1970, to 31st March, 1971, have been considered and approved by the House as Cmd. Paper No. 4 of 1970. Under section 85 of the Constitution of Singapore, heads of expenditure other than statutory expenditure to be met from the Consolidated Fund have to be included in a Bill to be known as the Supply Bill. The purpose of such a Bill is to provide for the issue from the Consolidated Fund of the sums necessary to meet the expenditure and the appropriation of these sums for the purposes specified therein. The Supply Bill before Members is to give legislative approval for the issue of funds from the Consolidated Fund to meet the sums of expenditure for the financial year 1st April, 1970, to 31st March, 1971. In the Schedule to the Bill are shown the various heads of expenditure and the sums that may be incurred in respect of each head. These have been approved by the House in the Estimates of Expenditure for the financial year and appear in pages 55 and 56 of Cmd. Paper 4 of 1970. Once the Supply Bill is approved, I will be empowered to issue warrants authorising expenditure up to the amount under each head as shown in the Bill to be paid out from the Consolidated Fund. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“How much has been paid for this project from Singapore Pools? A sum of $4.2 million was contributed from Toto operations and $1.8 million came from the profits of the Singapore Sweep. This gives a total of $6 million. The stadium will eventually cost $18 million and the first stage of the project will be completed by the middle of 1972. Whether Singapore Pools will make profits fast enough to pay the contractors, I would not know. 3.38 p.m.”
“Sir, I hope I can remember all the questions that have been raised. First, what is this National Stadium Corporation? This has yet to be set up and the Corporation will look after the National Stadium. Whether it will look after other stadiums and whether it will establish gymnasiums I will not venture to predict. But the Corporation is quite different from the National Sports Promotion Board which is to promote sports. The Corporation will manage the National Stadium and one hopes that it will prevent the stadium from becoming a white elephant. It might well become a white elephant, as the Member for Punggol has said, but one hopes that that would not be the case.”
“Actually, the Government loan to the Housing and Development Board takes two separate forms: one is a 60-year loan at 7¾ per cent, and the other is a 10-year loan at 6 per cent, which is to finance houses put up for sale under the home ownership scheme. The Board itself lends money to purchasers at 6¼ per cent for 15 years. This has been extended to 20 years. Government, of course, has been subsidising this scheme all along. It is in the general interest that we should provide housing on the best possible terms. As regards the sale of flats, the Housing Board is not a profit-making body and it sells at cost, taking into account administrative and other overheads. Indeed, because the Housing Board has been able to buy land in the past at very low rates, my guess is that if you value these properties at current land values, the purchasers would be getting very good value for their money.”
“Sir, can the Member for Kampong Kapor quickly recapitulate his questions?”
“Not for $1.5 million. If the residents in Jurong are prepared to have fire services on a more modest scale, where you park one or two engines with the crew on a rotating basis, then perhaps I might think it over. This sort of arrangement will be more reasonable and will be sufficient to deal with small outbreaks of fires in the factories. I do not think we need a large fire station such as we have in Queenstown or elsewhere. As regards the community centre, I do not make the decision. I think it will be fairer if I do not decide such matters. It is best that the Member take it up with the Jurong Town Corporation. I believe the N.T.U.C. is represented on the Board of the Jurong Town Corporation, and maybe the N.T.U.C. representative will listen sympathetically to what the Member has to say. Mr Teong Eng Siong(In Malay): Mr Speaker, Sir, in view of the Minister's satisfactory reply, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“In view of the additional contributions which both employer and employee are making in the enhanced rate to the Central Provident Fund, this is not the right moment to impose further exactions on employees. The Government's view is that in the circumstances facing the Republic in the last few years, it would be better to solve problems of unemployment and other social problems related to it through an accelerated programme of economic expansion rather than by arranging transfers of incomes from those who are well off to those who are unfortunate to lose their jobs. It is the intention of the Government to use payroll tax contributions to offset additional liabilities which employers incur when they employ discharged national servicemen who are called up for their annual training exercises. This will remove any handicaps which national servicemen may encounter in their efforts to find employment. TEACHERS (Particulars of termination of services and resignations) 2. Mr Tay Boon Too asked the Minister for Education (a) the number of teachers whose services were terminated from 1969 up to the latest convenient date, and on what grounds; (b) the number of teachers who left the service voluntarily, and the reasons for their leaving; (c) how many of the teachers whose services were terminated were (i) trained, and (ii) untrained teachers; and (d) how many of the teachers who left voluntarily were (i) trained, and (ii) untrained teachers.”
“Mr Speaker, Sir, actually the Government has never made any promise to introduce a social insurance scheme. What was mentioned was an unemployment insurance scheme which is a small part of social insurance. The amount of payroll tax since it was introduced was as follows: 1965 - $ 7.3 million 1966 - 9.6 million 1967 - 10.0 million 1968 - 11.0 million 1969 - 13.1 million The Government has studied the question of unemployment insurance and has sought advice from the International Labour Organisation. The I.L.O. sent an expert, Mr E. D. Tsoucatos, and he was in Singapore from September 1967 to February 1968. Briefly, the findings of this expert are as follows: (i) an Unemployment Benefit Scheme alone cannot make any substantial contribution towards the solution of problems created by unemployment in the country. An Unemployment Insurance Scheme in Singapore can only supplement other measures to reduce unemployment, to provide more employment opportunities and to intensify vocational training; (ii) any unemployment insurance scheme should be financed by the contributions both from workers and employers; (iii) the scheme should be designed in such a way that it would be self-supporting, covering financial administrative expenses from the workers' and employers' contributions. The Government has decided to abandon for the time being the introduction of an unemployment insurance scheme based on payroll tax contributions. There are several reasons for this. First, as I said before, the introduction of an unemployment insurance scheme would require contributions not only from the employer, which he is now doing under the payroll tax, but also from the employee.”
“Sir, the position is not really as bad as the Member makes it out to be. In most instances where goods are not dutiable, Customs officers are not involved and the importers need only go to Fullerton Building. Even where duty is involved, but the consignment is small or consists of personal effects, the Customs and Excise Department has stationed 13 officers in the Imports and Exports Office and can give the necessary clearance without the person having to go to the Customs and Excise Department. But where there is a substantial consignment of goods, and where it is necessary to check the importer's background, then the Customs officers will have to do the checking. However, this does not mean the importer goes to Fullerton Building and is then shunted to the Customs and Excise Department at Maxwell Road, If he is an efficient importer, he will know that he has to go to the Customs and Excise Department first, and when that is cleared he goes to Fullerton Building and the formalities end there. I agree that it will be a good thing to have these procedures in one building. However, neither Fullerton Building nor Customs House in Maxwell Road is big enough to house both of them. So until we get more money to have more massive Government offices, importers will have to put up with this minor inconvenience.”
“Sir, I am not quite clear what the point is. If the licensee has paid his fees and he receives a demand notice, then, of course, there is no trouble at all because he has paid up. Mistakes of this kind do happen because we have got something like 200,000 licensees who have to pay their fees every year. Sometimes there is a time lag between recording the payment and issuing the notices. I do not think this is a major problem. The Chairman: Mr Sim, are you withdrawing the amendment?”
“Sir, the Member is quite right in his surmise. The object of the exercise is to collect more taxes.”
“If they are temporary occupation licences, that is the responsibility of the Minister for Law and National Development. In fact, I would have thought that $72 per year would have been very cheap for an acre of land. If this friend of the Member for Changi thinks that the charges are too high and does not want the land. I am quite willing to take it off from him.”
“I do not know whether the Member for Changi is referring to Land Office charges in respect of temporary occupation licences or --”
“He just pays what he paid the last time unless he gets a notice to pay more.”
“No, we cannot do this. This concession is to encourage people to buy Housing Board flats. I think that is the reason. I must press on. Time is getting short. The Member for Toa Payoh has said that the $5 fee for late payment is unreasonable, Actually people are supposed to pay property tax without any assessment notice. They know that every January and every June they have to pay. If they do not pay, then they have committed an offence and they have to pay $5 for the work of reminding them. It is also to encourage people to pay tax without prompting. He has a good proposal in that owners of Housing Board flats might as well pay property tax to the Housing Board in order to save them the trouble. Is that the proposal of the Member for Toa Payoh? 7.15 pm.”
“Yes. Property tax varies from district to district. City districts carry 36 per cent property tax and others carry less for various reasons.”
“Those are rates applicable to property tax and not to income tax.”
“Mr Speaker, Sir, once you give the taxpayers certain concessions, you are just looking for trouble. At one time everybody was paying, even those with an annual value of less than $3,000, and there was not a murmur about the iniquity of this tax. I am afraid I cannot agree with the Member for Bukit Panjang. .As regards the limitation of concession to property tax to certain area, actually there is no such limitation. Properties all over Singapore are eligible for this exemption.”
“I did not quite get the point of the Member for Bukit Panjang. Why should we exempt from income tax without limit the annual values of owner-occupied dwellings? There is something -”
“I am afraid the big tax evaders who do not believe that will find themselves not only landed with a whacking big tax assessment, but they may find themselves landed in prison. When that happens, I think people will be less willing to take the risk of dodging income tax.”
“In fact, the Anti Evasion Unit is slowly building up a staff from graduates of the Polytechnic who have obtained Accountancy degrees, University graduates in Business Administratration and law graduates and so on. They are trained to look for evidence of tax evasion in the account books which can sustain a prosecution in court. Having had the staff to collect such evidence, the Unit has to train them to develop skills in interrogation and finally in prosecuting the tax evaders in court. As I said, this is, so to speak, the above-the-counter method of catching tax evaders. It means getting trained staff and putting them through a rigorous training programme, both in Singapore and in the United States, in order to develop the skills. It is a long hard slog. There is no short-cut to it. We have just started this training with the assistance of employees of the American Inland Revenue Department. This work will keep on expanding, progressing and improving. I come now to the question of taxing hawkers. When you engage 20 investigating officers, including professional lawyers, accountant and so on, you are after the big fish. We know that some hawkers do make money and if we catch them we will probably get $500 a year tax from them. Members must remember that if a hawker is married with only two children, he has to have an income of at least $5,000 a year before he is liable to pay tax. If he has an income of $6,000 or $7,000 a year, you do not get more than $100 tax from him. So hounding hawkers in large numbers will be really a waste of money. What the Inland Revenue Department will do is to go for the big fish. I think in the course of years they will succeed.”
“If the Member could let me have the details, I will inquire into this. This is a matter which I cannot answer off the cuff, as I do not know what the facts are. Now, on the Anti Evasion Unit. Last year it was put down in the budget as a block vote of $500,000, because at that time the Commissioner of Inland Revenue did not know the number of staff he needed and what their salary scales should be, and so on. Therefore, it was paid out of a block. 7.00 p.m. This year we know the scale of operations , the type of staff, the salaries needed to pay for them and therefore, the Anti Evasion unit appears as a separate unit under the Inland Revenue head. It is not part of the Property Tax Division. It is another division of the Inland Revenue Department. Now, how does it operate? The staff have to develop certain skills, it is not as easy as the Member for Sembawang has suggested. You cannot say. "So and so is evading tax." You then arrest him and put him in gaol. It cannot be done that way. You have to take them to court and prove that he has been evading tax. You have to provide evidence that he has been evading tax, otherwise the Judge will toss out the case. Therefore, the Anti Evasion Unit has the duty of collecting evidence to prove that such and such a taxpayer or such and such a company is evading tax. They do it in various ways, some of which are open and some are secret and confidential which I cannot discuss here. But I will discuss the open system of catching tax evaders. First they have to develop the skill in auditing books for tax assessment purposes. I am told this is quite a complicated technique and has to be learnt from people who have experience in such practices.”
“What has happened is that the staff of the Department has been strengthened and will continue to be strengthened, so that the number of reassessments now being made is increasing, and more and more people are paying more tax which should have been paid years ago. So there was quite a howl about that. If they think that they have been unfairly treated, then they can, of course, appeal. It is quite strange that none of these people who grumble about high taxes have so far taken the legal redress available to them. About the Stamp Ordinance, the Member for Jalan Kayu asked how it is that, after we have done all this business of passing a new law to allow franking machines to be licensed, the people who asked for franking machines did not get a licence. I do not know the details, but I can only guess - either the Commissioner of Stamps has not got enough franking machines or these people are not -”
“Sir, the Members have raised two main points - property tax and the Anti Evasion Unit. At the risk of repetition when the other subhead comes up, I think I will deal them, with your permission, Sir, in some detail. Property tax is levied on the annual value of the property. If a landlord rents out a piece of property, then the annual value is the rent he collects from it. In that case, I assume the Member for Sembawang, whose concern is for poor people, will have no sympathy with the landlord, That must be so, because landlords are not poor people. The problem will arise when the person owns the house in which he lives. This is the trouble. How to value it? There has been an uproar lately because the property tax levied on owner-occupied residence has been increased 100 per cent and even, I am told, 250 per cent, They say the Department has been quite ruthless and rapacious. Of course, that is one way of looking at it. But from the Property Tax Department's point of view, they say the man is lucky to have got away so cheaply in the past, and that the present valuation is the right one. Now where the man lives in his own house, the valuation attached to that house is related to the rent that can be fetched for similar houses. Let us suppose the Member for Sembawang lives in his own house. The house next door, which is the same type of house, has been rented out for, say, $2,000 a year. Therefore, the Member's house should be assessed at $2,000 a year. It is quite straightforward. And if in the past his house has been assessed at $200 a year, it is only fair that it should now be assessed at $2,000 a year.”
“The duty of custom officers is to catch smugglers and, as such, it cannot be expected that they will rate very high in any popularity poll in Singapore. I would be greatly alarmed if customs officers are the most popular of the civil servants. However, if the Member for Sembawang has specific complaints of misconduct, I will be glad to hear them. I do not place much credence on general complaints, as it is in the nature of the work of customs officers that they have to be unpleasant to people. As regards slowness in dealing with tourists at Paya Lebar International Airport, I am afraid the Member for Sembawang is behind time. The customs officers used to take a lot of trouble to be conscientious about this, but the new policy is to clear passengers as quickly as possible and not to make checks unless they know that some disruptive or shady characters are in the plane. Records of passenger clearance are being kept by the Director of Civil Aviation, The average time the Customs take to clear a plane of 100 passengers is ten minutes. Therefore, there is no question that this is one of the fastest Customs in the world. Whether it is good or bad for Singapore, I do not know.”