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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“Mr Speaker, Sir, I rise to speak in support of this Bill. Before I come to the substance of my speech, perhaps I may be permitted to comment on some of the points raised by previous speakers in so far as they concern economic and financial policy. I am sure that my colleague, the Minister for Law and National Development, will deal with the other aspects. Several Back-benchers have said, and indeed have emphasised, that water is a very precious commodity. One would have thought, therefore, that they would be concerned not over the increase in the price of water, but whether we are charging sufficiently high rates for such a precious commodity to ensure that it is not being wasted. The Member for Punggol says that farmers and residents of rural areas are not being fairly treated in this respect. They pay this additional 20 cents per 1,000 gallons of water and some of them do not have sewerage facilities. They use water to feed chickens and pigs. Of course, if they do so they must be prepared to pay the price. But that is not my point. My point is this. On a previous occasion I said that there must be some rough justice in this. If we were to go by the strict rule of charging the consumer the cost of the water he uses, then, of course, those people in farms and the rural areas would not have to pay this 20 cents extra. If we were to charge them the actual cost of bringing water to the farms, they might well have to pay $1.50 for 1,000 gallons of water and not 80 cents. So farmers and others in the countryside should be thankful that they are getting water so cheaply now. I think that also goes for what the Member for Anson said about water rates. Now, Mr Speaker, Sir, I would like to approach this subject from a wider viewpoint.”
“The Army also trains cooks. But I doubt whether they will find employment in our hotels! I always believe that a good cook, like a painter, is born. You cannot train a man to be a first-class painter, nor can you train a man to be a first-class cook. However, how these hotels are going to get cooks is their business. The Government has got enough worries of its own and will not bother with the troubles of others. The Member for Havelock has made a very useful suggestion, and that is that there must be a minimum charge of five cents, and everything will be rounded off to five cents. I think we can look into this in our regulations rather than spell it out in the Bill itself. 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. [Mr Speaker in the Chair] 4.34 p.m. Clause 1 -”
“As regards the island of Bali, we are ready to start off, but our partners, unfortunately, are a bit slow in getting their money, their designers, or whatever it is. So while we hope to get this project off the ground quickly, the private sector is still dragging its feet. On the shortage of cooks, the catering school, which is now being rapidly expanded, does of course give training in cooking.”
“The Tourist Promotion Board also proposes, as part of its long-term programme, to stage once a year, possibly around our National Day Celebrations, a cultural festival in which we will invite cultural troupes from the countries of South-east Asia, each of which has got dancers and musicians of very high standards. I do not think we will be able to stage one this year, but certainly in 1971 we should see something quite good and spectacular along these lines. The Member for Sembawang asked who pays for the hotel cess. The answer is the consumer pays for it. I agree with the Member for Havelock that that is a very good idea. The Member for Sembawang also asked for information on a number of points. I have taken down notes, but I am having difficulty in trying to decipher my own writing. So, if I missed out a number of points, I hope he will excuse me. He asked what is the standard for inclusion for this three per cent cess. There is a body in Singapore called, I think, Licensing Justices, and if anybody wants to sell intoxicating liquor as a business, he will have to obtain a licence from this body. They grade licences into "first-class", "second-class", and so on. The conditions of a first-class licence are spelt out. The place must have certain standards of comfort or cleanliness and drinking hours are more generous than those in a second-class licence. So we think it is a good thing if all those who have first-class public house licences, i.e., licences to sell intoxicating liquor, are included in this scheme. We will leave out the third-class licences, otherwise you will get all the coffee-shops into the scheme.”
“So I think the problem of high hotel charges will solve itself. As regards entertainment in hotels as a tourist attraction, the Member complained about the rather low standard of strip-tease performances in Singapore which do not come up to foreign standards. I agree with her, but I am not sure whether she is in favour of improving our standard to that in Soho or San Francisco. Of course, she is right that the patrons of these shows, and the people who go to bars, are not tourists but mostly local residents. However, if they want to spend their money this way, we cannot stop them. The Government is not a religious organisation. It is not a moral institution. Possibly the only thing we could do is to increase the entertainment tax on this kind of performances. Anyway, I do not think any special measure is called for in this respect. The Member, however, has made a very valuable contribution in saying that we should not encourage this foreign type of entertainment, but that we should develop our own special characteristics. Actually, the Tourist Promotion Board is forming a company, in conjunction with private enterprise, to stage cultural performances for the benefit of tourists at a small charge. If all goes well, they will be performed in West Point Garden in about a month or two from now. Then it will depend on how well these cultural shows are received. The Member is absolutely right in saying that when tourists come here, they want to see something exotic of the Orient, and not some inferior imitation of what they could see at home.”
“Mr Speaker, Sir, I am much obliged to Members for putting forward various useful suggestions. The Member for Delta has brought up a number of relevant points which I propose to reply to in some detail. First, as regards tourist guides. At present, they have to be licensed by the Tourist Promotion Board. They are carefully selected, trained and examined. The examination papers include questions on the history of Singapore. In fact, the examinations are quite stiff and I doubt whether any Member will relish going through such a stringent course. As regards death-houses, which happen to be in my constituency, it is very difficult to put these institutions out of bounds to people who want to see them. I do not think it is practical to debar foreign visitors from having a look at them. In fact, I am told that some enterprising members of my constituency are selling little coffins as souvenirs to tourists. The Member also says that hotel charges are too high compared to Hong Kong. I do not know what the facts are, but I would agree with her that at one time hotel charges in Singapore were very high. That was because there was an acute shortage of rooms and the hotels decided to charge what the traffic could bear. The Government wrote to the members of the trade who were represented by the Hotel and Restaurant Association, or some association by this name, and asked them how they would respond to government controls. They said "No". They objected to government controls and thought that this should be left to the market forces of supply and demand. I am holding them to this answer, because in the years to come, when there is an excess of hotel rooms, I hope we will not hear complaints about hotel charges being too high, but cut-throat competition forcing them too low.”
“We should avail ourselves of every opportunity to manifest them fully especially to the tourists in order to convey a good impression to them. Fourthly, the Minister for Finance said that we will try our best to promote tourism and to do more publicity work abroad to attract more tourists to Singapore. Of course, it is necessary to set up various tourist spots and attractions in Singapore. These will also provide interest for our local people who might otherwise go to unsavoury places to pass their time. The Minister said that the Government has recruited experts from America to advise it on how to develop tourism and to set up various tourist spots. I think these people who come here to advise us on matters of tourism have a different background and different views on how to promote tourism. In Singapore, we should create something that is unique and that can reflect our own culture. We should not ape others. I feel we have many people in Singapore, especially the artistes, who can help the Government to reflect local conditions, 4.09 p.m”
“I think this is not good for Singapore and I hope the Tourist Promotion Board will take action to remedy this. Secondly, the Minister said that since 1967 we have built more and more hotel rooms and there are now a good number of first-class hotels. I feel that the charges of these hotels are very high and are even more expensive than those charged by the first-class hotels in Hong Kong. For instance, for a single room the charge here is $56, whereas in Hong Kong it is from $30 to $40. Some hotels here charge as much as $100 for a room. This is a discouraging factor for tourists. Thirdly, I feel that developers of hotels and people in the tourist trade have a wrong conception of certain matters. They think that tourists are all westernised people and that they want a certain kind of recreation. Hence we have strip-tease dances in our nightclubs. We should know that tourists might have seen even more naked dances in Europe and elsewhere. So if we want to attract tourists by these methods, I must say that they are all wrong. On the other hand, it will only create a bad impression on others. Such places as night-clubs, bars, and restaurants are visited not only by tourists but also by the local people. We can say that three-quarters of the customers are our youths and some older folks. Therefore, the intention to attract foreign exchange by tourism is defeated. Instead, it will create a bad environment for our people. What we should do is to create our own unique tradition and try to impress our own cultures on the tourists to enable them to understand us better. The traditional cultures of our various races have their own good characteristics and are unique in themselves.”
“Question proposed. 3.57 p.m. Madam Chan Choy Siong (Delta)(In Mandarin): Mr Speaker, Sir, as we all know, the promotion of tourism is a very important means of strengthening our economy. The Minister said just now that we must take measures to do so. He said the number of hotel rooms in Singapore is becoming too excessive for our requirements, and unless more tourists are attracted to Singapore, tourism as an industry will not be as revenue-producing as that in Hong Kong. The proposed measures to remedy the situation are very wise. I am not an expert on tourism, but I feel that there are certain aspects of tourist development which are not comprehensible. For instance, has the Tourist Promotion Board any experienced guides who can inform the tourists about the history of Singapore? According to my knowledge, the Board does not seem to have done this in the past. I feel that it should pay more attention to these aspects of tourist development in future. The Tourist Promotion Board should employ tourist guides who are more conversant with our history. They should be genuine guides for tourists. People of dubious character should not be encouraged to serve as tourist guides. Only in this way will tourists be able to know that we are progressing. But I understand some tourist guides are employed by the Tourist Promotion Board on a temporary basis. These guides take tourists to places which do not reflect well on Singapore. For instance, they take tourists to the death house where old and sick people are waiting for their death. Naturally the tourists will report unfavourably on Singapore. This is the kind of thing that should not be stressed too much. Some guides even tell the tourists that the people of Singapore are backward.”
“As the Republic's hotels and restaurants benefit from Government's efforts, it is, therefore, only equitable that they should make a small contribution. Hotels are already doing so on the basis of a three per cent cess on hotel room rentals. It is proposed to make first-class restaurants and bars do likewise. These would be bars which hold any of the following licences: a public house first-class (extended) (tourist hotel) licence, or a public house first-class (extended) licence, or a public house first-class licence. Restaurants which qualify are those operating a bar service holding any of the aforementioned licences. All bars and restaurants in gazetted tourist hotels are also to be included in this scheme. In all, there are more than 360 of such establishments. An amendment to the Tourist Promotion Board Ordinance seeks to impose a three per cent tax on the sale of each item of food or drink in selected bars and restaurants. Their names will be gazetted shortly and they will be required to pay the stipulated tax as from 1st of March this year to the Comptroller of Customs and Excise who will be appointed by the Tourist Promotion Board to collect such tax. In addition to this amendment, the Bill introduces three others. The first seeks to change the method of appointing members to the Tourist Promotion Board. Whereas existing legislation provides specifically for some members of the Board to be drawn from a particular body or institution, the proposed amendment does not set such a limitation. The other two amendments are minor in character. They seek to change the commencement date of the financial year from 1st January to 1st April and to bring the provision regarding the laying of regulations before Parliament into line with current practice. Sir, I beg to move.”
“To the best of my knowledge, these are the largest of their kind in the world. A no less spectacular marine-land is being designed and planned for the Bedok reclamation area, whilst a first-class zoo or a zoological garden is proposed to be established in the vicinity of Seletar Reservoir. Perhaps the most concentrated development of tourist facilities in Singapore will eventually be located in the island now named Blakang Mati. Here we have engaged at some cost a well-known American corporation with great experience in the development of tourist facilities. It will review the development plans that we have made for this island. Their final recommendations and plans will be submitted to the Government in six months' time. Subsequent development of Blakang Mati will be a joint effort between the Government and the private sector, with Government providing the infrastructure facilities, such as jetties, roads and utility services, and certain basic attractions such as an 18-hole championship golf course, museums, art and craft centres, marinas and so on and so forth. These plans to bring more tourists to Singapore and to lengthen their stay are, needless to say, very costly. Not all of them can be self-supporting. In addition to the money spent on the aviary, zoo, marineland and on projects at Blakang Mati, the Tourist Promotion Board's budget for overseas promotion and advertising also has to be increased in the coming fiscal year. It will be increased to $1.3 million from the previous rate of $400,000. This increased sum, however, is still small compared, for instance, to what Hong Kong is spending on overseas promotion and advertisement - no less than $2.1 million by the Government alone.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." It is now quite apparent that Singapore is building an excessive number of hotel rooms. Research done by the Singapore Tourist Promotion Board shows that by the end of 1972 the number of hotel rooms available would increase from the present level of 2,800 rooms to 13,000 rooms, or about four times. One estimate of tourist arrivals in 1972 puts the number at 680,000 compared with about 360,000 in 1969. In Hong Kong last year, there were 6,400 hotel rooms catering for some 600,000 tourist arrivals. Allowing for some degree of under-supply of hotel rooms in Hong Kong, these figures show that the hotel room supply in Singapore will be far in excess of demand unless a special effort is now mounted to attract more tourists to the Republic and to lengthen their stay here. The Singapore Tourist Promotion Board is in the process of stepping up its overseas promotion activities, particularly in Japan, Australia, the United States of America and Germany. The Board has engaged full-time representatives in Sydney and San Francisco to handle promotion work in Australia and the United States of America. In Tokyo a very well-known Japanese firm has been appointed by the Board as our advertising and public relations agency. The Tourist Promotion Board is at present in the process of establishing another representative, this time in Germany. The Government is also developing new facilities and improving existing ones to give tourists a more interesting time. A large aviary is fast nearing completion in the Jurong industrial estate. It will be one of the finest in the world. The high-lights will be a flight cage covering an area of five acres and a 100-foot man-made waterfall.”
“Sir, there may be instances where it would be in the public interest to allow not one monopoly but possibly a small number of producers to produce for the Singapore market. Under such circumstances, two options are open to the Government. The first is to allow a free-for-all, and let them compete. The end result could be either all survive at some level of profitability or other, or one will knock out the others and establish a monopoly. In order to avoid this kind of a situation, it may be necessary to require that at least in the initial stages each of the licensed manufacturers will produce a certain amount, and no more than that amount for the domestic market. This is to enable all the participating manufacturers to establish a foothold in the enterprise and to ensure that in the long run they are more viable. It is not possible to say on a priori grounds which is the better policy. It all depends on the circumstances, the type of products, the technical factors, the finance available, and a lot of other things. 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. [Mr Speaker in the Chair] 3.35 p.m. Clause 1 -”
“Sir, I will be happy to answer this at the end of the debate. I do not know whether there are any other Members who would like to speak on this Bill. There being no other Member wishing to speak-”
“As the main purpose of the Ordinance aims at protecting the interests of some of the manufacturers who are required to register under the Ordinance, some form of an annual fee should be imposed. To this end a new section 11 (1) and (2) has been added to the Ordinance, which empowers the Minister to impose an annual duty according to a schedule drawn up on the basis of fixed capital investment. This is defined as the actual expenditure incurred by the enterprise on its factory in Singapore and on any plant or machinery used in Singapore in connection with the manufacture of the registered product. In cases where the industries enjoy protection and, to some extent, virtual monopolistic positions in the domestic market, the Minister may impose different rates of duties for different categories of goods. Section 13 of the Ordinance is repealed and re-enacted whereby the Minister may exempt any person from the provisions of this Ordinance, and he may also impose a restriction on the quantity of goods to be manufactured by a registered manufacturer where he considers it is in the public interest to do so. Sir, I beg to move. Question proposed.”
“Subsections (3), (4) and (5) of section 5 should be deleted, as there is no reason why the Registrar should not undertake further application within a certain period. Regarding the revocation of certificates referred to in section 6 of the Ordinance, the amendment empowers the Registrar to revoke the certificate where it has been proved that a registered manufacturer has ceased production for a continuous period of three months. To complement this particular action, the Registrar may also determine the minimum quantity of goods to be produced by a registered manufacturer. This additional power is provided for in the additional subsection (5). The amendment, in effect, incorporates a more specific and wider scope in the conditions for revocation of the certificate. As a measure for implementing the Ordinance more effectively, the amendment to section 8 of the Ordinance has been introduced so as to increase the penalty for offences committed under the provisions of the Ordinance. For those who have failed to register in respect of a particular item of goods, the fine has been increased from $10,000 to $50,000. The penalty for those who have failed to comply with any condition for registration has been increased from $5,000 to $10,000; and for manufacturers who have contrived to give false information to render the Ordinance ineffective, the fine for such an offence has been increased from $500 to $1,000. In this connection, an additional subsection (5) has been added which allows the Registrar to compound offences under the Ordinance, instead of imposing fines by the court upon conviction.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Control of Manufacture Ordinance was enacted in February 1959. The main objective underlying the Ordinance was to control the establishment of certain manufacturing industries which were considered essential operations, and it was necessary then to limit them because of the limited domestic markets and of other economic factors. Until 1967, this Ordinance was not much used. Since then, industrialisation has gained momentum and it is necessary now to implement this Ordinance more stringently. However, many aspects of the Ordinance are ineffective. The proposed amendment, therefore, aims at tightening the legislation. To this end, the Ordinance may be used as an important instrument in controlling and channelling investments into industries which are economically beneficial to Singapore. There is a provision under section 5 (2) (a) and (b) of the Ordinance which provides for automatic registration of companies which have been in production or have bona fide made substantial preparations prior to the gazetting of a particular product under the Schedule to the Ordinance. It is necessary to impose some pressure on such companies which might otherwise be lax in applying for registration. To this end, the amendment to this section provides the condition that registration should be effective within six months of such specification of goods published in the Gazette. Thereafter, all applications shall be treated afresh. Those who fail to apply for registration within the six months' period shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000, and to a fine not exceeding $1,000 for every day during which the offence continues.”
“Madam Chan Choy Siong asked the Minister for Defence whether he is aware that on pay days organised gambling is carried out in all the pay-centres of bus companies draining away the hard-earned cash of the bus workers and thus causing great hardship to them and their families; and what steps he proposes to take to eradicate this anti-social activity.”
“Sir, both sides have been equally guilty and, after a certain stage, we decided to call a truce. CHANGES IN AMERICAN POLICY TOWARDS VIETNAM (Effect on Singapore's foreign policy of non-involvement) 3. Mr Low Yong Nguan asked the Minister for Foreign Affairs and Minister for Labour, in view of changes in the American policy towards Vietnam and the recent visit of the Vice-President of the United States to the region, if he will elucidate whether there are any military implications which will radically alter the Republic's foreign policy of non-involvement. The Minister of State for Foreign Affairs (Inche A. Rahim Ishak) (for the Minister for Foreign Affairs and Minister for Labour): Mr Speaker, Sir, as I cannot predict what changes will, in fact, take place in American policy towards Vietnam during the coming months and years, I cannot foresee what military and other implications it would have for Singapore's foreign policy. However, whatever new circumstances we might find ourselves in as a result of American policy changes or, for that matter, of any other country, our basic policy of ensuring Singapore's security and political integrity remains unaltered. Precisely how we further this basic policy will depend on circumstances then prevailing. May I point out that the Minister for Foreign Affairs has repeatedly stated that we are non-involved only in regard to conflicts which do not affect our national interests or our conception of what is right and wrong. Where these are directly or indirectly threatened, then we are not non-involved. GAMBLING IN PAY-CENTRES OF BUS COMPANIES (Steps to eradicate) 4.”
“Sir, there is an understanding between my Ministry and certain large industrial firms that these firms will not make offers of employment to employees of the Government and statutory boards without first obtaining the agreement of the Government or the statutory boards concerned. Similarly, the Government and the statutory boards will not make offers of employment to employees of these industrial firms without first obtaining the concurrence of the management of these firms. The rapid expansion in both the public and private sectors in recent years has resulted in a shortage of people with the necessary skills in management or in professional and technical training. Under such conditions, there exists the temptation for an organisation to solve its staffing problem by stealing staff from other people. This practice called "crimping" does not increase the pool of persons with the required skill in the country. This is not only of no benefit to the economy as a whole, but it can have disruptive effects.”
“Not to my knowledge, although the trouble will start when members or clients of these companies default on their payments. This has happened and has led to action taken in the civil court. GOVERNMENT AND STATUTORY BOARD EMPLOYEES (Employment by private commercial firms) 2. Mr Low Yong Nguan asked the Minister for Finance whether his Ministry has reached any agreement with any private commercial firms so as to prevent those firms from employing any civil servant or employee of a statutory board; and what is the rationale behind such a move.”
“I intend to publish the findings of the Research Division in an information paper in the course of time. There are now 23 companies registered under the Companies Act. I do not have the details at hand of their total capitalisation. But, as I said earlier, some of them are quite considerable. For instance, the biggest of them has an average monthly auction value of $862,000. The average monthly amount collected from members of various groups of this company was $615,000 and the monthly amount paid by way of loans was $497,000. This shows the scale of operations of some of these companies.”
“Sir, the Research Division of my Ministry has been studying the subject in some depth. There has been no evidence that these companies have been established to defraud the public. Some of the larger concerns are achieving substantial turnovers and are providing participants who borrow with useful, if expensive, credit and those who lend with high, if risky, returns on their investments. These companies are registered under the Companies Act, and there are no legal powers to regulate their operations under this Act. Whether the subject merits new legislation is being considered in my Ministry.”
“Sir, that novel proposition has never entered my head. BILLS INTRODUCED 3.20 p.m BILLS OF EXCHANGE (AMENDMENT) BILL "to amend the Bills of Exchange Ordinance, 1949, of the Federation of Malaya (No. 75 of 1949)", presented for the Minister for Finance by his Parliamentary Secretary (Mr Tang See Chim); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. CONTROL OF MANUFACTURE (AMENDMENT) BILL "to amend the Control of Manufacture Ordinance, 1959 (No. 14 of 1959)". recommendation of President signified (Mr Barker); presented for the Minister for Finance by Mr Tang See Chim; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. PENSIONS (AMENDMENT) BILL "to amend the Pensions Ordinance, 1956 (No. 22 of 1956)", recommendation of President signified (Mr Barker); presented for the Minister for Finance by Mr Tang See Chim; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. TOURIST PROMOTION BOARD (AMENDMENT) BILL "to amend the Tourist Promotion Board Ordinance, 1963 (No. 35 of 1963)", recommendation of President signified (Mr Barker); presented for the Minister for Finance by Mr Tang See Chim; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. LOCAL GOVERNMENT INTEGRATION (AMENDMENT) BILL First Reading”
“Sir, I only mentioned the possibility of further increases in charges because I was asked to commit myself to the position that there would never be any increases in charges. Of course, I cannot give any undertaking of that kind. I have also linked the possibility of increases in water charges with the possibility of increases in wages. So if the Member applies himself diligently in the trade union field to the task of maintaining wage stability, then he will ensure that there will be less chances of increases in water charges.”
“Yes, this is exactly what has happened. The exemption rates have been raised so that this additional charge will not bring in new consumers to pay the sales tax. In fact, there will be a reduction in the tax on Public Utilities Board bills. So the limits which have been proposed are more than generous.”
“Mr Speaker, Sir, I suppose in a sense it is unfair. But, on the other hand, let us not forget that these are homes in rather remote areas, and possibly if we were to apply the principle of charging every one the cost of the services, it may well be that houses in such remote areas would have to pay more for their water anyway because it is more costly to lay the mains to these areas. In these matters, of course, one tries to apply a rough and ready rule whereby everybody makes his contribution to the services.”
“The sum of $60 million is the total expenditure from 1968 to 1973. The World Bank will finance only a part of this expenditure, that is, the foreign exchange component, the money used on imported material, and this comes to only a proportion of this amount. Whether the whole population will receive this facility by 1973 I doubt it.”
“That is one way of charging people, in proportion to the user of the facilities. It is quite a technical subject and this matter has been gone into in great detail by officials of my Ministry and the Public Works Department. The calculations were checked by a mission sent by the World Bank, and they came to the conclusion that a combination of fees per fitting plus the consumption of water is the best and most equitable method of charging for this service.”
“Yes, it is a loss in the sense that those receiving the services did not pay for the cost. It is like people riding on the Singapore Traction Company's buses and the company is losing money - in the same way that the Sewerage Department is losing money.”
“Mr Speaker, Sir, as I said in my statement, no one knew what the losses were because no one did the sums. But the Member for Punggol will recollect that the Sewerage Department was at one time a department of the former City Council. When the City Council hived off into different departments with the main utilities department forming the Public Utilities Board, the treasurer then knew what the position was and passed on the Sewerage Department to the Government. He was under no illusion that this was a losing proposition. So Government had to carry this baby, and this was carried, as I said, out of the general tax revenue until we applied for the World Bank loan. The World Bank did the calculations and said that this loss has now got to be made good.”
“Sir, the Member has not been listening with the attention that the statement deserves. As I said in my closing remarks, these increases will take effect next year and therefore he and his friends can spend their Christmas without undue concern that the water bills are going up. As regards the two per cent return, I do not know how the Member arrived at the figure of a yield of $1.2 million. When I said a two per cent return on capital, I meant a two per cent return on the capital that had been spent in all sewerage works in the past. The Member will agree that this is a very low return on capital investment. For instance, if you were to invest money in business, you would expect a return of at least 20 per cent; but this being a public utility, Government had to settle for a very low rate of return indeed. Of course, I agree with the Member that this is most unfortunate, but let us reflect on the good fortune in the past when these people were getting subsidised services. In the past, as I have said, there was no accounting on this score, and what happened was that the general tax revenue had gone into meeting the losses sustained by running the sewerage system. With these new charges, the Sewerage Department should at least no longer be in the red. Whether there would be further increases or not, no one can say. It all depends on a number of things which it is not possible to predict now. For instance, if wages and costs go up, then naturally the charges will also have to go up.”
“The increases will be as follows: (i) Domestic users of water will pay an additional 20 cents per thousand gallons of metered water in addition to a fee of $2 per fitting per month; (ii) In the case of non-domestic premises, the charge will be 50 cents per thousand gallons of metered water; (iii) In the case of industries utilising water in their end-products, meters will be fixed to assess the amount of water used for industrial purposes and not discharged into sewers. These fees will be collected by the Public Utilities Board on behalf of the Government. The additional payments from domestic premises will vary between 20 cents and $1 per month for more than 55 per cent of the population, while another 30 per cent will pay between $1 and $2 per month. Commercial and industrial premises will also bear a share of the costs, varying from $2.50 to $15 per month in the case of coffee-shops, and $15 to $75 per month for the smaller industrial premises. In order that the increases in utility charges will not be reflected in poorer households, the current exemption from the P.U.B. sales tax on consumers whose bills are below $10 a month will be extended to those whose bills are below $12 a month. The five per cent tax payable on bills between $11 and $20 will now be applicable to bills between $12 and $25 a month and the ten per cent rate of tax will in future apply only to bills over $25. In spite of the increases, the return of investments in sewerage is expected to be no more than two per cent on capital invested. Legislation to give effect to these increased charges will be introduced at this sitting of Parliament, and when the Bill is passed early next year the increases will take effect.”
“Mr Speaker, Sir, complementary with the construction of low-cost houses by the Housing and Development Board has been the expansion of modern sanitation facilities throughout the Republic. In 1960, 36 per cent of the population was served by modern sanitation. The percentage now is 55 per cent. Some $69 million have been spent over the last nine years in extending sewerage facilities not only to new industrial and housing estates but also to outlying areas which hitherto had not been provided with such facilities. It is the Government's intention to make modern sanitation available to every home within economic reach. We will spend approximately $60 million for the period 1968-73. To help finance the scheme, the World Bank has agreed to a loan of $18 million to meet the foreign exchange component of the sewerage projects, the first time the World Bank has given a loan for sewerage development anywhere in the world. Up to now, the capital and operational costs of the Sewerage Department have not been covered by the revenue collected. To be quite candid, no one knew what returns we got on expenditure as the sums had never been worked out. In the course of negotiations with the World Bank for the loan, the Bank made it clear that approval of the loan was conditional on the sewage fees being revised. Further, fees were to be linked to the volume of water consumed and the revenue by 1972 was to be adequate to cover operating expenses plus interest on capital amortisation. It is a cardinal principle with the World Bank that investments must pay their way. In compliance with the conditions set out by the World Bank, it is necessary to raise the charges for water.”
“(a) Since Government is the sole owner of these enterprises, it has full control over them. The Government, however, does not exercise control in detail in the day-to-day affairs of these enterprises. Such matters are left to the management of the enterprise. Government's control is exercised over policy through the Board of Directors. These are appointed by the Government and, in the main, they consist of civil servants. (b) Civil servants, i.e. employees in the Government Service, are not responsible for the administration of these enterprises, as they are not members of the management team, unless specifically seconded to these enterprises. Such secondment occurs rarely, and, when they do, they are on usual terms governing conditions of secondment. SINGLE BUS-FARE SYSTEM 3. Mr Ng Kah Ting asked the Minister for Communications whether he will introduce a single fare system for all passengers travelling whatever distance by bus along a bus route in the Republic.”
“(a) Eight wholly-owned Government enterprises have been established. They are - 1. Chartered Industries of Singapore Ltd. 2. Keppel Shipyard (Pte.) Ltd. 3. Neptune Orient Lines Ltd. 4. Sembawang Shipyard Ltd. 5. Singapore Electronic & Engineering Ltd. 6. Singapore Pools (Pte.) Ltd. 7. Singmanex Ltd. 8. R.T.S. Enterprises (Pte.) Ltd. (b) The total equity investment in these enterprises amounts to $70 million. (c) In addition, Government has equity holdings in joint ventures with 21 industrial, banking and communication companies. The total value of equity participation at cost in these 21 enterprises amounts to $122.4 million. This figure is substantially larger than the one I used in a recent speech because it includes, in addition to manufacturing enterprises, the Government's share in the Development Bank of Singapore as well as Malaysia-Singapore Airlines Ltd. (d) I am satisfied with progress made by these enterprises. GOVERNMENT ENTERPRISES (Control) 2. Mr Ng Kah Ting asked the Minister for Finance (a) whether the Government has direct or any control over enterprises such as Radio and Television Singapore Enterprises (Pte.) Limited, Chartered Industries of Singapore Limited, Intraco and other similar enterprises wholly owned by the Government; and (b) how many civil servants are administering those enterprises, and how are they paid and from what sources.”
“Mr Speaker, Sir, in Asian societies, the support of aged parents is an acknowledged responsibility of all decent citizens. Indeed, Confucius has elevated this into a basic ethical principle, and Chinese classical literature is replete with examples of outstanding acts of filial piety. In these circumstances, it would be unworthy of us to introduce mercenary considerations such as relief from income tax. Sir, if this approach does not appeal to the hon. Member, may I add a less traditionalist argument? An International Monetary Fund mission has recently examined our tax system and has stated that our tax reliefs are overgenerous and could with advantage be reduced. PROPERTY TAX (Notices for payment) 2. Mr Tay Boon Too asked the Minister for Finance (a) whether notices for payment of property tax on attap or wooden houses are sent annually to the house-owners so as to avoid their having to pay accumulated arrears for as many as five years' tax in one payment; and (b) whether he is aware that some such house-owners who had been ordered to demolish their houses have had to pay five years' arrears of property tax.”
“It is $180 to the nearest $10. If you go on for 20 years, then you get about $360. I think the rate of one-thirtieth, which is about 3 1/3 per cent, is fairly generous by way of pension rights. The civil service gets only half that rate. But then, of course, they have security and a longer tenure of employment, whereas a Member of Parliament does not know what will happen beyond five years at the most. Therefore, we thought it reasonable to give a higher quantum. There are Commonwealth countries like New Zealand which pay four per cent a year. So if the Members for Bras Basah, Anson and Joo Chiat think that the total quantum is inadequate, I think the remedy lies not in increasing the pension rate but perhaps in increasing the annual allowance of M.P.s. And it is up to them to settle this question with their constituencies. As regards nine years' or ten years' service, I do not think my colleagues would mind my revealing to this House that this has been a subject of discussion and debate in Cabinet lasting for weeks. In the end, we settled for ten years. The advantage of ten years will be seen in the last year before the next general election. I am quite certain that we came to the right decision to opt for ten years and not for nine years. 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. ECONOMIC DEVELOPMENT BOARD (AMENDMENT) BILL Order for Second Reading read. 3.16 p.m.”
“Sir, the Member for Bras Basah either misunderstood the Bill or I have misunderstood him. He says it is one-thirtieth of his pension. Actually it is one-thirtieth per year, so that if you serve ten years, then you get one-third of $500, which is about $180. An hon. Member: It is less than $180!”
“It is my opinion that our Ministers are grossly underpaid. I, as Finance Minister, for example, earn less than a branch manager of a bank and less than a quarter of what a managing director of a reputable company would earn. Our Prime Minister is earning something like 10 per cent of what he could earn in private practice as a lawyer. Other of my colleagues also undergo financial sacrifice to some degree or other. We are the old guard and we will soldier on. But what worries us is the question of the second echelon leadership who must in time take over the torch from us. We cannot expect to get future leaders of calibre on the cheap, whatever was the case in the past, and it is as well that the people of Singapore realize and accept this fact. Unless Singaporeans want to settle in the future for a mediocre crack-pot or corrupt leadership, they must not believe they can continue to expect men of ability in future to suffer severe financial sacrifices in pursuit of a hazardous political career. In my opinion, a mediocre crack-pot or corrupt political leadership will ruin this country in an incredibly short time, and such ruination could be final, complete and permanent, as Singapore has no natural resources or a large economic base on which to effect a recovery. Though the passing of this Bill into law will not guarantee the attraction of leaders of calibre, it is at least a first step in this direction. And to ensure the continued prosperity and success of Singapore, the cost of the pension is a small price to pay. Mr Speaker, Sir, I beg to move. Question proposed. 3.05 p.m.”
“The amount of pension to be paid is to be calculated at the rate of one-thirtieth of a Member's annual salary for every completed year of reckonable service, and, in respect of any remaining uncompleted year of reckonable service, at the rate of one-three hundred and sixtieth of a Member's annual salary for each completed month of reckonable service. The maximum amount payable is two-thirds of his annual salary. Further provisions of the Bill are explained at length in the Explanatory Statement to the Bill, and I do not think it necessary to elaborate. In drafting this Bill, the practices adopted by other Commonwealth countries were taken into consideration. In Britain, for instance, a Member of Parliament can qualify for a pension on attaining the age of 65 years, provided he has 10 years' reckonable service, at the rate of �60 or about $450 for each year of service for the first 15 years and thereafter at the rate of �24 or about $180 for each additional year, subject to a maximum of 45 years. In Australia, a Member of Parliament can qualify for a pension at the age of 40 years. Here, pension is received at the rate of 30 per cent of the Member of Parliament's allowance at the age of 40, rising by four per cent each year until he reaches 44 years. From the age of 45 years on, the Member of Parliament gets a pension at the rate of 50 per cent of his allowance. New Zealand Members of Parliament are entitled to pensions after nine years of service and on attaining the age of 50 years. The rate is one-thirty-second of the Member of Parliament's last drawn salary, subject to a maximum of two-thirds of his last drawn salary. In Canada, a pension is paid to a Member of Parliament who serves more than two terms with a maximum rate of Canadian $9,000 or S$27,000 a year.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." There is at present no provision for persons who render public service such as Members of Parliament, Cabinet Ministers, Ministers of State or Parliamentary Secretaries, to be provided for in their latter years even if they have devoted a considerable portion of their working lives to such service. Other Commonwealth countries, such as Britain, Australia, New Zealand and Canada, have pension schemes for their Members of Parliament. What this Bill seeks to establish is a scheme for payment of a pension to Members of Parliament, Cabinet Ministers, Ministers of State and Parliamentary Secretaries, who have completed 10 years of reckonable service and have attained the age of 50 years. "Reckonable service" is defined by clause 2 of the Bill to mean service, on or after the 1st day of January, 1955, in Parliament as a Member of Parliament or as Prime Minister or as a Minister, Minister of State, or Parliamentary Secretary. The pension is for life and is payable after reaching the age of 50 years and on their ceasing to be Members of Parliament. The only circumstance in which a Member of Parliament can receive a pension while he is still in Parliament is when he has become what is known as a "backbencher". "Backbencher" is defined by clause 4, sub-clause (1) of the Bill to mean a Member of Parliament who does not hold any office in Parliament and who has previously served as a Prime Minister or Cabinet Minister for a period of not less than three years, and who has completed 10 years' reckonable service and has attained the age of 50 years.”
“80 troy ounces, and has a gold composition of 22 carats. The face value of the coins will be $150. Arrangements are being made for the coins to be issued to the public through the banks as well as at the office of the Currency Board. 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. STAMP (AMENDMENT) BILL "to amend the Stamp Ordinance (Chapter 170 of the Revised Edition)". recommendation of President signified; presented by the Minister for Finance (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. NATIONAL SPORTS PROMOTION BOARD BILL "to establish the National Sports Promotion Board and for other purposes connected therewith, and to repeal the Singapore Sports Stadium Incorporation Ordinance (Chapter 274 of the Revised Edition)", recommendation of President signified; presented by the Minister for Social Affairs (Inche Othman Bin Wok); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. CATTLE (AMENDMENT) BILL "to amend the Cattle Ordinance, 1964 (No. 15 of 1964)", presented by the Minister for Health (Mr Chua Sian Chin); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. PARLIAMENTARY PENSIONS BILL Order for Second Reading read. 2.42 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." It has been announced that there will be a gold coin issue to commemorate Singapore's 150th Anniversary. Originally the intention was to issue commemorative coins which will not have legal tender status. Legal tender issues in gold have generally been frowned upon by monetary authorities in view of the limited supply of monetary gold reserves. However, with the introduction of the two-tier gold market in March last year, this objection no longer applies and legal gold tender issues are becoming more frequent. We have, therefore, also decided that the present gold coin issue to commemorate the 150th Anniversary will also be a legal tender issue. Accordingly, it is necessary to amend the Currency Act, 1967, which only allows the Currency Board to issue legal tender coins of denominations of $I and below. The amendments proposed to sections 14 and 19 of the Act therefore authorise the Currency Board to issue legal tender coins of any denominations and to make such coins legal tender for the payment of any amount. This means that these gold coins can be used to pay for goods and services and can be exchanged at the Currency Board or the banks for notes or coins of other denominations up to their face value. The gold coins to be issued this August will be minted by the Chartered industries of Singapore Limited. Only a limited quantity will be available. Designs for the coins have been prepared by the Royal Mint on the concept submitted to them by the Government of Singapore. The coin has on its obverse side the crest of the Republic and on the reverse the Raffles Lighthouse which symbolises the position of Singapore as the beacon of South-east Asia. The coin measures 1.20 inches in diameter, weighs 0.”
“Yes, Sir. Typed copies of the Bill distributed to Hon. Members.”
“Now, Sir. I lay upon the Table a Certificate of Urgency signed by the President in respect of the Currency (Amendment) Bill. Certificate of Urgency handed in.”
“Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to amend the Currency Act, 1967." Bill read the First time. Second Reading”
“Sir, these matters have been dealt with by me at great length and in great detail in my Budget speech. May I invite the hon. Member to make some research in this direction? If he does, I am sure he will not find grounds for saying that we are taxing the poor. It has already been made clear in my Budget speech that exemption limits have been imposed whereby the poorest people are exempt from paying a tax on P.U.B, bills. More than half of the customers of the P.U.B, do not pay such additional tax. I do not know why the hon. Member still persists in believing what the Barisan Sosialis have been saying in Singapore.”
“Sir, I see no merit whatsoever in the hon. Member's proposal. At the present moment, we want to increase the rate of investment so as to increase our economic growth. With economic growth, tax yields increase, thereby producing the additional money for defence. The hon. Member wants to penalise citizens who invest in Singapore. Incidentally, does he propose to exempt foreign investors from this tax? lf not, why not? He should not be surprised, in the event the P.A.P. Government were mad enough to accept his proposal, that the Government ends up with less total revenue instead of more. It may be comforting to the hon. Member to know that his ideas are not really unique and several developing countries had been pursuing policies of this kind. The rich and successful are targets of envy, more especially so if they belong to an ethnic minority. Action is taken to deprive them of their wealth, or that part of it the Government can lay their hands on. The end result is not progress and better living standards for the masses, but economic ruin and increasing poverty for everyone.”
“Yes, Sir. NATIONAL DEFENCE TAX ON CAPITAL INVESTMENTS 8. Mr Lee Teck Him asked the Minister for Finance whether he will consider the levy of a national defence tax on capital investments by Singapore Citizens in commercial and industrial undertakings on the following scale:- (a) 1 per cent of investment between $100,000 and $500,000; (b) 2 per cent of investment between $500,000 and $1,000,000; (c) 3 per cent of investment between $1,000,000 and $5,000,000; (d) 5 per cent of investment between $5,000,000 and above; and if he will introduce the necessary legislation.”