Hon Sui Sen
Singapore
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE.”
“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put…”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions.”
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“Sir, if we do not mention US dollars, it will be Singapore dollars.”
“All we want to know is the cost of labour so that there can be some way of estimating what the cost will be to some investors. Of course, some of the fringe benefits have got out of hand. This has been made quite clear in the examples which we have given to the National Wages Council or will be providing to them. As to what is going to happen to the annual increments, this is one of the matters for consideration. It can form part of the scheme which is suggested by the National Wages Council or, in fact, it can be that the National Wages Council's increases should take into account the kind of annual increments which can be given. 4.00 p.m. Finally, the Member for Kim Seng speaks of an anachronistic Ministry of Finance. This is a matter of opinion. Of course, we try to keep up with the times. As for being ready when it comes to collecting money, I think this is an expected function of the Ministry of Finance and it will continue to be a characteristic.”
“Sir, I have not very much to add to the comments I have made. The Member for Sembawang made a number of suggestions. Some of these should be considered, but maybe more by other Ministries. For example, vegetable growing, development of orchids and tropical fish industries should, I think, be referred to my colleague, the Minister for National Development, as he is more concerned with those matters, although I am interested in economic development as a whole. As for encouragement of cottage industries, we have certainly in the past tried to help small businesses. We have some financing schemes here for small factories built in Housing Board estates and Jurong Town Corporation estates, and we certainly think that out of these small industries will come our entrepreneurs of the future. I think that particular suggestion is welcome and will be given some attention. He also suggested that perhaps we should have investment statistics ready for investors. I think we have quite a lot of them already. The problem in investment is not the lack of statistics but that there has been a slump overseas in their own countries and, therefore, they are not keen on coming to Singapore. But if there are any particular statistics that we still are deficient in, perhaps he will give me some information on them. He has asked what is the average family income today, if I understand him aright. It was said to be somewhere around $800 a few years ago. The figure was $590 per month in 1972. It is now about $900 in November 1975. The Member for Bras Basah wanted clarification on the statement that all forms of wages, wage increment and so on, should be considered together by the National Wages Council.”
“I am afraid I did not catch all of his suggestions. I think they will be referred to my Ministry which looks after these interests and will be equally interested in any suggestion which will foster the interests of consumers.”
“I think there is some reason for his suggestion and it was considered, perhaps in earlier days, that from this revenue we should carry out certain activities but it was later decided that the general principle that payroll tax revenue should be paid into the Consolidated Fund amid should not be earmarked for any specific purpose was the proper way of dealing with this particular matter. At the same time the purposes for which the payroll tax was originally thought to be usable would be given the same consideration as if the money was available for it. I can assure the Member for Katong and also the Member for Kallang, who also spoke on this, that if there are schemes for training or for any other purposes which are deserving, there will be no limitation in the way of funds, or if there were budgetary difficulties I would come back to the House for supplementary funds which. I am sure, will be approved to finance any particular worthy projects. As far as this revenue pooling principle is concerned, it has the advantage that if the needs are greater than `the tax, then there is no reason to unduly restrict spending on worthwhile projects because not enough of a certain tax has been collected to meet the necessary expenditure. The Member for Katong also mentioned past inefficiency in collection of payroll tax. I am glad to inform him that a Special Payroll Tax Enforcement Unit has been formed, In 1 975 it recovered tax amounting to nearly $900,000. However, the payroll tax is mild and there is not really any problem of evasion. Field officers' reports confirmed that non-payment of payroll tax arose mainly out of ignorance or a wrong interpretation of the law. Finally, the Member for Potong Pasir made some comments on consumers' interests and so on.”
“The guiding principle in giving medical benefits, of course, has been to prevent the civil servant from worrying about the state of health of his family or those who depend on him. So the criterion has been dependency upon the civil servant. Traditionally, the male civil servant was the head of the household and had to shoulder the responsibility of providing for his wife and children. In the context of our present society, while the responsibility still lies with the husband in many households, I am not quite sure that the guideline is still relevant for others. It may be that working wives should now look to their employers and should no longer be given the benefit that they have been given in the past. My Ministry certainly will have some reIuctance in extending medical benefits to husbands and children of married women officer in the Service. But, as I say, obviously we have to look into these regulations which are of historical interest rather than to meet the present situation. I think the Member already has noted in his comments that medical benefits are extended to the children of a woman officer who is a widow or divorcee or who has been granted a decree of judicial separation and is the sole supporter of her family. This is the same principle of dependency upon the civil servant. Next, comments were made by the Member for Katong on payroll tax. He spoke of the inconsistency of Government regarding payroll tax.”
“I think the matter has already been debated at some length. I would say that, so far as my department is concerned, we try and see that prices are fair and reasonable. But in the final analysis, we should encourage keener competition and try to lower prices in this manner. I think it is for consumers themselves to be more discriminating and to avoid patronising hawkers who profiteer. The Member also asked about banks and banking hours. Here again, we have a lot of information which is available in our brochures and so on for the banking community. But I may say that we have encouraged flexibility in banking hours and many of them have taken advantage of this flexibility. The only stipulation is that banks must provide at least 27 hours of banking service a week and that the banks remain open between the important hours of 10a.m, to 3 p.m, on weekdays. The banks are free to extend their banking hours on weekdays and even on Saturdays in accordance with the needs at their particular branches. Finally, the Member complained of discriminatory treatment of requests which originate from MPs. I hope the Member is not correct because there are many other MPs who send requests and applications to various Government departments and I think they are given every consideration. But if he can give me instances of discrimination against his requests, investigations can be made and action will be taken if the allegations are true. The Member for Kim Seng spoke about the Government's regulations on medical benefits to civil servants and the discrimination in favour of male officers whose wives and children enjoy the privilege of medical benefits. I can only say to him that these Government regulations have a very long standing, and perhaps they may need to be looked into again.”
“Singapore, of course, has to prepare for expansion in the volume of air cargo as well as for the increase in passengers. The Changi site has environmental advantages over Paya Lebar. On shipping and trade, the number of ships rose from 36,200 in 1974 to 38,500 in 1975. The Member's impression that many ships do not call at Singapore is therefore not correct. The world recession in 1975 brought about a global trade slump. International trade declined by 12% in real tern-s over 1974. But we were slightly more fortunate than others to have experienced only a 5% drop in real terms. As the American, Japanese and European companies gradually recover, our trade with these countries is expected to improve. The Member for Anson asked about Singapore Airlines. I am glad to assure him that Singapore Airlines is able to compete very effectively on all the routes it serves. Its fundamental problem is that because of protectionist sentiment, it is not always able to secure the traffic rights it believes it is entitled to. Notwithstanding rising costs, SIA's profits for the financial year ending 31st March, 1975 was $40.3 million. The expectation is that profits in the current year will be no less. The Member for Anson also spoke on the resiting of Government buildings outside the Central Business District and the inconvenience it caused to the public. I think consideration has been given to move some departments outside the Central Business District but it is necessary that we group together those Government departments which provide related services, and consideration must also be given to grouping related sections of departments as a unit, wherever possible, to minimise inconvenience to the public. The Member also spoke on inflation and hawkers.”
“The Member for Bras Basah also spoke at some length on this, especially on wage scales. I was very interested to hear him say that if there was no inflation perhaps the National Wages Council need not have to make any recommendations for wage increases. I do not want to preclude even wage increases based on economic growth. So perhaps I should leave it to the proper forum, i.e, the National Wages Council, to deal with the points which have been brought up in connection with this matter today. The Member for Anson also suggested that there should be a consolidation of allowances. I stated in Parliament in February 1973 that Government would undertake a full-scale revision of salary scales at the end of every four to five years for the purpose of consolidating NWC allowances into basic salaries. The four to five years is not quite up yet, but in the proper time I will certainly consider the implementation of this proposal which I made. The Member also made some comments on tourism, especially on occupancy rates in hotels. In the Economic Survey of Singapore 1975, it was pointed out that the tourism sector continued to enjoy favourable growth. In 1975, the number of tourists visiting Singapore rose by 8%. The hotel occupancy rate increased from 70% in 1974 to 75% in 1975, which is very good by international standards. I think we may expect the tourism sector to maintain its growth this year. With economic recovery in the developed countries, there should be more tourists from those countries this year. Of course, the Singapore Tourist Promotion Board will continue its promotion programme while the Sentosa Development Corporation will provide added tourist facilities and amenities. The Member also spoke of the development of Changi Airport in place of Paya Lebar.”
“We have also various areas of development. One of them is the Bond Market. In 1975 we successfully launched a number of bond issues, including US$15 million for the YS Line issue, US$15 million for the Keppel Shipyard issue, and US$20 million for the European Investment Bank. I think that with the development of a good primary and secondary market further issues will be floated in our Singapore market. 3.30 p.m. I will now go on to the Member for Anson's very lengthy queries on numerous subjects. First of all, he spoke of the staff vacancies. Vacancies in over 2,000 Division I posts may appear to be a high figure but among these vacancies are posts of promotional grades which are, in most instances, already filled in an acting capacity. The number of actual or physically unfilled vacancies in Division I would, of course, be much less. Apart from medical officers, there is no marked trend in the number of officers in Government service who resign to join the private sector or migrate to other countries. Steps are being taken to fill Division I vacancies substantively through regular recruitment exercises. Until these are filled, temporary appointments are made to fill vacancies but those candidates in the temporary appointments can, if they have the requisite entry requirements, of course, apply for substantive appointment in the posts which they are holding on a temporary basis. The next point the Member mentioned was the National Wages Council allowances. On this, I made some comments in my Budget statement. I do not think I should go beyond what I have said in my previous comments. We shall just have to wait for the deliberations of the National Wages Council and await also their recommendations and guidelines.”
“I made very little comment on inflation in my Budget statement because I expect the rate of inflation to subside. In fact, in the first two months of the year the inflation, if measured against prices over a year ago, is negative. Whilst there are increases, as he has said, in the prices of certain foodstuffs like pork or vegetables when there was a drought. I think generally the prices have gone down considerably. Members are certainly aware of the lower cost of rice. The Member for Sembawang also suggested that we should encourage our citizens to use locally produced goods. I cannot agree with him more. In fact, we have put some effort in this direction in the past, for example, through the "Prosperity through Quality and Reliability" campaign. We have to assure our people that the products of our industries are equal to the best and meet the most rigid standards. The Government itself encourages use of local products to the extent of 5% differential in the purchase of quality products manufactured locally and bearing the SISIR quality stamp. We have also encouraged locally manufactured goods by giving concessionary rates for advertisements over radio and television. A special discount of 12«% is given so that sales promotion can be intensified to reach local customers. Another point mentioned by the Member was the Asian Dollar Market. He has given the size of the Asian Dollar Market which nearly reached US$13 billion at the end of last year. The documentation on the Asian Dollar Market is quite voluminous and there is no lack of information on this subject. I would merely say that now we are not only a taker of funds from markets all over the world but we are also lenders of funds to the ASEAN countries, to Hong Kong, Japan and Australasia.”
“I have not taken down all the points in full but I can take his first question: "Are we prepared for recovery when the economic situation changes?" I can assure the Member that we shall have no difficulty in coping with the flow of investments, if recovery takes place in the way he expects. In the last year or so we have made considerable efforts in attracting investments and we shall continue to do so. The EDB has sent many of its most senior officers overseas and we shall make further efforts to seek out investment opportunities. We hope that when oil exploration in our region gets into high gear the industries producing oil-field equipment will want to be nearer the market and will, therefore, establish themselves in Singapore. As I have mentioned in my Budget statement, the Jurong Town Corporation has had a breather in the preparation of lands and other facilities for the investments which should be coming. We will be ready in the supply of land, facilities and utilities `and so on for any investment which should come. He has also asked what will be the growth rate this year. I think I have given the figures in the debate on my Budget statement. For what they are worth, I said that the Ministry of Finance computers gave figures of approximately 6%to 8% growth rate whereas the Monetary Authority of Singapore had a somewhat higher rate as the projected growth rate for 1 976. In my reply I said that we must take all these figures with some caution because economic forecasts have gone wrong in the past not only in Singapore but also in the most sophisticated countries in the world using the most sophisticated models and data fed into their computers. The Member for Sembawang also spoke on inflation.”
“Mr Speaker, Sir, I have quite a number of questions to answer from the points made by Members. The first point was made by the Member for Telok Blangah. He spoke on the procedure for the release of funds which have been approved in the Budget Division and in Parliament, and said that there is rather a considerable delay in releasing funds. He mentioned about the community centre for Telok Blangah which apparently had difficulty in obtaining a release of funds from the Treasury. I am in general sympathy with what he says about the release of funds. I am not familiar with that particular case, but possibly there may be considerations which may not have been brought to his attention. It is quite possible that funds have been held up because the People's Association has been trying to arrange with the Treasury for larger amounts to be granted both in the way of land for community centres as well as grants for the community centre. At the moment the amounts are Iimited. But I have been receiving representations that members of Management Committees have had difficulty in raising funds and that perhaps the Government ought to bear a larger proportion of the cost of building such community centres. Of course, these matters require some time for consideration. If the request for funds is merely on the scale which has previously been approved, I can assure the Member for Telok Blangah that there will be no difficulty in approving the amount which has already been agreed for such Government expenditure. The Member for Sembawang, after paying a few well appreciated compliments on smoking and other matters, went on to speak on a considerable number of subjects.”
“Sir, I am not a golfer and I do not know the economics of running a golf course. But plain economics brings out the assumption that with an unlimited number of members the facilities will have to be shared by a greater number of people, and it is therefore very likely that instead of being able to play golf when you want to, you will have to play when you do not want to. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1976 TO 31ST MARCH, 1977 Order read for consideration in Committee of Supply [4th Allotted Day] 2.43 p.m. [Mr Speaker in the Chair] Head Q --”
“Sir, I think the entrance fee has been fixed at a rate which would enable the Club to pay for itself as rapidly as possible. Of course, there is also the need to limit the number of members who use the facilities of the Club, otherwise every one will want to use its facilities.”
“Mr Speaker, Sir, I am given to understand that the total cost of developing the Jurong Country Club amounted to $2.917 million as at the end of 1975. Another $230,000 would be required to complete the development this year. For the first seven months of operation from June 1 975. the cost of maintaining the Club, including depreciation on fixed assets, amounted to $410,000. When the second 9-hole course and other facilities are ready, the cost of maintenance is expected to increase to 5520.000 per year. Entrance fee is $3,000 for ordinary members and $12,000 for corporate members. Subscription is $25 per, member per month. The Club now has 810 members. Income from subscriptions, together with other sources of fund, such as green fees, rental from practice range and rental of tennis courts and restaurants will be sufficient to cover the cost of maintenance when membership is increased further by 780 members. The Club, when completed with more facilities for members, should be able to break even in 1 977 and operate on its own steam thereafter. There would be no need for JTC to subsidise its operations. Membership is open to all Singapore citizens. Preference is, however, given to applicants who reside and/or work in Jurong Town. Permanent residents and non-Singapore citizens will also be considered if they live and/or work in Jurong Town or in one of the industrial estates managed by the Jurong Town Corporation.”
“Sir, I am not entirely familiar with the present practice of the Jurong Town Corporation. But as I understand from its practices in the past, they were dependent on the nature of the industry and the duration of the return on the capital required. If it was a relatively heavy investment, then a longer period would obviously be required. There were also other considerations, such as the relationship to the sea As there was a shortage of land along the sea-front, shorter leases were granted for investments in areas near the sea. JURONG COUNTRY CLUB (Particulars) 3. Mr Yeo Toon Chia asked the Minister for Finance if he will ascertain from the Jurong Town Corporation (i) the total cost of construction of the Jurong Country Club; (ii) the cost of maintaining the Club and whether the subscriptions from members are sufficient for its maintenance; (iii) the entrance fee and subscription for membership of the Club and the present number of members; and (iv) whether membership is open to the public or, if restricted, what are the conditions for membership.”
“"That Parliament do now adjourn-[Mr. Hon Sui Sen] Adjourned accordingly at Four minutes past Eight o'clock p.m. Committee of Supply - Main and Estimates of Expenditure for the Financial Year 1st April 1976 to 31st March 1977(Cols. 317-320)”
“I think I will cut short the remarks on various other matters and come to the main topic of interest, which was taxes. Many Members appeared to prefer the agony of taxes to be imposed on definite times, particularly during the time of the Budget. I cannot give any assurance that Budget time will be the only time when taxes will be imposed. I have a fairly full reply to the Member for Punggol on the necessity for not giving further allowances in personal and earned income and also on CPF allowances. I think these are really the strategies of a financial policy and I am sure there is another opportunity to debate this question. The main reason is that, as he has already anticipated, a small increase of $1,000 in personal or earned income relief would cause the Government to sacrifice about $26 million per annum in revenue. I am afraid I am unable to spare that kind of money. Our objective should be an increase in individual income so that the tax burden for all our social and security services are borne by as many people as possible to spread the load. As it is, only 236,000 or 26% out of a work-force of about 900.000 workers pay personal income tax, but the benefit of Government services are enjoyed by all. In other countries, for example, the United States, a higher proportion of the workforce pays tax. In the US, there are 84 million taxpayers, or 90% out of a workforce of about 93 million. In Australia there are 5.6 million taxpayers, or 95% out of a workforce of about 5.9 million. In Japan there are 31 million taxpayers, or 60% out of a workforce of about 52 million. Question put, and agreed to. Resolved. That Parliament approves the financial policy of the Government for the financial year 1st April, 1976 to 31st March, 1977. ADJOURNMENT Resolved.”
“I am glad, however, that all Members are prepared to consider the need for examination of the wages policy in order to ensure the competitiveness of our industries. Related to industrialisation were a number of topics. One was exports. Only one Member, I am not quite sure which, spoke on our Export Credit Insurance Corporation, although quite a number of other Members appreciated the need for more export markets being found, The Member for Potong Pasir spoke of an unrelated subject, which is that of tourists in our economic development programme. He mentioned unethical practices. May I assure him that the problem is one which has engaged our close attention, as are the malpractices by taxi drivers and others. The Member for Aljunied touched upon the problem of brain-drain from Singapore. I do not think that this particular problem is at present of a sufficiently serious nature for us to discuss it as in our financial policy. I come to the comments on expenditure. The Member for Jalan Kayu spoke of the shortfall in expenditure against amounts voted, and suggested that' there appeared to be an urgent need for a machinery to be adequately geared for this work, This is, of course, one of my daily concerns - how to ensure that development expenditure for anti-recessionary measures can be stimulated. He commented also on the dominant position of the public sector and said that the original objective of not to compete with the private sector was being forgotten. I myself would welcome greater activity in the private sector, particularly in these recessionary times. In fact, the stimulation of public expenditure has been made mainly because the response from the private sector has been inadequate.”
“The Member for Thomson also spoke of a systematic encouragement of training skills, As can be seen from my Budget Statement, I agree with most or all of these statements. I think they will be pursued by my Ministry in promoting industrialisation. A more controversial item is the subject of wages policy. The Member for Jalan Kayu disputed my statement that the Budget Statement was not an exciting statement; especially in regard to wages policy it would cause some feeling. He endorsed the policy which I think has been agreed by the Minister for Labour, myself and the Secretary-General of NTUC, He suggested the need for keeping inflation down but warned against higher taxes and its effect on the cost of living. The Member for Boon Teck also spoke very strongly. on this policy and the need of training in skill intensive projects and praised the support of the workers towards Government. He referred to my comments on the proliferation of non-wage items and the effect on competition. With regard to funeral benefits, among other things, he suggested that this was desirable where wages are inadequate. I accept that allowances and benefits must be considered with the wages in judging whether the whole is adequate. The Member for Bukit Ho Swee also spoke on wages policy and suggested that a full study and a full consultation with workers should be made on this matter. I accept that the NTUC should be consulted and I think they have been, but the National Wages Council can also be a channel for such consultation. In such a forum the figures he quotes on jobs and on workers' income can be studied as to adequacy. In the same forum also, the comparison with executive benefits can also be discussed with regard to its effect on cost.”
“He spoke also of the decline in investment and the need to stimulate this, The Member for Jalan Kayu also agreed to the need for managerial and entrepreneurial improvement but he also emphasised the need for the civil service to do likewise. A number of the Members spoke on topics related to industrialisation. For example, the Member for Bukit Ho Swee spoke of increasing productivity through incentive schemes; the Member for Potong Pasir spoke of the need for investment and productivity; the Member for Thomson spoke of the prospects of industrialisation by the fact that there were lower investment, greater instability in the region and other difficulties, including wages policy. A number of Members spoke on the manpower unit and manpower training. The Member for Kim Seng suggested that there should be a Central Manpower Research Unit. I can assure the Member that the manpower research which is needed for such planning is centred in the Ministry of Finance, but we of course always welcome whatever assistance we can get from any quarter. There are other needs for manpower planning in the various Ministries (of course, in the University also) such as the Health Ministry for their own purposes; the Ministry of Labour, for unemployment statistics, would of course have their own unit. But all statistical data are coordinated by the Statistics Department and our Statistical Commission. The Member for Serangoon Gardens spoke of the need for adequate manpower planning as well as of manpower training. He displayed some disquiet on manpower training in the Industrial Training Board, and he also spoke of the reluctance of our young to accept employment in industry.”
“I listened with pleasure to the Member for Potong Pasir when he spoke on his special subject, the consumer and consumer prices. I would like to commend CASE on its recent work in bringing down the consumer prices in hawker foods, as well as other Members in this House who have also been very actively concerned. Another topic which I have written down here is industrialisation and this appeared to have caught the interest of many Members. The need for further development of our industrialisation programme appears to be generally agreed. I appreciate the analysis of the Member for Telok Blangah of the problem now facing Singapore. He calls it, and quite rightly. "another crisis". He spoke of the retrenchment and the unemployment in 1975 and even in 1976, although I must say that we have had a somewhat more optimistic report for February this year. This, he thought, should be met by all the manufacturers, entrepreneurs, civil servants and workers getting together to overcome this problem. He called for every sector of our nation to come together. At the same time he thought the industrialists should be assisted by being given tariffs and also preferential trading arrangements, perhaps in ASEAN, At the same time manufacturers also must be tough in trying to get new markets. I cannot agree more with this message because in my Budget Statement I also indicated the same attitudes. The same message was also given by the Member for Whampoa who suggested the need for the economy to stand up to the rigours of the changing conditions and of workers and management to redouble their efforts.”
“Anyway I agree with the Member on the need for character in our young people and for the need to develop their moral fibre. I hope our young people will listen to his exhortations. I also agree that we should deplore the tendency that we have of extolling our achievements in the press. I deplore also with him the effect on our youth of these rather vainglorious assertions of our high growth rates and other matters. The Singapore ego is pretty well developed. I also agree with the Member for Katong on the development of character in our people, not only because I believe, like many people concerned with economic development, that the work ethic is a much envied advantage of certain societies but also because of the intrinsic value of character-building. The next Member who spoke on growth and prospects was the Member for Moulmein who was inclined to take the sombre aspects of our future prospects. I hope the younger generation was listening when he urged them to face the challenge and accept the hardships that the older generation did in the past. I think most of us here are members of the older generation. A considerable number of other speakers spoke on this particular topic. The Member for Serangoon Gardens was, I believe, satisfied with the performance of 4,1% in 1975 and hoped that it will inspire confidence. I certainly hope that this will be the case. The other Members I have got down as having spoken on his subject are the Members for Jalan Kayu, Anson. Boon Teck, Jurong and Potong Pasir. I do not have full details of what they have said. In any case. I do not have the time to reply to them in view of the limited time I have at my disposal. On the next topic.”
“But that was the impression I received on hearing the Member's speech. Perhaps I should read his speech when it becomes available either in the press or in Hansard.”
“But, of course, with qualifications that if shipbuilding and the petroleum refining industries do not come up to expectations, then we may get a growth of 6%, On the other hand, there are other figures which have been given by the Monetary Authority of Singapore which are more optimistic. In fact, in these matters perhaps it is very easy to pick on any figure you want and you can have it justified on the computer by making the appropriate assumptions. Nevertheless, I think it is not incorrect to say that we could expect to be better off this year than last year. Sir, the Member for Whampoa also made a number of comments and queried the reasons for the deflator in the services sector. I do not have the explanation for this, but if he likes I will write to him on this matter. I also enjoyed the Member's comments on international problems such as the international monetary arrangements at Rambouillet and elsewhere. I may say that his remarks on the inflationary effects of the international money and gold discussions strike a responsive chord in me. The Member for Katong was dismayed by the Member for Whampoa's forecast. He was in favour of a more optimistic outlook because of our success in meeting previous adverse economic conditions in the past such as the rundown of the British forces.”
“The only other Member who mentioned ASEAN was the Member for Whampoa. I think he was under some misapprehension when he referred to the attention which we gave to industrialisation rather than to agriculture in ASEAN. I am of the opinion that he was not correct. The emphasis, even among the ASEAN industrial projects chosen, was on fertilisers to help in agricultural development. Nevertheless, he was correct in thinking that for Singapore the project we have chosen is more concentrated on industry than on agriculture, although the diesel engine is eminently suited to the use of agriculture as part of an agricultural factor or other implements such as pumps. I would now like to go on to the comments on growth and prospects for Singapore. I always listen to the Member for Whampoa with interest when he speaks with his usual expertise on economic subjects. I think the Member commented on the poor growth and analysed the figure of unemployment which he gave as 6%, and he went on to speak of the poor growth in a number of sectors. I agree with him that we cannot be satisfied with the performance of Singapore in 1975 and I hope that, in fact, the growth in 1976 will be better. In my Budget Statement. I have not given any figures for my estimate of growth in 1976 because so many economists, not to speak of Finance Ministers, have gone wrong in their economic forecasts that I do not think that this has any great value, But for those who are interested in looking at crystal balls, I think the figure which the Ministry of Finance computer comes out with after making a number of assumptions is nearer 8%.”
“Mr Deputy Speaker, Sir, I am grateful for the opportunity given to me to reply to the very lengthy speeches I have heard since 2.50 p.m, this afternoon. May I say, first of all, that I am gratified at the general support of Members for the financial policy of the Government. Some Members have expressed this support without reservations, while others have been perhaps less uninhibited in suggesting that there should be reservations to this support. In fact, I expected more brick-bats to be thrown at me. After all, in a world of rising expectations, when Singaporeans have become accustomed to double digit growth rates, even a real growth rate of 4.1% must be considered a come-down. Sir, I propose to deal with the comments of Members by subject rather than by individual representations. I must thank Members for their views and comments, especially those with particular insights. For example, the Member for Ulu Pandan, with his academic training and former profession in History and diplomacy, is able to see ASEAN in very broad perspectives of time and of distance, whereas I confess I find some difficulty in seeing the ASEAN wood for the trees of inter-ministerial discussions and negotiations. At the same time. I also envy him for the very keen eye that his new profession of banking has given him on the practical use that greater cooperation and new economic opportunities of ASEAN will have for him as a banker. As a former banker myself, I join him in the hope that ASEAN will produce, and fairly soon, beneficial development not only for Singapore but also for the very large economic unit that he has described as ASEAN. I think that the recent meeting of Economic Ministers in Kuala Lumpur gives us great cause for this hope.”
“Conclusion Mr Speaker, Sir, after the food and commodity shortages, price increases and unstable exchange rates, and the measures we were forced to take over the past two years since the oil crisis, the financial policy outlined in this year's Statement is a relatively unexciting one. Perhaps this is just as well. We need a period of consolidation, for steady, unflagging, if slower growth. We 1976. hope to plan and carry out projects with less need to make allowances for unexpected crises or emergencies. Sir, I beg to move, 3.55 p.m.”
“The habit of smoking has been only slightly diminished in its rise in consumption by price increases. Despite the ban on advertisements, and the well proven health hazards, consumption has gone up, although at a slower rate, especially in the more expensive imported cigarettes. What is deplorable is that the young are being seduced into smoking. We may not change the habits of the veteran smokers, who believe, like some of my Cabinet colleagues, that they are immunised against lung and other pulmonary diseases since decades of smoking have done them no harm. I wish them continued good health. But the young must be spared this dangerous habit. The weight of medical authorities in the West are agreed that the risks of cancer in lungs and nasal passages increase immeasurably with smoking. Tax Concessions There will be a number of Tax concessions to develop Singapore further as a financial centre and promote the Asian Dollar Market. First, fees, interest or commissions received by Asian Currency Units for advising, confirming or refinancing off-shore letters of credit will be taxed at the reduced rate of 10% under Section 43A of the Income Tax Act. This concession will take effect from the Year of Assessment 1977. Second, non-resident deposits with Asian Currency Units and approved Asian Dollar bonds, held by non-residents, will be exempt from Singapore estate duty with effect from 1st January 1976. Third, Singapore Government tax-free bonds, held by non-residents, will also be exempt from Singapore estate duty from 1st January, 1976.”
“1% more than the revised estimates for FY 75. However, it is expected to be about 39% of total revenue for FY 76. Total revenue estimate of $3,108 million, at existing tax rates, covers the estimated recurrent expenditure of $3,104 million. There will be a small operating surplus of $4 million. Members should note that in the estimated recurrent expenditure is $625 million which goes to the Development Fund. The development expenditure of $2,610 million, 43% more than the revised figure for FY 75, will be financed by proceeds of new loans totalling $1,280 million, both domestic and foreign and by $625 million to be transferred from the Consolidated Fund. Investment income and repayment of loans made to statutory boards and companies in the past will also make up total development estimates. These sources are expected to cover about 88% of estimated development expenditure. An overall deficit of $309 million can be met wholly, if necessary, by drawing down the Development Fund. Tax Changes I have considered a number of tax proposals. The amount of revenue Government requires each year for recurrent as well as development expenditure is increasing rapidly. But to stimulate the economy it is necessary not to reduce purchasing power. I have therefore decided to propose only one small increase in tax amounting to about $10 million per annum. Import duty on cigarettes will rise from $38 to $43 per kilo. Excise duty will rise from $3.50 to $3.70 per kilo. Duty on leaf tobacco will rise from $32 to $35 per kilo. The revision of duty will come into effect today. We are allowing for a 8% drop in consumption. The duty increase on a non-essential, indeed poisonous and anti-social, item like tobacco will not affect the cost of living of sensible people.”
“9 million for FY 75 for General and Financial Administration and Economic Regulation and Foreign Affairs, an increase of 9.7% to $1 76.5 million for FY 76 is provided. This is a modest percentage of total allocation to these support and general services. It is not in the interests of efficiency and productivity to go below this figure. Indeed, the level of efficiency can be raised by training and personnel selection programmes. An Establishment Unit has been set up in the Prime Minister's Office to monitor the careers of all Division I officers in the civil service. This PMO Establishment Unit will seek out high calibre officers especially in the 25-40 age group, to fill a gap caused by many promising officers in the 30-45 age group leaving the service during the years of rapid economic growth, when the government service was under the constraints of wage restraint and could not compete with the private sector. Revenue Let me now turn to the question of financing the proposed expenditure. The Treasury Memorandum (Paper Misc. 4 of 1976.) compares the latest revised revenue estimates of FY 75 with revenue collected in FY 74. It also shows the yield we expect in FY 76. The total estimated revenue of $3,108 million for FY 76 represents an increase of 6.7% over the revised estimate for FY 75. Revenue in FY 74 was 1 5.2% more than that in FY 73. The revised estimate of revenue in FY 75 is 13.9% more than revenue in FY 74. The decline in the rate of increase in revenue is inevitable. The economy slowed down in 1975. Income tax is the largest single source of revenue. It will be particularly affected by the recession since collections are based on the previous year's earnings not those of the coming year. For FY 76, income tax is expected to yield $1,200 million, barely 9.”
“Recruitment is progressing satisfactorily. On 1st February 1976, the overall position in Division I had dropped to 2.414 vacancies. To meet numbers required of graduates and trained teachers in Education, the Universities and Institute of Education and Junior Colleges will expand their intakes of students in the forthcoming year. Hence their increased budget allocations. The Budget also provides a very high proportion of total expenditure to Social and Community Services, almost 40% of the Budget. Housing, at $854 million, is almost 1 7% of total expenditure. Expenditure on Education will be $555 million or nearly 11% of the total expenditure. The next largest sector of public spending is on economic services, about 30% of total expenditure. $780 million are for industrial and commerical development, second largest single item after Housing, 1 5.3% of the total expenditure. Of this. $338.4 million (43.4%) will be loans to Jurong Town Corporation and $292.9 million (37.6%) loans to industrial and commercial enterprises. For transport and communications, from the FY 75 $176.5 million vote, provision is made for $332.2 million for FY 76. an 88.2% increase. The building of Changi as a double runway international airport takes almost $130 million for 1976, whilst $60.34 million are for projects at Paya Lebar. Paya Lebar will continue as the main airport until both runways and all facilities in Changi are ready by 1982. For tourism, $10 million for Fl' 75 is increased to $30 million for FY 76. Sentosa Development Corporation (SDC) will develop tourist facilities on Sentosa and other offshore islands, to build beach bays, jetties, shelters, showers and other recreational facilities. Finally, the central core of the Administration which provides the General Services. From $160.”
“In this way we shall maintain the competitive edge of our goods and services in the international market against the tough and spartan societies of Korea and Taiwan and the hard driving competition of Hong Kong. Life has always been harsher in these countries. The result is hardy and industrious workers capable of long hours of work and sustained discipline. We can pay our workers higher wages and have them enjoy a higher standard of living only if they use our better location and more advanced social and industrial infrastructure to advantage. Our entrepreneurs and managers must be adequately recompensed for capital they bring. The enterprise with which they use this capital can raise the sophistication in technology and skills of the manufacturing and servicing sectors of our economy. This is our answer to our tough and hardy competitors. The FY 76 Budget Estimates Mr Speaker, Sir, may I now turn to the Budget Estimates. The Main Estimates of Expenditure are a realistic forecast of the sums of money likely to be spent in the forthcoming year. Apart from unusual unforeseen expenditure, actual disbursements over the years have grown at a steady rate. Therefore, for FY 76, excluding the allocation to the Development Fund, the estimated expenditure of $5,089 million compares with $4,335 million for FY 75 and $3,381 million for FY 74. The Administration's ability to use budgetary allocations effectively depends on the civil service which must have able administrators, supported by qualified and trained professional staff. Appendix A of the Establishment List shows the vacancy position in the civil service at the beginning of December 1975. There are big shortages of Division I officers in the Ministries of Defence, Health, Foreign Affairs and Education.”
“To increase competitive efficiency, banks and other financial institutions have been encouraged, by liberalising conditions under which they operate, to provide more competition in rates of interests and discounts. All Acts and regulations which inhibit such competition amongst financial institutions will be amended. Tourism Development Despite the recession, our tourist sector has continued favourable growth in 1975. Both the Singapore Tourist Promotion Board and the Sentosa Development Corporation have more funds for further tourist facilities and attractions. Their effort will, doubtless, be reinforced by the activities abroad, of airlines, hoteliers and travel agencies. Final Remarks on Economic Policy Despite the world economic uncertainties and the need to shelter our domestic economy from adverse external factors. our long term aim is still high rates of economic growth through industrialisation, and through improving technical know-how and services. The current upturn in the industrialised countries will help our economic growth. But harder work from our people and greater vigilance from entrepreneurs and administrators will be required since the oil prices have gone up five times. Improvement in the quality of our workers through education, training and retraining, must be matched by better entrepreneurs and managers. Through continual modernisation and innovation, management must improve production and administration, financial control and personnel management and marketing methods. Increases in productivity are the result of judicious capital investment and good management, matched by high skills and discipline from the workers.”
“The time has come for the National Wages Council to consider whether it should not include all forms of wage increases, including annual increments, incentive allowances and bonuses, in the computation of the annual NWC wage supplements, to arrive at a single total annual wage increase. The present practice of having separate increases spread throughout the year under different descriptions is deceptive. If these practices continue, Singapore labour will be the most expensive in East and South-east Asia, outside Japan. Unfortunately, we are not more hardworking nor more sk lIed than people in Korea. Taiwan or Hong Kong. Monetary Policy Our monetary policies were geared to provide more funds to stimulate productive activities. This was done whilst ensuring a healthy position on balance of payments and reserves. The freeing of bank rates last year made for a more rapid adjustment of domestic interest rates. With further expansion of the money supply in 1976, the productive sectors should have finance at reasonable interest rates. Of course, there will be suitable safeguards to maintain monetary stability, and sufficient flexibility for rapid adjustments to changes in world currency exchange and interest rates. We have made major changes to liberalise our foreign exchange controls. Included in the list of `scheduled territories' now, are all ASEAN countries. We have removed restrictions on the flow of currency notes and raised the ceiling for investment in specified currencies and securities. We are giving priority to the development of the forward foreign exchange market. With floating exchange rates, traders need a good forward market for safe and favourable cover. We are also nurturing the bond and capital markets.”
“Workers already on the job, have to improve their skills and increase work discipline. Employers should improve their personnel management. Increased productivity depends on both workers and employers. Management in the Statutory Boards, and in Government, must make more optimal use of manpower through improvement in the administrative and management structure. A recent analysis by my Ministry showed that both the Government and Statutory Boards have been too lavish in their use of professionally and technically trained men, This has to be reversed. Our policy is to keep establishment strength in the public services to a minimum in order that more professional and technical men can join the productive private sectors. Wages Policy In anticipation of more modest growth rates, and with inflation now under control, there has to be an adjustment in our wage policy. Everyone will have to be prepared for much smaller increases than in the years before the oil crisis. There can be little or no increase in wages without increases in productivity. We cannot afford to blunt the competitiveness of our exports. The past method of negotiating wage increases on top of NWC recommendations must be reviewed. Too many wage agreements have sought to circumvent NWC recommendations by fringe benefits. They have included a funeral grant of up to $1,000 on each death of a member in the family, laundry allowance, tea allowance, meal subsidy, shift duty allowance, attendance and transport allowance, savings account of 5% in addition to CPF employers' contribution. In toto, these so-called fringe benefits have a heavy impact on costs.”
“Public sector development expenditure in 1975 increased by 34%. Largest increases were in utilities, transport and communication, industrial estate development and public housing. In spite of the construction sector's small share of total GDP, it accounted for 20.3% of total increase of GDP in 1975. Furthermore, such construction took place at a time of stable or declining prices. So it had no inflationary effects. For 1 976, both the Government and the Statutory Boards will press on with their development programmes. Manpower Development Industrial training must be expanded. We must have enough trained workers for industries when they resume full production. My Ministry estimates that, for economic growth rates of 7-10% in 1976 and 10-13% per year in 1977-80, we need an average annual addition of 3.000 relevant professional and technical graduates, 2.600 technicians, and about 7,300 skilled workers. Our training institutions, secondary and technical, and tertiary, have to plan to meet these manpower needs, in types of professional, skilled and semi-skilled workers for the industries likely to be in production. A sum of $23.4 million has been approved for industrial training conducted by the private sector in Joint Industrial Training Centres and other training schemes. Disbursement is expected to be made within the next four years. The recent changes in the education system give it a technical bias, with more facilities for industrial training. Vocational training and the Industrial Training Board will inculcate attitudes of care and precision essential for success in climbing up the technological ladder. There will be more blue-collar jobs, and young Singaporeans must be trained to do them well.”
“If we make even moderate progress in the next few months to get this agreement implemented, the ASEAN countries will have moved from discussions to conclusions and from good intentions to concrete steps for implementation, even if they are small steps up what is a difficult road to greater economic and political cooperation for the good of all. The measures to implement the agreement reached in Bali can be the first steps in regional self-help. They can also increase ASEAN's total bargaining strength vis-a-vis the industrial giants of America, Japan and the EEC and with Australia and New Zealand. As we implement these few limited ASEAN measures, we shall generate confidence in our people and in each other member country in ASEAN. We hope that economic ties between ASEAN member states will now grow as fast as their economic relationships with the EEC. Japan and the United States have been developing. If the mood in Bali prevails, it will be to the good of us all. I speak on behalf of my colleagues and myself when I state that the Singapore Government stands ready to concede as much as it gets from the first set of measures. We cannot afford to lose the momentum generated at Bali through lack of vision. My counterparts in Indonesia. Malaysia, the Philippines and Thailand and I have established a realistic working relationship. Now it is up to all of us representing the five member countries and our officials to press ahead in the spirit of amity and cooperation. Construction Last year I announced that public sector construction would be increased. Much planning and design for additional development projects were completed in 1975, Construction started towards the middle of the year. Construction of many projects will continue through 1976 and beyond.”
“More missions will go in the coming year to follow up the work of earlier missions. The Export Credit Insurance Guarantee Scheme has been finalised. The Export Credit Insurance Corporation, with an initial paid-up capital of $30 million, will start operation this June. The MAS facility for rediscount of export bills provided last year enabled our manufacturers and exporters to lower costs of export and hence secured additional export markets. However, the Government can only facilitate the primary task of our traders and manufacturers themselves. The Chambers of Commerce and the Singapore Manufacturers' Association must seek and identify new outlets. They must go out and sell their goods and services. ASEAN Economic Cooperation Sir, it may not be inappropriate if I refer here to the recent Conference of ASEAN Heads of Government at Bali. In economic matters, the Conference agreed on cooperation in priority supply and purchase of food and energy, in establishment of agreed industrial projects, in preferential trading arrangements particularly for the products of such ASEAN industrial projects, in stabilisation of commodity prices and in a unified approach by ASEAN member countries to other countries or regional associations. Compared to advanced regional groupings like the EEC, the agreement for ASEAN economic cooperation now embodied in the Bali Declaration is but a skeletal framework. This will need time to flesh out with the substance of ASEAN projects and other economic measures. Unlike the more ambitious resolutions of the Group of 77 developing nations for a new world economic order, the aims of the ASEAN agreement are modest and should be capable of quick realisation.”
“Under the Capital Assistance Scheme, a special fund has been set up for skill-intensive industries bearing higher risks than those normally acceptable to financial institutions, We have to date approved loans of $6.1 million to five projects with a total fixed investment of $30.7 million. They are in precision engineering and metal fabrication and have an average value added per worker of $50,000, compared to $17,000 for existing industries. We get these industries through joint ventures with foreign companies possessing the technical know-how. Introduction of new skills to local enterprises through joint ventures with foreign partners is promising. Over 30 projects are now under active negotiation. Last year, I announced additional tax incentive measures for industry. These have been implemented. Seven projects with total fixed investments of $134 million have been approved for pioneer status, with tax exemption periods beyond the five years allowed previously. The Economic Activation Committee remains ready to help industries over the recession to get industrial production to full capacity. Trade Development Our trade development policy has to be adjusted to support our other activities, especially those in the manufacturing and services sectors. For example, we are paying special attention to the establishment of enterprises engaged in warehousing, servicing and maintenance of equipment. They will meet demand for such services in Singapore and in the region. We are increasing our trade development efforts. Our Commercial Secretaries' Service has been expanded to provide our manufacturers and traders with more information and contacts. In 1975, we sent six major missions to over 12 countries. Thirty foreign missions came to Singapore.”
“We must get higher technology and skill-intensive industries to set up in Singapore. The Economic Development Board has deployed its senior staff in the field. Their effectiveness has resulted in investment commitments for 1975 of $400 million despite world-wide recession. This amount is less than commitments of $822 million for 1974 and $944 million for 1973. Considering the difficult economic conditions of last year, we cannot really complain. With excess industrial production capacity and high unemployment in the industrialised countries, most enterprises concentrated on their home-based production. Greater effort is necessary to achieve results comparable to the early 1970's, before the oil crisis. The EDB Head Office will be strengthened to help investors get production started expeditiously. Our development as a services centre for technical know-how and finance has widened our field. Our supporting services, including comprehensive financial facilities, have often settled hesitations in new investments. The Jurong Town Corporation (JTC) has now an adequate supply of industrial land and factories with all utility services ready for allocation. JTC took the slack of the last two years to prepare for renewed demand. Our object to get skill-intensive industries has had some success. Investment commitments in 1975 were made mostly in technically more advanced metal engineering industries. The expected value added per worker for these new industries has increased to $43,000 a year, compared to $33,000 a year in the last few years Similar increases in expected value added also obtain for other industrial groups, particularly in transport equipment and petroleum processing.”
“because of the appearance of new or more direct sources of supply to their established markets in Japan, Hong Kong or Vietnam, the petroleum refining industry may suffer still from a lack of demand. Similarly, the glut in tankers and larger ships has led to small new orders. Japanese shipbuilders are diversifying their activities. Our ship and oil rig building and repair industries are feeling the increasing pressure of their fierce competition. Petroleum refining and transport equipment industries are our two largest manufacturing industries. They made big contributions in recent years to growth of our GDP. In 1976 we cannot expect, for several years, a return to the era of rapid expansion, in a period of high oil prices and energy conservation. Economic Policy for 1976 What remedies can we prescribe for our economic ills in 1976? The answer must be the tried and tested mixtures. In the last two years of recession we have, nevertheless, pursued policies which will result in relatively high rates of growth. These policies have yet to yield their full results. With increasingly difficult economic problems. the Government will have to play a greater role in ensuring orderly economic development, in stimulating the economy without rekindling another bout of inflation. The public sector will continue to provide the necessary facilities and services necessary to sustain growth. The private sector must redouble its efforts in increasing and diversifying production, and in securing new markets. It may be useful to review existing Government measures. Industrial Development Our policy for industrial development remains the diversification, restructuring and modernisation of our manufacturing industry.”
“The diversified nature of our markets and products which had stood us in good stead against adverse external developments in other years, in this instance, was not able to counter a simultaneous decline of almost all economies of the industrial countries. And further the loss of the markets in Vietnam, Cambodia and Laos did not help. The severest effect on Singapore's economy was a decline in manufacturing output, which was counterbalanced, to a limited extent, by a stimulation of growth in the services sector. Fortunately by mid-i 975, economic recovery was spearheaded by the United States. This recovery was followed, somewhat hesitantly, by Japan and West Germany. The advances in industrial production and increases in imports reflected the turn around of activities to meet increased demand. However, it was largely through the build-up of inventories. Consumer spending, the driving force behind earlier recoveries of the 1960's, was relatively weak. New long term fixed investment was also weak. There was excess productive capacity in all industrialised economies. Prospects for 1976 The latest OECD reports forecast growth in the major industrialised countries at 4'A% for 1976, nearly the rate in the second half of 1975. Similarly, increase in volume of world trade (exports and imports) in 1976 is expected to be about 6%. If these forecasts are realised (and we have been disappointed before), they will stimulate our own economic revival. A word of caution is, however, necessary. Not all industries will benefit to the same extent. There may be special, or local, factors which affect particular industries. For example.”
“Mr Speaker, Sir, I beg to move, "That Parliament approves the financial policy of the Government for the financial year. 1st April, 1976 to 31st March 1977." Sir, as on previous similar occasions, I have distributed in advance to Honourable Members my Economic Survey of Singapore 1975. Members will perhaps have noted the further improvements to the Survey making it more comprehensive and, I trust, also more comprehensible. The ample statistical information presented should enable Members, if they interpret them differently, to reject my conclusions. They can reach their own conclusions of the economy's performance in 1975 and the prospects for 1976. I do not propose in this Budget Statement to go over the ground covered in the Survey. But it may be helpful to Members if I touch on selected topics of relevance for 1976. Singapore's Economy in 1975 1975 was a year of world-wide recession with the major OECD countries suffering on the average a decline in growth of 2'/4%. In the circumstances Singapore's real growth of 4.1% may be considered a fair performance, though it is disappointing compared with the double digit rates of the early Seventies. At current prices, the growth was 9.0%. The difference of about 5% between the two rates, the GNP deflator, reflects the relatively stable prices in 1975. This is welcome relief after the steep price increases of 1974. On the other hand, it could be also a measure of sluggish demand in 1975. The recession, the worst since the Great Depression, grew more serious in all industrialised countries for the first half of the year. Our open economy registered this decline.”
“Mr Speaker. Sir, I beg to move the motion* standing in my name under item No. 4 in the Order Paper. * The. motion reads as follows: 'That this Parliament pursuant to Section 7 of the Civil List and Pension Act (Chapter 52) resolves that the Schedule to the said Act be varied by deleting the figures "$187,050", "$823,250", "$200,170" and "$17,750" appearing in the second column thereof and substituting thereof the figures "$208,200", "$894,400", "$214,580" and "$5700" respectively,' Sir, it is proposed to increase the provisions for the Privy Purse by $21,150 and the salaries of personal staff by $71 .150. The increase is largely required to meet the 1975 NWC wage supplement and the annual increment of salaries of staff. The increase under Class III expenditure is mainly required to meet the cost of repairs of furniture and higher maintenance costs. For Class IV, however, a lesser provision is now required. It is, therefore, necessary to vary the provisions in the Schedule to the Civil List as follows:- for the "Privy Purse" from $187,050 to $208,200; for "Salaries of Personal Staff" from $823,250 to $894,400; for "Expenses of Household" from $200,170 to $214,580; and for "Special Services" from $13,750 to $5,700. Sir, I beg to move, Question put, and agreed to. Resolved, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 521, resolves that the Schedule to the said Act be varied by deleting tie figures "$187,050". "$823,25O","$200,17O" and "$13,750" appearing in the second column thereof and substituting therefor the figures "$208,200". "$894,400". "$214,580" and "$5,700" respectively. ANNUAL BUDGET STATEMENT 3.10 p.m.”
“Mr Speaker. Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolution." Question put, and agreed to. Resolution accordingly agreed to. LAND TITLES (STRATA) (AMENDMENT) BILL (As reported from Select Committee) Order for Third Reading read. 2.56 p.m.”
“Mr Speaker. Sir, I beg to report that the Committee of Supply have come to a certain resolution. Resolution reported - "That the sum of $88,720 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st April, 1975 to 31st March, 1976, contained in Paper Cmd. 2 of 1976."”
“recommendation of President signified; presented by the Minister for Finance (Mr Hon Sui Sen); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. SUPPLEMENTARY SUPPLY BILL "for making Supplementary Provision for the public services for the financial year 1st April, 1975, to 31st March, 1976". recommendation of President signified; presented by Mr Hon Sui Sen; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. FIRST SUPPLEMENTARY ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1975 TO 31ST MARCH, 1976 (Paper Cmd. 2 of 1976) 2.54 p.m. Order read for consideration in Committee of Supply [Allotted Day] [Mr Speaker in the Chair]”
“Sir, the answer to the Member's question will be apparent by the end of my Budget Statement today. May I suggest to the Member that it would be more appropriate for him to raise the question of income tax relief, if he so wishes, during the debate on the financial policy of the Government on the 15th March, when I shall be happy to give him a full reply. BILLS INTRODUCED 2.50 p.m. ROAD TRAFFIC (AMENDMENT) BILL "to amend the Road Traffic Act (Chapter 92 of the Revised Edition)", presented by the Minister of State for Communications (Mr Ong Teng Cheong); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. SUBORDINATE COURTS (AMENDMENT) BILL "to amend the Subordinate Courts Act (Chapter 14 of the Revised Edition)". presented by the Minister for Law and the Environment (Mr E.W. Barker); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. PROBATE AND ADMINISTRATION (AMENDMENT) BILL "to amend the Probate and Administration Act (Chapter 23 of the Revised Edition)". presented by Mr E. W. Barker; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. MAINTENANCE ORDERS (RECIPROCAL ENFORCEMENT) (AMENDMENT) BILL "to amend the Maintenance Orders (Reciprocal Enforcement) Act, 1975 (Act 23 of 1975)", presented by Mr E. W. Barker; read the First time, to be read a Second time on the next available sitting of Parliament and to be printed. SUPPLY BILL "to provide for the issue from the Consolidated Fund of the sums necessary to meet the estimated expenditure for the public services of Singapore for the financial year 1st April, 1976, to 31st March, 1977".”