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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“I come now to the questions of the Member for Anson. He has touched on a very considerable number of topics, some of which are not really under my jurisdiction or may only be partially so. Nevertheless, I shall try to answer him where I can. First of all, I think he said that the public has not been kept informed of the results of the winding-up of certain chit fund companies. I think this is incorrect because a press release was made on 19th December, 1973, announcing the initial dividend payment for seven chit fund companies being wound up by the Official Receiver. To-date, five companies have paid dividends. Another two companies will make payments of dividends before the end of May, 1974. The Government is aware that the verification of claims for the various chit fund companies that are wound up since late 1972 has taken considerable time. This is inevitable as the process of verification depends on the co-operation of the creditors and the substantiation of their claims at the Official Receiver's Office. Until each member's account has been verified, it is not possible for the Official Receiver to declare a dividend. 3.15 p.m. The Member also sought some clarification on CPF matters which no doubt my colleague, the Minister for Labour, would be better able to answer. But I believe that when a member of the Fund dies and if the person nominated by him to receive his credit balance had died before the member, the amount will be paid to the public trustee to be disposed of in accordance with the law for the time being in force. If the nominee of the deceased member dies after the demise of the member, the amount due to the nominee will be paid to the estate of the deceased nominee. I hope that clarifies the point raised by him.”
“Head HE -- The following amendment stood in the name of Mr P. Govindaswamy- (1) That the sum to be allocated for Head HE be reduced by $10 in respect of subhead AA 1107. The Chairman: Mr P. Govindaswamy is not here. Mr N. Govindasamy, amendment No. (2).”
“The private companies contribute the industrial training know-how and the supply of foreign instructors from industries and top technical schools abroad. They also provide in-plant training in their operations in Singapore after in-centre training has been completed. There is no immediate necessity to modify the concept of the joint Government-industry training schemes although the basis of co-operation in each scheme may be varied from time to time on a case-by-case basis. The Government also supports the following industrial training schemes: (a) The Overseas Training Scheme under which selected Singaporeans are sent abroad to train in the industrial training facilities of established companies in Germany, Switzerland, Sweden and Japan. (b) The Industrial Training Subsidy Scheme under which companies with demonstrated capability to undertake in-plant training may be assisted with grants ranging from $3,000 to $9,000 per trainee for a wide range of modern industrial skills. The value of the grant to be given is determined by the type and period of training. (c) Industrial Development Scholarship Scheme under which skilled workers may be given scholarships for training locally or abroad to become foremen and supervisors. BILL INTRODUCED 3.05 p.m. ELECTRICAL WORKERS AND CONTRACTORS LICENSING BILL "to provide for the licensing of electrical workers and electrical contractors", presented by the Minister for the Environment (Mr Lim Kim San); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1974 TO 31ST MARCH. 1975 Order read for resumed consideration in Committee of Supply [3rd Allotted Day]. [Mr Speaker in the Chair] 3.06 p.m.”
“Mr Speaker, Sir, in 1973, two Government-industry joint industrial training centres were in operation, one in co-operation with the Rollei Company of Germany and the other with Tata Industries of India. The two training centres have a capacity for training 200 skilled workers each year in the following key skills required in manufacturing: (a) Precision machining (b) Tool and die making (c) Precision mechanics (d) Precision optics. After two years of intensive full-time training at the centres, workers are required to undergo an additional two years of approved in-plant training in industrial establishments selected by the Government. The two joint training schemes have proved to be effective. The Government is now exploring the possibility of establishing similar joint training centres with other industrial companies including those in the shipbuilding and repair industries and the machine tool and machinery industries to meet the expected growth of demand for highly skilled workers by companies in these industries. The Joint Industrial Training Centres established so far are being administered by the Economic Development Board acting as the Government's agency to supervise and direct their training programmes. Day-to-day operations of these centres are delegated to a management committee comprising three members from Government and two members from the participating private sector company. Government's responsibility is in providing the capital for the establishment of these centres, supply of local instructors and selection of trainees, in addition to its participation in the management committees to assist in the running of the centres.”
“Mr Speaker, Sir, we do not go on a fishing expedition unless we have some basis on which the expedition can be successfully conducted. But, as I say, if the Member would give me any particulars that he knows of, I will look into it. JOINT INDUSTRIAL TRAINING SCHEMES (Particulars) 8. Mr J. F. Conceicao asked the Minister for Finance what sort of joint training schemes were conducted through joint industrial training centres in 1973; what further activities are being planned; how responsibility for those schemes is distributed between the Government and the private sector; if there is any intention to modify the basis of co-operation; and in what ways his Ministry supports other forms of industrial training.”
“Mr Speaker, Sir, I am not aware that excessive hills were paid. If the Member would please give me particulars of this information, I would get my tax people to look into whether there is an excessive deduction from income and tax for maintenance bills. I assume that they would themselves prefer to keep their profits as high as possible and keep the maintenance bills as low as possible.”
“Mr Speaker, Sir, the Singapore l3us Service Ltd was given a waiver of the transfer fees on the buses which were re-registered following the amalgamation of the three Chinese bus companies. This waiver was also previously given to the three Chinese bus companies when they took over the buses of the former bus companies, including the Singapore Traction Company. The waiver was given because the amalgamation of the bus companies was being encouraged by Government for the purpose of reorganising and improving the public transport system. Because of the urgent need to increase the number of buses on the roads, exemption from import duty was given to the Singapore Bus Service Ltd recently for the purchase of 19 assembled units of bus chassis. However, no waiver or reduction of additional registration fee has been given to any of the bus companies. Since the various bus companies have already been amalgamated into the Singapore Bus Service Ltd. there should he no further occasion for re-registration of buses and hence for the payment o transfer fees. Nor should there be any need for future imports of fully assembled buses by this company. Completely knocked down or CKD packs do not attract import duty.”
“Sir, I am not able to tell the Member the exact date, but it was formed probably in the middle of last year.”
“It has supplied the daily list of quoted prices of essential commodities as a service to consumers who can compare the prices they are paying against those quoted and, therefore, avoid further exploitation by unscrupulous traders. Efforts are continually being made to consolidate the anti-profiteering programme of the Committee. After the warning phase, the Committee will move next to punitive action in prosecution or cancellation of licences or restrictions in supplies. Members of the public can make representations to the Committee through the Department of Trade. In fact, about 200 to 300 members of the public have been approaching this Department daily seeking advice on prices and availability of supply of essential commodities or furnishing information on profiteering activities of traders. The Department also deals with complaints addressed by members of the public to the Consumers' Association of Singapore (CASE), and passed on to it for necessary action.”
“Mr Speaker, Sir, the Ministry of Finance Anti-Inflationary Committee is headed by my Permanent Secretary (Development Division). The other members of this Committee are officers drawn from the Development Division, the Department of Trade, the Economic Development Board and the Monetary Authority of Singapore. The Committee can take action against blatant acts of profiteering under powers conferred by the Control of Essential Supplies Act and the Price Control Act, as well as other legislation. The Committee's main functions are, first, to watch closely price increases, particularly in essential commodities and, second, to plan and take measures to keep down inflation. There is no need for any special sum to be set aside for the use of the Committee, as any expenditure can be covered by ordinary Ministry and Departmental votes in the Estimates. If necessary, these votes can be supplemented. The Committee has already taken a number of measures to dampen rising prices. It has increased interest rates on deposits and loans so that some of the excess money can be withdrawn from circulation and the purchasing power which is pushing up prices is reduced. It has trimmed increases in Government recurrent expenditure, where possible. It has removed and/or reduced import tariffs to lower costs to importers and prices to consumers. It has taken steps to diversify the sources of supply of essential imports, ensuring more stable supplies at lower costs. Under the Committee's guidance, the Department of Trade has been conducting regular inspections to prevent trade malpractices. In the case of two bakeries giving short-weight bread, it has subjected them to public exposure and obloquy.”
“Sir, I believe the Weights and Measures Office has the staff necessary for the functions that I have already described. But if there should be need for additional staff, then they will be considered in the usual way. ANTI-INFLATIONARY COMMITTEE (Powers and functions) 11. Mr J. F. Conceicao: asked the Minister for Finance who are the members of the anti-inflationary committee formed within his Ministry; what are the powers and functions of this committee; what sums of money have been set aside for this committee's use; what this committee has done since its inception; and how many members of the public make representations to this committee.”
“It may be mentioned that the Department of Trade is at present also reviewing the Act with a view to introducing more effective legislation for the protection of consumers.”
“Mr Speaker, Sir, the principal functions of the Weights and Measures Office, which is presently being administered by the Department of Trade, are to ensure that all weighing and measuring equipment used for purposes of trade in the Republic are accurate; to verify from time to time through surprise inspection that these are accurate and, if not, to prosecute traders found contravening the Weights and Measures Act. The Weights and Measures Office has also been actively involved in the metrication exercise by being represented on a number of Working Committees. Through the Working committee on the Metric Daching, the Office together with representatives of the various other relevant departments have been studying the feasibility of introducing a metric daching. Similarly, on the Packaging Committee, the Office is assisting in the study of the rationalisation and standardisation of prepacked commodities. Thus, the Office is principally responsible for protecting the consumers from any cheating in weights and measures that the traders or the industry may resort to. Last year, the Weights and Measures Office re-verified some 35,000 weights, measures and instruments used in the retail trade. It was also directly involved in the metrication exercise of some 1,400 units of petrol dispensing pumps at retail outlets. The Office had also stepped up, towards the end of last year, inspections on sales of food items to check profiteering through short weight. The present campaign of regular spot checks on bakeries, for example, is being carried out by officers from the Weights and Measures Office. Last year a total of 89 summonses were issued for contravention of the Weights and Measures Act.”
“m. EA Ministry of Science and Technology 4.45 p.m. FA Ministry of Foriegn Affairs 6.55 p.m.* GA Ministry of Labour [To be continued on the following day] --- [8.00 p.m. - End of 1st Allotted Day] 2nd Allotted Day (19th March, 1974) GA Ministry of labour 5.30 p.m.* HA Ministry of Communications 7.35 p.m. HB Marine 7.45 p.m. HC Civil Aviation 8.00 p.m. [End of 2nd Allotted Day] 3rd Allotted Day (20th March, 1974) HE Postal Services 3.40 p.m. HF Registry of Vehicles 5.30 p.m.* IA Ministry of the Environment 7.15 p.m. JA Ministry of Culture [To be continued on the following day] -- [8.00 p.m. - End of 3rd Allotted Day] Head "Guillotine" Times 4th Allotted Day (21st March, 1974) JA Ministry of Culture 4.15 p.m. KA Ministry of Social Affairs 7.10 p.m.* KB Social Welfare [To be continued on the following day] -- [8.00 p.m. - End of 4th Allotted Day] 5th Allotted Day (22nd March, 1974) KB Social Welfare 3.15 p.m. KC Fire Brigade 3.45 p.m. LA Ministry of Law and National Development 4.10 p.m. LD Land Office 4.35 p.m. LG National Development Division 6.40 p.m.* LH Public Works [To be continued on the following day] -- [8.00 p.m. - End of 5th Allotted Day] 6th Allotted Day (25th March, 1974) LH Public Works 3.00 p.m. LI Planning 3.10 p.m. LJ Parks and Recreation 3.35 p.m. LK Primary Production 4.10 p.m. MA Ministry of Health 5.55 p.m.* MB Hospitals Division 6.20 p.m. NA Ministry of Home Affairs 7.15 p.m. NB Immigration 7.20 p.m. NC Prisons 7.25 p.m. ND Police 7.40 p.m. OA Ministry of Finance [To be continued on the following day] -- [8.00 p.m. - End of 6th Allotted Day] 7th Allotted Day (26th March, 1974) OA Ministry of Finance 4.35 p.m. OD Trade 4.45 p.m. OG Inland Revenue 5.25 p.m. PA Ministry of Education 7.50 p.m.”
“The developments in the possible lifting of the oil embargo and the highest (Nixon-Shultz) level of economic forecasting in the United States show that the second half of the year would improve on the first half of this year. Whether that kind of economic forecasting would be correct, only time will tell. Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1974 to 31st March, 1975. ADJOURNMENT Resolved, "That Parliament do now adjourn." -[Mr E. W. Barker]. Adjourned accordingly at Twenty-two minutes to Seven o'clock p.m. MAIN AND DEVELOPMENT ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1974, TO 31ST MARCH, 1975 (PAPER CMD 5 OF 1974) IN COMMITTEE OF SUPPLY [18th, 19th, 20th, 21st, 22nd, 25th and 26 March, 1974] In accordance with paragraph (7) of Standing Order No. 87 (Main Estimates) and paragraph (5) of Standing Order 88 (Development Estimates), Mr Speaker has fixed the undermentioned times on each allotted day at which consideration of the heads of expenditure in the Main and Development Estimates, in respect of which amendments stand on the Order Paper Supplement, shall, if not previously disposed of, be concluded. Notes:- 1. The "guillotine" time shown against a head of expenditure is the time when discussion of that head shall end. 2. If discussion of a head of expenditure is concluded before the "guillotine" time stated, the head next following will be entered into straightaway. 3. Provision for a suspension of a sitting for about 30 minutes has been taken into account in fixing the "guillotine" times marked with an asterisk. Head "Guillotine" Times 1st Allotted Day (18th March, 1974) BC Parliament 3.35 p.m. CA Prime Minister 3.45 p.m. DA Ministry of Defence 4.35 p.”
“Quite a number of Members touched on this subject as well as on other matters connected with transportation, like the mass rapid transit system and the long-range traffic solution. I need only say that as far as I am concerned the financing of solutions to this problem will receive special attention in my Ministry. My Ministry is involved in both the Road Transport Action Committee and in the financing of transportation by international bodies, such as the International Bank for Reconstruction and Development, the Asian Development Bank, or perhaps from local funds. The remarks which Members have made on trans- portation generally will receive attention from my Ministry as well. I would also like to mention the Member for Sembawang's remarks on the inadequacy of allocation for social services. I thought that when preparing my Budget the amounts which I have allocated for economic development this year did not, in fact, come to as much as my allocation for social services generally. Perhaps this is not quite the best sort of allocation, so that maybe next year rather than increase social services relative to economic development, I will have to consider some reduction. But perhaps in absolute terms the Member for Sembawang will get what he wishes. Mr Speaker, Sir, finally, I would like to end this debate by stressing again the necessity of all of us pulling together in order to overcome the difficulties that we expect in the coming year and to achieve a satisfactory growth rate for 1974. When I made my forecast in the Budget Statement of perhaps a 10 per cent growth rate for the earlier part of this year at least, I must say that the outlook for the second half of the year was not quite as promising as now we have reason to expect.”
“There were quite a number of other points which were raised, dealing with education, hospitals, health, social services and so on. Perhaps I am not in as good a position to deal with them as the Ministers in charge who will no doubt be very fully questioned and who will give detailed answers to all the points which have been raised by Members. Perhaps some of the criticisms are not always pointed at the right direction and some may be based on the lack of comprehension or misunderstanding of the policy of the administrative machinery of implementation. Some of them may he simply matters of misinformation. For example, the Member for Anson raised the question of fees for outpatient treatment. I believe the fee per attention is $2 and, of course, he made very much play of a family having colds and having to pay $3 per person in the family so that the total charge would be exorbitant. Perhaps that is an exaggeration and maybe the particular family is more hypochondriac than most of us are. Nevertheless, his points are those which members of the public feel perhaps very strongly, and no doubt they will be pressed again in the questions which are addressed to the Ministers at the appropriate time. There was some mention of the transportation system and of bus services. In an earlier question, there was suggestion that I mentioned that the management had been corrupt. Anyone reading my Budget Statement carefully would see that I did not make such an allegation, but that I thought that institutional management was necessary and that we did not want conditions obtaining as were prevalent in the Singapore Traction Company days. I think all of us are agreed that some emphasis should be laid on the solution of the transportation problems in Singapore.”
“I have in fact offered incentives and financing from a $100 million fund which has been set up-he is quite right in saying that not very much has been spent from this fund. But I do not agree with him that we have neglected these industries for the more glamorous industries which he thinks we are trying to promote. In fact, some of the more glamorous industries and the multinational industries require supporting industries, and have made inquiries on what facilities are available. In my Budget Statement I mentioned that of the new industries which are being attracted, a considerable number are very highly efficient and highly technical supporting industries which I was very glad to notice are among the investments which have been committed. I hope the result of our promotion efforts will be evident in the next one or two years. There was also a suggestion that the training of our workers needs to be improved. I fully agree to this. I am always conscious of the need to increase skills and to increase our brain-manpower. Now, the analysis of why we have not got sufficient skills and brain-manpower is, of course, rather more difficult. The Member for River Valley suggested more inducements and awards to teaching staff for research to improve the morale of the lecturers in our tertiary institutions, and he suggested a $2 million grant for research. These are all very praiseworthy suggestions, and perhaps they ought to be given fuller consideration than I can do just by listening to him. The Member for Jalan Kayu suggested that further export promotion might be carried out. I fully agree with him that we can do more in the coming year and will give adequate financial support for this purpose.”
“He said that wage earners were most badly hit as compared with hawkers, shopkeepers, and others. Like the Member for Moulmein, I have very considerable sympathy for the wage earners and I hope the National Wages Council will consider their position suitably when recommendations are being made. Nevertheless, I think the Member for Moulmein also thought there is a need for increasing the savings of wage earners by increasing interest rates. If there are sufficient funds for savings through the Post Office Savings Bank, and so on, his rather innovative suggestion for higher interest rates of 7 or 8 per cent would certainly draw these savings out, although I would rather hope they are already in the Post Office Savings Bank or in the Central Provident Fund. Of course, some of these savings, like the CPF savings, come to Government, when the Government issues bonds, at certain interest rates. If the Government should increase the interest rates to 7 or 8 per cent, it would mean that, for example, it would lend to the Housing and Development Board at higher interest rates. Thus the low wage earner who wants to buy a Housing Board flat would have to pay a higher price for the flat. Therefore, there are consequences to his suggestion which require to be gone into with some care. I think these were the more critical areas which Members have considered necessary for Government to deal with. But there were also suggestions on manufacturing industries and trade. The Member for River Valley has suggested that we have not done enough to attract supporting industries. While I am conscious of the need to attract such industries -.”
“At the same time I would also urge the Member for River Valley, in view of his connections with the industry and employers, that he suggests to and urges the Singapore Manufacturers Association and fellow manufacturers and employers to set standards for their members to prevent profiteering, whether of quality or quantity, as any defect in any product will merely sully the reputation of the whole of the manufacturers and employers, and not only the few responsible for poor quality or quantity. One suggestion which has been made by the Member for Telok Blangah was in relation to CASE and the need for Government support. I need hardly say that we welcome all the help that CASE can give and we are prepared, to the extent that this is needed, to support with sound financial assistance the operations of CASE. There was one suggestion by the Member for Jalan Kayu which I thought not quite relevant to the problem of inflation, but he said it would be one method of dealing with it. This is the idea that inflation would be curbed if action was taken by Government to prevent rents from rising through unscrupulous landlords. As this idea has already been put in a Question to my colleague, the Minister for Law and National Development, I need not touch on this particular suggestion. The Member for Bukit Ho Swee made rather emotional remarks on profiteering. I hope that profiteers will take note of the very strong feelings which have been generated not only in him but also among the public. I can only say that we shall try and accentuate the measures which we have taken, and we shall see that there will be punishment to fit the crime where the crime is not caused by external factors. The Member for Moulmein raised some questions on wage earners.”
“Of course, all of us are envious of the very considerable profits which the international oil companies have made, and we only hope that if any of these profits are made locally they will be ploughed back into investments in petro-chemical and other plants in Singapore, thus helping our economy to grow at a more rapid rate. One of the topics that has recurred in the comments of most Members is on inflation and prices. Now, this is a difficult problem and I have touched on it very fully in my Budget Statement because I realise its importance and its effect on the common man in Singapore. I am very conscious that we can do a lot more, and I am grateful for the many remarks which have been made here for the improvement of actions against inflationary prices. Of course, some of these remarks are fairly technical. For example, the Member for River Valley and some other Members have suggested enactment of the Protection of Consumers Act. This is one which will require fairly considerable study by my Ministry. I will certainly give consideration to the suggestion to monitor the standards and quality of products being imported in competition with our own manufacturers. I think it is fair that they should be of a quality no less than what is certainly available already from our manufacturers. However, since there are going to be multilateral negotiations on tariff and non-tariff barriers, we have to be careful in our actions to see that we do not create what may be considered a non-tariff barrier, thereby bringing us to the attention, and possible retaliation, of other countries. Nevertheless, we need to look into this matter very carefully.”
“Obviously there are benefits to be obtained by any economy which decided that this was desirable, and I think that Singapore will benefit also from the amount of additional business which would be generated by the exemptions I have given for tax on shipping. If he could convince me that I am wrong in this assumption, I will be very glad to revise my views on exemption of tax. The Member for Telok Blangah also suggested amendment of section 44 of the Insurance Act in order to bring the figure of $10,000 somewhat nearer to the $50,000 level, similar to the exemption I have given for estate duty. I have noted this suggestion and will in due course consider an amendment to the Insurance Act. The Member for Potong Pasir made some comments on direct and indirect taxation, and I was somewhat puzzled by his suggestion that our income tax system is regressive. It is against most expert fiscal opinion, and I will be very happy to consider any better form of taxation which will do greater justice to the lowly paid worker as against the higher paid worker. Certainly it will be quite an innovation and we in the Ministry of Finance shall always be pleased to learn. With regard to his mention of purchase tax, I say that there have been no indirect taxes or, if there are, they will be lifted except for articles like petroleum, liquor and cigarettes. There, I think, perhaps we should save the lowly paid worker from extravagance in these and raise his real income. With regard to the remarks on the economic conditions, only the Member for Bukit Ho Swee mentioned the oil crisis. He commented on this, no doubt, because of his union connections with the oil industry.”
“Perhaps I may disclose that I did try to work out what an additional $1,000 tax relief for every taxpayer would amount to, and I decided that the figure was not one which I could readily accept and concede in this Budget. I noted the comment of one particular Member, a rather plaintive suggestion that Budgets are not what they used to be, as no taxes but only tax reliefs were announced in the Budget Statement. I hope other Members will contain their dissatisfaction with this particular practice. I have tried to explain exactly what I proposed to do at Budget Statements, and that was that there would be no major painful additional taxes if the economy, and therefore the additional taxes generated by the economy, grows at the rate we expect it to grow. Last year's growth rate was perhaps not quite as large as we would have liked. In the past we used to calculate our growth rate at current prices, and we did not make too much distinction between the real growth rate, which was probably one or two per cent less, and the growth at current prices. Unfortunately, although our 1973 growth rate at current prices was 22 per cent, our real growth was considerably lower. Nevertheless, I did not think that there was any need in this Budget to impose additional taxes. That might be necessary if the economy turned down. Perhaps the practice, which the Member for Telok Blangah complained, of announcing no new taxes will have to he reconsidered at this time next year. The Member for Telok Blangah also made a few remarks on "flags of convenience" and why I should have given concessions in regard to shipping. I would only say that countries like Liberia do not establish concessions for shipping purely because they thought it was a fashionable thing to do.”
“That philosophy, I must repeat again, is not to encourage passengers although we may have to carry some of them from time to time, out of our compassion for giving social justice. Our intention is to provide for equality of opportunity. And we shall give every citizen or, if he is not capable of benefiting, his child or grandchild, the chance to be productive, to be able to improve himself, to move in the scale from the category of unemployed or of unskilled worker to the category of skilled worker and to the professional and brain service worker, so that he will draw the higher income and richer reward which must attend the acquisition of such skills and of the higher productivity which such skills generate. In this society there are no barriers to such mobility. If there are, we must try to remove them, and we shall not spare any expense, whether it be by formal education, informal training, or learning on-the-job. Subject to these remarks, I am glad of the very general support which Members of the House have given for the Budget and for welcoming the tax concessions which I have announced. Of course, they do not satisfy all Members and I do not expect them to satisfy even the majority of Members. In the previous Budget debate I think I had some idea of the Members' desire for additional reliefs for taxpayers and their wives under the Income Tax Act. Unfortunately, any Finance Minister must weigh the possibility of giving tax concessions or tax reliefs and their cost, with the additional expenditure that may be expected, and which I have outlined in my Budget Statement, to meet the additional cost of fuel. The additional reliefs which have been suggested for taxpayers and wives would have been very considerable.”
“Mr Speaker, Sir, I have listened with close and rapt attention, as I always do, to the remarks of hon. Members on all the points which they have raised today, touching on the financial policy of this Government. I did so with a view to adopting any constructive suggestions raised and to repairing omissions in the policy which I have tried to outline with some fullness in my Budget Statement. Let us not mistake the fact that we are in the midst of one of the difficult periods in our economic history; that the right economic and financial policies to meet the situation will be important, if not critical, and that any ideas or innovations which enable us to adapt to the new situation ought therefore to be very carefully explored. I must therefore confess to feeling some disappointment at the somewhat, if I may be forgiven to say, meagre contributions, which this debate has made, to the solution of our economic problems. While I appreciate some of the complimentary remarks made on the Budget Statement, although there were critical ones also, especially the last one, I am saddened to see that, with the exception of perhaps the Member for Katong and the Member for Henderson, there has not been the comprehension that I had hoped for from all Members. This may not be entirely unnatural in respect of some of the economic and financial statements, but I had expected at least some ready appreciation of the spirit and philosophy of the Government's policy on taxation and the implementation of those policies. I touched on the philosophy of Government in dealing with the problems concerning the public, as had been voiced in the press and also faithfully reflected by hon. Members in this House both in parliamentary questions and again in this debate.”
“Mr Speaker, Sir, that is another question. It is totally unrelated to the present question. ANNUAL BUDGET STATEMENT Order read for resumption of debate on Question [4th March, 1974], "That Parliament approves the financial policy of the Government for the financial year 1st April, 1974 to 31st March, 1975.". - [Minister for Finance]. Question again proposed. 3.08 p.m.”
“$2,570(1972/1973) However, Government subsidy varies from course to course. For example, in the University of Singapore, it ranges from around $2,000 per annum for Accountancy and Business Administration students to $10,000 for medical students. The low figure for the Ngee Ann Technical College is due to the fact that the College receives substantial contribution from Ngee Ann Kongsi, and therefore less subsidy is extended to it by Government as compared with the other educational institutions.”
“) - for Defence Executive Officers Division II - for Clerical Assistants Division III 2 Management Courses - Introduction to Quantitative Division I Methods in Management - General Management Division I - Management by Objectives Division I - Intermediate Admin Officers Division I - Junior Management Division II 3 Specialised and Vocational Courses - Interpretation of Financial Statements Division I - Introduction to Computers Division I - Faster Reading Division I/II - Forms Control and Design Division II - Financial Officers Division II - Personal Assistants Division II - Metrication Divisions II/III - Courtesy and Telephone Etiquette Division III/IV - Audio-typing Division IV 4 Language Courses - Classes for officers educated in non-English streams Division II - Classes in various local languages/dialects for Student Interpreters/ Translators Division III GOVERNMENT SUBSIDIES TO EDUCATIONAL INSTITUTIONS 2. Mr J. F. Conceicao asked the Minister for Education what was, for the year 1973, the average cost per student borne by the Government in relation to its subventions for the following educational institutions (i) the University of Singapore; (ii) the Nanyang University; (iii) the Singapore Polytechnic; (iv) the Ngee Ann Technical College; (v) the Industrial Training Board; and (vi) the Institute of Education. Dr Lee Chiaw Meng: The average cost per student borne by the Government in 1973 in relation to the subvention for each of the following educational institutions is as follows: - Average cost per student Institution/Board for 1973 University of Singapore. $3,928 Nanyang University ... $2,222 Singapore Polytechnic ... $1,292 Ngee Ann Technical College ... $ 816 Industrial Training Board ... $1,760 Institute of Education ...”
“A total of 1,850 officers including officers from statutory boards attended training courses at the Staff Training Institute in 1973 involving a total of 4,305 man-hours of instruction. The breakdown of officers is as follows: - 264 officers from Division I 415 officers from Division II 957 officers from Division III 66 officers from Division IV 148 officers from statutory boards ----- 1,850 ===== The breakdown of man-hours involved is as follows: - 357 hours - 8.3% - Division I 429 hours - 9.9% - Divisions 1/11 1,134 hours - 26.3% - Division II 55 hours - 1.3% -Divisions 11/Ill 1,970 hours - 45.8% - Division III 172 hours - 4 % - Divisions Ill/N 188 hours - 4.4% -Division IV ----- 4,305 ===== In addition, the Institute also sponsored a total of 241 officers to courses at the Outward Bound School and National Youth Leadership Institute for Divisions I to III officers. The types of courses conducted by the Institute under its various programmes in 1973 were:- Level 1 Induction Courses - for Administrative Officers Division I - for Executive Officers Division II Level 1 Induction Courses (cont.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. Resolutions reported - "That the sum of $2,073,100 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, 1973, to 31st March, 1974, contained in Paper Cmd. 7 of 1974." "That the sum of $148,700,000 shall be supplied to the Government under the head of expenditure for the public services shown in the First Supplementary Development Estimates of Expenditure for the financial year 1st April, 1973, to 31st March, 1974, contained in Paper Cmd. 8 of 1974." Mr Hon Sui Sen: Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." Question put, and agreed to. Resolutions accordingly agreed to. RECLAMATION AT PULAU SERANGOON 3.39 p.m.”
“The Government's duty is to ensure the wellbeing of all, including the poor. We best do this by ensuring that people get better and better paid as they improve their training and attain higher skills. The basic formula for Singapore's continued success, without raw materials, is hard work. There is no magic strategy for economic growth which can feed us without work. This budget reflects a realistic appraisal of our position in a world where only those who make the effort will make the grade. Sir, I beg to move.”
“This, as with all subsidies, comes from taxes paid for by the people. The largest single tax revenue is from income tax, paid for on a graduated scale, those earning more paying more, to subsidise those earning less. It is nearly 30 per cent of total revenue. The principle of the more you can earn, the more you must pay for the poor, when carried too far has led, in many countries like Britain, to professionals migrating to North America, Australia and New Zealand. They see no reason why they should work to pay for the indolent and irresponsible. We are in a poorer position than the British, for we are short of top level personnel. If our trained administrators, managers and professionals leave, those left behind, nearly all of whom cannot emigrate, will become unemployed and suffer grave privation. Every society has its quota of idealists, and of hypocrites, especially amongst the intelligentsia. The idealists believe in equal rewards. But many are hypocrites, pretending to feel sorry for the poor. They are the people who, whilst lamenting the extra dollar on miscellaneous school fees, quietly send their children abroad to expensive schools in Australia, Britain and elsewhere. For those of us who intend to stay, let us take a hard look at our circumstances. To protect our long-term interests, everyone, even our poor, must face up to our responsibilities to each other, and to the country. To spread the belief in heavier and heavier subsidies to cushion the adverse effects of world economic forces on our lives, means encouraging and making more people into passengers. People who can help push the economy by striving to earn and pay a part of their essential needs will just sit back, waiting to be carried for free. This is the road to ruin.”
“But what happens when the Government nationalises a company which has not yet got institutionalised management, and corruption on a scale rampant in the former Singapore Traction Company inevitably results? Let us first get management and services improved through tighter supervision from the Ministry of Communications. Hospital ward charges for `C' class patients have gone up by a token $1 per day, since January 1974, when the actual cost per patient per day went up $8 from $37 in 1972 to $45 in 1973, the result of increase of wages of all hospital staff and the cost of equipment and medicines. The underlying rationale is, whoever makes use of these services must pay a token share towards its cost, to check abuse in the unnecessary use of these services. This has happened in even developed countries like Britain. There, a Labour government in 1968 was forced to introduce prescription charges. Human nature being what it is, the charge, however small compared to the actual cost, helps to cut down wastage. With miscellaneous school fees, a cognate principle applies. Every parent must bear a token sum, to remind him that the bigger his family, the higher the burdens on his family and on the State. We must employ every means to impress on our people the need for family planning, or abortion, or serialisation. That there is a small surplus in miscellaneous fees for the cost of ECA, means that more activities can be catered for, and principals and senior teachers can be more imaginative in planning activities such as educational tours during holidays. The hefty increased cost of education, at about $324 per annum for a primary school student, and $582 per annum for a secondary school student, is carried by the Government.”
“Over and over again, in developing countries, political parties have won office by putting attractive proposals of subsidised food, free education and health services to a semi-educated electorate, unable and later unwilling to face the hard facts of economic life. Inevitably these countries have ended in economic chaos and bankruptcy. If any political party succeeds in selling this `something for nothing' philosophy, it will be particularly bad for Singapore. For we make our living through organised servicing and production, not with the help of the sun and rain to produce food and agricultural commodities. So when the financial rot sets in and the firm framework which rewards effort and enterprise gives way, there are no soft rice fields to cushion the hard fall. And the fall will be most painful for the poor and the unskilled. When the price of imported oil goes up, it is no less than madness to subsidise PUB charges, as some letters to the press have urged, particularly when we want people to cut down on consumption of electricity and oil. On the contrary, in the case of petrol, a tax was added in order to further cut down non-essential travelling by motor cars. However, to meet steep price increases in foodstuffs, and the effects of increased oil prices, the Government has accepted the National Wages Council's recommendation to give a $25 interim allowance. There is a likelihood of a further increase in July. Meanwhile, the cost of running buses has gone up - half because of wages, half due to higher cost of diesel oil, spare parts and tyres. So the Government has had to allow the bus companies to put up bus fares. There have been suggestions that the Government nationalise the bus companies and subsidise the commuter.”
“These revisions raised additional revenue but were made quite as much to alleviate traffic congestion and pollution; to bolster Government's anti-smoking campaign; and to discourage consumption of luxury and non-essential items. If such higher taxes and duties encourage the people to forgo or reduce the consumption of these items, the whole community will benefit through the better flow of traffic, reduced pollution, better health and a smaller national expenditure on imported luxury items. Tax revisions have not affected food items or daily necessities. On the contrary, during the financial year 1973, Government lifted import duties on 149 items of a wide range of foodstuffs, household appliances and construction materials, resulting in a potential loss of revenue of $21.4 million per annum. And, of course, the tax concessions now announced and costing some $8.8 million per annum give some recognition to changed economic conditions. I should like to make it clear, however, that it is not part of Government policy to subsidise or to continue to subsidise activities which are not viable in the long run, and it will be Government's intention to recover, so far as is consistent with Government's policies for social justice, all costs for the provision of Government services. It is useful to re-state the principles which determine the philosophy on which our way of life is based. Since 1965, one principle which has enabled us to survive and to thrive is not to encourage passengers. Nothing is more likely to ensure our bankruptcy and disintegration than feather-bedding and subsidies in pursuit of equality, not of opportunities, but of rewards.”
“This is an anomalous situation because only the interest portion should properly be considered as income and taxed, leaving the capital element free of tax. With effect from the assessment year 1975, therefore, I propose to change the basis of tax to charge only the interest element of annuity instalments. This measure will not only assist the insurance industry but also popularise a different and attractive form of insurance cover. The above remarks conclude the account of tax concessions I propose. Since there still appears to be some lack of understanding of Government's taxation policy, particularly with reference to recent tax measures, let me take the opportunity here to state it once again. For the growth of revenue to meet rising Government expenditure, it is our policy to rely mainly upon a rapid expansion of the economy and upon an efficient machinery for enforcement and collection of the taxes which such an economy can afford to pay. While major and painful new taxes or increases in tax rates for the purpose purely of raising additional revenue will generally be avoided, it may be necessary in order to implement our social or economic policies that from time to time, we impose new tax disincentives, or give incentives. The last really new taxes were introduced at the 1968 December Budget and were prompted by the need to raise revenue for building up our own defence forces consequent upon the withdrawal of the UK armed forces from the Republic. Since then, revisions mainly have been made to taxes on private motor vehicles, cigarettes and tobacco products, liquors and petroleum.”
“To encourage the registration of ships in Singapore, we have already provided for income tax exemption for profits, low registration fees and annual tonnage fee, rebate of half the tonnage fee if 25 per cent of the crew are Singapore citizens, a simplified registration and mortgage system and income tax exemption for crews working on Singapore registered ships. After giving such incentives, it was not specifically intended that there should remain a liability to tax of the balancing charge on the sale of a Singapore registered ship. I therefore propose, by the removal of this liability, to add still another incentive for the registration of ships in Singapore from the assessment year 1974. (4) Income Tax on Annuity Instalments The aim to develop Singapore as an important insurance centre is in line with our efforts to develop Singapore as the "brains" service centre of South-east Asia. Hon. Members will remember that I have in previous Budgets announced fiscal incentives to foster the growth of the finance and insurance industries. As a further step to assist the insurance industry, I propose to revise the basis of the income tax on annuities. Annuities, at present, form a very small part of the insurance business here because, among other factors, tax is imposed on the whole of an annuity instalment received. An annuity purchased by payment of an insurance premium or premiums provides for the payment of periodic sums of money to the purchaser. Essentially, the payment represented by an annuity instalment consists of two elements: one is repayment of part of the capital, and the other is the payment of interest on the outstanding capital. At present, both elements comprising the whole of an annuity instalment received are subject to income tax.”
“Those who wish to reduce or avoid estate duty further can transfer the property as a gift during the lifetime of the owner or create joint tenancies or tenancies in common or mortgage or charge the property, thus reducing the value of the estate. (2) Revision of Tax Relief for Dependent Parents and Grandparents from $300 to $750 Last year when I announced the relief to taxpayers for supporting parents or grandparents, many hon. Members felt that the tax deduction at $300 per dependant was inadequate. I have given this matter further consideration and I am happy to inform hon. Members that the relief will now be increased from $300 to $750 per dependant. There will be no change in the other conditions announced last year. The increase in the relief will also take effect from the year of assessment 1975, that is, based on 1974 income. (3) Balancing Charge on Sale of a Singapore Registered Ship Profits from the operation of Singapore registered ships are exempted from income tax as an incentive for ship-owners to register their ships in Singapore. However, when a Singapore registered ship is sold and the sale price is higher than the written down or depreciated value, a balancing charge arises which under ordinary tax liability, is subject to income tax. If this liability is not removed, it could discourage local shipowners from upgrading their fleets through disposal of older vessels and possibly also act as a disincentive to foreign shipowners from setting up shipping companies in Singapore to operate Singapore registered ships.”
“However, recognising the need to ensure against undue hardship and possible disruption of families as a result of burdensome estate duty payments on the death of a breadwinner, I now propose to raise the exemption and remission limits of estate duty. The intention is to give relief from estate duty by a combination of exemption and remission. The exemption will be for the first $50,000 of the value of the estate which represents an increase of $40,000 over the existing exemption limit of $10,000. The remissions will be one declining by steps of 10 per cent of the duty payable. Thus 90 per cent will be remitted of the estate duty payable for the next $20,000 in value of the estate, and 80 per cent, 70 per cent, 60 per cent, etc, of the duty for every succeeding $20,000 in value of the estate up to $230,000. This would mean that if an estate is worth up to $50,000 only, no duty will be payable. If the estate is worth $150,000, the duty payable is $3,337 and if the estate is worth $230,000, the duty payable is $14,037. Estates which are worth more than $230,000 will be subject to full duty on the amount exceeding $230,000. The revised exemption and remission limits will apply to estates passing on or after 1st April, 1974. The proposal will give full relief to people in the lower income group living in all, even the largest, HDB flats, who form about 40 per cent of the population. The people in the middle income group living in owner-occupied terrace, semi-detached and even detached houses will have the burden of estate duty considerably reduced.”
“8 ==== (1) Higher Exemption and Remission Limits of Estate Duty Under the present tax rates, estates are exempted from duty on the first $10,000 of its value. In addition, since March 1972, any estate duty payable has been remitted for estates which do not exceed $25,000 in value. The intention of this remission was to ensure that families buying the low-cost Housing and Development Board housing units under Government's scheme for encouraging a property-owning democracy would be in no danger of losing their homes because of inability to pay the estate duty. It was not intended to benefit the majority of the tax-payers owning estates above this value which would, however, still enjoy the exemption on the first $10,000 which was introduced in 1955. Representations have, however, been made about the inadequacy of the present exemption and remission limits by the public through the press, and also by hon. Members in this House. Property owners hope the Government will extend exemption or remission to the terrace or semi-detached house or even the owner-occupied family detached house. Since prices of land and houses have increased substantially in the past few years, it is argued that wage earners may find it difficult to bear the full burden of estate duty. While I have considerable sympathy for these suggestions, I have rejected the demand for complete exemption from estate duty in respect of one owner-occupied family house. Such an exemption would benefit the wealthy more than others and result in discrimination against other forms of assets like shares, deposits and life insurance policies.”
“This rate of increase in revenue is not unreasonable despite the gloomier international scene this year. One reason is that the largest single source is income tax and this is dependent on the previous year's earnings rather than those of the present financial year. Another reason i5 that inflation tends to increase revenue through indirect taxes which are based on prices. For FY 74, income tax is expected to reach $700 million or 20.7 per cent more than the revised estimate for FY 73. It also represents around 30 per cent of total revenue for FY 74. Property tax is the next largest single source of revenue. For FY 74, this source is expected to yield $230 million or 12.2 per cent more than the revised estimate for the current financial year. Other main increases in revenue in FY 74 are expected to come from land sales, additional registration fees on motor cars, road taxes, customs duties on liquors, petroleum products and tobacco as well as regulatory charges. These together account for 52 per cent of the increase over the revised estimate of revenue for FY 73. Taxation Policy and Changes And now we come to the question of new tax measures. Hon. Members will be glad to learn that there will be no new taxes. I propose instead to give a number of tax concessions. The reliefs, which I shall describe in detail, will cost some $8.8 million, which can be broken down as follows :- Million (1) Raising of exemption and remission limit under Estate Duty $7.0 (2) Increase in Relief for Parents and Grandparents $0.6 (3) Exemption of the Balancing Charge on Singapore registered ships from tax $1.0 (4) Tax only on the Interest Portion of Annuity Instalments $0.2 ---- Total $8.”
“If the number of patients increases hand in hand with total expenditure on health facilities, no improvement can be expected. For FY 74, the grant to the Singapore Family Planning and Population Board is increased by two-thirds and more Maternal and Child Health Clinics will be opened in low-cost housing estates. In the area of pollution control, I have mentioned the sewerage projects which will be undertaken in FY 74. The development of proper markets and hawkers centres will continue and the Refuse Incineration project will be implemented a stage further. Road Transport Finally, I should say a few words on the provisions for the improvement of road transportation, a subject which has recently attracted much attention both from the public and the Government. Provisions for the construction, widening and realignment of roads and bridges total $28.1 million. Another $5 million is set aside for special projects recommended by a high level Road Transport Action Committee. This total allocation of $33.1 million is 8.4 per cent of the provision for direct expenditure by Government departments on development projects and reflects the high priority which Government gives to the solving of problems in road transport. Revenue We must now consider the question of financing the proposed expenditure. It is expected that external loans, domestic loans, loan repayments and interest and dividends will together yield $1,057.5 million. This together with the expected Government revenue of $2,323 million at existing tax rates will just about meet the net total provision for expenditure. The revenue estimate of $2,323 million for FY 74 represents a 14.1 per cent increase over the latest estimate of revenue to be collected in FY 73.”
“6 million or 270 per cent in the provision for the overseas industrial training scheme, the industrial development scholarship scheme and subsidies for local industrial training. It is hoped that industry will, on its part, take an increasingly active participation in industrial training through apprenticeship and other programmes. `The production of enough personnel with the necessary industrial training skills must, in the long run, be a joint effort between industry and Government. Health and Environment Recent energy and materials shortages have reminded us once again of our lack of natural resources and therefore the importance of upgrading what we do have - our human resources and our environment. The allocations for Health and Environment add up to almost 20 per cent of total net provision in the Estimates. Improvement of medical facilities for the people will proceed on a broad front by the further development of medical specialities, the opening of new hospitals and the expansion of existing hospitals. Of these, the largest single project is still the re- development of the Outram Road General Hospital. All require investment in buildings, equipment and manpower, that is, the training of nurses and the upgrading of skills of doctors. Unfortunately, these are too often taken for granted. It is necessary that hospital charges be increased from time to time to help symbolically towards the increasing cost of medicine and drugs, disposables and rations and diets. However, increasing expenditure on health facilities will not lead to better standards of care if the population growth is unchecked, and pollution of the environment goes unabated.”
“One of the basic infrastructure facilities directly related to housing is, of course, sewerage. Provisions are made for low-cost housing estates such as Bedok New Town and Telok Blangah New Town, the East Coast Reclamation Area and the North and South Precincts under the Urban Renewal Programme. More schools will be built in new satellite towns and major housing estates. It is expected that 12 schools will be completed and provision of funds for the building of another 20 schools to be commenced in FY 74. Education and Industrial Training Whilst the construction of schools goes on, the Ministry of Education is pressing ahead with its programmes to increase the second language exposure time in primary schools and to implement curricular changes in secondary schools. After taking into consideration the changes in enrolment in primary and secondary schools, a net increase of 233 posts is provided for FY 74. With the greater emphasis on quality, there will be a corresponding increase in the cost of education. This will be reflected not only in the salary of teachers, but also in the higher cost of equipment, chemicals and materials for laboratory work and workshop practice. It will therefore be necessary to increase the education fees from time to time, to remind our people of the enormous State subsidies in education, and parents of their responsibility in paying towards the cost of bringing up and educating every additional member in his family. As an earnest of our interest in technical and industrial training, grants to the Industrial Training Board, Singapore Polytechnic and Ngee Ann Technical College have increased by $4 million or 19.4 per cent. Even more significant is the increase by $2.”
“At the same time, I should mention here that as the NWC wage increases are already fairly substantial and as shown by their interim $25 wage supplement, already would have regard to the rising cost of living, ad hoc revisions of salary for particular services except where necessary to remove obvious anomalies, will not generally be entertained. Whilst some restraint is imposed on operating expenditure, there will be no let-up on implementing desirable development programmes and projects. I mentioned earlier that the total outlay under the Development Estimates for FY 74 has increased by 32.6 per cent. Of the total provision, about 28 per cent is allocated for direct expenditure by Ministries and departments as well as the Armed Forces. The remainder is earmarked for loans to statutory boards and commercial and industrial enterprises. Expenditure The Treasury Memorandum on the Estimates explains in some detail the expenditure provisions under each Head of Expenditure and there is no need for me to repeat what is already stated therein. I would like to highlight, however, some of the major areas of Government endeavour and the allocation of funds to these areas, viz. Housing, Education and Industrial Training, Health and Environment, and Road Transport. Housing Low-cost housing continues to be the key area of building development. In fact, some other major projects have had to be rejected or postponed in order to ensure that there is sufficient building capacity and supplies for the implementation of the low-cost housing programme. For FY 74 the provision of loan funds and subsidies to the Housing and Development Board is some 48 per cent higher than that for FY 73. The share of total net provision allocated to Housing has increased from 12 per cent to 15 per cent.”
“Allowing for the general increase in prices and the additional manpower costs such as wage supplements and other allowances, there is hardly any growth in real terms and in the context of ever increasing workloads, this means that Ministries and departments have to exercise great care over their expenditure in the next financial year. As regards manpower, the search for manpower saving methods of work continues. Grass-cutting in school compounds will be progressively undertaken by grass-cutting contractors and the number of school servants accordingly reduced. Security alarms will be installed in schools so that school watchmen can be phased out eventually. More mechanised road sweepers will be introduced and existing staff will be redeployed for the cleansing of new housing estates and roads. Over and above the mechanisation effort, a stringent control was imposed on the creation of additional posts so as not to add fuel to the inflationary fire. As a result of these measures, the net increase in the permanent establishment for FY 74 including those created by Establishment Warrants is kept down to 1,762 posts or 2.9 per cent of the establishment level in FY 73. This, of course, does not mean that expenditure on manpower will also be held down to a 2.9 per cent growth. In fact, as I have stated in this House, the Government and statutory boards will adopt National Wages Council's recommendations and will require to make provision for payments in accordance with such recommendations.”
“The coverage of a particular function can be specified with reference to the sub-head codes which generally will not change from one year to another. In fact the various Divisions and departments which have to prepare past expenditure figures, study budget allocations or estimate future expenditures have agreed to a common functional classification of expenditure and this has been made possible largely as a result of the codification of subheads. A fuller presentation of expenditure is now possible as this year's Memorandum on the Main and Development Estimates for FY 74 shows. Thus, the new format of the Estimates has already brought benefits. My officials will continue to search for improvements to the Estimates format so that more information may be made available for management purposes. Budget Cornerstones The Government budget for FY 74 is designed to restrain operating expenditure and channel more funds into desirable development projects. Revenue is expected to reach $2,035.4 million in FY 74 owing to the satisfactory growth rate of the economy in 1973. Total provision for expenditure in FY 74 under the Main Estimates is $2,299.5 million of which $480 million is a transfer to the Development Fund. Such a large transfer is required because the total provision for expenditure under the Development Estimates in FY 74 is $1,561.6 million or 32.6 per cent more than that in FY 73. Faced as we are with inflation, all Ministries and departments are expected, indeed required, to scrutinise their operating expenditure patterns to cut out waste or unnecessary operations. Direct operating expenditure excluding the Armed Forces is allowed to increase by slightly more than 19 per cent only.”
“In the EOM category only political and superscale posts are shown in detail. Other posts are shown by Division of service so that the user of the Estimates readily gets a picture of manpower cost and manpower mix rather than feels lost in a myriad of details. Those who need the details may, however, find them in a separate Establishment List which has been tabled as a Command Paper. The codification of subheads will facilitate studies of like Government expenditure. For example, present circumstances call for surveillance over the consumption of water and electricity by all departments and all the figures of expenditure by individual departments on public utilities can now be aggregated easily because they come under the same code. If the increase in such expenditure is too rapid it is possible to trace more easily than before, those departments which are principally responsible for causing the increase. Similarly, studies can be carried out in respect of inputs such as maintenance of vehicles and vessels, rations and diets, printing, transportation, etc. Within limits, two or more departments or sub-divisions of a department doing similar work should have similar patterns and scales of expenditure in relation to those inputs. Whilst such an input-oriented view on expenditure is necessary to detect waste or inefficiency in organisational units, it is equally useful to see how funds are allocated to the major functions of government such as defence, justice, health, transport and communications, etc. Such a function-oriented approach transcends departmental delineation and is possible again because of the codification of the subheads.”
“In previous years' Estimates, for comparison with the new Budget requests, the provisions in the current Budget were reproduced exactly as Parliament had approved them. Our experience is, however, that there are invariably organisational changes during the year such as the establishment of new units, the merging of units, the transfer of functions from one unit to another, the conversion of units into statutory boards, etc. The figures for the current financial year as approved by Parliament, therefore, no longer reflect the existing organisational structure, and to that extent, comparisons between the figures for the new financial year and those for the current financial year shown exactly as approved by Parliament will clearly not be valid. From FY 74, therefore, I propose to show more correctly the current financial year's figures so that they can be directly and therefore more conveniently compared with the new financial year's figures. In this way, for example, we have some means of assessing the changes in the proposed provisions for FY 74 requested under the two new Heads of Expenditure, namely, "Primary Production" and "Police". I mentioned in my last Budget Address that my officials were exploring the possibility of a re-structuring of subheads in the Main Estimates. A set of proposals was subsequently developed and presented to the Estimates Committee of this Parliament, and, I am pleased to say, agreed in toto. These proposals have given this year's Estimates a new look and I hope, Members will also find it a more useful and helpful budget document. Briefly, all subheads are now coded and grouped into two major categories, namely, Expenditure on Manpower (EOM) and Other Operating Expenditure (OOE).”
“Employers and employees alike must move vigorously also towards productivity increases. Wastage must be reduced both in the home and in our factories to counter the growing shortages in industrial raw materials and consumer goods. Consumers, both industrial and domestic, should economise on their consumption of fuel and electricity, so as to make more available for industries. We should cut down unnecessary consumption especially on luxury goods. Thus we should correct the unhealthy situation of last year when consumption expenditure registered very high increases and surpassed the growth of fixed capital formation. The Budget I would like to turn now to the Estimates. But first, I should like to explain some of the more important presentational changes which have been made in this year's Estimates. Last year the provisions in the Main Estimates which were entered for "Contributions" to various statutory boards and non-profit making organisations not directly responsible to the Minister for Finance were deleted from the Ministry of Finance Head of Expenditure and shown, it was thought more appropriately, under the Ministries having responsibility for the functional policy and performance of these bodies. This year, for similar reasons, the provisions entered for "Loans" to these bodies which were still shown last year under the Ministry of Finance Head have also been devolved to the respective Ministries. However, the terms and conditions of the loans will continue to be set as before by the Ministry of Finance, which was the reason for retaining the provisions previously under the Ministry of Finance Head. With these changes, the share of total Budget Expenditure properly allocable to the Ministry of Finance would also now be more correctly shown.”