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.”
The complete record
Every one of 1,492 lines we hold for Hon Sui Sen, in date order, each linked to its source. Free to read, in full, without an account. Page 21 of 30.
“Clause 4 seeks to dispense with the provision in the Act which requires sanction from the Comptroller of Entertainments Duty before a Court can take cognizance of any offence committed under the Act. This should speed up the process of bringing the black-market touts before the Court, and demonstrate clearly that punishment will swiftly follow the crime. The last amendment contained in clause 5 seeks to correct an existing anomaly. The penalty for offences committed under the Entertainments Duty Act is prescribed in the Act, but the offences are set out in the Entertainments Duty Rules made under the principal Act. The four amendments proposed in this Bill will facilitate enforcement of the law, particularly against organised gangsters and racketeers touting cinema tickets. I should emphasise, however, that legislation alone cannot wholly control and eradicate black-marketing. Greater civic consciousness by the public is also required. The black-market in tickets cannot possibly survive without patronage by the cinema-going public. While our enforcement officers in taking action against black-marketeers will try to ensure that law-abiding cinema-goers are not unduly inconvenienced, they will expect the public to co-operate with them in stamping out the very pernicious practice of black-marketing. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. -[Mr Hon Sui Sen]. Bill considered in Committee; reported without amendment; read a Third time and passed. INSURANCE (AMENDMENT) BILL Order for Second Reading read. 3.15 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill seeks to amend the Entertainments Duty Act (Chapter 136 of the Revised Edition) in order to enable more effective action to be taken against touts of cinema tickets. Touting in black-market cinema tickets has increased in recent years despite regular raids mounted by law enforcement officers. In July last year, a special anti-tout squad was formed by the Customs Department, and since the inception of this squad, sustained raids have been made resulting in the arrest of 106 touts and 68 cinema patrons for reselling tickets and purchasing black-market tickets respectively. Despite the sustained raids, the black-market and touting unfortunately still exist. The major problem for the authorities is the large number of enforcement officers required to prevent touting in black-market tickets, whenever popular films are shown. The purpose of this Bill is therefore to make better use of such officers as we have to fight such cinema touts. Clauses 2 and 3 of the Bill seek to empower any customs officers or police constable to arrest without warrant any person whom he reasonably suspects of committing or attempting to commit any offence under the Entertainments Duty Act, including black-marketing in cinema tickets. The customs officer or police constable is also empowered to seize from such persons any document or any other thing in respect of which an offence is reasonably believed to have been committed. Presently, these powers are vested only in senior officers of the rank of Assistant Superintendent of Customs and above in the case of the Customs Department, and officers of the rank of Inspector and above in the case of the Police Force.”
“Of course, some of these countries may have, from time to time, to devalue their currencies but it never brings prices back to what they used to be. REVISION OF SALARIES FOR THE PRESIDENT AND CABINET MINISTERS (Statement by the Prime Minister) 2.35 p.m.”
“Mr Speaker, Sir, taking first the monetary aspect of inflation, Members will recall that in my Budget statement I singled out inflation as a problem deserving particular attention. I have outlined in some detail the monetary measures which have been taken to absorb the excess liquidity in the economy to check inflationary pressures. The most recent policy action was the increase of the minimum reserve requirement which banks and finance companies have to maintain with the Monetary Authority of Singapore against their deposit liabilities from 5 per cent to 9 per cent. Similarly, the special deposit which banks have to keep with MAS against their net foreign liabilities has been increased from 5 per cent to 9 per cent. These measures came into effect on 16th March, 1973. The effects of these measures on credit creation and the money supply will be felt in the coming months. The domestic monetary situation will be closely watched particularly in the light of new developments in the international currency markets. We can draw on a number of other policy instruments to meet any new situation that may arise. Secondly, as to local price increases of essential commodities, I have already outlined in the debate on the Ministry of Finance Estimates the steps we can take and have taken to moderate such prices. What we cannot do is to prevent failure of crops in large areas of the world, causing a world shortage of rice, wheat, sugar, and other essential commodities, which cause a rise in the prices of these commodities. Let us hope there is a fair harvest this year so that grain prices will go back to normal. However, we cannot avoid a rise in the cost of imports of manufactured goods, resulting from the increased wages and inflation of some industrial countries.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn."-[Mr Hon Sui Sen]. Adjourned accordingly at Eight minutes to Six o'clock p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the purpose of this Bill is to provide statutory authority in accordance with clause 2 of Article 85 and clause 2 of Article 87 of the Constitution of Singapore for additional provisions to meet expenditure in excess of the provisions authorised by the Supply Act of 1972. These additional sums have been scheduled as Supplementary Estimates which have been considered and approved by the House as Cmd. Paper 4 of 1973. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed. SUPPLEMENTARY SUPPLY BILL Order for Second and Third Readings read. 5.50 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Main and Development Estimates for the financial year 1st April, 1973, to 31st March, 1974, have been considered and approved by the House under Cmd. Paper No. 3 of 1973. Under section 85 of the Constitution of Singapore, heads of expenditure to be met from the Consolidated Fund, other than statutory expenditure, have been included in the Bill to be known as the Supply Bill. The purpose of the Supply Bill before Members is to give legislative approval for the issue of funds from the Consolidated Fund to meet the sums of expenditure for the financial year 1st April, 1973, to 31st March, 1974. In the Schedule to the Bill, the various heads of expenditure and the sums that may be incurred in respect of each head are shown. These have been approved by the House in the Main Estimates of Expenditure for the financial year 1st April, 1973, to 31st March, 1974, and appear in pages 49, 50 and 51 of Cmd. Paper No. 3 of 1973. The Supply Bill, when approved, will empower me to issue warrants authorising expenditure up to the amount for each head as shown in the Bill to be paid out from the Consolidated Fund. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“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. SUPPLY BILL Order for Second and Third Readings read. 5.45 p.m.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply has come to certain resolutions. First Resolution reported - "That the sum of $1,547,038,440 shall be supplied to the Government under the heads of expenditure for the public services shown in the Main Estimates for the financial year 1st April, 1973, to 31st March, 1974, contained in Paper Cmd. 3 of 1973." Second Resolution reported- "That the sum of $1,177,224,380 shall be supplied to the Government under the heads of expenditure for the public services shown in the Development Estimates for the financial year 1st April, 1973, to 31st March, 1974, contained in Paper Cmd. 3 of 1973."”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates of Expenditure for the financial year 1st April, 1973, to 31st March, 1974, and ask leave to sit again on Monday, 19th March, 1973.”
“Sir, the loan is repayable at an interest rate of six per cent per annum. Repayment will be made by annual instalments over a period of five years, in accordance with the annuity method of repayment.”
“Sir, the total loan granted in December, 1972, to the Teachers' Union is a sum larger than the amount which has been provided. It is, in fact, $100,000, for which $60,000 was provided by virement this year and is expected to be drawn before the end of the current financial year. The loan is to help finance part of the cost of the Teachers' Centre project in the Teachers Housing Estate at 12 1/2 m.s. Yio Chu Kang Road. The Centre, estimated to cost $1.5 million, will include library, educational and research facilities, and is expected to serve as a focal point for teachers in professional, social and recreational activities. Members will surely agree that this is a project which is worthy of support not only by teachers but also by the Government. As to whether the privilege of a similar nature will be extended to others, each case will have to be examined on its merits. Where the projects are sound, and where self-help is evident, and prospects of repayment of the loan are reasonably good, consideration will be given to loan applications. 7.30 p.m.”
“Sir, I do not think that consideration can be given at this stage. That answer should be sufficient. Whether or not they deserve to be given a scheme is not an appropriate matter to discuss under this particular subhead. Whether aided school staff should be given the same facilities as all Government officers is something which should be taken up, first of all, at Ministry level, before he comes to this more specific question. As you can see, Sir, the title to this item is "Housing Scheme for Public Officers". Therefore, whether the teachers are deserving cases and ought to get them, that is quite another matter. I am saying that at this stage it is not possible. In any case, the scheme is a pilot scheme. The number of public officers who are eligible are so numerous that we have not been able to satisfy them, so that even if we did admit teachers eventually, they will have lower priority on the basis of first come first served. Mr Ho Kah Leong(In Mandarin): Sir, I am still not satisfied with the Minister's reply, but owing to the time limit, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, as to whether the scheme can be specifically extended to staff of Government-aided schools, I am afraid the answer is still no, for the reason that they are not Government servants. Even the current housing loan schemes are not extended to the Government-aided school staff so that, apart from the allocation of this housing scheme for public officers, they would not be eligible for such loans. The reason is simply that they are not Government employees. The distinction has been made, and their terms of service are not the same as Government in all respects. Maybe their teaching load is the same, but they are not subject to the same obligations, say, to be transferred from one place to another.”
“Sir, the housing scheme for public officers is a pilot scheme. At the moment it is intended for Government officers and officers of statutory boards, of whom Government is virtually the employer. It is not possible at present to extend the scheme to Government-aided institutions. These institutions are numerous and aid from Government takes many different forms. It is not possible at this stage to do anything else other than draw a line between the Government institutions and these other institutions.”
“Then he spoke of the problem of taking measures regarding hygiene in the residential areas within the jurisdiction of the Ministry of the Environment. Therefore, this is not so much a problem for the Jurong Town Corporation. Enforcement measures are taken by the Ministry. The Corporation, however, works very closely with the Ministry, and has assisted in this matter since some of the Corporation officers, 24 in the supervisory and technical grades, have been empowered to ticket offenders. The number will be increased, if necessary, to cope with the problem.”
“As for the question on executive flats asked by the Member for Jurong, the purchaser of such flats is not allowed to make use of his CPF contributions. The reason for this is quite simple. The CPF contributions are only allowed to be used for low-cost housing, and these $38,000-units are not in the low-cost housing class. 7.15 p.m. I think the Member made a comparison with the five-room flats of the Housing Board. These are in a slightly different category. They are lower priced for one thing, and for another, they are still limited to people with combined family incomes of $1,500 per month and under. So the regulation still is that CPF contributions can only be used for purchase of a low-cost flat constructed by the Housing and Development Board or the Jurong Town Corporation. The JTC executive flat is intended for the need of the professional and managerial staff in the higher income group. The Member also asked about the children's playground in Jurong. There are at present three children's playgrounds in the residential area in Neighbourhood I. He said that a lot of the equipment, swings and so on, is damaged. If so, the attention of the Jurong Town Corporation should be brought to bear on this problem and to have the damage repaired. The Jurong Town Corporation is, however, planning seven more playgrounds in Neighbourhood II, four of which will be completed in 1973-74 and the rest in 1974-75. In addition, the Jurong Park with 80 acres of park land will be opened soon to provide added recreational amenities for the children living in Jurong Town. The Member for Jurong is really more fortunate than most other Members in this House, so far as recreational facilities are concerned.”
“Sir, the provision of $140.2 million for the Jurong Town Corporation is required to partly pay for an expenditure of $189 million in development projects. The surplus of the Jurong Town Corporation is sufficient to supply $48.8 million, to make up the total of $189 million for development projects. During the financial year 1973-74, the projects which are intended to be carried out are as follows. Firstly, industrial projects: - (a) Industrial projects in Jurong Town - about 1,000 acres of land with the necessary infrastructure will be prepared, and over 40 standard factories built. (b) Industrial projects in other industrial estates, covering a total area of 268 acres to be prepared. They are as follows: Acres Ayer Rajah 61 Telok Blangah 10 Kallang Basin, including Kolam Ayer 180 Toa Payoh 17 --- Total 268 === In addition, seven blocks of multi-storey factories will be completed and construction of another six will commence. (c) Work on the extension of the Jurong Port to add another 3,000 feet of deep-water berths will commence. Secondly, housing projects: - (1) Over 5,000 units of low-cost flats will be completed, and another 5,000 units will be built on 220 acres of land at Neighbourhood II, Jurong Town. In addition, construction of over 4,000 units of flats on 94 acres at Kampung Java Teban, Jurong Town, will commence. (2) In Sembawang, 528 units of low-cost housing will be completed, and construction of another 572 units will commence covering 17 acres. (3) On executive housing, over 3,000 units designed in the condominium standard will be built in Jurong Town, covering 10 acres. Thirdly, social amenities. The Chinese Garden and the sports complex in Jurong Town will be completed in 1974. Fourthly, the Jurong Town Hall will be completed by the end of 1973.”
“As to whether it is better to present this provision under this Ministry or the other Ministry, that is a matter of judgment. I hope the Member has not been inhibited in any way by its being placed under the Ministry of Finance. The People's Association is in a somewhat different category in the sense that the Ministry of Finance does not give loans to the People's Association, and although there is a provision for the operational expenses of the People's Association, it comes under the control of the Minister for Culture.”
“Sir, the suggestion of the Member for Sembawang has some merit in that, for better reflection of the true position, the loan provision should be made under the Ministry of National Development. I appreciate his suggestion. It is correct that if he wants details of the operations of the Housing and Development Board, then his inquiries should be directed to the Ministry of National Development. I believe he has taken every opportunity to do so in the discussion of the Estimates for the Ministry of National Development. The Member can raise a lot of questions under the provision for the Minister, in fact, any matter which relates to his Ministry. The reason why the particular loan item appears under the Ministry of Finance is that the quantum and the terms of the loan are matters in which the Minister for Finance is involved. That means, if he wants to know why in the allocation of financial resources the Minister gave $20 million, or $30 million, or $100 million, or $300 million which is nearer what was provided, then it is the responsibility of the Minister for Finance to explain. And sometimes the Minister for Finance has to exercise the responsibility whether or not to give $300 million if he only had $200 million. That is why the provision is entered under the Ministry of Finance. Similarly, the terms and conditions under which the loans are given to the Housing and Development Board, whether it is for 20 years, 25 years, or 30 years, and so on, would be a matter under the jurisdiction of the Finance Minister. If there are any questions on this, this is the particular item under which it could be raised. But I accept the fact that perhaps matters on Housing and Development Board could also be presented under the Ministry of National Development.”
“Mr Speaker, Sir, I am sure that if they are charitable organisations they would be exempted from tax. If the objects are for the benefit of the community at large, that is another condition. But if they benefit only a small group, say, the people living in one particular road, or they give scholarships to the children in the neighbourhood of say, 10 houses, obviously it is not something which is of general benefit to the community at large. In such cases we would not give exemption. In cases where the benefit is spread over the community at large, I think there would be no difficulties. I would suggest that if the Member has any particular case he could refer it to me and, if there is any doubt, then we will clarify the exact reasons why income tax exemption cannot be given.”
“Yes. They will help them to fill in the forms. But, of course, they are not responsible for the contents.”
“On the other hand, if the contributions received from non-members of the society outweigh the subscriptions collected from its members, then it can be assumed and deemed to be carrying on business and, therefore, tax is liable on any surplus in its accounts, just like any other trading organisation.”
“I am told by the Income Tax Department, and I received it with some incredulity, that from experience they found that the majority of the forms received have been correctly completed. But if there is any difficulty in filling in the forms, the Income Tax Department is willing to offer assistance and there are officials who can help taxpayers to fill in the forms correctly. I now come to the Member for Jurong who raised the question of societies registered under the Societies Act and the possibility of exempting them from income tax. I think he asked a similar question at Budget time last year, and T gave him a fairly lengthy reply. It seemed to be exhaustive enough. But if I may recapitulate: I confirm again that where the objects of a society registered under the Societies Act are wholly charitable and benefit the community at large, there is specific provision in the Income Tax Act for exemption of tax on its income. This then leaves us with societies which are not wholly charitable. Even among these societies, very few would be liable to income tax as tax is only liable if less than half of its receipts come from members. I think most of the receipts of the societies he mentioned have come from non-members and that it was rather painful that it should be lost in income tax. But as I said, the legislation enables us to give exemption to those societies which have more than half of its receipts from members. The rationale for this is that if the society is mainly dependent on its members for its funds and for its existence, it is not trading or profit-making. 6.45 p.m.”
“The policy which Government has always adopted has been to grant tariff protection to efficient and deserving industries faced with unfair competition from foreign products, and which are able to contribute to the development of the economy. Such protection is normally given on a very selective basis so that we will be able to retain the stimulus of competition and avoid undue increases in the cost of living. The imposition of too liberal tariffs must be detrimental in the long run. The present position of manufacturing is that we are encouraging more technology-based industries, and these industries would usually have their markets abroad and would not therefore require tariff protection. Sir, another matter which the Member for Anson raised was the question of the income tax forms. He complained that the forms are in very small print and too complicated for ordinary workers to fill in. I have considerable sympathy for the Member for Anson who, like myself and other gentlemen of advancing years, find it difficult to read what they now consider small print but which they previously found quite readable. I am informed that the print used in the income tax return is of the same size as that used in paper-backs and in certain pages of our daily news- papers which are very widely read and appear to give no difficulty to the average or younger reader. If a larger print is required, then the income tax form would run into more pages and cost considerably more. The income tax form has remained the same over the last few years and there is really no reason for the ordinary worker to be confused by the requirements. But I do not blame him if, like Professor Albert Einstein, he does not find the filling in of these income tax forms easy.”
“If anyone feels that his take-home pay for the other months has been adversely affected by the increase in CPF contribution rates, he can always instruct the Accountant-General to have the total contributions for the year deducted at source from his 13th month payment. This would help in alleviating some of the hardship. I would remind the Member that, apart from the deduction from the worker's pay, the increased CPF contribution is also paid by the employer. This will result in some benefit to the worker because it can be used as payment to the Housing Board, so that lime amount which is previously paid from his salary is now substituted by the amount available from the employer's contribution. The Member also mentioned the question of transferring workers from the pension scheme to CPF arrangements. The Government is thinking of transferring pensionable officers in Divisions III and IV to CPF terms when these have been improved. Details of this conversion are still being worked out, and I am therefore not in a position to say more at the moment. The Member for Anson also made a very eloquent plea for the plight of civil servants, who are retiring before 31st December, to be given the 13th month payment or a proportion thereof. He also wanted to know whether I would consider increasing pension rates in view of the rising cost of living. As a pensioner myself, I have considerable sympathy for the case of pensioners, but I am afraid I will have to say no to his very eloquent pleas. I can hold out no hope of varying the decision on these cases. He also mentioned the question of tariffs on foreign manufactured articles.”
“The Member for Anson, I think, also mentioned about terms and conditions of service in the Government sector, relating particularly to clerical officers and clerical assistants. I agree that as far as clerical work is concerned, it is very difficult to distinguish the duties of clerical officers from those of clerical assistants. The general rule is that clerical officers are given more responsible clerical duties. It is not true that clerical assistants have no prospects of promotion. In fact, a promotion exercise was held in early 1972, and out of 833 clerical assistants who were eligible for consideration, 277, or 33 per cent, were promoted to clerical officers as from 1st April, 1972. 1 have already said that Government employees will get salary increases based on the National Wages Council guidelines, and it is not true therefore that the lower grades of workers in the Government sector are totally neglected. The Member also asked about compensation for reduction of leave for officers in statutory bodies. I think this matter is being reviewed and will be the subject of further negotiations or offers by the statutory bodies. Finally the Member mentioned the question of increase in CPF contributions from 10 to 12 per cent in 1972, resulting in a lower take-home pay. This may be true if one considers just the pay for a single month. But if the pay is taken in terms of a year, then the 13th month non-pensionable allowance, which was paid last year and again this year, more than offsets the increase in contributions to the CPF.”
“But let me assure him again that the Trade Division and the Primary Production Department conduct checks on prices of essential foodstuffs. The Government will continue to exercise some control on such commodities as sugar, wheat, flour and condensed milk, which are protected by tariffs and are therefore to some extent dependent on Government permission for price increases. They have to justify such price increases by giving us figures of cost. The Member for Anson made some suggestions as to how to beat the price increases. I appreciate the proposal he made for the establishment of cooperatives. This, I think, will contribute to free and fair competition, which would be the best safeguard against unfair and manipulated prices. However, such co-operatives are best managed by non-governmental organisations, such as the one established in Toa Payoh. I hope that this pilot project will prove successful and be the precursor of many other such co-operative stores. 6.30 p.m. As to price tagging, it has already been introduced by shopping centres and emporiums, and no doubt this tagging could be extended to other shops. I do not think that legislation to this effect would help to overcome the problem of profiteering by retailers. As for daily publicity of prices of essential foodstuffs, the suggestion is interesting and can be given consideration. But many prices, such as those for condensed milk, sugar, soft drinks, coffee, and so on, are fixed for long periods of time and do not really require publicity. In the case of other essential foodstuffs, prices vary from locality to locality. In the rural areas, for example, I think it may be possible to buy, say, papayas or eggs at cheaper rates than in urban localities.”
“For the benefit of the Member for Sembawang, I would reiterate that it is Government's intention to adopt, so far as this relates or is applicable to the public sector, the agreed general guidelines of the National Wages Council for salary increases every year. I now come to the questions asked by the Member for Anson. He raised a considerable number of points over a wide range of subjects. Let me first deal with the chit funds. The last date for receiving claims against Gemini Chit Fund Corporation was the 6th January, 1973, and against Stallion Corporation Limited was the 16th December, 1972. Since then the Official Receiver has been actively processing the claims from subscribers of these two and nine other chit fund companies being wound up by the court. There are approximately 42,000 claimants altogether, and each claim has to be individually verified. No effort is being spared to expedite the settlement of these claims. I do not think a date can as yet be set for such settlement. The Member for Anson also touched on the question of the National Wages Council. I have mentioned this in another connection, but he wanted to know when they will be meeting and what is the time at which they will submit their recommendations. This is something which, of course, I am not fully aware of, but they have met since December last year, and I believe they are hoping to submit their recommendations to the Government by the middle of April. I believe some Members on the other side of the House will be able to give him more information on this. The Member for Anson also touched on the question of price control. I have already answered this to some extent in my reply to the Member for Sembawang.”
“My Budget statement did not, however, refer so much to the decline in investments as to the decline in investment commitments, which is something different. If he will look closely at col. 466 of Hansard, he will see that this is really what I meant: 1971 was, of course, an unusually good year as far as investment commitments were concerned, and although commitments in 1972 were by comparison smaller, our computation has not taken into account the expansion of existing shipyards which, from provisional figures, amounted to some $83.1 million in 1972. As I have mentioned in my Budget statement, there is really not very much need for concern about investment commitments in ship-building and shiprepairing because our locational advantages are such that we would expect to maintain our competitive advantage in these industries. The investments which have been made in the past and which are continuing to be made, whether by expansion or by new commitments, will ensure that we will have an output of $600 million by 1975, as I have mentioned in my Budget statement, and some $800 million by 1976. I think what we are now looking forward to is an expansion of the supporting industries for shipbuilding, such as ship equipment and machinery, and this will, I hope, upgrade our ship-building machinery. A further matter which the Member for Sembawang raised was the question of salaries of officers in Divisions IT, III and IV. In my statement in Parliament on the 16th February, I indicated that after the restructuring and realignment of salary scales, which have now been virtually completed, it will be Government's intention to consider increases for Divisions II to IV, and even for those in Division I, namely, on the basis of the guidelines issued by the National Wages Council.”
“In past Budget statements I think I mentioned the fact that deficits in our trade, while very serious, have been covered by our invisible earnings from tourism, by capital inflow, and so on, so that there is really no need for much concern. Some of the trade deficit is also due to the importation of capital equipment and goods which will in future produce a greater possibility for export of goods. Therefore, to that extent, the figures would be self-balancing. I thank the Member, however, for his concern for what he called the "ulcer in our economic bodies". As far as his question on INTRACO is concerned, the intention was that the setting up of INTRACO would help in the export of our manufactures. While the primary objects have been achieved, they are now exporting to 40 countries, including the United States, Australia, the EEC countries, ASEAN countries, and some socialist countries. The increase in our trade with the socialist countries has not been all that is desired. However, exports over the last two years have accounted for some 65 per cent of the company's total turnover. I think greater efforts will have to be made in export promotion and, while INTRACO will be one vehicle for such export promotion, it will be necessary over the next few years to develop other institutions. The Export Promotion Centre, which has been set up in the Trade Division of my Ministry, will be responsible for further progress in the drive for more exports to various countries, including the Communist countries. The Member for Sembawang then turned to the question of what he called the sharp decline in investments in the ship-building industry in 1972.”
“For example, in the case of sugar, current world prices of raw sugar are about 100 per cent higher than they were a year ago. The price of sugar in Singapore has increased by only 16 per cent. This was possible because the Sugar Industry of Singapore, which produces all the sugar consumed locally, had the foresight to secure, over the next five years, supplies of raw sugar on a long-term contract basis at prices lower than current world prices. In the same way, in Australia, which is the cheapest source of wheat, wheat grain prices increased by nearly 50 per cent. The Government has allowed the two flour mills increases of only 25 per cent. In the case of rice too, because of our stockpile requirements which we impose upon rice importers, consumers in Singapore benefit from the imports which were made at lower than current world prices. A very sharp rise in the price of rice in Singapore has therefore been avoided. I think the figure of 50 cents mentioned by the Member for Sembawang is very reasonable in comparison with the prices charged in other countries, where there is even a physical shortage of rice at those prices. The Government will continue to be alert to any possibility of price increases in other essential commodities. However, it must be recognised that because of the great dependence on imports price increases cannot be avoided. A close watch on wholesale and retail prices to prevent any undue profiteering, hoarding or manipulation, will be maintained. If I may take the second question of the Member for Sembawang. He spoke of our very great trade deficit and asked what action was being taken to reduce such great deficits.”
“Mr Speaker, Sir, the questions which have been asked by Members cover a very wide field. Some of them perhaps are more appropriate to other Heads, e.g. Inland Revenue, in respect of income tax. But I hope that I can deal with all their queries under this particular Head. If I may take the first question raised by the Members for Sembawang and Anson, I would assure them that in regard to the rising prices of foodstuffs and commodities, the Government has always been very conscious of their effect on costs of living, and has therefore devoted considerable time and effort to try and minimise the price increases of these commodities. However, it is not always possible to do very much because of the nature of our economy. Being an entirely open economy, Singapore is heavily dependent on imports for almost all of its requirements of foodstuffs and essential commodities. In 1972, imports of foodstuffs totalled $1.2 billion. Of these imports, $570 million was re-exported. But the balance, approximately worth $630 million, was retained for local consumption. The prices which are charged for these imports must, of course, reflect the conditions of the countries from which these imports come. Our locally-produced livestock, vegetables and fruits totalled only $160 million. We process, of course, some commodities such as sugar, wheat flour, condensed milk, and so on. But the raw materials which are produced abroad are imported, and they make up more than 70 per cent of the cost. Therefore, there is not much we can do as far as this 70 per cent is concerned. 6.15 p.m. As inflation is rampant in the countries from which we buy our requirements, we can do very little to prevent price increases. However, we can try to moderate some of these price increases.”
“Mr Speaker, Sir, the matter is now under consideration.”
“Sir, I do not have the figures of the cost; but if the Member wishes, I will send a written reply to him. SUPPLY AND SUPPLEMENTARY SUPPLY BILLS Business Motion Resolved, That, notwithstanding the Standing Orders, the second and third readings of both the Supply Bill for the financial year 1st April, 1973 to 31st March, 1974, and the Supplementary Supply Bill for the financial year 1st April, 1972 to 31st March, 1973, may, in that order, be proceeded with immediately on the conclusion of the proceedings on the Main and Development Estimates for the financial year 1st April, 1973 to 31st March, 1974. - [Mr Hon Sui Sen]. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1973 TO 31ST MARCH, 1974 Order read for consideration in Committee of Supply [1st Allotted Day]. [Mr Speaker in the Chair] 2.37 p.m.”
“Mr Speaker, Sir, the Jurong Town Corporation proposes to build a total of 1,100 units of flats in the 17-acre site at Sembawang Road. These 1,100 units are being built in two phases as follows: Phase I - 528 units consisting of 440 units of three-room flats and 88 units of four-room flats; and Phase II - 572 units, most of which will be four-room flats. The 528 units now under construction in Phase I are expected to be ready for occupation by the end of this year. Up to 28th February, 1973, 559 applications to purchase these units have been received.”
“On water conservation, which the Member for Anson has raised, and on environmental pollution, hawker centres, tourism and labour, these are problems which can be raised and answered by the Ministers responsible for those subjects. I think I have generally covered most of the comments, but I would like to end this debate by saying, as I have said in my Budget statement, that the need for collaboration between workers and management requires to be emphasised if we are to maintain the progress we have made over the last few years. It is somewhat easy for us to forget that only ten years ago we have a large scale unemployment problem and that the effect of the jobs which have been created since then has raised the standard of living of the family unit, if not of the individual worker. But this is better than if we continued to have large scale unemployment and to have had some workers paid much better while others arc totally unemployed. I hope that the National Wages Council will find a satisfactory solution to the problem of dividing the benefits which have been obtained from our rapid growth rate of 13 per cent for last year. Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1973 to 31st March, 1974. ADJOURNMENT Resolved, "That Parliament do now adjourn to the 12th March, 1973." - [Mr Hon Sui Sen]. Adjourned accordingly at Twenty-six minutes past Six o'clock p.m. to Monday, 12th March, 1973. Appendix to Mr Speaker's Announcement (col.569) (Cols 0639-0642)”
“As to private housing and the very escalated prices, the comment was that some consideration be given to stimulating and perhaps making more easily available private housing to our own citizens. I think Members should be aware that if too restrictive conditions are imposed, the effect may be that there would be a lesser supply of such private housing, even of the terrace and semi-detached type of housing. One or two comments were made on why I did not touch on buses in my Budget statement. In a general way, the question of transportation in Singapore is of interest, but the plans for a mass rapid transit system have not yet developed in any positive sense to enable me to give any statement on an alternative to the buses. I think the bus services have been working somewhat better perhaps than under the old system before they were rationalised. But I recognise that there have been quite a lot of deficiencies in the way of breakdowns and other unsatisfactory practices. There were also comments on my omitting agriculture and fisheries. I am not unsympathetic to the need to give assistance to agriculture and fisheries, but the problem really is in what way can this be done in an island as small as Singapore. Nevertheless, I think sufficient has been done by the Ministry of Law and National Development to increase the production of both these industries by 10 per cent over last year which is very creditable, and we ought to recognise the contribution which our farmers and fishermen, whether deep-sea or off-shore, have made to Singapore. I do not propose to make any detailed comment on Education, which has been dealt with in some detail as far as the training of workers is concerned.”
“In the case of technicians, we recognise that they have certain values, and in the scheme for daily rated workers and so on we have given special consideration to the pay which should be given to craftsmen as well as technicians. On the higher scale, of course, it is very much more difficult to develop a technician than even a professional engineer. We would certainly spend very much more money on developing as many technicians as possible. In order to attract the young worker to become a more highly skilled worker, it is essential that technicians be adequately paid. Therefore, there is no question that wherever necessary the salary scales will be so revised as to enable us to recruit and maintain technicians. These were the kind of general comments which were made. In the case of many Members, I think they got down to rather more specific instances related to particular Ministries. I do not propose, in my reply to the Budget statement debate, to touch on all these matters because they are matters which Members will be debating again when the Estimates under various heads of expenditure come up for consideration in Committee of Supply. On a fairly general kind of question, e.g, the idea of improving the housing programme which I have also mentioned in my Budget statement, most Members welcome the Plan for Government to increase the number of housing units to 30,000 per year. Whether the target should be extended beyond this to 40,000 is also a matter of the constructional capacity of the industry and the availability of supplies of materials, cement, steel, sand and so on, sufficient enough for 40,000 units per year construction. If it is possible to increase this rate, the Government will need no urging to increase the level of construction.”
“Of course, this is a matter on which the views of every ordinary citizen of Singapore would be valuable. In fact, to the Economic Division of my Ministry, the amount which has been spent for social development has given rise to some concern because we want to be able to devote to economic development sufficient funds to generate a surplus which will make it possible for us to spend money on the social side of our society. Another comment which is related to this is about foreign workers and importation of foreign singers. There were more luxuriant descriptions given to these people. The fact is that we do have quite a number of foreign workers. But the plan, which my Ministry is trying to set up or develop, will call for a reduction of these workers and it should by 1975 result in a very much less dependence on foreign workers. There were comments also on the effects of foreign industrialists as against local industrialists. I would like to assure Members that there is no question of favouring one against the other. The allocation of resources to industry is sufficient to take care of both the foreign industrialists whom we welcome as well as local industrialists whom we want to promote, and whose interest, in fact, is the reason why we have begun industrialisation. The intention of industrialisation is that finally our industry and commerce shall largely be in the hands of our own entrepreneurs and workers. There were also comments on the increase in salaries for top civil servants, and there were suggestions that this revision should be extended to technicians and other categories of workers. I would like to say that the principle which we have accepted is that of being able to recruit and to maintain the standard of the civil service.”
“To that extent, the cost of living must increase if we use the cost of living index which was designed previously for low income families. The effect of the increase in the price of rice and basic commodities must result in an escalation of the cost of living, in the same way as when the price of rice was very low there was a reduction in the cost of living for the low income groups. I think the view of the economist, which is not necessarily always the kind of view that is accepted by the person who suffers from the effects of inflation, is that it is not possible to control or regulate prices in the way that has been tried and found unsuccessful. This is by price control which merely means, as has been evidenced in the recent sugar crisis, that the commodity disappears from the shops and the housewife has to beg a favour from the shop-keeper in order to get her usual supply. Another theme which Members played upon has been the need to offset the effects of industrialisation and avoid copying the methods or the fashion and the way of life of the West, and to spend more on cultural and other projects. There is a lot to be said for turning away from the capitalistic, materialistic and unspiritual attitudes, which the modern urban industrialised society normally cultivates, into more cultural projects and in scientific and other worthwhile activities. This has been recognised already in the Budget to the extent that 50 per cent of the Expenditure is allotted for social development. The distribution of the SO per cent between culture and other activities, like education, medical services and so on, is a matter of judgment. I hope that perhaps we have achieved some balance.”
“I am very conscious of the effect upon our citizens of inflation in Singapore, and I thought I had devoted quite a lot of my time in my Budget statement to the measures which we intend to take to bring down the inflationary spiral. The most effective economic measure would be to reduce the money supply of the economy from a level of 24-30 per cent last year to something which would be more in keeping with our economic growth. I would say round about 15 per cent or less. This is, of course, a method of approach which would be somewhat different from perhaps the approach of Members of this House. The Member for Potong Pasir took it from the point of view of the Consumers' Association of Singapore which looks at the prices of commodities and tries to establish some control or regulation to bring down the prices. This kind of approach is valuable to some extent and, in fact, the Government has tried and had succeeded in keeping down the prices of certain commodities, like sugar until very recently, and some other essential foodstuffs. The Government is still keeping a very close eye on the costs of all these commodities in relation to the prices which are being charged by manufacturers or by importers. But this is only effective to the extent that the costs are not imported costs. If inflation is rampant in some other countries and we have to buy from that country, then there is no way in which we can bring the inflation down to within the limits which are considered desirable. In the case of rice, where there is a shortage, particularly because of weather conditions, as I have mentioned in my Budget statement, there is no way in which we can bring down the price to a level at which it was, say, two years ago.”
“On this particular matter, all I need say at this moment is that, in giving tax relief for parents, a principle has been established which, I think, is probably the most difficult part in giving the tax relief, and that if the amounts are required to be revised, they will be given consideration in subsequent reviews of tax reliefs for taxpayers. However, there is one comment I should make, and that is in respect of parents being required to stay with the taxpayers. The Asian concept of the extended family is of a family living together. It really does not help in establishing the kind of conditions that we want to have the taxpayer living in a Housing Board flat and his parent living perhaps in a Social Welfare Home for the Aged. This is certainly not the intention of giving the tax deduction. If the Housing Board flats are too small for the extended family, then perhaps our planners in the Housing Board should try and plan bigger flats. In fact, they are already doing this. The one-room flats are now giving way to the two-room, three-room and even four-room fiats. I suppose, if necessary, it can be even further increased to five-room flats. I am sure the cost of such replanning would be very much more than if I just agreed to increase the tax relief from $300 to a higher figure. I think it is very desirable that this extended family concept should be encouraged. The reason is that the parents are required to be taken care of not by some social welfare workers but by their immediate and affectionate relatives. The next comment which was rather general was on the cost of living and the effects of inflation. Many Members were eloquent on this particular topic, and I do not need to single out any particular Member.”
“Mr Speaker, Sir, I am very appreciative of the very generous support which has been given to the Budget statement which I made, although there were one or two Members who did not perhaps give it quite the same welcome as the others. One Member suggested that the Budget statement was tolerable. Another Member apparently took exception to the manner in which I presented my Budget statement. Perhaps he may have been unfortunate in not receiving the first portion of the statement, which was given to the Clerk of Parliament on Friday afternoon and should have been in the post for delivery on Saturday morning. Nevertheless, if there had been any delay, I would like to extend my apology to the Member. I would like to say that I would not be doing justice to all the various speakers today if I were to reply in a very cursory manner to the many valuable suggestions which they have made. I have taken copious notes but I am afraid that I may have lost some of the finer nuances of the comments of those speeches which were translated from Mandarin. I propose therefore to give their recorded statements my very close attention when they appear in Hansard. The remarks which I make now are only in very general terms. Of all the matters which were brought up, the one which had the most popular reaction was the tax relief for parents, deductible from assessable income. The comments of some Members extended to requests for tax relief not only to children but also to the taxpayers themselves.”
“The provision is inserted to facilitate the making of enquiries by the Registrar in this matter and to avoid the raising of doubts as to the exercise of his power. The new provision is intended to cover an application for a licence, in the first instance, and an application for renewal of a licence. Licences will, under the Bill, be valid for a period of 12 months. Question put, and agreed to. Clause read a Second time and added to the Bill”
“Sir, I beg to move, "That the clause be read a Second time." The purposes of this amendment is to enable the Registrar, in deciding whether a dealer or his representative or an investment advisor or his representative is fit and proper person to hold a licence under the Act, to enquire whether that person has conducted his business in a fair and proper way and according to accepted business standards. In order to do this, it is considered that the Registrar should have the power to look into any transaction involving the purchase or sale of securities entered into by that person during any period of 12 months preceding the application for a licence or renewal of a licence. If, as a resultof this enquiry, he finds that a person has in the course of his business used dishonest, unfair or unethical devices or trading practices, this would be a point of consideration for the Registrar to bear in mind in deciding whether that person was a fit and proper person to be licensed to carry on his business. It can, of course, be argued that the inclusion of such a provision is not really necessary, since the Registrar would have an implied power or authority to do what the proposed provision enables him to do in any event. But the way a person has recently carried on his business must be a vital consideration in deciding whether he is a fit and proper person to be allowed to continue to carry on his business. And naturally, there are other considerations; for example, if a person has had a conviction for a criminal offence, or has been declared a bankrupt, he would not on the face of it be considered to he a fit and proper person to hold a licence under the Act.”
“Sir, I beg to move, In page 41, line 20, to leave out "of", where it secondly occurs, and insert "by". This amendment makes for better reading. Amendment agreed to.”
“Sir, I beg to move, In page 40, line 3, after "has", to insert "or have". Sir, this amendment, together with the next amendment, refer to "an order or orders", and therefore it is necessary to include "or have" after "has". Amendment agreed to. Further Amendment made: In page 40, line 10, after "has", to insert "or have". - [Mr Hon Sui Sen].”
“Sir, I beg to move, In page 29, line 31, to leave out "one at least being" and insert ", at least one of whom is". This is an improvement in the drafting. Amendment agreed to. Clause 65, as amended, ordered to stand part of the Bill. Clauses 66 to 82 inclusive ordered to stand part of the Bill. Clause 83 -”