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PARLIAMENT OF SINGAPORE · FORMER

Hon Sui Sen

Singapore

IN THEIR OWN WORDS

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.

OFFICIAL REPORT - 1983-08-30 · READ THE OFFICIAL RECORD

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.

OFFICIAL REPORT - 1983-08-30 · READ THE OFFICIAL RECORD

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…

OFFICIAL REPORT - 1983-08-30 · READ THE OFFICIAL RECORD

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.

OFFICIAL REPORT - 1983-08-30 · READ THE OFFICIAL RECORD

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.

OFFICIAL REPORT - 1983-08-30 · READ THE OFFICIAL RECORD

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.

OFFICIAL REPORT - 1983-03-24 · READ THE OFFICIAL RECORD

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 23 of 30.

  1. Gross Domestic Production by Industrial Origin Prior to an examination of the performance of the major sectors of the economy in 1972, it is pertinent to outline the structural changes which have taken place over the past six years. As a result of rapid industrialisation, the manufacturing and construction sectors enjoyed rapid growth whilst the trade and other services sectors registered a lower rate of growth. This has resulted in the sharp increase in the relative share composition in Gross Domestic Product (GDP) of manufacturing and construction sectors jointly from 18.3 per cent in 1966 to 31 per cent in 1972. On the other hand, the share composition of trade and other services sectors declined from 63.5 per cent in 1966 to 52.3 per cent in 1972. Manufacturing Sector The manufacturing industries contributed a total of $1,716.6 million to GDP in 1972 - an increase of $286.9 million or 20.1 per cent compared with 25 per cent in 1971 and 27.5 per cent in 1970. As a result of this comparatively more modest but still rapid growth, the share composition of the manufacturing sector to total GDP increased from 14.5 per cent in 1966 to 23.5 per cent in 1972. Manufacturing still continues to be the main stimulus to growth. The increase in earnings of the manufacturing sector of $286.9 million accounted for well over a third of the increase of $857.6 million in the GDP. Our manufacturing industries have been oriented towards exports and higher quality products. Overall, some 40 per cent of our domestic manufactures is exported. Among pioneer companies, exports account for just under two-thirds of their output. In 1972, about half of our domestic exports went to developed countries as compared with less than one-fifth six years ago.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  2. As a result of these changes the share composition of private consumption expenditure fell from 60.8 per cent in 1971 to 58.3 per cent in 1972, whilst that of government consumption increased from 11.4 per cent to 11.8 per cent. It is interesting to note that the share of consumption expenditure to total expenditure in both the public and private sector which has been falling since 1960 continued to decline in 1972. The share composition fell from 93.4 per cent in 1960 to 72.2 per cent in 1971 and to 70.1 per cent in 1972, while the gross capital formation increased sharply from 6.6 per cent in 1960 to 29.9 per cent in 1972. Every major component of private consumption registered increases, though at varying rates. The fastest rates of increase were in respect of expenditure on housing and transport and communications. Expenditure on housing increased by $92.5 million or 25.1 per cent to $461.6 million whilst expenditure on transport rose by $54.2 million or 9.8 per cent to $608.7 million. Comparatively slower rates of growth were noted in the expenditure on food, which rose by 5.3 per cent to $1,079.2 million, as well as in clothing, which increased by 6.3 per cent to $643.4 million. The outcome of this was the further reduction in the relative share of expenditure on basic necessities, especially food, which fell from 27.2 per cent in 1960 to 15.3 per cent in 1971 and to 14.1 per cent in 1972. This again reflected the improvement in the standards of living of the population. In the case of public consumption, the increase was mainly on account of defence expenditure.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  3. Analysing the capital formation in 1972 in both the public and private sectors, it may also be noted that private sector investments rose by only 12.1 per cent from $1,407.3 million in 1971 to $1,577.6 million, while public sector investments increased by 54.3 per cent to $710.3 million. With a faster rate of growth, the capital expenditure in the public sector, accounted for a larger share of 31 per cent of the total capital formation as compared with only 24.6 per cent in 1971. The corresponding share of the private sector was down to 69 per cent. The increase in investment in the private sector was mainly in machinery and equipment and construction of non-residential buildings, primarily of offices, shopping complexes and factories. There was a slight reduction in expenditure in transport equipment and other construction works. Expenditure on transport equipment in the private sector decreased slightly by $19.2 million from $283.1 million in 1971 to $263.9 million, giving a drop of 6.8 per cent. The increase in capital expenditure in the public sector was largely in respect of public housing, electricity and water services and electric machinery. Expenditure on buildings, other construction and works increased by $225 million or 67.8 per cent from $332 million to $557 million. Consumption With regard to consumption, the public sector registered a faster rate of growth of 17.9 per cent compared with the private sector of 9.1 per cent. The increase in public consumption, which has been expanding rapidly since 1969, exceeded the rate achieved in the previous year of 12.5 per cent. In the private sector, the rate of growth of consumption was slightly below the level of 10.3 per cent achieved in 1971.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  4. Estimates of the Gross Domestic Expenditure (GDE) in 1972 representing resource use indicate an increase of $927.3 million to $7,643.7 million in 1972. Compared with the $6,716.4 million in 1971, this represented an increase of 13.8 per cent. The growth rate of GDE was lower than that experienced in 1971 of about 16.6 per cent. The increase in GDE was contributed by both consumption and gross domestic capital formation. Consumption expenditure increased by $507.0 million or 10.5 per cent to reach $5,355.8 million. Capital formation increased substantially by $420.3 million or 22.5 per cent to reach a high level of $2,287.9 million. The bulk of the capital formation was in buildings and other construction works which comprised about 48.3 per cent of the total and in machinery and equipment which accounted for 39.7 per cent. A large proportion of the expenditure in the latter category was directed towards the expanding manufacturing sector. Expenditure in the former category increased by $316.3 million or 40.1 per cent as compared to an increase of $118.1 million or only 15 per cent in machinery and equipment. Expenditure in transport equipment dropped slightly by $14.1 million or 4.9 per cent to $274.6 million. The growth in gross domestic capital formation was markedly lower than the 35.8 per cent achieved in 1971 and the 44.2 per cent in 1970 and the average annual growth rate of 30 per cent for the six-year period 1966-72. It is disquieting to note that the growth in 1972 was sustained by the relatively higher growth rate in the expenditure on buildings, especially on dwellings rather than on machinery and equipment for manufacturing.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  5. Total trade between Singapore and China in the first nine months of 1972 represented less than 3 per cent of Singapore's total trade, and the trade balance has been overwhelmingly in favour of China. With the better opening up of China to international trade, there is the possibility that Singapore can serve as a base for multi-national firms for manufacture and exports to China. Conversely, China may find Singapore a useful outlet for its products. Review of the Singapore Economy And now, a close look at developments at home. As can well be imagined, international monetary instability had unfavourable effects upon the performance of our local economy, its greatest impact being, first, on trade which grew hardly at all in the first half of the year and only picked up again in the later months of the year, and secondly, on the manufacturing sector, particularly on industries highly vulnerable to adverse international trade factors like the petroleum industry, which grew at no more than 7 per cent in output and 2.6 per cent in value added. Our performance in these two sectors fell short of those for 1970 and 1971 and account in large measure for the lower growth rate of the economy, making up as they do, its two largest sectors. Yet, as the GNP figures already quoted indicate, and the tables will show in greater detail, overall the economy of Singapore continued to sustain the trend of rapid growth achieved over the past six years 1966-1971. With a rate of population growth at 1.7 per cent per year in 1972, slightly higher than the 1.69 per cent for 1971, our per capita GNP improved by 11 per cent from $3,321 in 1971 to $3,687 in 1972. But let us examine the components of Singapore's growth.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  6. For her Asian Commonwealth partners, including Singapore, none of these options were offered by the EEC and negotiations for individual trade agreements with the EEC are all that they can expect. Singapore's share of trade with the EEC has all along been in the EEC's favour. The better to investigate possibilities of improving trade links with the enlarged EEC, whether under a negotiated agreement, the Generalised System of Preferences (GSP) Scheme or in any other way, we have in the last year established an Embassy in Brussels accredited to both Belgium and the EEC, and shall be establishing diplomatic representation also in other countries in the near future. We have also been working together with our ASEAN partners under the Special Co-ordinating Committee of ASEAN to seek favourable consideration for our products. However, the task ahead for securing any trade concessions from the EEC would seem to be a long and arduous one, especially as 1973 would be a year of adjustment and consolidation between the old and new members in the enlarged EEC and the Community could therefore be pre-occupied with its own internal problems. However, it is possible that with peace in Indo-China, the EEC will show a more positive interest in the region and to play a more active role in trade and development of an area with which they have had historical links. Finally, among external events relevant to Singapore, the admission of China into the United Nations in 1972, and therefore into the international diplomatic and political arena, may see its involvement increase also in economic affairs in South-east Asia. There should be possibilities of much increased trade.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  7. The level of representation is higher, however, in the Committee of 20 consisting of Ministers, central bank governors or equivalent. Singapore anti other South-east Asian countries are being represented on this Committee, and on this Committee's group of deputies. While the initial deliberations of the Committee point to some convergence of views on broad principles, the deputies of the Committee have met for only the second time, and it would be too optimistic to expect any translation of these broad principles into agreed rules and practice before 1974. Singapore, therefore, will have to learn to live with international monetary instability for quite some time yet. Overshadowed by the monetary problem, other external events in 1972 have had relatively little economic impact as yet upon Singapore. Perhaps the most significant of these for its likely future effect upon Singapore trade was the dc-escalation of the Vietnam War which has now resulted in a cease-fire. In the past, Singapore's trade with South Vietnam has been mainly in petroleum products. With the advent of peace, there has increasingly been less demand for such products and it may be expected to decline further. 1972 was also the last year for preparation by Britain for her entry into the Common Market. For her Commonwealth partners, it meant also the last year before the phasing out of special trading relationships which conferred Commonwealth preferences to Britain and each other. For the non-Asian Commonwealth, such phasing out could be eased by new trading arrangements in associate status in the European Economic Community (EEC) or by special concessions for products like sugar.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  8. However, in the new year when it finally became known that the US trade and payments deficits for 1972 were larger than had been previously expected and might not greatly improve in 1973, the situation again suddenly deteriorated. In recent weeks, the splitting of the Lira and the floating of the Swiss Franc were the first signs that the US Dollar would come once again under severe pressure. In a flight from the Dollar, both the Deutsche Mark and the Yen came under attack, culminating in another Dollar devaluation and consequential adjustments in other currency parities. The basic flaws in the present system have not been resolved and the spectre of protectionist trade measures cannot be altogether exorcised. It was not to be expected that Singapore could remain totally unaffected by the monetary instability and the recurring crises of the past year. With the floating of the Pound Sterling in June last year and restrictions on capital movements within the Sterling area, Singapore decided to change its intervention currency from Sterling to the US Dollar. With less need for the use of Sterling, Singapore further diversified its reserves from Sterling to other currencies. What of the hope which had been kindled for "prompt" monetary reform? It was not until after prolonged argument as to the nature and composition of the forum for discussing such reform that the first step was taken at the IMF meeting in October last year. This was the setting up of the International Monetary Fund (IMF) Committee on International Monetary Reform and Related Issues, better known as the Committee of Twenty. Basically, the representation of countries on this Committee is the same as representation on the IMF (which has 20 executive directors).

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  9. We shall, however, need to analyse in some detail the more complex factors, both external and domestic, which prevented gains being made in other sectors of our economy ready and sufficient to offset a loss which had, after all, long been anticipated. First, let us look at the external economic situation in 1972. As an open economy. Singapore is highly vulnerable to adverse external events. 1972 began with some promise. It was hoped then that the co-operative spirit and ingenuity shown by the world's ten leading economic powers in reaching the settlement of the Smithsonian Currency Agreement in December 1971 could be brought similarly to bear upon the problem of the reform of the international monetary system. Meantime, the recently concluded Agreement, with its multi-currency realignment, ended a period of floating currency rates and brought back a relative calm into the troubled currency exchange markets. This calm was short-lived. 1972 turned out to be a year of high monetary instability. Within the first few months, funds started to flow to countries like Japan where revaluation was thought not to have gone far enough, and away from countries like the United Kingdom with currencies considered overvalued. In June, the Pound Sterling went into a crisis which introduced yet another period of international monetary instability. It was eventually forced to float. Other currencies survived the monetary storm only because they adopted or had already adopted a variety of exchange controls, including stiff restrictions on capital movements, or splitting the exchange market into financial and commercial sectors. Towards the latter part of 1972, however, the United States economy appeared to be much improved, and the foreign exchange markets stabilised.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  10. Mr Speaker, Sir, I beg to move, That Parliament approves the financial policy of the Government for the financial year 1st April, 1973 to 3lst March, 1974. Sir, the financial policy of the Government cannot be considered except in relation to its economic setting, both international and domestic. It has, therefore, been my practice in previous Budget Statements to begin with a brief survey of the economic scene before proceeding to outline the financial policy for the coming financial year. This year, I thought it might be convenient, to Members as well as to myself, that the Survey should be presented in written form and distributed in advance to Members so that they will have an opportunity to read it at leisure and absorb the mass of statistical detail contained particularly in the tables.* (*See Appendix, Col. 487-522) I should like, however, the House to consider the `survey' to have been delivered as part of my Budget Statement. Appendix to Annual Budget Statement (cols.445-81) (Cols 0485-0522) [Following is the text of the Survey (up to col.460).] Survey of the Economic Scene According to preliminary estimates, Singapore's Gross National Product (GNP) at current prices grew in 1972 by $908.9 million to reach $7,917.5 million. This represents an annual growth of 13 per cent, a creditable performance by international standards, but disappointingly short by 2 per cent of our targeted 15 per cent annual growth rate. One obvious and simple explanation for this shortfall can be given as the loss of earnings from British (now ANZUK) military spending which was $216 million or roughly 3 per cent of the GNP less than last year.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  11. Mr Speaker, Sir, I beg to move, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 52), resolves that the Schedule to the said Act be varied by deleting the figures "$48,000". "$508,620", "$108,680" and "523,000" appearing in the second column thereof and substituting therefor the figures "$52,000", "$594,010", "$135,270" and "$91,000" respectively. The provision approved under the Civil List is insufficient to meet increasing expenses, such as the non-pensionable annual allowance for staff, revised wages of daily-rated employees and increasing cost of household requisites. Also, provision has to be made for the purchase of chairs and tables, silver ware and crockery for official use at the Istana. Hiring of such items has proved to be unsatisfactory. It is, therefore, necessary to augment the provision for the Privy Purse from $48,000 to $52,000; the provisions for Salaries to Personal Staff from $508,620 to $594,010; the provision for Expenses of Household from $108,680 to $135,270 and the provision for Special Services from $23,000 to $91,000. Sir, I beg to move. Question put, and agreed to. Resolved, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 52), resolves that the Schedule to the said Act be varied by deleting the figures "$48,000", "$508,620", "$108,680" and "$23,000" appearing in the second column thereof and substituting therefor the figures "$52,000", "$594,010". "$135,270" and "$91,000" respectively. ANNUAL BUDGET STATEMENT 2.44 p.m.

    OFFICIAL REPORT - 1973-02-26 · READ THE OFFICIAL RECORD

  12. NATURE RESERVES (AMENDMENT) BILL "to amend the Nature Reserves Act (Chapter 295 of the Revised Edition)", presented by the Minister for Law and National Development (Mr E. W. Barker); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE RED CROSS SOCIETY (INCORPORATION) BILL "to incorporate the Singapore Red Cross Society", presented by the Minister for Health and Home Affairs (Mr Chua Sian Chin); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. GENEVA CONVENTIONS BILL "to enable effect to be given to certain international Conventions relative to the amelioration of the condition of the wounded and sick in armed forces in the field, the amelioration of the condition of wounded, sick and shipwrecked members of armed forces at sea, the treatment of prisoners of war, and the protection of civilian persons in time of war, and for purposes connected therewith", presented by Mr Chua Sian Chin; read the first time, to be read a Second time on the next available sitting of Parliament, and to be printed. SECURITIES INDUSTRY BILL "to consolidate and amend the law with respect to the securities industry and trading in securities and for purposes connected therewith and to repeal the Securities Industry Act, 1970 (No. 61 of 1970)", presented by the Minister for Finance (Mr Hon Sui Sen); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. CONSTITUTION (AMENDMENT) (PRESIDENTIAL COUNCIL FOR MINORITY RIGHTS) BILL Order for Second Reading read. 3.22 p.m.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  13. LIGHT DUES (REPEAL) BILL "to transfer the assets, liabilities and employees of the Singapore Light Dues Board to the Port of Singapore Authority; and to repeal the Light Dues Act (Chapter 171 of the Revised Edition)", presented by the Minister of State for Communications (Dr Ang Kok Peng); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. PORT OF SINGAPORE AUTHORITY (AMENDMENT) BILL "to amend the Port of Singapore Authority Act (Chapter 173 of the Revised Edition)", recommendation of President signified; presented by Dr Ang Kok Peng; read the First time, to be read a Second time on tile next available sitting of Parliament, and to be printed. MERCHANT SHIPPING (AMENDMENT) BILL "to amend the Merchant Shipping Act (Chapter 172 of the Revised Edition)", presented by Dr Ang Kok Peng; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. SALE OF FOOD BILL "for securing wholesomeness and purity of food and fixing standards for the same; for preventing the sale or other disposition, or the use of articles dangerous or injurious to health: and to repeal the provisions of the Sale of Food and Drugs Act relating to the sale of food (Chapter 167 of the Revised Edition)", presented by the Minister of State for the Environment (Mr Wee Toon Boon); read the First time, to be read a Second time on the it ext available sitting of Parliament, and to be printed. CRECHE ESTABLISHMENTS BILL "to provide for the licensing and control of establishments for creches", presented by the Minister for Social Affairs (Encik Othman Bin Wok); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  14. Mr Speaker, Sir, first of all, I should like to make it clear that this particular revision of salaries for the top echelon is a revision which is intended to maintain the rapid rate of growth of the Singapore economy. I have suggested that these officers are valuable not only to Government but to the private sector, and that there is some fear that they may be lost to the private sector unless the salaries of these top administrative and professional officers are raised sufficiently to be regarded as on a parity with what they can obtain in the private sector. The cost of this particular revision would be of the order of $4 million a year. I have not worked out the exact figures because some of the officers are Timescale officers and the merit allowances which might be given under this scheme cannot obviously be anticipated. With regard to the point whether I am proposing to review Divisions II, III and IV salary scales, my Statement says that we have been doing a restructuring of salary scales for those sectors. The question of wage increases had not really been considered in relation to the restructuring of salary scales. I think that would be a matter for consideration in relation to the wage increases proposed by the National Wages Council which will, as I have mentioned in my Statement, apply equally to all Government officers. I have stated that we are prepared to adopt the recommendations and guidelines of the National Wages Council. As far as cost of living is concerned, I have made it quite clear that this revision is to promote the very rapid rate of economic growth. I would also say that these are minimal increases costing about $4 million a year, which will not affect our cost of living. BILLS INTRODUCED 3.21 p.m.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  15. Competent and effective administration can be assured only if the civil service maintains its quality and integrity, with an able leadership at the top of the administrative pyramid, supported by a constant intake of young officers of promise and some of the ablest of whom will stay and grow in the service in the full knowledge that their climb to the top will be more satisfying and equally rewarding as if they had opted for the private sector. 3.12 p.m.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  16. It should, however, be pointed out that all serving officers on the permanent establishment have an option to either accept the new leave scheme with compensatory payment or retain the previous leave scheme. Furthermore, this principle of option will also be extended to new recruits into the service. For those officers who consider the reduced vacation leave insufficient, I should like to add that in future, no-pay leave to make up leave to their previous leave eligibility will be liberally granted. Officers who feel the need for extra leave will therefore be able to use the monetary compensation paid in lieu of leave to offset the loss of pay during such leave. Finally, I should like to inform members that apart from these salary revisions the Government will adopt the agreed general guidelines of the National Wages Council for salary increases every year. For administrative convenience, it is Government's intention to pay these increases in the form of supplementary allowances at the rate recommended by the National Wages Council. At the end of every four to five years the Government will undertake a full scale revision of salary scales, consolidating in the process such supplementary allowances into the basic salaries. Such a revision of salary scales after four to five years will enable Government to review wages and salaries in the public sector and make adjustments to keep broadly in parity with private sector wages and salaries. In this way, our promising young officers can be certain when electing for a Government career, that in the medium and longer run, they will never lose out to their contemporaries in the private sector.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  17. Civil servants under the previous leave scheme were eligible for the following rates of vacation leave:- Completed service in a particular Days per calendar year Division Div Div Div Div I II III IV Less than 10 years' 33 28 24 21 service 10 years' service 39 33 28 24 or more Because of the generous leave scheme, coupled with the general shortage of staff over the years, many officers had not been able to take their full leave, and as a result, have accumulated considerable leave to their credit. In addition to vacation leave, civil servants under the previous regulations were eligible for sick leave on full pay up to 90 days per year whether they are hospitalised or not. Having regard to the leave usually allowed by the private sector, leave eligibility for all public officers, regardless of divisional status, has been revised as follows:- Less than 10 years' service - 14 working days a year. 10 years' service or more - 21 working days a year. All provisions for deferred leave would be abolished. However, accumulation of leave up to one year's eligibility may be allowed to be carried forward to the following year. Medical leave on full pay has been revised to 30 days per year if no hospitalisation is necessary but may be extended to 60 days if hospitalisation is recommended by the medical authorities. This revised leave scheme has been accepted in principle by the staff unions representing the public service. To compensate for the reduction in vacation and medical leave, the difference between the employee's previous and new leave eligibility will be commuted into pay. The mode and the exact formula of such compensation is now under examination with the staff unions.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  18. In 1958, this practice was abolished and replaced by fixed Specialist Allowances for Superscale Medical Officers at varying rates. These rates were revised in 1969 to $100 per month, $150 and $500 per month for Medical Officer, Senior Registrar and Superscale G respectively, and $750 per month for Superscale E and above. However, over the last two years, there has been increasing pressure for the re-introduction of some scheme in which consultant fees would be shared by the consultant specialist. My colleagues in the Cabinet and I do not favour a system which experience has so clearly shown to be readily subject to abuses. At the same time, I realise that if we are to retain our best specialists, we must recognise the value of their contributions in some tangible way. For this purpose, we should promote a few of our outstanding specialists to Superscale D. This will not only mean an immediate increase in salary of $1,430 per month for promotion from the E salary to the proposed Superscale D salary, but also carry the perquisite I have already mentioned of a Mercedes Benz car provided as to its capital cost at Government expense. Additionally, if need be, I am prepared to agree that the fixed Specialist Allowance for doctors should be increased beyond the present limit of $750 up to $1,250 per month for specified individual outstanding officers. Next, because of the great interest which has been generated, it would seem especially among doctors, it may be appropriate if I refer at this stage to the scheme for reduced vacation and medical leave which has been introduced with effect from 1-1-73 for all Government Officers other than those in the teaching service.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  19. It is indeed difficult to assess, in monetary terms, the value of these officers but it is now proposed that the salary of these officers, who are presently at $3,000 per month, be revised to $6,500 per month. Special arrangements are intended for the Speaker since he officiates part-time, but he will continue to be entitled to the official residence (with servants) and an official car, as at present. Then, we have to consider the position of the Chief Justice. He will be graded as Superscale Al, with a salary of $7,500. The Chief Justice will, in addition, continue to enjoy all the other terms of office which he presently enjoys, including an official car with driver and an official residence maintained at Government expense, together with a number of household servants to help to upkeep the residence. Having dealt generally with the various Superscale gradings and the salaries and other terms appropriate to each, I should like to say a word about cur medical services officers. Many of them are in specialist grades, either in the G or E Superscales. At one time, it was the practice for these specialists (both medical and professional) to be allowed to retain part of the consultation fees from private patients or from undertaking outside consultancy work. This practice, however, resulted in malpractices or conduct unbecoming to the specialist whose attitude towards patients tended to be related to their ability to pay fees. Also, essential medical specialities, such as pathology and radiology, where the possibilities of fees earning were greatly inferior, tended to be increasingly less favoured for specialisation by the bright young medical officer.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  20. This is the grade for most of the Permanent Secretaries and for four other officers, the Solicitor-General, the Commissioner of Police, the Director of Public Works and the Commissioner of Inland Revenue. In recognition of the heavy responsibilities that these officers shoulder as administrative Heads of the Ministries, the present salary of $2,350 per month will be revised to $4,500. In addition, they will continue to be entitled to the use of a car paid for by Government. Special arrangements of an official car with driver maintained by Government are made for the Commissioner of Police because of his position as head of a disciplined force. Next higher in grade is Superscale B, which includes other Permanent Secretaries, Puisne Judges and the President of the Industrial Arbitration Court. In view of the nature of their duties and the positions they occupy, the salary of this grade of officers presently at $2,700 will be revised to $5,500 per month. They are, of course, also entitled to the use of a car. In addition to the car that would be provided by Government, the Judges will continue to enjoy perquisites such as a Government house at the usual Government subsidised rental but fully maintained by Government. It is proposed to create an additional grade called Superscale B1 to be attached to the most senior of the Puisne Judges in recognition of his special position. This salary will he revised to $6,000 per month. At the top of the hierarchy is Super-scale A. There are only three full-time civil servants on this grade - two Permanent Secretaries and the Attorney-General, in addition to the Chairman. Public Service Commission, and for the purposes of grading only, the Honour-able Speaker of this House.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  21. There are Superscale G officers in the Government service ranging from Assistant Directors of Education and Deputy Chief Planner, Planning Department, to Radiologists. The salary of the Superscale G Officers is to be revised from $l,920 to $2,500, an increase of $580 per month. Next in the Superscale structure is Superscale Grade F which at present is at a salary of $2,020. Comparatively, there are only a small number of Superscale F Officers in the Government service and these comprise the Senior Assistant Commissioner of Police, the Director of Prisons and the Director of National Library amongst others. The responsibility of these officers is generally a shade higher than the Superscale G Officers. It is proposed to revise their salary to $2,750, an increase of $730 per month over the present salary. Further up the ladder is Superscale Grade E which includes officers like the Assistant Directors of Public Works, the Commissioner of Lands and Deputy Secretaries of Ministries. The salary of these Superscale Grade E Officers will be revised from $2,070 to $3,000, an increase of $930 per month. Next are Superscale D Officers. There are only a small number of officers in this grade amongst whom are the Accountant-General, the Auditor-General, Deputy Directors of Medical Services, the Deputy Director of Public Works, the Director of Civil Aviation, the Registrar of the High Court and the Senior District Judge. At present, these officers are drawing a salary of $2,170 and it is proposed to revise their salaries to $3,500 per month. In addition, it is also proposed to bring this grade of officers within the scheme whereby they will be entitled to the use of a car paid for by the Government but maintained by the officers themselves. We now come to the Superscale C grade.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  22. The Scheme will then apply not only to Timescale officers in the Administrative Service but also to professional officers like doctors, lawyers, architects and engineers. The assessment of the merit of individual officers under the Scheme will be carried out by a Committee of relevant Permanent Secretaries who will be appointed by, and will make their recommendations to the Public Service Commission (or the Legal Service Commission, as the case may be). Admittedly, such assessment of merit will not be an easy task but the Committee of Permanent Secretaries will have access to all the confidential dossiers of the officers and a specially prepared report by the Head of Department of the officers concerned. This Scheme is not a novel one as it has been tried out in other public services and it has also been adopted by some companies in the private sector. With regard to the Upper Timescale Officers, that is, officers on the salary scale $1,700x50-1,850, it is proposed to revise their salary scale to $1,700x 100-2,000. There are really two changes to this scale: (i) it extends the upper limit from $1,850 to $2,000 and (ii) it increases the yearly increment from the existing $50 per annum to $100 per annum. The Upper Timescale grade is a stepping stone to the Superscale grades and the present revision bringing the maximum to $2,000 will ensure that the Upper Timescale Officers will reach a higher maximum than the Timescale Officers on the salary scale $900x50-l,000/1,050x50-l,400/1,450x50-1,850. A Timescale Officer through the passage of time only will no longer reach the same salary as an Upper Timescale Officer. We now come to the first of the Superscale grades, that is, Superscale G.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  23. First, with regard to the Timescale Division I Administrative and Professional Officers, it is generally recognised that the first three years of the salary scale for Division I Officers are adequate for the period during which officers are still learning and undergoing training. The inadequacy often arises after three to five years when there may be difficulty in retaining some of the more promising officers who are attracted to seemingly greener pastures in the private sector. We have tried to find an answer to this problem in more rapid and more frequent promotions to higher segments of the salary scale based on merit and not necessarily on vacancies and these are now regularly being done by the Public Service Commission. For example, the Public Service Commission has only this week concluded a promotion exercise in the administrative service in which 11 Assistant Secretaries were promoted to the grade of Principal Assistant Secretary and 16 Administrative Assistants were promoted to the grade of Assistant Secretary with an additional three promoted to Principal Assistant Secretary on trial and seven promoted to Assistant Secretary on trial for one year. In addition to these more frequent promotions for the Division I Officers, it is proposed to introduce a scheme of accelerated increments for merit. This will enable us to reward by more than the normal one increment annually, but subject to a maximum of four increments, deserving officers who either are not yet ready to be promoted to the next grade or for other organisational reasons cannot be so promoted. This Merit Increment Scheme has been accepted by the Public Service Commission and the Legal Service Commission, and will be implemented this year.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  24. Where their qualifications and the nature of their work are comparable, the terms and conditions of service of their Government counterparts are relevant. To the extent that such Statutory Boards and Universities depend upon Government financing, my Budget and Establishment Division, in consultation with these public sector bodies, will examine any necessary revisions for such professional and administrative officers so that they may be correlated with those of the Government. But it is necessary to emphasise that the Government revisions may not be relevant or appropriate to all administrative and professional officers in the public sector as the nature and responsibilities of such officers and their conditions of service may be quite different from those of the Government officers. Revisions of salaries have obvious financial implications which have had to be carefully considered in relation to Singapore's economic situation and its ability to pay enhanced salaries not only to officers in Superscale posts but also to officers in the whole of the public sector. Pending such consideration, the payment of a non-pensionable annual allowance equivalent to one month's salary (a sort of 13th month payment) as a regular annual feature was an interim measure which has not, however, rendered the problem of restructuring the top civil service any less urgent. In view of Singapore's continuing economic growth, it is now proposed to make revisions with effect from 1st March, 1973 as in the Table* (*See Appendix, cols 435-6.) I have distributed. Appendix to Statement on Revision of Salaries of Senior Appointments in the Public Service (Cols. 392-401) (0435-0436) The following remarks may be of value in considering the changes proposed in the Table.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  25. Mr Speaker, Sir, the Treasury has for some time been reviewing the various schemes of Government service and making changes, where desirable, to them. Members may recall, for example, the restructuring of Teachers' salary scales, and the revision of salaries for Junior Police Officers, Technical Officers, Nurses and Midwives and daily-rated employees. In this Statement, however, my purpose is to consider the terms and conditions of service of Division I, especially Administrative and Professional, Officers constituting the top echelons of the civil service. These officers form about 2 per cent only of the Government Service but make the most vital and important contribution as they give administrative and professional leadership and direction to the whole service. Their administrative and professional skills, so valuable to Government, would be equally useful to the private sector, which can, and often do attract them by the offer of rewards well in excess of what the public sector at present pays. It is not expected that we can completely prevent losses to the private sector, even with the revisions we are proposing. But it is essential, if we are not to strain unduly the great loyalty and dedication to the Service which most of our top civil servants have shown, that their salaries and conditions of service should he roughly equated to those in the private sector. The Government should seek to be regarded, taking the monetary with other non-financial rewards which are offered, as equally good or even better employers. While I propose to confine my remarks in this Statement to revisions proposed for the Government sector, I recognise that they will be equally pertinent to some employers in the public sector who also employ administrative and professional officers.

    OFFICIAL REPORT - 1973-02-16 · READ THE OFFICIAL RECORD

  26. Section 16 of the Act is also similarly affected, and a consequential amendment is required. This section provides for the payment of a death gratuity when an officer dies in service, or within one year of his retirement. The amending Bill, when passed, is to be made retroactive from 1st April, 1972, which is the date on which contributions to the Central Provident Fund were made for pensionable Government employees. 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. INDUSTRIAL TRAINING BOARD BILL Order for Second Reading read. 3.00 p.m.

    OFFICIAL REPORT - 1972-11-22 · READ THE OFFICIAL RECORD

  27. Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Honourable Members will recall that a 13th month salary was paid to civil servants in March this year. In fact, for reasons which I have already stated in this House, a second 13th month salary, which will otherwise be paid in March next year, will be paid in December of this year instead. This payment is intended to be an annual non-pensionable allowance, an allowance which would attract a Central Provident Fund contribution at the revised rate of 12 per cent. At the same time, because of the increase in the CPF rate from 10 per cent to 12 per cent, all pensionable employees in the Government service were required to make a two per cent CPF contribution with effect from April 1972 on their monthly emoluments, with a matching contribution from the Government. These contributions to the CPF are intended as additional benefits `over and above the pension benefits. As the Pensions Act stands, any period of service during which a Government employee was a member of the Central Provident Fund cannot be reckoned for benefits under the Pensions Act, unless he first pays back to the Government any CPF contributions made by the Government on his behalf. This is a requirement under section 60 (I) of the Act. In view of the changed circumstances since April 1972, when pensionable employees were required to contribute two per cent of their emoluments to the Central Provident Fund in respect of their pensionable service, it is necessary to amend section 6 of the Pensions Act. This amendment will allow a pensionable employee to retain the two per cent CPF contribution paid by Government on his account when he eventually retires from the service.

    OFFICIAL REPORT - 1972-11-22 · READ THE OFFICIAL RECORD

  28. Sir, I am always ready to consider measures to improve the working and efficiency of the Registry of Companies as I am with any other Department in my Ministry. Perhaps the hon. Member would indicate or write to me indicating the deficiencies that he considers should be remedied.

    OFFICIAL REPORT - 1972-11-22 · READ THE OFFICIAL RECORD

  29. Bill considered in Committee; reported without amendment; read a Third time and passed. COMMITTEE OF SELECTION (Appointment of Members) 5.40 p.m.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  30. In section 24B, power is conferred upon the Authority, if it thinks fit, to issue directives and guidelines to approved financial institutions for their operations and orderly development. It is proposed also to make the following amendments, which appear in clauses 2, 3 and 4: (a) Clause 2 increases the authorised paid-up capital of the Authority from $30 million to $100 million. The authorised paid-up capital of $30 million us now fully paid-up, and it is necessary to provide for future increases in capital, whenever these are considered desirable. (b) Clause 3 would enable the Authority to have greater flexibility in the appointment and promotion of certain categories of persons without having to seek the advice of the Public Service Commission on all appointments. This clause, which has been drafted at the suggestion of the Public Service Commission, will enable the Authority by Gazette notification to specify the posts and appointments regarding which it would have to act on the advice of the Public Service Commission. (c) Clause 4 would enable the functions, duties and powers conferred upon a public officer under any written law to be transferred to the Authority. This amendment contemplates the transfer to the Authority of powers and duties such as those conferred upon the Commissioner of Chit Funds under the Chit Funds Act. It is envisaged that such powers transferred from time to time to the Authority would be those related exclusively to money and finance. Mr Speaker, 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].

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  31. Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Monetary Authority of Singapore Act (Chapter 195 of the Revised Edition) was passed by Parliament on 2nd September, 1970. Parts I, II and V of this Act came into operation on 26th December, 1970, while the remaining parts came into operation on 1st January, 1971. It is now proposed that, in order to facilitate Singapore's development as a financial centre and in the light of experience gained during the period of operation, certain amendments be made to the Monetary Authority of Singapore Act. These amendments to the Act are incorporated in the Amendment Bill now before the House. The principal amendments appear in clauses 5 and 6. Clause 5 is designed to confer upon the Monetary Authority of Singapore certain additional functions such as: (i) purchasing, selling, discounting and re-discounting bills of exchange and promissory notes. (ii) granting advances to certain approved financial institutions against Treasury Bills and securities of the Government, gold coins or bullion, bills of exchange, promissory notes and warehouse warrants. These additional functions will enable the Authority to provide lender of last resort facilities to approved financial institutions, and are necessary for the establishment of an efficient money market, which will in turn expand and improve the financial infrastructure of Singapore and enhance Singapore's development as a financial centre. Clause 6 introduces two new sections 24A and 24B. In section 24A, provision is made for the Authority to grant special loans to banks and approved financial institutions in times of monetary instability against such forms of security as the Authority may consider acceptable.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  32. Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the financial year of the National Statistical Commission of Singapore under the law is the calendar year, whereas the financial year of the Government is the period of 12 months from the 1st day of April to the 31st day of March in each year. However, as the Commission is wholly dependent on Government funds for its operation, having the same financial year would facilitate its financial estimating and control. It is necessary, now, to make provision through clauses 2, 3 and 4 of the National Statistical Commission of Singapore (Amendment) Bill, 1972, to enable the Commission to adopt as its financial year a period of 12 months ending on the 31st day of March in each year and to prepare its accounts accordingly. There is a transitional provision for the Commission's financial year in 1972 to be the period between the 7th day of January 1972 and the 31st day of March 1973, the 7th day of January 1972 being the day of coming into operation of the National Statistical Commission of Singapore. Mr Speaker, 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. MONETARY AUTHORITY OF SINGAPORE (AMENDMENT) BILL Order for Second Reading read. 5.33 p.m.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  33. The Rules in their amended form are set out in the schedule to the Bill. 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. NATIONAL STATISTICAL COMMISSION OF SINGAPORE (AMENDMENT) BILL Order for Second Reading read. 5.30 p.m.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  34. Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." At an International Conference held in Brussels in 1968, participating governments were called upon to adopt an amended set of rules relating to Bills of Lading in place of the Hague Rules. The Hague Rules have formed part of our laws since 1927, being set out in the Schedule to the Carriage of Goods by Sea Act (Chapter 184 of the Revised Edition). These Rules provide for the responsibilities, liabilities, rights, and immunities of carriers vis-a-vis shippers in contracts (usually Bills of Lading) for carriage of goods by sea in relation to the loading, handling, storage, carriage, custody, care and discharge of such goods. The Hague Rules have been amended by a Protocol agreed at Brussels in February, 1968. The Protocol incorporates changes, which international maritime nations considered necessary, since the Hague Rules were first adopted in 1924. The Protocol does not constitute any change in substance in the balance of liabilities and responsibilities of carriers vis-a-vis shippers, and it merely unifies certain rules of law relating to Bills of Lading. Most maritime nations of the world have acceded to this Protocol and have incorporated it in their legislation. Singapore, in keeping with other world maritime nations, has also acceded to the Protocol and is now, therefore, required to pass legislation to incorporate the Protocol. The Bill now before the House seeks to give effect to amendments to the Hague Rules relating to the Carriage of Goods by Sea contained in the Protocol agreed internationally at Brussels in 1968. It repeals the Carriage of Goods by Sea Act which gave effect in Singapore to the Hague Rules in their original form.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  35. Mr Speaker, Sir, I agree very much with that sentiment. But I think the logic of arithmetic applies here. The fact is that unless they are in the $15,000 per annum bracket, they would not qualify for additional reliefs.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  36. Mr Speaker, Sir, on the question whether teachers are to be considered as professionally trained persons, it does not come within the definition which is being proposed. But there is no reason why consideration cannot be given if it is intended that this definition would apply to them. However, I think that within the reliefs granted, it is unlikely that most of the teachers would qualify for more than the $750. On the logic of differentiating the professionally qualified from those not so qualified, again I think the same arithmetic applies in both cases. And the further logic is that, as I have mentioned in my statement, these professionally qualified married women have been trained at very great expense, and it would be an economic waste if we do not make use of this kind of training.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  37. Mr Speaker, Sir, if I may take the first speaker. He has asked about the definition of "specially qualified persons". The definition will be given in the amendment to the Act, which will have to be drafted. It is intended to define it as a married woman who has obtained a degree from an institution providing tertiary education, or who is a member of a professional body oz group regulated by statute, or any other profession as may be approved by the Minister and notified in the Gazette. On the second question, as regards children who at present are not yet given tax reliefs because there is no claim yet for income tax from the parent, the intention is that the present position will remain for those who, as I have said, already have more than three children and are not able to do anything about it. On the other question, which has been posed by the Member for Anson, I am afraid that my present amendment of the Act does not cover the question of relatives.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  38. The option will remain so that all married women who are economically inactive will be encouraged to work and ease the manpower shortage in Singapore. To further induce the more highly qualified and professionally trained married women to work, I have decided also to make the tax reliefs for children more attractive for them. In the case of such highly qualified married women who have three children or less on 1st August, 1973, and who elect to claim the tax reliefs for their children in their assessment, there will be enhanced reliefs as follows: - For the 1 child $750 or 5 per cent of the earned annual income subject to a maximum of $2,000. For the 2nd child $750 or 5 per cent of the earned annual income subject to a maximum of $2,000. For the 3rd child $500 or 3 per cent of the earned annual income subject to a maximum of $2,000. It is hoped the enhanced reliefs will serve to reverse any tendency for highly qualified and professional married women to give up their careers to look after their children. Since these women have undergone expensive training, it would be a waste of such training if they stop working.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  39. On 24th October, 1972, my colleague, the Minister for Health, announced that, among measures being taken to encourage small families, would be one reducing from five to three the number of children for which income tax reliefs will in future be allowed. The existing allowances for children, i.e, the amounts which may be deducted from income to be taxed, are as follows: - For the 1st child, $750 For the 2nd child, $500 For the 3rd child, $500 For the 4th child, $300 For the 5th child, $300 The changes in reliefs which will take effect from the year of assessment 1974 will be as follows: - For the 1st child, $750, as at present. For the 2nd child, $750, increased by $250 from the present $500. For the 3rd child, $500, as at present. There will be no allowances for subsequent children. The deductions are in line with the Government policy of encouraging two but discouraging more than three children in the family. The new reliefs will apply to parents who have three children or less on 1st August, 1973. Any fourth or subsequent child born to such parents after 1st August, 1973, will therefore not get any relief. However, parents who already have more than three children on 1st August, 1973, will continue to be eligible for their present allowances for these children. It is not the intention to cause hardship to those who already have more than three children in the family and cannot do anything about it. There will be an additional variation. The Act provides that, at present, a married woman who has earned income may opt to be assessed separately from her husband. This provision has given a more advantageous tax treatment to married women who are working.

    OFFICIAL REPORT - 1972-11-03 · READ THE OFFICIAL RECORD

  40. For the long-term, there is a feasibility study for a Mass Rapid Transit System. Petrol In addition, to encourage economy in the use of cars the duty on petrol has been slightly increased from $1.30 to $1.35 per gallon, although the rates given in the table are indicated in the metric system as $2.80 to $2.97 per decalitre. Again, the increase in the duty will not affect public transport, as all buses and taxis run on diesel. 2.45 p.m.

    OFFICIAL REPORT - 1972-10-16 · READ THE OFFICIAL RECORD

  41. The Additional Registration Fee has been made uniform at the rate of 25 per cent for imported Commonwealth, non-Commonwealth cars and locally assembled cars. This harmonisation means that British imported cars will have to pay the same rates as other cars. As popular brands of the smaller British cars like the Austin, Morris, Vauxhall, Escort and Cortina are assembled locally, only British luxury cars like the Jaguar, Rover and Rolls Royce will be affected by this abolition of special preferential rates for imported British cars. There will be no change in the import duty and additional registration fee for omnibuses and goods vehicles. So public transport which we want to make popular will not be burdened with extra duties. Road Tax on Private Cars In December 1966, the basis of road tax on motor vehicles was changed from the horse power to the cylinder capacity of the engine. The road tax is being increased progressively on private cars above 1,000 c.c. Owners of medium size cars will have to pay between $22 and $40 more per annum. For example, the Austin A40 and the Hillman Minx will pay $24 and $30 respectively more per annum. Larger and expensive cars will have road tax increases ranging from $200 to $1,200. The largest increases will be for Rolls Royce, Mercedes 600, Chevrolet Impala, Bentley, and similar cars. These revised rates should encourage more people to use public transport, whether buses or taxis. It is in the interest of all in Singapore that most people should use such public transport to travel to their places of work, particularly in the central city area. The Government intends to improve public transport by better, cleaner and more regular buses, and with conductors, bus and taxi drivers being more courteous and considerate.

    OFFICIAL REPORT - 1972-10-16 · READ THE OFFICIAL RECORD

  42. The increase in customs duty of cigarettes will be beneficial either way: if it cuts down smoking, the health of the population will benefit; if it does not, the Government will obtain some compensating revenue which will help to meet the increased burdens of health care caused by tobacco-induced diseases, especially lung cancer and chest diseases. The Government would not be unhappy to see revenue fall. Young people should not start smoking. It is a dirty, dangerous and expensive habit. Import Duty and Additional Registration Fee on Private Cars Various studies of the pattern of long-term development of the Republic have shown that action has to be taken to avoid the Republic being swamped by motor vehicles. Private cars serve a useful purpose in transporting the people. But they have also often become items of conspicuous consumption. Despite the Government's effort in improving existing roads and constructing new ones, the increase in the number of vehicles has aggravated the problems of traffic congestion and air pollution. The number of cars has been increasing at the rate of 8-10 per cent per annum. We are unable to build roads and flyovers at 8-10 per cent to match the rate of increase of cars. We shall have to take further action to discourage greater and often unnecessary ownership of cars, especially amongst the ever more common two- or three-car families. The alternative is chaos and congestion. Traffic will be paralysed, affecting our economy. In order to reduce the buying of cars, we are adopting a two-pronged policy. First, taxes on the purchase of all types o new cars will increase. Secondly, Road Tax on medium and bigger cars will continue to go up. The import duty has therefore been increased fiom 30 per cent to 45 per cent.

    OFFICIAL REPORT - 1972-10-16 · READ THE OFFICIAL RECORD

  43. In addition, the Government anticipates by next June, in accordance with National Wages Council guidelines, to increase wages and salaries of civil servants. There will also be revisions of salaries of civil servants who have stagnated for a very long time on their present salaries. A comparison of the previous and new rates is shown in the Table (See Appendix, cols. 85-8.) which I have asked the Clerk to distribute to Members. [Copies of the Table handed in to the Clerk and distributed to hon. Members.] Additional particulars of the taxes are as follows: - Liquors The customs duties have not been revised for brandy and whisky since 1955 and for liqueurs since 1947. They were last revised for wines in 1964 and for beer and stout in 1968. With the rise of per capita income, the consumption of all liquors has increased. It is hoped that the increased duties may have the desirable social effect of reducing the consumption of liquors. Cigarettes and Tobacco Government's anti-smoking campaign and the revision of customs duties in early 1970 have slightly retarded the growth of smoking among the population. The previous average increase of between 7 per cent and 10 per cent in the annual consumption of cigarettes has been cut down to about 3 per cent during the last two years. These figures show that Government's policy against smoking has had some success. Duties on imported cigarettes and leaf tobacco have been increased further and may reinforce other measures like the ban on cigarette advertisements. Without increase in duty, the rise in spending power of the population might lead to increased consumption, especially by young people taking to the habit for the first time.

    OFFICIAL REPORT - 1972-10-16 · READ THE OFFICIAL RECORD

  44. Mr Speaker, Sir, I should like to inform this House that there will be revised rates of customs duties and taxes on liquor, tobacco and cigarettes and petrol; of road tax on private vehicles, and of import duty and additional registration fees on cars. These changes will come into effect from 3.00 p.m. today, i.e. 16th October, 1972. The revised taxes are on non-essential spending. Taxes on luxuries, in accordance with the tax principles contained in the President's Address and Addendum, must gradually go up. They do not and will not affect essential items, and so will not add to the cost of living of ordinary workers. They have been prompted as much by the need for more revenue as by the need to achieve certain necessary or desirable economic and social objectives. A cut in the use of cars and consumption of petroleum will reduce traffic congestion and pollution. A drop in consumption of liquors, tobacco and cigarettes will promote the nation's health. The lower consumption of these nearly all imported goods will also save foreign exchange. These measures are expected to yield some $38.25 million in additional revenue. This small sum will be useful, however, to meet part of the expected additional Government expenditure in the near future. Part will go into directly related expenditure on roads and flyovers; part will go into the increased disbursements on salaries and the 13th annual payment. The Government proposes to pay a further annual payment in December this year, although only eight months will have elapsed since the last such payment. In future the 13th annual payment will be made in December, when they will be most welcome, because of seasonal requirements.

    OFFICIAL REPORT - 1972-10-16 · READ THE OFFICIAL RECORD

  45. No separate figures are kept for allowances granted in respect of equipment for research, development and quality control. Special allowances for plant and machinery of industrial enterprises (which would therefore include equipment for research, development and quiality control) have been provided since 1965 under the Income Tax Act at thirty-three and one-third per cent, as against normal depreciation allowances of twenty per cent for other businesses. Special allowances increased from $16,000 for two companies in 1966 to $17,574,600 for the year of assessment 1969. Latest figures(for 1970 and 1971) are not yet available. The Ministry of Science and Technology has suggested that further encouragement should be given to quality control and research and development activiites. The Treasury considers the provisions under the Income Tax Act already adequate as they allow for expenditure on such activities to be fully deductible from income, while the special allowances for capital equipment are generous. The Treasury will, however, be sympathetic to any further proposals which may be made. ASSENTS TO BILLS PASSED The following Bills, which were passed by Parliament on 2nd June, 1972, were assented by the President on the dates stated: 29th June, 1972 Medical (Therapy, Education and Research) Bill; 30th June, 1972 Dangerous Fireworks Bill.

    OFFICIAL REPORT - 1972-06-02 · READ THE OFFICIAL RECORD

  46. ' speed limit signs and two 'stop' signs have been installed along Jalan Toa Payoh and at the junction of Toa Payoh East and Lorong 6 respectively. To assist pedestrians, two overhead bridges will also be erected across Jalan Toa Payoh. CROSSING AT KALLANG BASIN AND FUTURE OF THE SHIPYARDS AND INDUSTRIES IN THE AREA (Statement by the Minister for Law and National Development) 3.15 p.m.

    OFFICIAL REPORT - 1972-06-02 · READ THE OFFICIAL RECORD

  47. I am not aware of that particular resolution. But I believe that not all ILO resolutions are observed by all the countries which attend ILO conferences. ACCIDENTS AT JALAN TOA PAYOH EXPRESSWAY (Figures, and steps to minimise) 10. Mr Cheong Yuen Chee asked the Minister for Home Affairs (a) if he will give details of accidents, including the number of fatalities, (i) along the Jalan Toa Payoh Expressway and (ii) at the junction of Toa Payoh East and Lorong 6, in i970 and between 1st January. 1971, and the latest convenient date; and (b) whether he will request the Traffic Police to conduct a survey of these two areas with a view to putting up appropriate traffic signs or signals to minimise accidents. The Parliamentary Secretary to the Minister for Home Affairs (Mr L. P. Rodrigo) (for the Minister for Home Affairs): Mr Speaker, Sir, the answer to part (a) or the question is as follows: Jalan Junction Toa Payoh of Toa Expressway Payoh East and Lorong 6 1970 Total no. of accidents resulting in deaths/ injury 55 23 Total no. of persons who died/sustained injuries 47 21 No. of persons who died 1 - No. of persons who sustained serious injuries, i.e. admitted to hospitals 7 5 No. of persons who sustained minor injuries, i.e. treated as out-patients 39 16 Between 1-1-71 and 28-2-72 Total no. of accidents resulting in deaths/ injury 97 29 Total no. of persons who died/sustained injuries 82 26 No. of persons who died 7 1 No. of persons who sustained serious injuries 27 5 No. of persons who sustained minor injuries 48 20 In answering part (b) of the question, I may say that these two areas have already been surveyed. As a result, eight `30 m.p.h.

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  48. My understanding is that the private sector is not just one body. Perhaps if the Member can show me that all employers in the private sector give equally generous terms, I am sure I shall be able to match what has been given.

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  49. Sir, my information is that that is not correct. But if the Member will please forward to me the regulations relating to leave in the private sector, I will certainly see that we shall be equally generous. An hon. Member: Hear, hear!

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  50. Mr Speaker, Sir, I see no reason to change our present policy with regard to Government officers wishing to attend local trade union courses, which is to require these officers to use for this purpose, their available vacation leave and only when the leave accumulated by the officers is insufficient to cover the duration of the course, to accord them full-pay unrecorded leave for the remainder of the course. In effect, the officers receive full pay throughout the duration of the course. This practice is not ungenerous, when considered in relation to another regulation for a Government officer wishing to apply for permission to attend a course of study leading to a degree, diploma or other professional technical qualifications. If such a course is considered of direct value to his Ministry, approval may be given on the basis that the officer must use up his vacation leave, if any, and thereafter is given no-pay leave only. I would suggest that a unionist should be prepared to make the small sacrifice entailed in consuming his vacation leave in attending, by his own choice, a course organised by his union. This should make him more appreciative of the value of the course. and perhaps more critical in accepting nomination.

    OFFICIAL REPORT - 1972-06-02 · READ THE OFFICIAL RECORD