Hon Sui Sen
Singapore
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE.”
“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put…”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions.”
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“Yes, Sir. The idea is that we shall inspect all these companies from time to time, as we do at times banks and insurance companies, and try and get them to regularise their activities in accordance with the law. I think the standards which we have encountered in inspections of these companies are very much below the standards we expect of the other older finance companies. NTUC FULLTIME RESIDENTIAL COURSES (Leave for Government officers) 9. Mr J. F. Conceicao asked the Minister for Finance if he will consider granting such leave to Government officers to attend fulltime residential courses organised by the National Trades Union Congress on aspects of trade unionism as will not result in a loss of any part of their vacation leave.”
“Of course, these inspections are being carried out. I thought I have made it clear from the very detailed breakdown of the companies that we have made investigations into the nature of the activities of these companies and have categorised them, so that we can tell which companies are likely to be given licences and those which we have decided may be below the minimum standard.”
“Gainway Credit Corporation (Private) Limited 3. Goodness Enterprises (Private) Limited 4. Great Asia Credit (Private) Limited 5. Hong Hong (Private) Limited 6. Kely (Private) Limited 7. Lian Hin Enterprises Private Limited 8. Sinhin Hang (Private) Limited 9. Tat Yong Enterprise (Private) Limited 10. Tenly Corporation Limited 11. Torundo Enterprises Private Limited In the case of the remaining 10 companies, apart from not meeting the capital and deposit requirements of the law, they have conducted their business in a manner that is below the minimum standard required of chit fund companies under the Act and will, therefore, be asked to cease business as soon as possible. These companies are: 1. Ban Seng Credit (Private) Limited 2. Buan Yak Thai (Private) 3. Business Associates and Chit-Fund Corporation Limited 4. Evermore International Corporation (Private) Limited 5. Hock Lee Credit Corporation Limited 6. Li Ming Enterprise (Private) Limited 7. National Chit Fund Limited 8. Steady Company (Private) Limited 9. United Chinese Credit Corporation (Private) Limited 10. Wind-ward Enterprise (Private) Limited”
“In addition to the above companies, the following companies which although they have yet to increase their capital to the minimum amount of S200,000 have each paid $100,000 deposit to the Monetary Authority of Singapore: 1. Bee Loon Tontine Corporation Limited 2. Ching Dtien Credit (Private) Limited 3. Jamonic Corporation (Private) Limited 4. Regal Chit Fund Limited 5. Rolling Enterprises Limited 6. Soon Tack Trading (Private) Limited 7. Tajong Trading Corporation (Private) Limited These companies, provided they meet the requirement under the law to raise their paid-up capital to not less than $200,000 and also that they have satisfied the Commissioner under Section 7 (2) of the Act that they have fulfilled all the requirements of the law, will be granted chit fund licences when their provisional licences expire on 30th June, 1972. Finally, the following companies have a minimum paid-up capital of $200,000: 1. Capital Credit (Private) Limited 2. Great Central Company (Private) Limited 3. Kian Beng Hang Trading Company (Private) Limited 4. Liang Siah Enterprise (Private) Limited 5. Poh Aik Enterprise (Private) Limited 6. Unit (Private) Limited 7. Yew Sing (Private) Limited These companies have to take action to comply with the $100,000 deposit requirement before their applications for Chit Fund licences will be considered when their present provisional licences lapse on 30th June, 1972. There remain 21 companies which do not meet the minimum capital and deposit requirements of the law. While these companies will not be issued with new chit fund licences on 1st July, 1972, it is the intention to permit the following 11 companies sufficient time after that date to conclude their chit fund business: 1. Circular Credit (Private) Limited 2.”
“Commons Enterprises (Private) Limited 11. Fong Tat (Private) Limited 12. Gemini Chit-Fund Corporation Limited 13. Great Union Company (Private) Limited 14. Guan Hong Hung Limited 15.Hwee Lian Trading Company Limited 16.Ideal Benefit Fund Corporation (S) Limited 17.Kiaw Lee Credit (Private) Limited 18. Kim Hong Corporation Limited 19. Leta Limited 20. Lethong Chit-Fund Limited 21. Lian Seng Chit Fund Corporation Limited 22. Libra Chit-Fund Corporation Limited 23. Luck Seng Trading (Private) Limited 24. Maximum Enterprises (Private) Limited 25. Minerva Chit Fund Company Limited 26. New Era Travel & Tour Services (Private) Limited 27. Pan Malayan Underwriters (Private) Limited 28. Poh Hong Company Limited 29. Poh Thye (Private) Limited 30. Public Chit Fund Corporation Limited 31. Safety Chit Fund Limited 32. Sah Lee Credit Corporation (Private) Limited 33. Security Chit Fund Limited 34. Sentosa Corporation (Private) Limited 35. Service Centre Limited 36. Soon Lee Tontine Fund Corporation Limited 37. Southeast Asia Tontine Corporation Limited 38. South Valley Enterprise Limited 39. Stallion Corporation Limited 40. Tai Heng Lee Tontine Fund Corporation Limited 41. Taikent (Private) Limited 42. Tai Tat Trading Company Limiter! 43. The Tenth Mile Chit Fund Corporation Limited 44. Tolley Corporation (Private) Limited 45. Trusted International Corporation Private Limited 46. Unica Corporation Limited 47. Yak Hong Hung Trading Limited 48. Yee Soon Corporation Limited 49. Yue Hong (Private) Limited When the provisional licences issued to these companies expire on 30th June, 1972, they will be issued licences to carry on chit fund business provided they have satisfied the Commissioner under Section 7 (2) of the Act that they have fulfilled all the requirements of the law.”
“Mr Speaker, Sir, the answer is yes. A full list of all licensed chit fund companies will be published in the Government Gazette annually in the month of April. In between, my Ministry will make periodic announcements of newly-licensed chit fund companies. For the present, let me say that when the Chit Funds Act came into force on 14th January, 1972, the Commissioner of Chit Funds received 89 applications from companies carrying on chit fund business on 1st October, 1971, for licences to conduct chit fund business under the new Act. The Commissioner issued provisional licences to 84 of these companies. Of the remaining five applications, three were rejected because they were not carrying on chit fund business on 1st October, 1971, and the other two withdrew their applications. The names of companies which were granted provisional licences were gazetted on 28th April, 1972. On 30th March, 1972, the Commissioner directed all chit fund companies to comply with the minimum capital requirements of the Chit Funds Act. This requires a chit fund company to have a paid-up capital of not less than 5200,000, half of which must be deposited with the Monetary Authority of Singapore. Of the 84 companies issued with provisional licences, 49 companies which have a paid-up capital of not less than S200,000 have deposited half of their paid-up capital with the Monetary Authority of Singapore. The names of these are as follows: 1. Aik Poh Company (Private) Limited 2. Ann Lee Trading Company Limited 3. Asia Trust Company (Private) Limited 4. Billion Chit-Fund Limited 5. Bodmah Chit-Fund Corporation Limited 6. Central Asia Syndicate (Private) Limited 7. Central Tontine Fund Corporation Limited 8. Ch'ng Fatt Enterprises (Private) Limited 9. Chong Lien Trading Company (Private) Limited 10.”
“Resolved, That this Parliament, in accordance with subsection (1) of section 3 of the Treasury Deposit Receipts Act (Chapter 73 of the Revised Edition), resolves that the Treasury be authorised to accept on behalf of the Government, in the manner specified in the said subsection (1), a total sum of money on deposit and not repaid that does not exceed five hundred million dollars at any one time. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." -[Mr Barker]. Adjourned accordingly at Four minutes to Three o'clock p.m, to a date to be fixed”
“Mr Speaker, Sir, I beg to move, That this Parliament, in accordance with subsection (1) of section 3 of the Treasury Deposit Receipts Act (Chapter 73 of the Revised Edition), resolves that the Treasury be authorised to accept on behalf of the Government, in the manner specified in the said subsection (1), a total sum of money on deposit and not repaid that does not exceed five hundred million dollars at any one time. Sir, on the 26th of February, 1960, Parliament resolved, by the Treasury Deposit Receipts Act (Chapter 73 of the Revised Edition), that the Government be authorised to accept deposits up to a sum riot exceeding $75 million in amount. As at January 1972, the total amount of Treasury Deposit Receipts issued was $38.05 million. It is proposed that Treasury Deposit Receipts be issued to Statutory Authorities to replace their Treasury Bills and be made available to the banking sector. There is a sufficiently large quantity of surplus funds which are available for investment, and money placed on deposit is on the increase. It is essential that Statutory Authorities as well as other financial institutions be provided with a secure medium-term investment outlet for such funds. In order to meet the anticipated demand for Treasury Deposit Receipts, it is now desirable to raise the limit from $75 million to $500 million on the total sum of money which the Treasury may accept on deposits. The authority of Parliament is, therefore, requested to enable the Government to accept deposits to an amount not exceeding $500 million. Sir, I beg to move. Question put, and agreed to.”
“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. FACTORIES BILL Order for Second Reading read. 2.34 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Main Estimates of Revenue and Expenditure for the financial year 1st April, 1972, to 31st March, 1973, have been considered and approved by the House as Cmd. Paper No. 3 of 1972. Under section 85 of the Constitution of Mr Lee Kuan Yew (Tanjong Pagar), Prime Minister - on 28th March, 1972. Mr Tang See Chim (Chua Chu Kang), Minister of State for Finance from 29th March to 4th April, 1972. Singapore, heads of expenditure other than statutory expenditure to be met from the Consolidated Fund have to be included in a Bill to be known as the Supply Bill. The purpose of such a Bill is to provide for the issue from the Consolidated Fund of the sums necessary to meet the expenditure and the appropriation of these sums for the purposes specified therein. 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, 1972, to 31st March, 1973. In the Schedule to the Bill are shown the various heads of expenditure and the sums that may be incurred in respect of each head. These have been approved by the House in the Estimates of Expenditure for the financial year 1st April, 1972, to 31st March, 1973, and appear in pages 49 and 50 of Cmd. Paper No. 3 of 1972. Once the Supply Bill is approved, I will be empowered to issue warrants authorising expenditure up to the amount under 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”
“The Neptune Orient Lines Ltd, requires funds for purchasing a number of ships and tankers. The details are: dry cargo carriers, product tankers and super tankers totalling 330,600 deadweight tons, of which 306,600 would represent tanker tonnage. These vessels have to be built outside Singapore because Singapore's shipyards are not yet capable of building some of these vessels. However, wherever possible, Neptune Orient Lines has been building the vessels in Singapore. For instance, four freedom-type multi-purpose dry cargo vessels are being built by Jurong Shipbuilders. These ships will have a total tonnage of 59,200 deadweight tons. The balance of the loans is for small sums to be given to various partly-owned or wholly-owned Government companies, including Keppel Shipyard.”
“Sir, for the financial year 1972-73, a sum of $96.1 million has been earmarked for loans to industrial and commercial enterprises. These loans are for financing part of their operations. The breakdown has been given as $58 million for the Development Bank of Singapore, $11.5 million for Jurong Shipbuilders (Pte.) Ltd., $25 million for the Neptune Orient Lines, and $1.6 million for the other companies, making a total of $96.1 million. Loans to the D.B.S, are intended for the purpose of assisting the Bank in financing part of its lending operations, mainly in manufacturing industries, shipbuilding, real estate development, transport projects, and some projects of the M.S.A, for which loans are also to be provided. The lines of credit, as indicated by their name, are not project loans. It means that the projects are not known in advance. This is the kind of financing which the World Bank and the Asian Development Bank do when they provide loans to the Development Bank of Singapore. A sum is provided and the disbursements are made upon projects being received by the Development Bank of Singapore and carefully assessed as to their credit-worthiness. The actual projects are not known except by categories. The lines of credit, of course, have been given for various purposes, and some of them are for direct loans to manufacturing industries, others for real estate financing and for purchase of aircraft. One line of credit is to finance the purchase of freedom-type vessels built by the Jurong Ship-builders (Private) Ltd, for Neptune Orient Lines. In the case of Jurong Shipbuilders (Private), Ltd, there is also a loan to finance the major part of the cost of imported materials for shipbuilding during the initial period of operation of the company.”
“Sir, this is a matter of policy and I have no doubt that due consideration will be given to the lower-income group, as suggested by the Member. In fact, that is the case now. But as I understood the Member when he was speaking, he was complaining of the discrimination between those who get their cooling done by the power system and the others; i.e, the lower-income group - or even the higher-income group, because even the higher-income group have fans connected to lighting points - who have to pay the higher lighting rate for their electric fans. As I have said, that discrimination will be eliminated when the new single tariff system is introduced.”
“B, considers the price to be both reasonable and competitive.”
“Mr Speaker, Sir, the provision of $25 million to the P.U.B, is for any shortfall in financing which may be experienced by them. The P.U.B, gets most of its money from external sources, the Asian Development Bank or the International Bank for Reconstruction and Development. On matters of detail which the Member has brought up, I am given to understand that, under the Board's existing procedure, when a consumer transfers his account to another person, the new consumer must be prepared to pay the liabilities of the old consumer. It is either that or he pays a new deposit until the old account has been settled. Where the new consumer pays his own deposit, the old consumer's deposit will then be used to settle any of the outstanding charges on the closing of the account and the balance, of course, will then be refunded to whoever is entitled to it or to the administrators of the estate. This is perhaps a matter of detail which could be pursued with the P.U.B, direct. On electricity charges, I have given an explanation to the Member for Telok Blangah in the debate on the Budget Statement. The Board is preparing to introduce a new single meter of domestic tariff for both lighting and power consumption, so that the discrimination between the two kinds of electricity - one for power and another for lighting - would be eliminated shortly. As for the use of bottled gas, this is a matter which every consumer must decide for himself whether bottled gas is cheaper or whether the P.U.B, gas supply is cheaper as well as more convenient. It would appear, however, that there are enough consumers who consider PUB, gas competitive with other methods of heating, and the P.U.B, has been extending its gas supply to ever larger areas. The P.U.”
“Sir, I have already stated in my reply to the debate on the annual Budget Statement that I would pass on the request for lower charges to the Jurong Bird Park (Private) Limited, which is a private company. The Member for Whampoa has suggested the reduction of admission fees by charging lower interest rates on the loans. I have rejected this. I am sure that if the fees are lowered, it may then be a matter of calculating whether or not the reduction in the charges would result in more visitors going to the Jurong Bird Park. And if such calculation promises a greater number of visitors resulting in higher gate receipts. I am sure the Jurong Bird Park (Private) Limited will be only too happy to adopt the suggestion.”
“Mr Speaker, Sir, the interest rates for the various loans to the Jurong Town Corporation have been carefully negotiated with them. I am sure they are capable of looking after their own interests. In so far as the Ministry of Finance is concerned, the question of the use of these loans has been considered. But in the case of the Jurong Bird Park, which is supposed to he run like any other private company, the terms on which the Jurong Bird Park gets its finance will he on commercial terms. Whether or not the Bird Park will be able to pay its way is another matter. But for accounting purposes, it is necessary to make quite sure that if the Bird Park is intended to be run like a limited company, then they should not be given any hidden subsidy. 4.00 p.m.”
“Sir, this expenditure does not come under this particular entertainment expenses vote. But I would say that this is a long-standing regulation, and I have had no complaints against it by any of the Parliamentary Secretaries so far. If they wish to raise this matter with me, I shall be pleased to consider it.”
“In cases where there are Ministers of State or Parliamentary Secretaries, the vote for the Ministry is larger, say, $3,000 instead of $2,000. Therefore, in regard to entertainment expenses incurred by Parliamentary Secretaries in entertaining official foreign guests, such expenses can be charged to the "Entertainment Expenses" vote of the Ministry. In fact, I thought all such expenses are currently being paid out of the vote which is more commonly referred to as the Minister's entertainment expenses vote. Parliamentary Secretaries can and do, in fact, make use of this vote with the concurrence, implicit or otherwise, of the Minister concerned. It is, therefore, incorrect to say that Parliamentary Secretaries are not benefiting from such facility. If any of them are out of pocket, it is because they do not make a claim; it is not because of any discrimination against them. If there is any shortage of funds, they can always apply to the Treasury for reimbursement from the central vote.”
“Sir, this subhead is provided as a general or central vote to cover the entertainment expenses of all Ministries and departments of Government. In other words, it is not specifically for the use of one Ministry or any individual officer. Persons entertained under this vote are usually officers of other governments and international organisations visiting Singapore on official missions, or for hi-lateral talks. The type of entertainment provided is usually in the form of dinners, lunches, and light refreshments. The rate per person is usually worked out at approved standard rates. Every such occasion, including the number of persons to be entertained, has to have the prior approval of Treasury. In recent years, with Singapore's growth as a regional and international centre, there has been a substantial increase in the number of such visits and meetings. For the financial year 197l-72, there has been an increase in such activities, particularly concerning telecommunications, technical education, and science and technology. The estimated expenditure for 1971-72 is expected to exceed the provision of $5,000 by about $2,500. In view of the fact that the provision is to cover expenditure for the whole year of all departments, the sum of $9,000 in this year's Estimates is not considered extravagant. In addition to the central vote for entertainment, there is also a vote for "Entertainment Expenses" in each Ministry, and another vote for "Entertainment Expenses for Permanent Secretary." to be spent at the discretion of the political head and of the administrative head of the Ministry respectively. These provisions are necessary perhaps because Treasury control was considered too restrictive.”
“If this involves a matter of subsidy, it could be looked into. If it is just a matter of detail to provide additional land and facilities, perhaps this can be referred to my colleague, the Minister for National Development. We do meet the difference between current income expenditure. At the same time, I think we expect the Housing and Development Board and the Ministry of National Development to exercise care in reducing costs as far as possible so that we do not have to raise the subsidy on rents. When the cost of the subsidy goes up too high, it may be necessary for us then to request the Ministry of National Development to consider whether rentals should not he raised, but I hope that will not be necessary.”
“The preliminary financial statement of the Housing and Development Board for the year 1971-72 indicates that the subsidy required will be in the region of $10 million. The final figure will be determined when the audited accounts of the Board become available around June or July, 1972. The total number of Housing and Development Board units completed in 1971 was 16,147. Of these, 6,898 units were sold, and the rest were for rental. 3.30p.m.”
“The amount of subsidy given to the Housing and Development Board in any one year is calculated on the deficit between the annual income and expenditure of the Current Account of the Board in the preceding financial year. The deficit itself is largely due to the fact that for the one-room and two-room flats the rentals charged are not sufficient to cover the operating cost, including the provision of amenities and maintenance. The increase in subsidy required is due to two factors; firstly, the increase in the number of tenants living in one-room flats and, secondly, the increasing cost of providing amenities and proper maintenance of the housing estates. As at the end of 1971, the number of Housing and Development Board flats under rental was 89,500, of which one-room and two-room flats amounted to 69,982. In 1972 the Board is planning to build another 9,100 one-room flats. Most of these flats are being used to house families affected by the various development projects under the urban renewal schemes, and industrial and other development schemes. With the increase in the number of tenants living in subsidised Housing and Development Board flats, it is inevitable that the Government subsidy has to be proportionally increased. It may also be mentioned that the rentals for Housing and Development Board flats were fixed in 1960-61, and since then there have naturally been increases in the cost of providing services, amenities, and management of estates. It is not possible to provide separate data on the various components that make the subsidy, as these increases are only reflected in the overall deficit in the operating expenses of the Board.”
“Sir, this information is to a certain extent the responsibility of my colleague, the Minister for Law and National Development, but I will try to answer for him.”
“Sir, all purchases by the Chief Supplies Officer for the requirements of Government departments are made by the open tender system, which ensures that materials supplied are of accepted and specified quality at the most competitive price possible. Wherever possible, samples are examined before the actual purchases are made. It must be recognised that large quantities of supplies are usually consumed and, as public funds should be spent judiciously, they cannot always be of the best quality available. On the other hand, I accept the Member's point that the cheapest are not necessarily the most economical and that mistakes of judgment, which are occasionally made in regard to quality specifications should be corrected by constant review of such specifications. On the particular example of the hospital chair, I am obliged to the Member for the information, and I will ask the Chief Supplies Officer to look into the matter. We cannot guarantee to supply, however, luxury chairs made by Parker Knoll or Eero Saarinen.”
“The Member for Moulmein asked whether the Finance Ministry will allow aided school teachers to apply for holiday bungalows in Changi. The answer is that they are eligible to apply as members of the public. I believe, however, the suggestion is prompted by the desire to give them priority over other members of the public, in the same way as facilities are given them in the Government hospitals. However, I will look into this matter and, assuming that we have an over-supply of these holiday bungalows, we will certainly consider making them available to the aided school teachers.”
“Sir, regarding the irregularities in the accounting system, whether indicated by the Auditor-General in his Report which has just been received, or whether they are detected by the Ministries or Departments themselves or by the Ministry of Finance, they are always very carefully studied and, where possible, remedies are taken. In any big organisation, however, we must expect that occasional flaws in the accounting system will be discovered. The other area of weakness, which has been suggested as being responsible for losses of public funds, is overworking the staff. On this matter I have, in response to questions in the debate on my annual Budget Statement, stated that the remedy to prevent civil servants from being overworked is to try and retain more of them and to recruit them on a more acceptable basis. On the whole, the Government accounting system is on a firm and sound base. Nevertheless, there is considerable scope for improvement, and steps are being taken to increase the use of computers and other mechanical aids, as suggested by the Member, so that the element of human fallibility can be reduced. The other suggestion was that the weaknesses in the accounting system may be due to the unfamiliarity of the financial officers concerned with the proper financial procedures. To remedy this, courses on financial administration are being conducted by the Staff Training Institute for Divisions I and II officers. Subjects on financial system and procedures, annual budgets, financial control, losses of public moneys and stores, contract and stores procedures are included in the courses conducted by the Institute for administrative and executive officers, and they will continue to be included in future courses.”
“C, is to conduct frequent promotion exercises so that outstanding and promising officers will obtain accelerated promotion. Promotion in the professional services is now based on merit rather than for filling posts, so that where there are deserving officers, the P.S.C. will recommend their promotion even though there are insufficient established vacancies. As an added incentive to promising officers, the policy with regard to acting appointments is that these should also be made on merit and not on seniority. Also, pensioners are not normally re-employed unless there are exceptional reasons, such as acute shortage of experienced staff in a particular grade. In every case of re-employment of a pensioner, Government ensures that this is done without depriving the serving officers of their promotion prospects. With near-full employment, it may, in fact, become increasingly necessary to employ more pensioners who are still healthy in mind and body and who can contribute positively to the economy. I find it difficult, however, to accept the Member's suggestion to replace the present annual incremental practice with a three-year increment in all cases. The Member for Anson also made one comment with regard to locally-made products. I heartily agree that these products should be made more popular among our own consumers. I think the schemes which have been instituted by the Singapore Institute of Standards and Industrial Research should make it plain to all local consumers that our local products are just as good as those which are imported. I hope they will give their full support to the consumption of local products, instead of imported products.”
“Finally, I understand the National Trades Union Congress is presently studying the feasibility of setting up a Consumers' Co-operative, and that a pilot project will be launched in the near future. With the close co-operation of consumers, this project should prove successful. The Member for Anson, first of all, raised the point of the 13th monthly salary to be paid to pensioners. I think the intention of the scheme is really .a 13th month salary payment. So it is not a 13th month pension. In the circumstances, it does not fall within the scope of the 13th month salary scheme or the non-pensionable annual allowance. The Member also made some comment on the question of terms and conditions of service for civil servants and, particularly, for those who have just returned from overseas. I believe his comment is prompted by concern over the possible resignation of civil servants to join the private sector. The present practice, of course, is that the Public Service Commission appoints higher level personnel, including professional and technical personnel, to the permanent establishment so as to offer them a long-term career in the civil service. The Member suggested offering contracts. A small number of officers have been appointed on a temporary basis because they so prefer it. In other cases, it is because they are required for specific projects of a temporary nature only. However, such temporary officers with proven ability have been and will be offered permanent appointment if they wish. Those who were appointed initially on a temporary basis because their jobs were only temporary jobs can apply when permanent vacancies arise. The policy of the P.S.”
“00p.m. The retail price of locally refined sugar has remained stable at 39 cents a katty, or $550 a ton ex-factory, with duty, since February last year, despite the fact that world prices of raw sugar have shot up from œ49 or $360 per ton to over œ90 or $661.50 per ton currently -- I think it will be appreciated that there has been concern in other countries over the rise in the price of their sugar. To safeguard the consumers in Singapore, an export control is also placed on locally refined sugar. As far as wheat flour is concerned, the retail price of 25 cents per katty has remained stable since the beginning of 1971. Rice prices have also remained very firm. Since January last year, wholesale prices for the two Thai top-grade rice have declined from $33.50 and $26 per picul to its present price of $32 and $25 per picul respectively. The price of China top-grade rice has also dropped during the same period from $26.25 to the present value of $23.50 per picul. On condensed milk, the price of popular brands has remained at 60 cents for a 14-ounce tin since September last year. Over this period, the prices of raw materials have gone up considerably. Skimmed milk prices have increased on an average of $1,000 to $1,200 a ton, while butter fat prices have risen from $2,400 to $3,300 a ton. The Government has, therefore, done a fair amount of work in trying to stabilise the prices of basic commodities. However, I welcome the establishment last year by the private sector of the Consumers' Association of Singapore, which is very active in looking after the interests of consumers and is working closely with our Trade Division.”
“Fourthly, the substantial under-coverage by the trade balance figures, which is indicated by the large balancing item of $3,045.2 million in our balance of payments balance sheet. Some redistribution of these balancing items could be attempted and would be largely made on the credit side of the Current Account, particularly on merchandise trade, also on Capital Account. This attempt to redistribute the balancing items has not been made since comprehensive data on these flows are not available to enable this to be done on a reliable basis. Nevertheless, I think it would be healthy to see our exports increase substantially. Singapore's total exports in 1971 registered a 13 per cent increase over the 1970 performance. In addition to the introduction of the Economic Expansion Incentives (Relief from Income Tax) Act, a new export promotion unit is being set up in the Trade Division in 1972-73 to undertake studies of export markets and to take full advantage of the preferential treatment offered by various developed countries to assist developing countries to increase exports of locally manufactured goods. On the Member's last comment on the matter of price increases, the Government is doing what it can to stabilise the prices of foodstuffs, especially basic necessities. Manufacturers, importers, and members of the distributive trade have been warned against taking undue advantage of any situation that presents itself to jack up prices. In this respect, I think officers of the Supplies Office are continually checking on prices of foodstuffs in all localities in Singapore. However, Singapore cannot remain totally immune to changes in supply and demand for food in the international scene. Nevertheless, the Government has to step in to help the consumers wherever possible. 3.”
“I can assure the Member that adequate funds will always be made available for departments providing economic services, and that there is no intention on the part of the Treasury to curtail their expenditure. The Member for Sembawang has also asked a question on the widening trade gap of $3,283.7 million in 1971 as compared with $2,778.0 million in 1970. This should give no cause for alarm. The preliminary figures for the 1971 balance of payments show that we have some $847.5 million in our favour compared with $416.5 million for 1970. This represents a 103 per cent increase in our reserves. Some reasons for the trends in the balance of payment figures had been given in the 1970 and 1971 Budget debates. If I may summarise, it should be appreciated that the widening trade gap is fairly common in a developing country, owing to the need to purchase large amounts of capital goods, particularly heavy machinery and transportation equipment. Of the trade gap of $3,283.7 million in 1971, import of machinery and transportation equipment alone accounted for $2,209.1 million. Even if we discount the $740.5 million for export of machinery and transportation equipment from Singapore, the retained imports still amounted to $1,568.0 million. The other point which has to be made is that the trade balance is not the only factor in the balance of payments. It is offset by increased invisible earnings from, firstly, entrepot trade services, including finance, banking, insurance and freight earnings. Secondly, unrecorded purchases by tourists and transportation personnel, such as ship and air crew. Thirdly, ship building, ship repairing, supplies to vessels, oil rigs and aircraft using Singapore as a base.”
“Mr Speaker, Sir, I am obliged to the Member for Sembawang for his comments and sentiments for adequate provision for the Economic Services and, in particular, industrial development with which I must fully agree. He has asked for some details regarding the allocation for Economic Services. May I refer him to Appendix F of the Main Estimates of Revenue and Expenditure for 1972-73, in which a very detailed breakdown is given of expenditure by functional classification. It will be observed that all the departments and Ministries involved in providing economic services have been allocated adequate funds for their needs. As I have explained in the Budget Statement, the apparent reduction in the provision for Economic Services is due to the fact that the Telecommunications Department is to become a statutory authority and, therefore, no provision has been made for its recurrent expenditure which was allocated a sum of $19.4 million in the 1971-72 Estimates. If this is taken into account, it will be observed that the provision for Economic Services has, in fact, been increased from $107.5 million in 1971-72 to $113.14 million in 1972-73. I should also like to remind the Member that the amount we have entered in the Ordinary Estimates does not constitute all the budgetary provision for Economic Services, as provision is also made in the Development Estimates for expenditure on Economic Services. It should also be noted that with the increased allocation for Defence and Social Services, the proportionate share of the expenditure for Economic Services would tend to be marginally smaller, even when the actual quantum of funds provided has been increased.”
“I can assure the Member that any slack in construction activity will certainly be taken up as a matter of priority for public housing. I am grateful for the tribute which has been paid to the Parks and Trees Division. Perhaps it is the Member for Katong who made this comment. Mr Speaker, Sir, I think I have dealt with most of the points raised by Members. I would merely like to say that it has been very pleasant to be Minister for Finance at a time when the economy enables you to be a popular Minister, and I hope that our economy will equally continue to boom in the next few years. Hon. Members: Hear, hear! Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1972 to 31st March, 1973. ADJOURNMENT Resolved, "That Parliament do now adjourn."- [Mr Hon Sui Sen]. Adjourned accordingly at Eighteen minutes to Eight o'clock p.m. ESTIMATES OF EXPENDITURE OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1972, TO 31ST MARCH, 1973 (PAPER CMD. 3 OF 1972)(Cols 685-688)”
“I remember that when Jurong was being established and we were pushing westwards, all of a sudden a few, hundred acres of land were suddenly lopped off for the Defence Ministry from the Master Plan for Jurong Town, and all our plans had to come to a dead halt. If it was not possible in the old days for either the Jurong Town Corporation or the E.D.B, to safeguard their lands, it is very doubtful that the needs of farmers can over-ride those more important considerations. If I may now come to ports. It was said that T had not mentioned anywhere in my Budget Statement the progress of our container port. The Member for Anson is obviously very interested in this. But I am riot responsible for ports other than to make financial provision for it in the Development Estimates. However, I am sure that with a vigorous Chairman at the head of the Port of Singapore Authority, its development is not lagging. At the last World Bank meeting, we certainly registered our interest in financing for this subject with the World Bank directors. One or two Members mentioned the Far East Freight Conference and the treatment given to the Neptune Orient Lines. I do not wish to say anything at this stage about the Far East Freight Conference, and the Neptune Orient lines' claim for a greater share in the cargo trade. I would merely say that for some of the shipping lines in the Conference to make claims on our cargo trade because of historical grounds is really to invite a reply on a political basis. It certainly smacks of colonialism to speak of their traditional right to the cargo trade of Singapore. The Member for Katong suggested that it is desirable to aim at a higher rate of growth for public housing, especially when urban renewal sites are not being let out for further development.”
“With regard to the financing of fisheries, the Development Bank of Singapore has already a division of at least several officers to deal with loans to fishing fleets. Again, the amount of business which they have been able to do is not very large. I would suggest to the Member that the best hope for financing is though the Ministry or the department concerned with the extension work of supplying poultry or pigs to the farmers for rearing. The other method would be by fostering co-operatives, which was also mentioned by him. With regard to fisheries, as pointed out by the Member for Jurong, it is true that we produce very little for our own consumption. As Chairman of the Economic Development Board for a number of years, I tried to foster deep-sea fishing projects, but did not quite succeed. It does seem as if our young boys are so accustomed to urban living that they are unprepared to go for long periods out to sea to catch fish. The various efforts which have been made have not been quite successful. If our local boys and local entrepreneurs have any real interest in deep-sea fishing, I think they would get great encouragement from both the Government and the Development Bank of Singapore. And I am sure that our Marine Police and other departments will try and protect our fishermen wherever they can from being arrested, unless they stray into other territorial waters. The Member for Jalan Kayu mentioned the resettlement of farmers. He seems to consider that the Government should, as far as possible. resettle our farmers in permanent areas which would be kept for that purpose. That is very difficult in the circumstances of the very limited land available. Various Government departments themselves have had in the past to be resettled in favour of other Ministries.”
“I can only say that, although I did not make mention of this subject in my Budget Statement, I am fully conscious that we must do what we can to promote the development of agriculture and fisheries, as we will have to keep all our economic sectors as viable as possible. However, in the context of Singapore, agriculture must be of an intensive nature. We simply do not have enough land for the kind of farming that is very extensive and which is in evidence in other countries. The Member for Jurong also spoke of our limited 33,000 acres of agricultural land and about 23,000 families who are dependent on farming and fishing. Our agricultural farming must be of the kind which produces leafy vegetables. We have never produced rice and Singapore cannot produce any rice. I hope that we would never have to attempt to produce any of the staple commodities. However, we have given every encouragement to the ways in which Singapore can be most productive. This is animal husbandry, concerned with the production of pigs and also with industrial methods of rearing poultry, i.e., if you start with an egg at the top of an industrial or flatted-farm building, it should after going through a spiral come out at the end as a chicken! These projects in animal husbandry, egg and poultry production, have pushed its contribution to the G.D.P, to the very high value, as has been quoted by the Member for Jurong. He has also made a plea for the setting up of an agricultural bank, and was very aggrieved that in spite of having made this suggestion a year ago, the matter has not been taken up. I am afraid I must keep on disappointing him because I do not think there is enough business to justify an agricultural bank in Singapore.”
“I have also noted the remarks of the Member for River Valley on the development of local technology. His remarks strike a very sympathetic chord. It may be because I was involved in the setting up of the Industrial Research Unit which has now become the Singapore Institute for Standards and Industrial Research. If I may now deal with the suggestions made about the various Ministries. As I have said, I can do so only on a very general basis because I am not responsible for them. The Member for Paya Lebar has said that in respect of education, the pendulum has perhaps swung too far in the direction of technical education. I myself do not think so, in fact, we could do with a lot more technical education. However, I accept the point which he no doubt wanted to make, and that is, that in our pursuit of science and technology, we should not forget the need for a knowledge of the humanities and of the social sciences, particularly those which deal with political as well as social leadership. I think among the many tasks which this Government has been faced, the most difficult one - it may be more difficult than promoting a G.N.P, growth rate of 15 per cent per annum is the promotion of a spirit of national consciousness, a sense of identity with the country. If we can inculcate this spirit in our people, then many of the other tasks which we have set ourselves will be made that much easier. I have also listened with great sympathy to the Member for Jurong's very eloquent address in favour of agriculture and fisheries. The Member for Jalan Kayu has given his wholehearted support to this matter.”
“make are usually for the benefit of entrepreneurs so that they will be encouraged to investigate in further detail the various projects that have been studied. I do not think the E.D.B, can guarantee that any feasibility studies they make will ensure that anyone investing in the projects will certainly make money. But if his criticism is against the Government going into these ventures and against the competence of our officers in the Boards of Directors, I should like to say that in some of these ventures the directors have proved that, even if the Member considers them not very capable, they would at least be able to make profits for the owner, that is, the Government. These profits are particularly good in the shipyards that we own. I think the Member for Changi should know whether this is an industry that requires particular skill in management. The Member for Whampoa suggested that we should consider setting up a secondary Stock Exchange to deal with shares of ventures which are rather risky and do not qualify for listing under the present Stock Exchange Regulations. I am rather hesitant about this suggestion. I do not think we want to encourage our shareholders, who are perhaps not so well informed about shares, to place their money in such ventures. The Member for Bukit Merah welcomed the intention of the Ministry of Finance to mechanise the various Government Ministries and departments. I will certainly press on with this mechanisation. He has also mentioned manufacturing industries, and has made a number of suggestions in, for instance, the electronics, ship building and ship repairing industries. He has also made various other remarks on trade and tourism. I have noted all these remarks and will give them consideration.”
“You did? Thank you. There was some mention about hotel rates being high. I am afraid I do not quite follow the argument. I believe that if Members are in-the-know about these things and are prepared to ask for rebates, they will find that our hotel rates can be extremely low by international standards. They are very reasonable. In fact, the occupancy rate has gone down. One Member wondered why the occupancy rate is in reverse proportion to the number of tourists coming in. The answer is very simple. There are more rooms than the required proportion to cater for the number of tourists coming in. There was another suggestion that the prices in some of the coffee houses are rather exorbitant. I am a bit puzzled by this because, although I have also read the same letter in the press concerning this matter, I believe that quite a number of our young boys and girls now make it a custom to go to these coffee houses. I cannot understand how they can afford it if the prices are very high. Nevertheless, this is a matter which the Tourist Promotion Board may well consider. If I may now go on to the Economic Development Board, A very serious criticism against the Economic Development Board was made by the Member for Changi, although he did praise its efforts at economic promotion. He said that they had gone into risky ventures, and he took exception to this. I should like to inform him that the E.D.B, itself does not participate in industrial ventures any longer. Therefore, I cannot understand his remarks. Their efforts are now confined solely to the promotion of industrial ventures, while industries are being financed by the Development Bank of Singapore. The feasibility studies which the E.D.B.”
“There are more taxi drivers who are a credit to Singapore than those who are not. Mr Conceicao: I mentioned that too.”
“In fact, I was going to defend them by mentioning the reports in the Press about taxi drivers who had been very honest.”
“I think he spoke of taxi drivers mulcting their fares.”
“Another series of remarks were related to immigration problems. The relaxation of immigration laws brings with it certain problems. We should realise that if we allow unmarried workers to immigrate into Singapore, there is bound to be some social tension. But these problems will have to be dealt with as they arise. There are also difficulties in deciding who are to be allowed in, e.g., whether the foreign musicians are on aesthetic grounds better or only as good as those we have locally. This is very much a matter of taste. I do not claim to be capable of judging the respective merits of those musicians who make such a lot of noise in our night spots! if the criterion is merely how loud you can play, then it is subject to scientific determination. However, I am reliably told that other values are involved. I would suggest that if our local musicians are really better than foreign ones who are now allowed to come in large numbers, then it should soon be evident to all those who are in the business that in the end the foreign musicians will, because of the high cost of importation, have to lose their places to our local boys. Now, there were some remarks on the various Ministries. I do not claim to be able to answer for all of them, hut perhaps I can start by commenting on the remarks made on matters within my Ministry. A number of Members have touched on tourism in their speeches. I am grateful to them for their suggestions for its improvement. I am sure the Tourist Promotion Board will take note of the exhortations made by the various Members in regard to the Board's effort. There were a few remarks which. I think, were not perhaps quite justified. One was the question of taxi drivers raised by the Member for Katong.”
“The percentage of our women in our present work-force is rather low as compared with some of the industrially advanced countries. The present shortage of labour can be very quickly and easily met if we can increase the number of our women who are prepared to work for a living. This, of course, brings with it the attendant problem of providing cr�ches where children can be taken care of while their mothers go to work. I will now deal with another topic which is apparent in many comments, i.e., the problem of price increases, which the Members for Moulmein, Potong Pasir, Jurong, Anson, Jalan Kayu, and a few others dwelt upon. With regard to the necessity of keeping prices down, I should like to say that this question is always uppermost in our minds. I welcome the NTUC's initiatives which resulted in the setting up of CASE, and their consideration of forming a Consumers' Co-operative. There seems to be a misconception on the part of the Member for Jalan Kayu that nothing has been done to-date about producing a cost of living index, which will be considered more satisfactory than the present index. The position is that we have started a household expenditure survey, and an index will be ready in course of time. This is because the survey requires fairly detailed book-keeping by housewives who are invited to help, and it is hoped to be completed by the time the next Budget Statement is made in this House. In the meantime, we will, do whatever we can to try and stabilise the cost of living. However, it is not always possible to keep prices down. If we take the international price of sugar as an example, our housewives will have to pay perhaps a price very much higher than the controlled price which we have imposed on our local sugar refineries.”
“I hope the Member for Bukit Ho Swee will not disagree with me if I say that the tripartite partnership between Government, management and labour, is really what we want to achieve. It is not a confrontation we want between labour and management, with Government as a referee, in the Wages Council. There were a number of suggestions on industrial safety, productivity and the introduction of quality control, in order that workers can improve on the quality of their products thereby obtaining a share of the greater profits derived from a better sale of these products, I am sure all Members will support the suggestions which have been made. A broad range of remarks was related to the social adjustments which are likely to be necessary in this period of rapid economic growth that is expected for this decade. I welcome the comments made on the need to make wage adjustments so that we have a more egalitarian society. I also welcome the remarks on the improvement in the quality of life as we go up the economic scale. I do not necessarily subscribe to the idea suggested by one Member that the economic progress that we are likely to achieve will bring with it the degenerative and corrosive aspects we see in the West. These are not necessarily the by-products of affluence. If we have regard for the cultural and traditional values of the East, I have no doubt that we can, by special efforts -- and no doubt the guiding efforts too of my colleagues, the Ministers for Home Affairs and Culture prevent a decay setting in our society, such as has been experienced in some countries in the West. There was also the suggestion by the Member for Kampong Kapor that we should try and get more of our women to work in industry and trade. I think this is an excellent suggestion.”
“There was some mention of closing the income gap between the haves and the have-nots. I do not know whether this classification is meaningful in the context of Singapore, where there is great mobility so that the present-day have-nots very soon get into the position where they become the haves. Therefore, what we all want is a more egalitarian society. At the same time, it is necessary to stress that rewards should go to those who make the effort and not to those who merely think that just because all men are equal, they should also have a share of the reward. The principle is that there should be equal rewards for equal effort. A great number of Members welcome the annual allowance, or the 13th payment, which has been introduced by Government, I have no doubt this will be taken as a guide for the private sector and will to some extent determine the attitudes to be taken as to whether or not bonus should be payable. On the Government side, it is felt that this 13th payment is necessary in order that some extra funds will be available for the festive seasons, like Christmas and the New Year. Therefore, this lump sum payment is very welcome. Whatever the decision is as to whether or not bonuses should be paid, I think this 13th payment is likely to be welcomed by all parties. On the Wages Council, I need only say that what we want to achieve is an orderly and progressive increase in workers' remuneration, in the interest of all parties concerned. The need for industrial peace is not less important because of evident economic development; rather, we must expect all to try their hardest to progress further and to achieve the same growth rate for the next 10 years.”
“From what I have gathered, it will cost the small consumer slightly less. But this matter is still under examination because of its effect upon industry. Nevertheless, I believe a decision will be taken fairly soon. I would like to deal with some of the other comments under various subject heads. First of all, I welcome the exhortations which many Members have made regarding the necessity for hard work. I thank the Members for Telok Blangah, Serangoon Gardens, Sembawang, and River Valley among others for bringing this to the attention of workers in all classes and occupations. The comments on workers were made under the various subject heads like the National Wages Council. I think quite a number of Members touched on this. The Member for Moulmein stated that I had not stressed the importance of this Council in my Budget Statement. However, I thought I had mentioned that this was one of the strategic objectives for the next 10-year Development Plan. It is one of the two or three most important objectives, and I have placed great emphasis on the importance of the National Wages Council, and the deliberations which they are going to make over the next few months. But their first recommendations are important because they will set the tone for the whole Council. I have no doubt that they will pay attention to what all the Members have said in this House and will certainly consider the four main points which the Member for Moulmein has brought up. As for the Member for Bukit Ho Swee, I have no doubt that the Wages Council will consider his views in greater detail. The views on bonuses, fringe benefits, and so on, are, really a matter for the Wages Council, and I do not want to anticipate what their recommendations will be by saying anything here today.”
“And there were also views with a mixture of both good and bad. I have heard a number of suggestions for further tax reliefs, but while I am prepared to consider them for further painless budgets. I think I should say right now that it will be quite impossible to exempt all workers from taxation measures; if the definition of "workers" ranges from those who are now already exempted from tax to those who, as in my definition of workers in all classes and occupations, are not only just manual workers but also those who use their brains. There were some suggestions for reliefs for maintenance of parents, and others for expenditure on quality-control equipment. On the latter, there is already a provision in the law whereby accelerated depreciation can be allowed for approved equipment, particularly for research and development and methods related to science and technology. There is also the suggestion from the Member for Telok Blangah regarding relief to poor people who use electric fans, and are thereby charged at a high rate of electricity for lighting as against cheap domestic power. I believe this matter will be resolved by the Public Utilities Board when they adopt a new tariff system in which the supply of both power and lighting will be calibrated by the same meter. Consumers will then have to pay the same rate for both electricity and power. An hon. Member: Will it cost more or less?”
“Mr Speaker, Sir, I am grateful to Members for the many congratulatory and approving remarks of Members on the financial policy which I dealt with in my policy statement. As the Minister in charge of financial policy, it was my privilege and good fortune to be able to present an annual Budget Statement which was entirely painless, and therefore received the approval of so many Members. But I hasten to disclaim any credit solely for this result, it is quite obviously impossible for any one man, except as a member of a team, to have achieved this result, which has been the product of a sustained effort over many years by people from the top leadership of the Government to the Members of Parliament, to the party and, above all, as I said in my annual Budget Statement, to the workers of all classes and occupations. Apart from these remarks, I would like to say how much I appreciate the many suggestions and constructive criticisms I have heard today. They are most valuable and I propose to give very careful consideration when I have the time to study them in Hansard. I say so, because many speeches were made, some for the first time in a new language, and there may be some loss in interpretation. Therefore, if I deal with these remarks in a way which shows some lack of comprehension, I ask to be excused. The remarks, of course, vary very considerably. For example, the Member for Serangoon Gardens remarked that he obviously thought that my Budget Statement suited the residents of Serangoon Gardens very well because of the tax reliefs. On the other hand, my Budget Statement was perhaps not quite as welcomed by the Member for Jurong, whose problems are farmers, and agriculture, and fisheries, and also by other Members concerned with adult education.”