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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“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In the 1980 Budget Statement, it was announced that stamp duties would be abolished or rationalized on certain documents. The stamp duties concessions were effected by the Stamp Duties Act (Substitution of Schedules) Notification, 1980. However, some consequential amendments remain to be made to the provisions of the Act. The purpose of this Bill is to make these amendments. It will also introduce four minor amendments to streamline the Act. Clause 6 of the Bill makes the consequential amendments to sections 2; 12; 15(1); 21 (2), (4) and (5); 29(1), (2) and (4); 35(e); 65(l)(c): 66; 71 (1); 72 and 80 of the Act. I now move on to the other amendments which are intended to streamline and improve existing legislation. Clause 2 amends section 21 (1) of the Act by deleting the phrase "made in Singapore under seal or under hand only". Section 21(l) imposes an ad valorem duty on contracts and agreements executed in Singapore on the sale of any equitable estate or interest in any property. It also imposes an ad valorem duty on some contracts and agreements on the sale of legal estate or interest in the property except lands and properties situated outside Singapore, goods, stocks and ships. This is inconsistent with section 4(l)(c) of the Act which requires any instrument, which is executed outside Singapore and subsequently returned, to be stamped for duty. It has also created a tax loop-hole for avoidance of payment of duty by executing such agreements outside Singapore and subsequently bringing them back.”
“As far as that is concerned, there is now an arrangement which has been concluded - that all British pensions will be paid by the British Government.”
“Sir, the Singapore allowance is payable to pensioners who retired on salary scales which were not revised by the Harvey Salaries Commission in 1969. As for the new Singapore allowance, this was introduced by Government on 1st April, 1974, because of the unusual inflationary situation which existed then. Only officers who retired before 1st April, 1974, and who were drawing a gross pension below $650 per mensem were eligible for the new Singapore allowance. On 1st January, 1980, the rates were revised and payments no longer restricted to pensioners who retired before 1st April, 1974. Now, pensioners who draw a gross pension below $670 a month are eligible for the new Singapore allowance. The revision in rates as well as the payment to a greater number of pensioners explain the increased provision required in FY 81-82.”
“But this is a sort of marginal operation and it may be that there are also improvements in the future which may make this unnecessary. At the moment, I think this is the best scheme we can devise. I agree with the Member for Telok Blangah that it is desirable that we should try and ease the collection of household bills for the public. But I am told that perhaps when we implement this scheme on 1st August 1981, there are features which may require improvement. We may then have to consider what improvements can be made. There is also a school of thought which thinks that the GIRO may ultimately be a more efficient system. In any case, the Treasury is sold on the idea of this MRCS system and will try it out on 1st August 1981. Initially, we will have 20 centres, one at City Hall, the existing Property Tax Division, and the remaining 19 at various bank branches of the DBS, the OUB, UOB, and OCBC. Two pilot centres will commence operations on 1st August, 1981, five on 1st September 1981, and the remaining 13 on 1st October 1981. Cash receipting terminals will be installed at these centres to collect income tax, property tax, road tax, driving licence fees and hospital bills. Let us hope that the operation will be a success.”
“Sir, I cannot speak for the statutory boards and can only state the reasons which they have given for not joining this scheme. I believe the PUB was concerned that the cost would be higher than if it Were to operate on its own. The TAS said that the MRCS would not be able to cope with its future expansion. The SBC, however, did not give any reasons for not wanting to join, preferring to continue with the present practice of appointing the Postal Services Department as its collecting agent for RTV licence fees. The HDB feared that, by joining the MRCS, it would have to collect, in addition to its bills, all other Government bills and the queues at the Area Offices would be longer. It would therefore be unable to provide an efficient level of service. Also, the HDB felt that it would not be able to effectively monitor its collection operations. Lastly, the HDB claim that the MRCS would reduce its flexibility to develop its own online system. In short, as most of the statutory boards have their own established systems for collection of their bills which are adequate for their requirements, they did not see any distinct advantage in joining the MRCS. As for my views and whether these are good and adequate reasons, I think my attitude to this is that if the MRCS is a good and desirable scheme, then the statutory boards will be induced, after its coming into operation, to join with the Government in implementing this scheme. In keeping with the free market enterprise spirit that we have in Singapore, I do not think that we want to force any scheme down the throats of the statutory boards although, of course, if that is necessary it could be done in a most necessary kind of operation.”
“Sir, as the Member for Telok Blangah is a Member of the Public Accounts Committee, he probably knows most of the reasons why in early 1980 the statutory boards withdrew from the multirevenue collection system.”
“Sir, while I appreciate the need for accuracy where this is possible, in some cases it is not, and in other cases it may not be desirable. For example, in the last application for supplementary funds, I think the reason for requiring funds was the rate of progress made at Changi Airport, i.e. work on the terminal building, runways, and so on, had been accelerated and therefore more money was required for this purpose, I am sure the Member will agree that this is very desirable. In other cases, it could not be foreseen. For example, the boom in the construction of oil rigs had resulted in Singapore getting a number of contracts for building such oil rigs, and therefore we should try and provide some finance for this purpose.”
“On the other item of ex-gratia payments of $30 million, the reason for it is very simple. On 4th August, 1980, it was announced that with effect from 1st January, 1981, all contractors would be required to pay CPF contributions for their foreign construction workers. It was recognized that arising from this decision, those contractors working on public sector projects which could not be completed by the end of 1980 would be placed in considerable financial difficulties as they had not taken into account such liabilities for CPF contributions in submitting their tender bids. It would be inequitable for the Government to expect the contractors to bear the full brunt of the CPF contributions. It was, therefore, decided that the Government should pay on behalf of the contractors the full CPF contributions for contracts tendered before the date of announcement of the new policy, For contracts entered into after this date, the tender bids submitted by contractors for Government projects should include the increase in CPF cost. The administrative arrangements for the implementation of this decision have been worked out by the Ministry of National Development in consultation with my Ministry and the Audit Department. For the next financial year it is estimated that the sum of $30 million would be required to meet the cost of CPF contributions in respect of foreign workers employed on Government projects. 4.15 p.m.”
“Sir, first of all, the need for the proposed allocation of $90 million to the Development Contingencies Fund. This fund was established in 1967 with an initial allocation of $10 million. The fund was to cater for urgent and unforeseen development expenditure for which no other provision exists. So it is not possible for me to tell him what are the new projects and for what purpose. They are unforeseen and are not known at this stage. Expenditure charged to the Fund has subsequently to be recovered through Supplementary Estimates in Parliament. The original allocation of $10 million amounted to about 4% of the total development budget for FY 67. This amount was adequate in the past when the development expenditure of the Government was low. Over the years development expenditure has grown rapidly tom about $250 million in FY 67 to more than $5 billion in FY 81, an increase of about 2,000%. The amount available in the Contingencies Fund has, however, remained the same at $10 million. As a result it has not been possible to use the Fund to meet urgent development expenditure in recent years. For instance, in the current financial year, an additional sum of $316 million was required by various Ministries to meet their development expenditure. This could not be met from the Contingencies Fund and some payments had to be deferred until supplementary provisions were sanctioned by Parliament. Increasing the allocation for the fund to $100 million would help avoid such a situation in the future. The sum of $100 million represents a modest 2% of the development budget for FY 81. I hope the Member will consider that 2% of the present development budget is not excessive when we had 4% of the Budget in 1967.”
“There have been resignations of staff because they often took advantage of the very much higher income paid outside the MAS in the banking sector. I believe studies have been made which show that the staff of the MAS were paid approximately half of what the private sector were being paid. But this is surely not surprising because, if Members were to look at the figures which have been produced by the Prime Minister yesterday, that is true for almost all sectors of the economy. Officers in public institutions must expect that they cannot enjoy the same high rates of pay that are evident in the private sector.”
“In a general way, on the introduction of clearing house facilities, if there is any need for a further extension of time because of physical difficulties, I am sure there should be no problem for the MAS to grant an extension of time. On the question of staff in the MAS and the investment policies, obviously, as the Minister in charge of the MAS over the last 10 years, I hold the responsibility for the investment policies and for the state of the organization of the MAS. I myself would consider that there is not too much in the way of overstaffing in the MAS. Obviously, if I had considered otherwise I would not have agreed to the recruitment of additional staff. As Chairman of the MAS at that time, I thought that as a fast-expanding institution, there was need for considerable staff and that there was also a need for expansion in certain areas of development in the MAS. As far as investment policies are concerned, the management of investments is an art rather than a science. There is no way in which anyone can say that this is the one and best way of investment. From time to time we have to consider the situation as it changes from day to day and make the adjustments. Obviously the First Deputy Prime Minister has gone into this very carefully, and he has his own philosophy of management. I believe that the infusion of fresh ideas and innovative techniques and methods of organization would be useful. In fact, I hope that the Monetary Authority of Singapore would improve investment methods and I also hope we will see better investment returns over the years. As to the turnover of staff, I think there was a certain amount of turnover even before the First Deputy Prime Minister came into the MAS.”
“First, I will reply to the Member for Toa Payoh. He suggested that the letter which conveys the decision of the Skills Development Fund should also state that appeals can be made. I am not sure whether it is quite desirable that we should invite appeals even in cases where it is clear enough there would be no success in such appeals. But I think the publicity which has been given by the Member here will surely be sufficient, if the media reports it for public information, that appeals can be made to the Skills Development Fund. Perhaps it is not necessary that we put it in the letter. 4.00 p.m. On liquor licensing, while I accept the fact that newspapers profit from this, there is obviously a need for some publicity to be given. People who apply for liquor licences should be people who can run these liquor houses in an orderly fashion. It is very desirable that any objections which are made should be properly considered and that they should be invited by advertisements beforehand. In regard to the Member for Yio Chu Kang and the MAS, I am not quite sure that I am in a position to make any replies to the Member because the exact nature of my portfolio is not quite clear at the moment. The First Deputy Prime Minister is the Minister in charge of the MAS, and he should really be here to answer the questions because I am not at present involved in the reorganization of the MAS. The Management Services Department has supplied assistance in the form of its officers doing studies on MAS organization but, beyond receiving copies of the reports and so on, I think the responsibility lies mainly with the First Deputy Prime Minister. While I still maintain an obvious interest in the MAS, I would not consider that I should answer these questions.”
“If these guidelines are not quite satisfactory, they can always be changed, but nevertheless it would be useful to have these guidelines for the guidance of the commercial community. When the Fund's secretariat has had its staff increased, which will be very shortly, they will be able to elaborate on the reasons for rejection so that they can encourage and assist companies in structuring better training programmes. The other question raised was on liquor licences and the outdated manner in which applications are invited and the requirement for advertisements and other procedures. I have not looked at this particular procedure over the last one or two years. I feel that if there are specific ways in which applications for liquor licences can be improved, I am sure they will be considered, I do not know whether the Member has any specific suggestions to make on this point. If so, I would be glad to receive them.”
“Sir, first, on the Skills Development Fund. I believe that 866 applications for training grants have been received as at the end of January 1981, and that some of these applications included those from the services sector as well as from the trade sector. Twenty per cent or 169 applications were rejected. The rejected applications, I understand, were those for programmes of simple operative skills or for training which has been completed. I am not aware of applications from the trade and services sector which have been rejected, but I can assure the Member that there is no reason why applica- tions from these sectors should be rejected if they are worthy of approval. I think the Skills Development Fund would be only too pleased to hasten the rate of disbursement of this fund. If some of these decisions were conveyed in a language which was terse or unsatisfactory, I feel that perhaps it would be possible for the Skills Development Fund to be apprised of this viewpoint and that they be asked in future to make replies in more courteous language. The Member also touched on appeals. This can already be made. In fact, 10 appeals were received, of which two were successful. The Fund's secretariat examines every appeal for new material information which could justify reconsideration of the Council. I hope the Member will agree that there is no necessity at this stage to set up a formal Appeals Committee, but if the situation should come to such a stage where an Appeals Committee is desirable, I am sure that will also be considered. The Skills Development Fund must have guidelines for their work. This would also be useful for members of the industrial and trade and services community when they apply to the Skills Development Fund for training grants.”
“Sir, the Fund has already been used for those purposes. For example, in the case of applications for computer applications in firms, many of the people who are sent overseas for training are from the managerial or higher technical classes. INDUSTRIAL RELATIONS DIVISION (Conciliations) 2. Mr Liew Kok Pun asked the Minister for Communications and Minister for Labour (a) how many conciliation cases were referred jointly by management and union to the Industrial Relations Division of the Ministry of Labour in 1980; (b) how many of them had to be referred to the Industrial Arbitration Court; (c) if he will give breakdown statistics, in terms of man-days spent by the Ministry's conciliation officers, of (i) the cases that were resolved; (ii) those that were unresolved: and (iii) those that are yet to be resolved; and (d) if he will give breakdown statistics, in terms of the time taken (in days/months) from the point when the case was referred to the Ministry to its successful conciliation, of the cases that were resolved.”
“Sir, I do not think there is any doubt about this. After all there is a Skills Development Act which has been passed by Parliament specially for this purpose, and I can give him the assurance that the Act will be implemented to the full.”
“Sir, I am afraid I do not have the answer to that question right now. I will furnish the answer to him if he really wishes to have this information. I believe that the Skills Development Fund publishes data of this kind from time to time, but I will be quite happy to send him whatever information he wants on this.”
“Mr Speaker, Sir, the total amount collected for the Skills Development Fund in 1980 was $76.1 million. During the year, 716 applications for grants from the Fund were received. 299 of these were successful. The total amount of grants awarded was $14.3 million. $10.3 million was awarded to the manufacturing sector, $1.4 million to the computer industry, $399,000 to the commercial sector, $491,000 to the transport, storage and communication sector, $93,000 to the finance, insurance and business services sector, and $2.1 million to the public sector and other training institutes. The average time taken for the processing and approval of an application was about three months. The time taken for an application to be processed depends on how complete is the information supplied.”
“and the pensionable salaries of the other Judges, now $8,650 p.m. and $7,930 p.m. will become $9,370 p.m. 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. ANNUAL BUDGET STATEMENT Order read for Resumption of Debate on Question [6th March, 1981], "That Parliament approves the financial policy of the Government for the financial year 1st April, 1981 to 31st March, 1982.". - [Mr Goh Chok Tong]. Question again proposed. 3.46 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." As befitting the status and independence of the Judiciary, the remuneration of the Chief Justice and Judges of the Supreme Court is provided for, separately from the rest of the public service, in the Judges' Remuneration Act (Chapter 7 of the Revised Edition). Substantive salary changes for the Chief Justice and the Judges require to be reflected in the Act. The salaries of the Chief Justice and Judges were revised in March 1973, when Government raised the salaries for Superscale officers in order to keep salaries of the senior grades in the civil service in line with those in the private sector. It was revised again in 1979 on the consolidation of the NWC allowances with their then basic salaries. More recently, Government has made further changes to the salary structures of the Administrative and Professional services. As one result, improvements to the salary structure of the Administrative Service were made by the introduction of three Staff Grades. In the case of the Medical Service, medical and dental specialists are now paid enhanced specialist allowances. A special allowance was also introduced for officers in the Legal Service. The Prime Minister, in his Ministerial Statement just now, has explained that to bring the salaries of the Judiciary in line with changes in the rest of the public service, the Chief Justice's salary has to be increased to the equivalent of Staff Grade 11 and the salaries of Judges of the Supreme Court to the equivalent of Superscale 'A'. This Bill proposes to give legal effect to the changes from 1st April, 1981. As a result, the pensionable salary of the Chief Justice, now $10,815 p.m. will then become $13,000 p.m.”
“The Minister for Home Affairs (Mr Chua Sian Chin): Mr Speaker, Sir, there were 62 murder cases in 1980 and 11 in the first two months of 1981. Of the 62 murders in 1980, 22 have not been solved. The clearance rate is therefore 65%. Of the 11 murders this year, only two have not been solved. The clearance rate is 82%. These clearance rates compare favourably with those of the preceding three years, which are: Year Percentage 1977 72% 1978 66% 1979 57%”
“Mr Speaker, Sir, I thought we welcome suggestions to such an extent that we are prepared to pay for those which are constructive. KALLANG ESTATE MARKET (Expansion) 2. Mr Eugene Yap Giau Cheng asked the Minister for the Environment whether his Ministry has done any recent study on the adequacy of the Kallang Estate Market and whether the Market should be expanded to serve the increasing population in Mountbatten Constituency. The Senior Parliamentary Secretary to the Minister for the Environment (Mr Chor Yeok Eng) (for the Minister for the Environment)( In Mandarin): Mr Speaker, Sir, there are 1,898 vacant market-produce stalls as at 31st January, 1981. The tight labour situation has given rise to two trends. First, less people are willing to become market-produce hawkers. Secondly, more working families are eating out or are patronizing supermarkets for their daily necessities. We foresee that this trend will continue. The Government will convert some vacant market-produce stalls for more productive use and may build smaller markets in future housing estates. The Kallang Estate Market has 155 market-produce stalls and 16 cooked-food stalls. Five market-produce stalls there are still vacant. There are also two other markets near the Mountbatten Constituency, namely, Sims Avenue market with 285 stalls, and Jalan Batu market with 166 stalls. These three markets can adequately serve the population in the Mountbatten Constituency. Because of the existing high rate of vacant market-produce stalls, my Ministry will not expand the Kallang Estate Market. CRIME (Murder cases) 3. Mr Yeo Choo Kok asked the Minister for Home Affairs how many murder cases there were since 1st January, 1980, up to the latest convenient date, and how many of those cases are still not solved.”
“Sir, I am not aware of this particular problem. But if there were such a problem, I would expect that a Civil Service association would bring this up or through their unions, that is, the teachers' unions or whatever unions they have.”
“Mr Speaker, Sir, the general morale of workers in the Civil Service is excellent. I do not know of any need for special plans to further improve management-workers relations, but I always welcome any suggestions which may be made by Members of Parliament or anyone else. I hope the Member for Mountbatten will write to me if he has any particular point to make. I promise to give it my utmost consideration.”
“Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolution. Question put and agreed to. Resolution accordingly agreed to. COMMITTEE OF SELECTION (Appointment of Members) 5.52 p.m.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to a certain resolution. Resolution reported - "That the sum of $316,750,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Development Estimates of Expenditure for the financial year 1st April, 1980 to 31st March, 1981 contained in Paper Cmd 1 of 1981."”
“Sir, in such circumstances I would congratulate the manufacturer for having set up an industry which is very desirable for Singapore. But in almost all cases there is some pollution. No doubt if a reward is intended for a non-pollutive industry, perhaps we can give some other concession at some other time. 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. MOTOR VEHICLES (THIRD-PARTY RISKS AND COMPENSATION) (AMENDMENT) BILL Order for Second Reading read. 3.58 p.m.”
“I agree that perhaps the computer of today is not quite as expensive an equipment as it used to be and that perhaps the emphasis is not justified or will not be justified over the next few years. As to the inclusion of software, that is probably more difficult because a lot of software is developed by the manufacturing industry inhouse so that there is no way in which we can calculate the expenses. He also commented on sub-paragraphs (i), (ii), (iii) and (iv) on page 8 of the Bill. Various dates have been cited. I do not suppose the date "1st January, 1965" has any real significance because if machinery has been put in since that date, a lot of it would have been depreciated. It is quite clear that we must set a date and I suppose "1965", being the year of our independence, might be a suitable date. The last question is on handicapped children. I believe that in giving this concession, instead of charity being the concern of the State and of the institutions, the intention was to promote the care of handicapped persons within the home. That is the reason why the concession of $750 has not been given to the home or institution. I do not say, of course, that they do not deserve support. Maybe that can be considered in some other concessions at some other time.”
“Mr Speaker, Sir, there are a number of questions to be answered. On the definition of "research and development", the Member for Whampoa is quite correct that the intention is to give these incentives to the manufacturing industry, at least in the first instance. Whether we shall extend these incentives later on to the other sectors of the economy is a matter which can be considered in due course. His eloquence in pleading the cause of other research organisations will be taken into consideration. For the time being, since these definitions are really for the purposes of calculating double deduction, perhaps they can stand for the time being. If the economy of Singapore shifts to an emphasis on the service economy, then we can consider whether there should be more promotion of such service activities. On research and development organization, he has said that perhaps the body may also provide services which are related to non-manufacturing industries. Again, as I have tried to explain, the incentives are for double deduction on manufacturing industries, and if services are provided for other than non-manufacturing purposes, expenses can be deducted but not at the double expense rate. If I may now turn to clause 9. He does not understand whether or not all the conditions in paragraphs (a), (b), (c) and (d) are to be taken together and must be satisfied. The operative word is in paragraph (c) where, at the end of that paragraph, there is the word "or". So it is quite clear that not all these conditions are to be satisfied. The Member also asked why do we concentrate on computers. This is probably more in the way of emphasis for publicity purposes, emphasis on those aspects which computers stand for, that is, the modernization of processes.”
“Clause 3 of the Bill makes consequential amendments to section 14(1) (e) of the Income Tax Act as a result of the increase in CPF contributions from 16 1/2% to 20 1/2% payable by employers with effect from 1st July 1979. In line with the new definition of research and development, clause 4 of the Bill amends section 14(D) of the Income Tax Act by replacing the term "scientific research" with "research and development". Section 14(D) allows payments made to an approved research and development organisation to be deducted as revenue expenses. Donations to any institution of a public character under section 37(2) of the Income Tax Act are tax deductible. Clause 12 of the Bill seeks to extend the definition of an insti- tution of a public character to include charities, and cultural organisations which are not operated primarily for profit. Clause 15 of the Bill amends section 68 of the Income Tax Act to remove the obligation of an employer to inform the Comptroller of Income Tax of the cessation of employment of his employees who are Singapore citizens. Sir, I beg to move. Question proposed.”
“To be equitable, the concession will also be extended to a taxpayer who maintains a handicapped child, notwithstanding the child's eligibility for children's relief under the Income Tax Act, but with effect from Year of Assessment 1981. Presently, income derived from offshore reinsurance and inward direct insurance covering offshore risks is taxed at a concessionary rate of 10%. Clause 14 legislates a new section 43(D) of the Income Tax Act to provide for the extension of the 10% concessionary rate to include income derived by an approved member of the Gold Exchange of Singapore from offshore gold transactions as well as transactions with other members of the Gold Exchange of Singapore and Asian Currency Units. The concession is effective from Year of Assessment 1981. Clause 18 of the Bill provides for the reduction in the rates of tax of an individual or a Hindu Joint Family with effect from Year of Assessment 1980. I now move on to other amendments which are intended to streamline and improve existing legislation. Clause 2 defines the terms "research and development" and "research and development organisation" for purposes of the Income Tax Act. The term "research and development" is defined as any systematic or intensive study carried out in the field of science or technology with the object of using the results of such study for the production or improvement of materials, devices, products or processes. A "research and development organisation" is defined as a body or an organisation which provides research and development services for any manufacturing trade or business.”
“Assets which promote automation and mechanisation are given faster rates. The concession will take effect from Year of Assessment 1981. An option is also given to a person who has been granted a certificate under the Economic Expansion Incentives (Relief from Income Tax) Act before 1st January 1981, or after that date where approval for the certificate has been given before 1st January 1981, to retain the reducing balance method as the basis of calculating the annual allowances during the period of tax relief. Clause 9 of the Bill extends the accelerated depreciation allowance of 331/2% over three years to include expenditure on computers and research and development equipment incurred on or after 1st January 1980. Manufacturers are encouraged to improve existing, or to develop, new products and processes. In so doing, they may need to acquire know-how or patent rights from overseas. As the law stands, the manufacturer cannot claim tax deduction on his expenses incurred on acquiring the know-how or patent rights. With effect from 1st April 1980 such expenditure on approved know-how or patent rights may be capitalised and written-off over five years. A balancing adjustment will be made if the manufacturer sells off the approved know-how or patent rights. Clause 10 provides for this concession by legislating a new section 19(B) to the Income Tax Act. Clause 13 of the Bill amends section 39 of the Income Tax Act to provide with effect from Year of Assessment 1980, a relief of $750 a year to a taxpayer who maintains a handicapped brother or sister in the same household.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In the 1980 Budget Statement, a number of tax concessions were announced. This Income Tax (Amendment No. 2) Bill is necessary to give legislative authority to the concessions. The opportunity is also taken to incorporate other amendments to improve and streamline existing legislation. One of the tax concessions made in the Budget Statement was that double tax deduction will be given for expenditure incurred on or after 1st April 1980 by a manufacturer undertaking an approved research and development project. The manufacturer can also claim double tax deduction on his expenses if he assigns the project to a research and development organisation in Singapore. To qualify for the double tax deduction, the project must also be related to the business of the manufacturer. Clause 5 of the Bill makes provision for the concession by incorporating a new section 14(E) to the Income Tax Act. Another concession allows a building used by a research and development organisation to carry out research and development activities to be considered as an "industrial building or structure", thereby qualifying for an initial allowance of 25% and an annual allowance of 3% of the capital expenditure incurred on the construction of the building. Section 18 of the Income Tax Act is amended by clause 7 to provide for the concession which will take effect from Year of Assessment 1981. Clause 8 amends section 19 (2) of the Income Tax Act to provide for the change in the basis of granting annual allowances for plant and machinery from the reducing balance method to the straight line method. A new schedule has also been drawn up to allow for more realistic rates of write-off.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Under the existing provisions in section 9 (1) of the Accountants Act (Cap. 212), the Minister is empowered to appoint a representative each from the University of Singapore and Nanyang University to be members of the Council of the Singapore Society of Accountants. Following the establishment of the National University of Singapore, it is necessary to amend section 9(1) of the Act for the National University of Singapore to be represented on the Council, instead of the University of Singapore and Nanyang University. The Bill also seeks to delete section 50 of the Act which gives the Society the status of an institution of a public character. Since the membership of the Society is confined to a particular group of people and their activities cannot be regarded as charitable and beneficial to the community as a whole, the Society does not satisfy the criteria laid down for the grant of such a status. In 1973, when the Statutes of the Republic of Singapore (Miscellaneous Amendments) (No. 4) Act was passed to delete all references to fiscal exemption in various statutes, the necessary amendment to the Accountants Act was overlooked at that time. Tax exemptions are now given only under the provisions of the principal Acts, like the Income Tax Act or the Stamp Duties Act. 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. INCOME TAX (AMENDMENT NO. 2) BILL Order for Second Reading read. 3.31 p.m.”
“The Parliamentary Secretary to the Minister for Communications and Acting Minister for Culture (Encik Sidek bin Saniff) (for the Minister for Communications and Acting Minister for Culture): Mr Speaker, Sir, the answer to the first part of the question is that the Singapore Bus Service (1978) Ltd will introduce a new feeder service to link Neighbourhood Six to the Ang Mo Kio Interchange in December this year. With this new service, residents of the Neighbourhood can take a feeder bus to the Interchange where there are trunk services linking Ang Mo Kio to the other parts of Singapore. As regards the second part of the question, pending the introduction of the new feeder service, SBS will increase the frequency of Service No. 263 by adding one more bus to the service. Further additions will be made if necessary. MASS RAPID TRANSIT SYSTEM (Decision) 8. Mr Ng Kah Ting asked the Minister for Communications and Acting Minister for Culture whether a firm decision has been made by government with regard to the proposed Mass Rapid Transit System.”
“Sir, my Ministry, in close consultation with other Ministries and their statutory boards, is still in the process of finalising a suitable scheme for implementing, in the public service, the NWC recommendation. From the way in which they pose their questions, the hon. Members appear to have appreciated the difficulties created by the size of the public service and the multiplicity of grades among the officers involved. It will take some time yet before appropriate instructions with the necessary uniformity and flexibility can be issued to Ministries and statutory boards. It is not possible at this stage to indicate the probable percentage of officers who will be paid the additional wage increase. The number of officers so paid will ultimately depend on the assessment of the performance of officers by their supervisors in the various organisations of the public service. There should, however, be no automatic award to any categories of officers. It would indeed offend the principle of greater rewards for more meritorious workers if too high a proportion of officers were awarded this second tier payment. ANG MO KIO NEW TOWN, NEIGHBOURHOOD SIX (Increase in bus services) 7. Dr Koh Lip Lin asked the Minister for Communications and Acting Minister for Culture (a) when the Singapore Bus Service (1978) Ltd will increase the number of bus services to Neighbourhood Six of Ang Mo Kio New Town; and (b) before the introduction of those new services, whether the SBS will increase the frequency of the existing services.”
“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. PRIVATE HOSPITALS AND MEDICAL CLINICS BILL (As reported from Select Committee) Order for Third Reading read. 2.42 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to make provision in accordance with Clause 2 of Article 145 of the Constitution of Singapore for additional expenditure in excess of the provision authorised by the Supply Act, 1980. The additional sum has been scheduled as a Supplementary Estimate which has been considered and approved by the House as Command Paper 6 of 1980. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“PROFESSIONAL ENGINEERS (AMENDMENT) BILL "to amend the Professional Engineers Act (Chapter 225 of the Revised Edition)", presented by the Minister for National Development (Mr Teh Cheang Wan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. JURONG TOWN CORPORATION (AMENDMENT) BILL "to amend the Jurong Town Corporation Act (Chapter 209 of the Revised Edition)". presented by the Acting Minister for Trade and Industry (Mr Hon Sui Sen); read the Firm time; to be read a Second time on the next available sitting of Parliament, and to be printed. SUPPLEMENTARY SUPPLY (NO. 2) BILL Order for Second Reading read.”
“In fact, the Government has already taken a number of measures to promote energy conservation. Last year, the PUB organised a nation-wide "Save Energy Campaign". Amendments to the Building Regulations have been made to incorporate energy conservation requirements for new buildings. Electricity tariffs were also revised to discourage excessive consumption. An inter-Ministry committee under the Ministry of National Development is now studying how to ensure the economic use of power and fuel for equipment, plant and vehicles and to encourage energy conservation in buildings within the public sector. The findings of this Committee will provide guidelines that can also be applied in the private sector. For the future, the Energy Unit in the Ministry will consider further measures to promote economy in energy usage on a national scale. The Japanese have pursued energy conservation in a very serious and systematic manner. We are considering whether some of their ideas can be adapted for our use, for example, appointing energy managers in factories which are large users of energy, raising the minimum level of temperature by air-conditioning in buildings and systematically distributing information on standards and guidelines for reducing energy consumption in residences, offices, vehicles and factories. In essence, we must instil a high level of consciousness of the need to conserve energy in our population. A sense of energy economy, like courtesy, should become our way of life. We must also build up the expertise on how conservation can be achieved in industry, commerce, transportation and households. BILLS INTRODUCED 2.39 p.m.”
“Mr Speaker, Sir, I am glad the Member has raised this question. It gives me the opportunity to inform the House of the Government's energy plans. The second oil crisis last year has re-emphasized the fragile position of the world supply of oil and the importance of having a secure source of energy. The recession in the world economy and the current inflation are the direct effects of the disruption in oil supply and the doubling of oil prices. All forecasts indicate that global demand for oil will exceed supply if the world does not become more efficient in the use of energy and reduce its dependence on oil. If the world fails to moderate its oil consumption, the consequences will be increasing shortages and escalating prices. Any disruption of supply will be disastrous. Singapore is especially vulnerable because all our energy requirements are met entirely from oil, all of which has to be imported. Energy is therefore one of the most important factors affecting our economic growth. In view of this, my Ministry has set up an Energy Unit which will be responsible for formulating policies to reduce our vulnerability to fluctuations in oil supply and to enable us to be more efficient in our use of energy. As the implementation of energy policies falls under more than one Ministry, we have also established an Energy Coordination Committee to ensure that consistent energy policies are vigorously pursued in all sectors of the economy. The Unit and the Committee will study how we can diversify our sources of supply, reduce our dependence on oil, and encourage greater efficiency in energy usage in industry, commerce, transportation and in the homes. My answer to the Member's question is therefore in the affirmative.”
“Mr Speaker, Sir, I beg to move the motion* standing in my name as it appears on the Order Paper. *The motion reads as follows: That this Parliament, pursuant to section 9 of the Financial Procedure Act (Chapter 68), resolves that the total amount of moneys which are approved to be paid out of the Consolidated Fund for the purpose of making advance is to be increased from $71 million to $188 million. The purpose of this resolution is to augment the total amount for the Advance Accounts to cope with present and future requirements. The details and reasons for increases are set out in Paper Misc. 5 of 1980 which was presented to this House on the 16th June, 1980. Additional large amounts of funds are required mainly to cover increasing needs for funds in Building Loans, Conveyance Advances, Miscellaneous Advances, Personal Advances and Salary Advances Accounts, and the Inter-Administration Current Account. Sir, I beg to move. Question put, and agreed to. Resolved, That this Parliament, pursuant to section 9 of the Financial Procedure Act (Chapter 68), resolves that the total amount of moneys which are approved to be paid out of the Consolidated Fund for the purpose of making advances is to be increased from $71 million to $188 million. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr Hon Sui Sen]. Adjourned accordingly at Thirty minutes past Three o'clock p.m. to a date to be fixed.”
“Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolution. Question put, and agreed to. Resolution accordingly agreed to. WOMEN'S CHARTER (AMENDMENT) BILL (As reported from Select Committee) Order for Third Reading read. 3.04 p.m.”
“Sir, I beg to report that the Committee of Supply have come to a certain resolution. Resolution reported - "That the sum of $56,000,000 shall be supplied to the Government under the head of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st April, 1980 to 31st March, 1981 contained in Paper Cmd. 6 of 1980."”
“Sir, the gap has been operative for quite a long time and has caused no dissatisfaction. If the Member wishes to make any suggestion I will be prepared to consider it, and I hope his representations are reflective of the opinions of people who will be affected by them. NEW HOUSING AND DEVELOPMENT BOARD FLATS (Concession for existing tenants) 5. Mr Ang Nam Piau asked the Minister for National Development, in order to encourage "Home Ownership", if the Housing and Development Board will consider giving priority and concessionary rates for the purchase of new flats to Singapore Citizens who have rented the Board's flats for more than 15 years.”
“Mr Speaker, Sir, I shall always be prepared to consider demonstrable improvements to the salary structure of our Civil Service. However, hon. Members will recall that Government reviewed the Administrative Service last year. In consequence, the salary structure of the Administrative Service has been modified, and appears to me to be satisfactory. The Superscale Grades in the Government Service form the top management in the Service. The thinking, therefore, is that there should be a clear distinction between the Timescale grades and the Superscale grades to reflect their respective status and responsibilities. Such a distinction should be maintained and reflected by a significant differential in the salaries for Timescale grades and Superscale grades. It is not desirable to mar this distinction by either extending the salary scale for the Upper Timescale grade or introducing an additional Superscale grade to bridge the gap in salaries between them.”
“Mr Speaker, Sir, the simple answer to the Member's question is No. Contributions to the Skills Development Fund, the Central Provident Fund and the Payroll Tax are made for entirely separate purposes. The Payroll Tax is an important source of Government revenue and it is needed to defray increasing Government expenditure. Payroll Tax will, therefore, continue to be levied. Collectively, the contributions have the effect of raising the cost of labour to employers. This should force employers to economise in their use of labour and to upgrade their operations through mechanisation. Labour is now a scarce resource and it is important that it is used efficiently. Waiving Payroll Tax will hinder us in this objective. ISLAND CLUB ROAD AREA (Development) 3. Mr Ang Nam Piau asked the Minister for National Development if the Government has any plan to develop the Island Club Road area. The Minister for National Development (Mr Teh Cheang Wan): Mr Speaker, Sir, there are no plans at present to develop the Island Club Road area. However, the squatters in this area are being cleared as part of the programme to clean up the Kallang River Catchment. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1980 TO 31ST MARCH, 1981 Order read for consideration in Committee of Supply (5th Allotted Day]. [Mr Speaker in the Chair] Head J - 2.34 p.m.”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates for the financial year 1st April, 1980 to 31st March, 1981, and ask leave to sit again tomorrow.”
“Sir, I ought to say here that, as far as equity is concerned, that is not in the calculation for the financing of the Petrochemical Corporation of Singapore. This is just a shareholder's loan of $58.3 million. Our equity in the Petrochemical Corporation is 47.5% and, of course, this depends on the progress of paying-up. As construction and expenditure proceed, then further sums of money are called for. As far as the Financial Year 1980 is concerned, only $58.3 million is involved. The total sum which Government may have to expend both in terms of equity and loan is very much more. I have not got the exact figure but this has been given from time to time in publicity for the Petro-chemical Corporation. I believe it is in the region of almost $1 billion altogether. On the Ship Financing Scheme, this is really for people who want to build ships in our shipyards. The intention was, as many Governments have done, to help in the construction work in our shipyards and to encourage some of our ship-owners to make use of our local shipyards. Some of them would prefer that we finance second-hand ships bought from elsewhere, but I think it is undesirable for us to do this. As I mentioned, the amounts are a first grant of $200 million and a second grant of $300 million, making a total of $500 million altogether. I have approved these grants so that there will be no unlimited commitment by the Government. When the amount has been utilised, then there will have to be an application to Government for additional funds if we find it profitable to proceed with further grants.”
“Sir, the provision for the Financial Year 1980 is meant for loans to the Development Bank of Singapore for the Government Ship Financing Scheme which is operated through the Development Bank of Singapore. The sum is $240 million. The Ship Financing Scheme was started by Government with a grant of $200 million in the first instance. A second grant of $300 million was approved in November 1979. Out of this second grant, $210 million has been committed and the Financial Year 1980 expenditure is an estimate of disbursements for both the first and second grants. The amount is estimated at $240 million. Then there is a further sum of $290 million which has been earmarked for additional credit lines to the Development Bank of Singapore, making a total loan of $530 million to the Development Bank of Singapore. The Petrochemical Corporation of Singapore Limited has a total loan of $58.3 million, while the other loans amounting to $21.7 million are expected for downstream companies of this complex. A further sum is earmarked for a strategic oil stockpile of $150 million, making a total of $760 million. A contingency provision of $40 million then brings the total to $800 million.”