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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“Sir, this vote was first created in Financial Year 1977. It was intended to finance those development projects which could not be considered in time to be entered in the Budget but which could be undertaken during the financial year from this vote. Also, new projects approved in the course of the financial year could be undertaken and paid for from this vote for that year. This vote is also to cater for increases in the cost of on-going projects. Some of these projects, especially the major ones, take a few years to complete. It could, therefore, be affected by large price increases which are beyond Government's control. In the case of financial year 1979, there were quite a number of large expenditures, for example, $4.5 million was spent on tree-planting programmes, $1.1 million for anti-pollution measures for our petro-chemical complex, $4.9 million for planting and turfing of the Southern Islands; $1.8 million for pedestrian walkways, and there was a large loan of $39.5 million to JTC which was not anticipated. 6.00 p.m.”
“Sir, the Budget document sets out the objective as well as the financial and manpower allocations for each programme for each financial year. The Ministry implementing the programme will have to find effective ways of achieving the objective. At the end of the financial year, performance will be measured and evaluated. This is, in fact, now being done over the last one or two years. The evaluation of performance is an integral part of the programme in performance budgeting system because it will enable decisions to be made for the following year of the size of funds to be allocated on the basis of performance. I do not think we have perfected the system of measurement and we still need to refine performance indicators and norms as well as to lay down procedures for evaluation assessment. But I hope that the Budget, as now presented, will have proved more useful for the purpose of evaluation than the previous budgets.”
“It seems a very reasonable proposition, but I will have to look into the question because as far as I know there can be no lien on CPF deposits and we want to be sure that when the time comes there is a possibility of repayment of the kind that the Member envisaged.”
“No, whatever monies they have in the CPF can be used for the purchase of HUDC flats. As for the Member for Whampoa's suggestion, I think there is no difficulty about rescheduling repayments if there are suggestions for this purpose. The Government loans are there to help people, and at 5% and over 20 years, I think the terms are generous. If there are special difficulties, I think we will be prepared to consider. If there can be a much quicker repayment, I think the Government will be very happy. Dr Augustine Tan: I am afraid the Hon. Minister has misunderstood my point. I was thinking of the case of somebody who is close to retirement age and who has bought one of these Government executive flats. Because he cannot have an extended period of 20 years, he has a higher repayment to make every month; $600 in the case cited by the Member for Kolam Ayer. My proposal is that in order to help this category of people, knowing that when they reach 55 years they will have their funds from the CPF, perhaps the Government could allow them to scale down their repayments right now, say, from $600 to $300 so that they have an easier payment to make right now and when they reach the age of 55 years they can repay from their CPF deposits.”
“Sir, I am not very familiar with HDB and HUDC flats, but I think the Member is wrong in saying that CPF monies cannot be used for HUDC flats. In fact, it is already being done. I know a number of Government servants who are enjoying this privilege.”
“I do not know whether the general civil servants should be given the same kind of privileges as the Defence personnel. Anyway, the point is that there has been no application, as far as the Ministry of Finance is concerned, to the Minister for Labour to enable purchasers of these Government flats to use their CPF monies for repayment of their loans, and I do not propose to make this kind of application. At the same time I would like to point out to the Member that civil servants are given generous housing loans at a favourable interest rate of 5% per annum, with repayments stretched over a maximum period of 20 years, so that there should be no difficulties as far as the civil servants are concerned to purchase these flats. If they are on the eve of retirement, as he has mentioned, then on retirement they can apply to the CPF for a return of their deposit and, therefore, there should be no difficulties again in being able to pay off whatever they owe for these flats. Dr Augustine Tan: Sir, a thought just occurred to me that perhaps the Finance Minister could help out the hardship cases in one way, and that is, to reschedule their loan repayments, taking cognizance of the fact that within a few short years they will have access to the CPF funds upon reaching retirement age of 55 years. If this is taken into consideration, instead of their having to pay, say, $600 per month, this could be reduced to $300 on the understanding that when they reach age 55 years and have access to the CPF funds, they will then pay whatever sums are due to the Finance Ministry. Would he consider this proposal?”
“Sir, I do not want to pass the buck, as has been done to me by the other Ministers. In this particular case, the use of CPF money is, of course, not within the dispensation of the Treasury. This is one of the few things that are not within our dispensation. Appropriately, I think the Minister for Labour is the one who should answer why he does not allow CPF monies to be used for the purchase of Government flats. 5.45 p.m. As far as the Ministry of Finance is concerned, when we designed the scheme we made it quite clear that we would not ask the CPF Board to permit the monies deposited to be used for the purchase of these flats. The principle is that we would like it if we can to make Government servants no more different from the rest of the public, as far as the privileges are concerned. There are certain categories of housing which the Minister for Labour has approved as being eligible for the use of CPF monies. These flats which the Member mentioned are not in this category. At the moment we have discontinued the building of Government flats. Now it is mostly HUDC flats for which Government servants apply. Of course, they are eligible, like other members of the public, to use CPF monies. I think this is the most desirable situation. In the case of Normanton flats, again this is not a matter which concerns me, but I think the Ministry of Defence has always been considered the exception. Their personnel are not really Government servants in the same way that other Government servants come under the jurisdiction of the Ministry of Finance. I think they have always been considered as being in a special category - that Defence is vital to Singapore and therefore we should give them special privileges.”
“So I would not place too much emphasis on training for literacy or in basic skills, as far as the Skills Development Council and the Fund are concerned. But, as I have said, if there is any need, then I will ensure that funds will be provided in other appropriations. Mr Tan Cheng San( In Mandarin): Sir, the Hon. Minister has mentioned the multinational companies in his answer to my question, although I did not bring up that question. However, Sir, I beg leave to withdraw my amendment. Amendment by leave, withdrawn.”
“Sir, I consider any suggestions put forward now will be greatly welcomed by the Skills Development Council who are at the moment feeling their way. There will be surveys done and there will be, of course, an assessment of the information and data already in the possession of the Economic Development Board and the Statistics Department. There is, of course, already some development of skills in the Vocational and Industrial Training Board and in the Government/industry joint venture courses that are being run by the Economic Development Board. And I think we can do a lot more. The intention of the Skills Development Fund is not really for basic training either of the kind that is already being done by the Vocational and Industrial Training Board or, by what used to be known as the Adult Education Board, in literacy and so on. I think there are adequate funds for that purpose, and if they are inadequate I shall undertake to provide them through appropriations other than the Skills Development Fund for these courses to be held. I would prefer that, in fact, the employers come up with schemes because they know best what they really require in the way of skilled workers. In some areas, there is perhaps no need even for literacy, judging from the experience we have had of the workshops in Lavender Street where many of these people have not had the kind of academic or scholastic training that we associate sometimes with that for the Vocational and Industrial Training Board, the Poly- technic, or the Ngee Ann College, and so on. But they nevertheless do very good work, and I think our shipyards have always had people who have been traditionally associated with engines and so on without being excellent in literacy.”
“I agree that this is really what is needed, but I hope that employers will also take the opportunity to reorganise themselves and that there will be a greater coordination and pooling of resources by employer federations and trade associations. I see from reports in the press that, in fact, some action has already been taken by the Singapore Manufacturers' Association to bring them together so as to coordinate their efforts to make applications to the Skills Development Council. I hope this will bring fruit subsequently and that the Member's fears about an over-concentration of the Skills Development Fund towards multinational corporations will not be realised.”
“Sir, I would like to thank the hon. Member for his interest in the Skills Development Fund and its operations. I would like to correct the Member's impression, however, that more emphasis is being placed on multinational corporations than on smaller firms. This is not correct. Of course, the position must depend upon the applications which have been made so far. At the moment, I do not think there has been enough experience for us to generalise on what emphasis has been placed. The Member mentioned three projects which have been approved. As I understand it, the Skills Development Council has, in fact, approved an award of financial assistance to one local company and another award to a joint venture between a local and foreign company. Only two other awards went to multi-national corporations. But, of course, it is still very early yet for us to make any assumptions about the emphasis. I do not think, however, that there is any likelihood of the Skills Development Council being biased in their operations. I hope they will ensure that public funds are prudently disbursed for skill upgrading and retraining. The other impression which might have been given is that the Skills Development Fund has been set up to achieve benefits for employers. This is, of course, not the intention. It is really for training workers. The principle is that the workers are the ultimate benefactors of the Fund. The criterion for financial assistance is to ensure that workers will get maximum benefit from skill training through better training programmes. The Member for Paya Lebar has quite clearly been appreciative of this. I think he is suggesting that more encouragement should be given by the Council.”
“I do not think that would be necessary. I think we can be generous without being given the freedom. In any case, I hope the House would pass any Bill which I introduce here which allows for more generous exemptions. 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 possed. ROAD TRAFFIC (AMENDMENT) BILL Order for Second Reading read. 6.02 p.m.”
“Sir, the Member has already debated the Budget for 1980 and so he would have known that there was no such extension of this concession for 1980. Maybe he would be prepared to wait until next year to see whether we can be more generous. Dr Augustine Tan: Sir, would the Hon. Minister like this House to give him the power to grant exemption without coming back to the House every year?”
“Clause 5 enacts a new section 46A to the Act, empowering the Commissioner of Estate Duties to waive the payment of estate duty and interest on late payment of duty where the duty and interest payable is less than ten and five dollars, respectively. Sir, I beg to move. Question proposed.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Estate Duty (Amendment) Bill is necessary to give legislative authority to the estate duty concession given in the 1979 Budget and subsequently enlarged to extend to more than one house. The Bill also incorporates a minor amendment. In the 1979 Budget statement, it was announced that specific exemption of estate duty would be granted for any one house in a deceased's estate, subject to a maximum value of $200,000, to encourage home ownership and relieve the hardship of individuals most affected by the escalation in property prices. This concession was in addition to the existing exemption limit of $100,000 which would apply to properties other than dwelling-houses. The concession is now being extended to more than one dwelling-house in a deceased's estate, subject to the same ceiling of $200,000. The exemption limit of $200,000 will be granted irrespective of the form of ownership and is limited to the share of the value of the houses. The concession, which is effective from 1st April, 1979, applies only to dwelling-houses and excludes houses which are inter vivos gifts made within five years of the date of death. All other property will continue to be exempt from estate duty to the extent of $100,000. Clause 4 of the Bill incorporates the concession by enacting a now section 1 0C to the Estate Duty Act. Clauses 2, 3, 6, 7 and 8 make consequential amendments to sections 6 and 6A of, and the Ninth and Eleventh Schedules to, the Act as a result of the new section 10A of the Act providing for relief from estate duty of $200,000 in respect of dwelling-houses in the case of a person dying on or after 1st April, 1979.”
“Sir, the intention is to allow for a certain business use of cars in order to earn income for Singapore. I do not think there is any intention to reduce the value-added of activities such as is intended under this clause. 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. ESTATE DUTY (AMENDMENT) BILL Order for Second Reading read.”
“Sir, I think there is no change in policy. The only change is a change induced by inflation. When we first placed $15,000 as the limit for capital allowance for a company-owned car, this was done at a time when inflation had not quite accelerated. I think the equivalent amount now is $25,000 for the type of car which is normally used as a business passenger vehicle. Dr Augustine Tan: Sir, surely if the object of the policy is to limit the number of motor vehicles in Singapore, then the effect of inflation ought to be salutary in that direction.”
“In line with section 15 of the Act, clause 9 ensures that no balancing allowance will be granted on the sale of a motor-car which has not been registered as a business service passenger vehicle. This is consistent with the tax treatment of not granting capital allowance to motor-cars which are not registered as a business service passenger vehicle. Sir, I beg to move. Question proposed.”
“This results in exemption of tax on the income (taken as equivalent to the net annual value of the residential property) which is an unearned income, under the assessment for the wife. The practice goes against the intention to exempt only one family home and is also inconsistent with the general tax treatment for the wife under the Income Tax Act, which subsumes all unearned income of the wife under the husband's name. Clause 2, therefore, seeks to amend section 10 of the Income Tax Act to allow only one owner-occupied residential property to be exempted from tax. The property of the wife who lives with the husband will be deemed for the purpose of income tax, to be owned by the husband. The amendment takes effect from Year of Assessment 1980. Clause 2 also provides for the exemption from tax of any maintenance payment received by a child under a maintenance order or a deed of separation. It is inequitable to tax such payments which are meant for the maintenance and education of the child who is still a minor. Clause 5 of the Bill amends section 14B(3)(c) of the Income Tax Act to preclude any company which is enjoying tax relief under the Economic Expansion Incentives (Relief from Income Tax) Act from being given double deduction of expenses under that Section. Section 15 of the Income Tax Act restricts the deduction of expenses only to motor-cars which are registered as a business service passenger vehicle. Clause 7 of the Bill now also permits the deduction of expenses incurred on motor-cars which are registered outside Singapore and used exclusively outside Singapore to earn income which is subject to Singapore tax.”
“The expenditure must be incurred principally for the promotion of the export of Singapore-made goods. This concession, however, will not apply to companies which are already enjoying export or other incentives under the Economic Expansion Incentives (Relief from Income Tax) Act from being given the concession. Clause 6 of the Bill provides for the double tax deduction by incorporating a new section 14C to the Income Tax Act. This concession takes effect from 1st April, 1979. Clause 6 also provides for deduction on expenditure incurred by new manufacturing companies on scientific research projects. The scientific research project must be carried out in Singapore. This concession is in line with our industrial development policy of promoting local expertise and technology. Income derived from offshore reinsurance business is taxed at a concessionary rate of 10%. Clauses 10 and 12 will extend the 10% concessionary rate to include income derived from general inward direct insurance covering offshore risks. This is to further develop Singapore as a centre for off-shore reinsurance business. The concession will take effect from Year of Assessment 1980. Clause 11 of the Bill provides for the increase in the maximum allowable deductions on contributions to the Central Provident Fund or other approved pension or provident fund schemes from $4,000 to $5,000. I come now to those amendments which are intended to streamline procedures and improve existing legislation. As the law now stands, the income from one property each, owned by a husband and a wife and claimed to be occupied for residential purposes, is not brought to charge, subject to a maximum of $25,000 each.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Income Tax (Amendment) Bill is necessary to give legislative authority to the various tax concessions announced in the 1979 Budget Statement and to improve and streamline existing legislation. In the 1979 Budget Statement, a number of tax concessions were announced. One of the concessions announced was that the whole of the pension income of resident pensioners would be exempted from income tax. Removal of this tax burden is to give resident pensioners due recognition for their faithful services rendered in the past. Clause 3 of the Bill makes provision for this concession by legislating a new section 13(x) to the Income Tax Act. This concession will take effect from the Year of Assessment 1979. The existing capital allowance for a company registered car is restricted to a maximum of $1 5,000. With effect from 1st April, 1979, the ceiling of capital allowance for a company-owned car will be raised to $25,000. Clause 4 of the Bill amends section 14 of the Income Tax Act to provide for this concession. As a consequential amendment, clause 8(a) seeks to amend section 19 of the Act for the same purpose. One of the objectives of our trade development policy is to encourage the export of our manufactured goods. Towards this end, double tax deduction benefits for expenditure incurred on export promotion were given. To further encourage more aggressive marketing overseas, the double tax deduction scheme is now extended to include marketing development expenditure incurred on approved overseas marketing projects, and advertisement expenses or advertisements in approved Singapore publications designed for publicity overseas.”
“- [Mr Hon Sui Sen]. Bill considered in Committee. [Mr Speaker in the Chair] Clause I -”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bretton Woods Agreements Act, the principal Act, makes provision for Singapore's membership of the International Monetary Fund and the International Bank for Reconstruction and Development. Clauses 2 and 3 of the Bill amend the definition of "Fund Agreement" in the principal Act to take account of the two amendments that were made to the Articles of Agreement of the International Monetary Fund, one in 1968 and the other in 1976. Clause 4 of the Bill repeals sections 3 and 4 of the principal Act, under which subscriptions and other payments to the IMF are charged on the Consolidated Fund and any increase in subscription beyond US$37.5 million requires the approval of Parliament. The substituted section 3 provides for the Monetary Authority of Singapore to pay for and to take into its own account Singapore's subscription to the IMF and, with the approval of the Minister for Finance, to accept future increases in Singapore's subscription. It is the international practice for transactions with the IMF to be reflected in the books of central banks and not in the books of governments. Clause 4 also introduces new sections 4 and 4A to empower the MAS to acquire, hold and deal with Special Drawing Rights and to authorise the MAS to participate in the operations of the General Resources Account of the IMF. Singapore became a participant of the Special Drawing Rights Department of the IMF in October 1978. Clauses 5 and 6 of the Bill introduce consequential amendments to the principal 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 Ng Kah Ting asked the Minister for Communications and Acting Minister for Culture whether feasibility studies on all aspects of the proposed Mass Rapid Transit system have been completed and when a decision can be made; what is the total cost of the feasibility studies; how much it will cost to implement the system, and what will be the stages of implementation.”
“Sir, I am not sure where the Member got his information from. In fact, I mentioned that the four awards we have given are for training workers in maintenance and refurbishing of aircraft, communication, electrical and electronic instruments; maintenance of industrial machinery; making of wood and metal patterns. These are all in mechanised industries. The last item, for example, is in the Singapore Foundry and Machinery Company. INCREASE IN ROAD TAX 12. Mr Hwang Soo Jin asked the Minister for Communications and Acting Minister for Culture for his comments on the unhappiness of motorists who feel that the recent increase in road tax is not only unjustifiable but also high and will not contribute to limiting the growth in the number of cars, and that instead of relying on the price mechanism to act as a deterrent, the Government should consider other more positive measures, including the introduction of an import quota system for cars. The Minister for Communications and Acting Minister for Culture (Mr Ong Teng Cheong): Mr Speaker, Sir, I sympathise with motorists affected by the recent increases in Additional Registration Fee and road taxes. Regrettably, however, they are necessary to reduce congestion on the roads. Although various other measures including possibly import quotas could be considered, pricing is perhaps the most appropriate measure in Singapore's free-economy system. Pricing has proven to be effective in 1975 and 1976 when the car population dropped nearly 5% in 1976 and a further 1% in 1977 following tax increases. The recent measures are minimal considering that real incomes have risen over the years. MASS RAPID TRANSIT SYSTEM (Feasibility studies) 13.”
“Sir, as of 31st January, 1980, the Skills Development Fund has collected $11.4 million. From 21st December, 1979, when the Fund was first opened for applications, the Skills Development Council has received 15 formal applications. The processing of seven applications has been completed, of which four were approved and three rejected. Of the remaining eight applications under consideration, five were received only in February this year. The four awards totalling $403,400 will subsidise the cost of training 148 workers in the following skills: (a) Maintenance and refurbishing of aircraft, communication, electrical and electronic instruments; (b) Maintenance of industrial machinery with electrical, electronic and mechanical components; (c) Making of wood and metal patterns for the foundry industry. The criteria for assistance have been formulated as broadly as prudent administration will allow. Applications are judged according to the following: (a) Relevance to skill development; (b) Relevance to economic restructuring, productivity and labour saving; (c) Quality and nature of the training programme; (d) Cost of the programme and commitment by the sponsors: (e) Competence of the sponsors in operating the programme. The Council will consider favourably training schemes for skills development at higher technological levels to meet the needs of the more sophisticated industries. I would like to assure all Members, however, that favourable consideration will also be given to the development of common user skills that are necessary for upgrading companies in all sectors of the economy. The Council will give equal consideration to all bona fide applications.”
“He will have to apply to the Minister for Finance to pay more than the prescribed bonus. But there is no guarantee that approval will be given. SKILLS DEVELOPMENT FUND (Particulars) 11. Mr Ng Kah Ting asked the Minister for Finance, since the setting up of the Skills Development Fund, how much has been collected; how many applications for skills development assistance have been received and how many have been approved, the number of workers involved and for what type of skills, up to the latest convenient date; what are the criteria for assistance; and whether he will encourage skills development of higher technological levels to fulfil the need of the more sophisticated industries.”
“Sir, if that is the preferred method of payment, then the employer, instead of paying wage increases, should have opted for payment of bonuses in which case he would not have to pay wage increases based on NWC guidelines but can negotiate on the bonuses every year.”
“Sir, I have already said that if the employers are sure that they can keep up these profits, then they can pay higher wages to their employees. They can always pay higher than the NWC guidelines. There will surely be no objections to their doing so.”
“Mr Speaker, Sir, employers wishing to reward their employees for higher productivity and efficiency may do so through payments under productivity incentive schemes. Incentive payments, tied to properly defined schemes, will enable employers to reward workers who have specifically contributed to higher efficiency and productivity. Employers wishing to make such payments could seek the advice of the Ministry of Labour in devising appropriate productivity incentive schemes. Alternatively, employers confident of sustained good profits can pay higher annual wage increases.”
“Sir, that is a very pertinent question. The point about golf is that the Government does not spend any money. The golfers pay for the cost of whatever they do on the golf course. I am not a golfer. So I do not know what they do. They spend a lot of money. They buy a lot of golf clubs. They pay for the club house. They pay for the maintenance of greens. I wish the same could be said for people who go to the indoor stadium and to the outdoor stadium; that they pay the total cost of the stadium, the cost of maintenance, and so on. I think there is a point in what the Member for Kim Seng said about spectator sports perhaps leading some to participate. I do not concede that all will participate in sports in consequence. I know that certainly a lot of people who watch football are of the female sex and I do not think many of them are likely to participate in football as a game, at least not for the next few years as I know Singapore. I do not think there is anything I can add to what I have already said. As I say, the debate on this will continue both with my colleagues and I have no doubt outside between sportsmen and non-sportsmen. Question put, and agreed to. Resolved, That Parliament do now adjourn. Adjourned accordingly at Twenty-four minutes past Six o'clock p.m. to a date to be fixed.”
“So the choice is really the alternative: whether we want to spend $60 million or $100 million on an indoor stadium depending upon what exactly we plan for, or do we want to provide greater facilities elsewhere in Singapore. Mr Speaker, Sir, I think the debate on this matter will continue.”
“That means there will be a lot of people who should be out jogging or swimming just looking on at other people playing and who probably would not be our own people playing in the stadium, It would be people from overseas. So the question is really whether the justification for the indoor stadium is one of prestige, that because countries around us have indoor stadiums, therefore we must have one and we must be able to invite people to come to Singapore. That may be a valid reason. In fact, the application for this particular stadium is merely one of many which have been made, and I would say that the debate for a stadium would still be continuing. While the Minister for Finance has turned down this stadium on economic grounds, the Minister for Social Affairs has already indicated that he is in favour of the stadium and the Minister for National Development is in favour of it but is doubtful about the cost. I would suggest that, if we really want to encourage sports, what we have been doing so far has been correct - that we should encourage community centres and the provision of facilities in those centres for basketball, badminton, martial arts, some of which were mentioned by some of the Members here, and that these facilities should be provided in greater numbers in other areas where there are residents. There are people in Singapore who will participate in these sports. The subsidy for a community centre is on the basis which has recently been approved. It is about $800,000. Even with 30 centres, that is merely $24 million, less than half of what we might need for a small 12,000-seat indoor stadium.”
“On that basis, I think economically it would be very necessary for someone to put down on a piece of paper how, in fact, this stadium can be made viable. In addition to the capital cost or servicing of the capital cost, of course, there is recurrent cost. Even on a cash basis, I am in some doubt as to whether expenses can, in fact, be covered. On economic grounds, therefore, the Treasury feels quite justified in turning down this proposal unless better estimates are made. On social or other grounds this is a matter for judgment, for political assessment, as well as for us to consider what are the alternatives. The purpose of having an indoor stadium, as I understand Members, is to be able to seat 15,000 spectators. In fact, that figure has sometimes expanded to 20,000. Let me make it clear that the $60 million I was talking about refers to a 12,000-seat stadium. If we want a 20,000-seat stadium, this cost should be multiplied by a figure in proportion and it would come up to $100 million. Assuming that we have a relatively modest 12,000-seat stadium costing $60 million, we have to consider whether we want to spend this money on an indoor stadium or whether we prefer to use it for the purposes for which we are encouraging sports, which is really participation sports. That means for people who go jogging, swim, play tennis, play squash, rather than for 12,000 people watching games played in eight badminton courts and two basketball courts. I do not think they would be watching eight badminton games all at the same time in the stadium. The point is that the indoor stadium will only encourage spectator sports.”
“Mr Speaker, Sir, it is somewhat unusual for me to rise and defend the position of the Treasury on any particular application for funds. But in this case, because of the interest which is apparent in this House on this particular matter, perhaps I may be given leave to give the Treasury's view on what is, after all, a matter of major public expenditure. I, of course, have listened with great interest to the sentiments expressed in this House and Members appear to argue that this indoor stadium is a viable project. If that is so, then there is no problem at all. There would be any number of private entrepreneurs willing to construct this indoor stadium and to profit from the demand, the clamour or the interests of all the people in sports which would be possible in the stadium. Let me, however, point out, as my colleague has already done, that the stadium will cost $54 million at current prices. That is the first estimate. I have known few first estimates that do not need to be overrun. So let us take $60 million as a fairly conservative estimate for the indoor stadium. Obviously, if recovery of this capital is to be made, even if there is no repayment and only the interest on the capital is to be calculated, we require something in the region of $4.8 million a year just to service the debt. There is then the question, of course, of the need for depreciation because in the case of the indoor stadium we do not have, like the outdoor stadium, open ventilation, so it requires air-conditioning. Air-conditioning, of course, requires expensive equipment and expensive equipment requires maintenance and also public utilities to run it.”
“We would, of course, like these to be as simple as possible but, in the disbursement of public monies, there must be a certain procedure laid down so that there will be no question of our being careless or being led by fraudulent means, for which we have provided, into disbursing monies for purposes which are not intended under the Act. He also asked, under what circumstances will exemptions be granted under clause 4 which empowers the Minister to grant exemption from the levy in certain cases. The answer to this is that perhaps, as in the case of apprentices which has been raised by the Member for Whampoa, it may be that at least in the first few years the levy should not be imposed. There is therefore a necessity for a clause of this kind. He also suggested that the Skills Development Levy should not kill the initiative of employers to provide training schemes. I do not think that is the intention at all. If there are training schemes set up by employers, I have no doubt that they will see that under the provisions of the Act there is a chance that the payment for such schemes will be made under the Skills Development Levy. 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. ROAD TRAFFIC (AMENDMENT) BILL Order for Second Reading read. 4.44 p.m.”
“As to the Member's third question, he asked, what is the scope of action by the Minister for varying the levy? I think it was stated in some of the statements we made in Parliament that if there were circumstances that made it necessary for us to cancel the imposition of the 4% CPF tax or the Skills Development Levy because of external circumstances, for example, a major slump, then this would be done. The power is therefore in the Act for varying the levy. This can be downwards as well as upwards, as the Member has pointed out. If the Advisory Council should advise that the amounts being obtained by the levy are insufficient, then maybe this matter can be considered without having to come back to Parliament. As to the Member's last question, what are the other purposes which may be considered by the Minister under another clause? I think this is an overall catch-clause. I am not sure what the legal position is but I have been told in other cases that, when we set out a whole series of purposes, there is a doctrine in law which says that it must be for similar purposes. I am not quite sure what the situation is but I will be guided by the members who are in that profession. However, the intention is that it will be used for purposes which are related to those which have already been set out in the preceding sub-clauses. I think I have dealt with all the questions of the Member for Whampoa. As to the Member for Jalan Kayu, he says that the procedures should be made simpler.”
“Sir, quite a number of questions have been asked. May I reply, first, to those questions that have been raised by the Member for Whampoa. He spoke of apprentices being included in the definition. I did say so in my speech. The reason for this is that apprentices are very often workers. They learn on the job but I think at least towards the later pan of their apprenticeship they perform work which is almost as much as the ordinary paid workmen. To that extent, it may be appropriate to include them in the Skills Development Levy. If I am advised by the Advisory Council that thi3 may fall within the class of persons whom it would be appropriate to exempt, then this matter can be considered. But at the moment we merely say, "domestic servants, gardeners and chauffeurs." These are not people who are used for the purposes of a profession or occupation. On the Skills Development Fund, the Member asked the question, what is its relationship to EDB programmes and to the VITB training schemes? I have said in my speech that the Fund will not be used for basic training, and by that I assume we shall not be considering the financing of VITB training. As for the EDB programmes, a lot of these are related to what the employers are doing. It may be that some of them will qualify. Again, this is a matter which we will put to the Advisory Council and seek their advice. Some of the EDB programmes are already of the kind that we consider to be appropriate for training skills. For example, Government/industrial training schools run by Philips or Rollei may be of the kind that would be suitable also for other employers of labour, in which case we will consider financing from the Skills Development Fund.”
“In addition to the penalty, clause 13 also empowers the Court to make an order for repayment of the money wrongfully obtained. The accounts of the Skills Development Fund are subject to audit annually by the Auditor-General and have to be presented to Parliament as provided under clause 14. Lastly. clause 15 enables the Minister to make regulations to ensure the proper use of the monies of the Fund, and to prescribe the procedure of the Advisory Council. Sir, I beg to move. Question proposed. 4.27 p.m.”
“The objects of the Skills Development Fund, as spelt out in clause 8, are to promote, develop and upgrade the skills and expertise of employees, retrain retrenched persons and provide financial assistance by way of grants or loans for the purpose of its aims. The Fund may be used to assist the establishment or expansion of the facilities for training which are designed to promote the skills and expertise of the employees. It can also be used to assist employers to acquire equipment to upgrade their operations or to defray or subsidise the cost of training or retraining of their employees. The Fund is, however, not intended to be used for basic training. Clause 9 provides for the setting up of an Advisory Council, consisting of 12 members, including a Chairman. Four members each are drawn from the Government, the employers and the National Trades Union Congress. The term of office of the members and the proceedings of the Advisory Council are set out in the Schedule to the Bill. The Advisory Council is required, under clause 10, to make recommendations to the Minister on the guidelines for processing applications for financial assistance, the terms and conditions of approval for grants and loans. the proportion of the Fund to be used for grants and loans, and the appeals from applicants for financial assistance. Clause 11 authorises the Minister to invest monies belonging to the Fund. Clauses 12 and 13 set out the penalties to be meted out to persons who obtain grants or loans from the Fund by false or misleading statements and documents. On conviction, such persons are liable to a fine not exceeding $5,000 or imprisonment for a term not exceeding one year, or to both.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The NWC recommendations for 1979 include a contribution to be paid by all employers into a Skills Development Fund. This Fund will be used to assist employers to upgrade their technology and operations and also improve the skills and expertise of their employees, which are in keeping with our plan to restructure the economy. The Skills Development Levy Bill provides for the imposition of the skills development levy and the establishment of the Skills Development Fund. I shall now highlight the main features of the Bill. The scope of the levy covers all employees, including apprentices and part-time workers, but excluding domestic servants, gardeners and chauffeurs. (Clause 2). Clause 3 provides for the imposition of the levy with effect from 1st October, 1979, on every employer at the rate of 2% of the gross monthly salary, or $5, whichever is the greater, of every employee earning less than $750 a month. No levy will be due from any employee whose gross salary for that month exceeds $750. Clause 4 also empowers the Minister to vary the rate and scope of the levy and to suspend the collections, if it is considered expedient in the public interest to do so. Clause 6 sets out the establishment of the Skills Development Fund which will be under the control and management of the Minister, Provision is also made to reimburse the Comptroller of Income Tax for expenses incurred in the collection and recovery of the levy from the Fund. Just like any other employer, the Government is also required to contribute to the Skills Development Fund under clause 7.”
“The amendment will empower any authorised senior officer of customs to compound certain offences under the Act and its rules for a sum not exceeding $500. The remaining amendments to sections 2 and 5 are consequential in nature, in line with the recent amendments to the related Acts. 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. SKILLS DEVELOPMENT LEVY BILL Order for Second Reading read. 4.21 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of amending the Cinematograph Film Hire Duty Act is principally to strengthen enforcement. The major amendments are to sections 9, 10 and 13. The amendment to section 9 will enable the rate of film hire to be varied by Ministerial Order, so that changes in the film hire duty rate can be implemented quickly. Section 10, which deals with the calculation of the assessment of gross receipts derived from the renting of films, is amended to limit the amount of deductible house expenses to 25% of the receipts from the admission charges, excluding entertainments duty. Presently, collections on film hire duty are depressed because of large deductions for house expenses. The amendment will ensure that the rental from the renting of films, on which film hire duty is payable, is not less than 65% of the taxable gross receipts after allowing a further 10% for the exhibitor. The amendment to section 13 provides that exhibitors, proprietors of cinemas and renters will have to obtain Ministerial approval before imposing or varying the admission charges. The aim is to see that admission charges have some relation to facilities provided and types of films shown. There are also five other minor amendments to the Act. Section 8 is being amended to empower the Director-General to inspect the contract documents without having to seek the consent of the Minister. It also provides for the penalty to be increased to $2,000. A new section 14A makes it an offence for a person to fraudulently evade film hire duty, and imposes a penalty of imprisonment for a period not exceeding two years or a fine not exceeding $5,000, or to both imprisonment and fine. Another minor amendment is to section 17.”
“Sir, I give the Member an assurance that we will do whatever we can to expedite consideration and implementation of the Report.”
“Sir, the Report and recommendations of the Public Accounts Committee have always been considered seriously by my Ministry. Where necessary, we enter into correspondence either with the Auditor-General or with the Public Accounts Committee if the replies, which we furnish through the Auditor-General, appear to be unsatisfactory to the Committee. There are, of course, other recommendations which are capable of immediate implementation, and in such cases we would certainly take action immediately. Mr Ng Kah Ting: Sir, if that is the case, could the Hon. Minister assure this House that his Ministry will monitor closely the progress reports of the Auditor-General contained in the Report of the Public Accounts Committee?”
“Mr Speaker, Sir, the Report of the Public Accounts Committee is presently being studied by my Ministry. The Committee's observations and recommendations will be implemented, where practicable.”
“Another amendment provides that a place is used as a brothel or a place of assignation if any evidence to that effect is given by a police officer not below the rank of Sergeant. Clause 22 proposes to amend section 138 to prohibit any newspaper report on any proceedings under Part X of the Women's Charter from revealing the name or address of any woman or girl in respect of whom the offence is alleged to have been committed, or the name or address of any witness, or the particulars of any evidence given in such proceedings which may lead to the identification of such woman or girl. Provisions in the new Bill also provide for the Director of Social Welfare to detain any woman or girl in need of protection in a place of safety for such period as the Director may determine, even though the lawful guardian of such girl has refused to give his consent for her detention. Finally, clause 26 contains provisions to allow petitions presented before the date of commencement of the Women's Charter (Amendment) Act 1979 to be heard. It also provides that collusion is no longer a bar to relief in matrimonial proceedings. As the changes recommended are extensive, I therefore propose to refer the Bill to a Select Committee so that it can be examined in greater detail. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Resolved, "That the Women's Charter (Amendment) Bill be committed to a Select Committee consisting of Mr Speaker as Chairman and seven Members to be nominated by the Committee of Selection." - [Dr Ahmad Mattar]. CO-OPERATIVE SOCIETIES BILL (As reported from Select Committee) Order for Third Reading read. 3.53 p.m.”
“The amendment will allow for the termination of a marriage with minimum bitterness. It simplifies divorce proceedings and will be less costly to all parties concerned. While a marriage may be dissolved when it has irretrievably broken down, some constraints have been provided. Petitions for divorce will normally not be entertained within three years of marriage. Section 84 re-enacts the repealed provisions of the Women's Charter requiring the court, in which a petition for divorce or judicial separation has been instituted, to give consideration to the possibility of a reconciliation of the parties, and either to interview the parties separately himself or to nominate a Conciliation Officer to endeavour to effect a reconciliation. The interests of the children of the marriage who may be affected by the divorce may also be taken into account by the Judge in the divorce proceedings. Amendments have also been made to Part X of the Women's Charter which deals with offences against women and girls. Clause 18 of the Bill seeks to make it an offence for any person to detain a woman or girl against her will on any premises with the intention that she may have carnal connection, except by way of marriage, with any male person. The Bill also specifies offences relating to unlawful sexual intercourse. It is an offence for a person in charge of any premises to permit a girl under the age of 16 years or a mental defective to use his premises for sexual intercourse. An offence will also be committed if any person causes or encourages the prostitution of, any unlawful intercourse with, or indecent assault on, a girl under 16 years for whom he is responsible.”
“Parties to a marriage, however, have no difficulty in securing a divorce by collusion and by fabricating evidence. There is thus a cynical disrespect for the law and the institution of marriage. When the petition is contested, the system leads to unnecessary bitterness and has harmful effects on the children. We have studied law reforms in the United Kingdom, Australia, New Zealand and Malaysia, and in all these countries the "fault" concept of divorce has been abandoned in favour of the principle of irretrievable breakdown of marriage. The Bill before the House introduces new grounds for the dissolution of marriage, for divorce, judicial separation and for a decree of nullity of marriage. Two main changes are proposed. The first is that a couple can jointly petition for a divorce by mutual consent, provided they have been married for at least three years. The second change is that, where one party petitions for a divorce, it is necessary to prove that the marriage has broken down irretrievably. The grounds for establishing that a marriage has broken down irretrievably are similar to those provided in the existing Act, e.g., adultery, cruelty, desertion, etc. But the principle to be satisfied is that the petitioner finds it intolerable or cannot reasonably be expected to live with the defendant. Other proposed changes of the grounds for divorce are:- (a) the reduction in the desertion period from three to two years: (b) the reduction of the period of separation from seven to three years if the respondent consents to the divorce; and (c) the reduction in the period of separation from seven to four years if the petition is contested. These proposed changes are necessary to meet the prevailing social mores in Singapore.”
“Presently, the penalty prescribed under section 33 for the offence of late registration is one ,year's imprisonment or a fine of $1,000, or both. This penalty, I feel, is unduly harsh. Under the existing law, any married woman may apply to a District or Magistrate Court for her husband to make a monthly allowance for her children and herself under certain circumstances, e.g. if he has deserted her, is living in adultery with another woman or is a habitual drunkard. An additional clause has been included in the Bill which provides a husband with a defence against such a claim for maintenance by his wife in a District or Magistrate Court if he can prove that she has committed adultery or that she has deserted him. The existing procedures for the enforcement of a maintenance order in favour of a wife and child have been revised. Provisions to expedite the enforcement of maintenance orders made by the High Court and to make such proceedings less expensive for the wife or divorced wife have been introduced in the Bill, Clause 14 allows a District Court to enforce a maintenance order made by the High Court, and clause 15 enables the District Court to make an attachment of earnings order to secure payments which the defendant is required to make under a maintenance order made by the High Court. The defendant is also required to inform the Court which made an attachment of earnings order against him of any changes in his employment and earnings. Clause 17 of the Bill repeals and re-enacts Part IX of the Women's Charter which deals with divorce. Under the existing law, divorce is only granted when the petitioner proves that the erring spouse has committed a matrimonial offence such as adultery, desertion or cruelty.”