Hon Sui Sen
Singapore
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE.”
“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put…”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions.”
The complete record
Every one of 1,492 lines we hold for Hon Sui Sen, in date order, each linked to its source. Free to read, in full, without an account. Page 6 of 30.
“Before the expiration of this period, he must apply for a licence to enable him to continue his business. 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. WOMEN'S CHARTER (AMENDMENT) BILL Order for Second Reading read. The Acting Minister for Social Affairs (Dr Ahmad Mattar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The main amendments in the Bill before the House deal with divorce. Other amendments deal with maintenance provisions for wives and children and with offences relating to women and girls. Opportunity has also been taken to amend certain sections of the Act to remove anomalies which have been observed in applying the law since its inception in 1961 and to improve administrative procedures. Clauses 2 to 12 of the Bill provide for the renaming of the certificate for marriage issued by the Registrar to marriage licence. This will remove the confusion existing now between the certificate of marriage issued to couples after their marriage has been solemnised and the certificate for marriage which is the licence to marry. The licence to be issued by the Minister under section 20 of the Act for a marriage of a minor is to be called a Special Marriage Licence. The language used in the present solemnisation address in section 22(2) of the Act is archaic and not easily understood. It has been simplified in clause 10. Clause 11 empowers the Registrar of Marriages to compound the offence of late registration of marriage for a sum not exceeding $400.”
“Clause 7 provides that the Authority may grant a licence with or without conditions or refuse to grant a licence without giving any reasons. In granting a licence, factors such as the character and financial position of the applicant, the quality of management of the company, if the applicant is a company, and the public interest will be taken into consideration. The Authority is empowered to vary the conditions of a licence or impose new conditions. A person who carries on money-changing or remittance business without a licence or who contravenes the conditions of a licence granted to him commits an offence and is liable on conviction to a maximum fine of $5,000 or to imprisonment for a maximum term of six months or to both such fine and imprisonment. The Authority may appoint officers to inspect premises carrying on or suspected of carrying on money-changing or remittance business. Any person who, without reasonable excuse, fails to admit such officers to inspect the premises or fails to provide books or documents required by the officers in the course of investigation, commits an offence and shall be liable on conviction to a maximum fine of $2,000. Clause 10 provides that a licensee who fails to comply with the conditions of his licence may have his licence revoked. Such a person may, within 21 days of the receipt of the notice of revocation or within such extended period of time as the Minister may allow, appeal in writing to the Minister whose decision shall be final. Transitional provisions have been made in the Bill to enable a person who has been carrying on money-changing or remittance business, before the coming into force of this legislation, to continue doing so without a licence for a period of three months.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Prior to the liberalisation of exchange controls on 1st June, 197 8, money-changers and remittance shops were licensed annually by the Monetary Authority of Singapore under the Exchange Control Act. Licences and permits were last issued in April 1978. Following liberalisation of exchange controls, the Authority no longer has the legal power to license such institutions. As a result, money-changing and remittance businesses in Singapore are now not regulated by any law. It is necessary that the Authority should continue to license money-changers and remittance shops in order that undesirable persons are precluded from the conduct of such businesses. There were 139 licensed money-changers and 55 licensed remittance shops operating in Singapore last year. A proliferation of money-changers, especially in favoured locations, may cause them to become a nuisance to tourists. In the case of remittance shops, regulation is necessary as they are handling funds of the public. The Money-changing and Remittance Businesses Bill now before the House provides for the licensing of persons who carry on money-changing or remittance business. The terms "money-changing business" and "remittance business" are defined in clause 2 of the Bill. Clause 3 specifically exempts retail shops and others who customarily accept foreign currency notes in payment for goods and services from the requirement of a money-changer's licence. Under clause 19, banks are exempted from the provisions of the Act. Apart from these categories, the Authority is empowered to exempt any person or class of persons from the provisions of the Act.”
“Measures We have asked the oil companies to try and supply additional diesel to the pumps. In the short term, they can be expected to meet our request. In the longer term, we cannot expect to obtain additional supplies easily and cheaply because of the global oil shortage. We must, therefore, adjust our consumption to the available supply in future and change our life-style accordingly. The customs duty of 6 cents per litre imposed on diesel sold at the pumps in the earlier part of this week will help to encourage economy of consumption as well as eliminate the price differential between industrial diesel and diesel sold at the pumps. As oil companies are restricting supply of diesel to the Singapore market, we have to control purchases by non-Singapore registered vehicles to ensure that they do not buy abnormal volumes of diesel from Singapore. They will be allowed to buy limited quantities from a few licensed petrol kiosks. Since there is a global oil shortage, we cannot expect supply to be always adequate to meet our requirements. However, the above measures should help to ease shortages if we adjust our life-style accordingly, and curtail our consumption. FLYOVER IN FRONT OF MACRITCHIE RESERVOIR 14. Mr Ang Nam Piau asked the Minister for National Development, in view of the heavy traffic congestion daily at the junction in front of MacRitchie Reservoir, if he will consider constructing a flyover at that place so as to alleviate the traffic congestion.”
“Mr Speaker, Sir, the shortage in the supply of diesel in Singapore is the direct result of the global oil shortage. The Ministry of Trade and Industry has issued a statement to the public in the earlier part of this week explaining the causes of the shortage and the measures that have to be taken. I will now elaborate on this Statement. Diesel sold at the pumps for the first half of this year has gone up by 27% over the same period last year. This is much faster than the average rate of increase of 9% for the previous three years. The surge in demand is due to a number of factors. Firstly, the economy is growing at a faster pace than last year. Secondly, more Singapore registered diesel vehicles are on the road. As at January 1979, the number of such vehicles totalled 33,200, an increase of 15% as compared with the increase of 9% a year before. Thirdly, more lorries are also coming into Singapore from across the Causeway because of increased trade with West Malaysia. This trade has grown by 27% this year as compared with 6% last year. The increased number of lorries coming in is compounded by their abnormal purchases of diesel from Singapore because of a diesel shortage in Malaysia. Finally, prices at the pumps are lower than the prices paid by industrial consumers. Some industrial users are suspected to have been buying from the pumps. On the supply side, the world's supply of crude oil has fallen short of demand by about 5% since the Iranian crisis at the beginning of the year. Oil companies have in recent months been unable to supply sufficient quantities of diesel to the pumps to satisfy the surge in demand. Hoarding Hoarding occurs whenever there is a shortage of any goods. I therefore believe that there is some truth in the allegation of hoarding.”
“Mr Hwang Soo Jin asked the Minister for Trade and Industry what are the causes for the apparent shortage in the supply of diesel oil recently; whether there is any truth in the allegation of hoarding; and what measures are being taken to ensure continuity of supply.”
“Mr Speaker, Sir, excessive and unjustifiable price increases in goods and services, i.e., profiteering, will occur when there is inadequate competition, short supply or inadequate market information. In general, we can ensure that the wage-earners' income is not eroded by profiteering by giving attention to several conditions. First, there should be genuine competition, without monopoly or cartel practices, especially in the production and sale of essential commodities like rice, sugar and wheat flour. Secondly, there should be adequate supply and, if possible, alternative sources of supply. Thirdly, the public should have sufficient knowledge of price and quality. Last but not least, the consumers must spend wisely and not excessively. These are the basic principles guiding the Committee on Profiteering and Inflation in the Ministry of Trade and Industry. The work of the Committee is being stepped up. It is now monitoring very closely the prices and supply of essential commodities as well as some semi-essential commodities. If the situation warrants it, the Committee will establish an information system in the press and over radio and television to inform the public daily of the prices of common household consumption items such as rice, flour, bread, cooking oil, vegetables, fish and meat. The Committee will also work with INTRACO and other organisations to look always for cheaper sources of supply. It will study the market structure of relevant commodities to see whether there are cartel or monopolistic practices. The Committee is working closely with organisations such as CASE and the NTUC Welcome and other Cooperatives in their efforts to curb profiteering and educate consumers. DIESEL SHORTAGE 13.”
“Sir, all I need to say is that we will try to administer the new policy judiciously. WAGES (Erosion by profiteering) 12. Mr Hwang Soo Jin asked the Minister for Trade and Industry what steps are being taken to ensure that the wage-earners' take-home pay in real terms, taking into account the recent increment recommended by the National Wages Council, will not be eroded by excessive and unjustifiable price increases in goods and services.”
“Sir, I think the administrative problem is that there will be applications and that the Economic Development Board will assess the necessity of any particular numbers of workers which may be required and which cannot be found from either increasing the skills of the workers in Singapore and therefore reducing the numbers employed. The administration of this particular restriction will be, of course, done with considerable prudence so as not to disrupt the economy of Singapore.”
“Sir, I thought I have made it clear that the answer is no, and that while we do not want to have the restriction imposed immediately, the intention is to gradually increase the restriction on workers entering into Singapore.”
“Sir, the intention is that, when we are able, we shall limit the entry of workers into Singapore. Until that is done, we will by a more gradual process try and minimise the import of labour from other countries.”
“Sir, that is not correct. I do not think I have stated this anywhere in my statement. He must have derived this from some other source.”
“Mr Speaker, Sir, I have said that it is an economic tax. I have also said that I do not believe there are workers whose skills cannot be improved. Therefore, I feel that this levy is of benefit to the whole economy. In the case of the Government, it might also be claimed, for example, that there is not very much that we can do in the way of improving skills. In the legislation which I am going to introduce today, it is prescribed that Government bodies and statutory corporations will also contribute to this 2% levy, and I hope that the Government would, by initiating training schemes, also benefit by disbursements from this levy. Dr Augustine H.H. Tan (Whampoa): Mr Speaker, Sir, do I hear correctly that it is the intention of the Government to allow employers to have as many work permit holders as they desire?”
“Employers who are prepared to upgrade and restructure their operations and train their workers to do enlarged jobs and in new and higher skills will be able to benefit from the Skills Development Fund. The training levy, as an economic tax, must therefore be applied across-the-board. This is not merely for administrative convenience. Exempting any particular sector or business from the training levy, simply because it employs unskilled workers, will undermine the basis of our restructuring policy. Moreover, as the wage increases in this sector will then have to be higher by the amount of the exempted levy, this unskilled sector or business will attract more workers to do unskilled work. Furthermore, no industry in Singapore can claim that they have reached the peak of efficiency such that there is no room for further improvement or that their operations are so rudimentary as to defy introduction of more skill-intensive methods or labour-saving devices.”
“The only effective way to induce employers to economise on workers and produce higher value-added products and services is to have correct wage signals. We could have closed the door to foreign workers and let the free market push up wages. The effects of such a course of action would have been traumatic. We have, therefore, adopted the more gradual alternative of guidelines setting a higher wage increase phased out over three to four years to give time to our employers to adjust. Wages for the lower paid workers must go up by around 20% annually over three to four years to induce employers to optimise the use of labour and to restructure their business. The package of wage cost increases comprises an average 14% increase in wages for workers, a 2% training levy and a 4% increase in employers' CPF contribution. This package provides a buffer of 6% which in the event of a deep recession could be removed or lowered to moderate wage cost increases of employers. Moreover, if the wage cost increase of 20% were to be passed on fully to workers, the sudden jump in purchasing power will be too inflationary. Besides providing the buffer, the training levy serves as an economic tax. It is not a fiscal tax, as its purpose is not to raise public revenue. It is an economic tax to penalise employers who make no effort to reduce their dependence on cheap labour and improve their methods of production. Such employers will pay more for excessive use of our limited manpower and uneconomic employment of our relatively better educated and trained workers in unskilled jobs. On the other hand, employers can minimise their manpower cost increases by cutting down excessive employment of workers.”
“Sir, the Prime Minister, at the National Day Rally on 19th August, 1979, has explained fully the rationale for the Government's wage policy this year. Nevertheless, I would like to briefly restate the rationale in the context of the training cess and the Skills Development Fund. We have to upgrade and restructure our economy promptly, if our economy is to continue to grow at 8% per annum, with the available labour supply. We cannot afford to continue with low-wage, unskilled and labour-intensive activities. In a full employment situation, we simply do not have the abundant labour that is required to satisfy the needs of labour-intensive industries and services. The rapid inflow of foreign workers cannot be our solution, as large scale entry of such workers creates social and other problems. The only real solution is to encourage economy in the use of labour and to shift away from low value-added, labour-intensive activities to higher value-added industries and services that employ less labour, use more machines and have a higher skill and technological content. Moreover, our fully employed relatively better educated and trained population should be deployed in activities that are able to maximise their fullest potential. External factors are also a crucial consideration in our restructuring policy. More and more developing countries with plentiful labour are adopting the strategy of rapid industrialisation through exports. China is also following this path of economic development. In the not too distant future, we will not be able to compete with them in unskilled, labour-intensive exports. We are an open free-enterprise economy.”
“The next step will be to ensure a proper assessment of their incomes so that they will be paying their fair share of the tax. This is a bigger problem. These three measures have been directed mainly at tax evasion by the more easily identifiable self-employed persons. However, a large number of self-employed persons need not be registered or licensed to carry out their trade or business. These will cause greater difficulty, but my Ministry will also study measures against tax evasion by them. MASS RAPID TRANSIT SYSTEM 17. Mr Ng Kah Ting asked the Minister for Communications and Acting Minister for Culture what is the latest position of the proposed Mass Rapid Transit System; and whether a firm decision has been taken on its implementation and, if not, why not.”
“Sir, the answer to this is related to the last one. Tax evasion by the self-employed is a universal problem which challenges the ingenuity of all tax administrators. My Ministry has examined the statistics more closely and estimated the magnitude of this problem in Singapore. According to the Labour Force Survey of 1977, there were 903,900 persons in our labour force. Of these, 132,602 persons or 14% of the labour force were self-employed. 77,200 of them appear to have incomes in the taxable brackets. Allowing for 25% under-disclosure, probably 97,000 or more were earning incomes that would put them in the tax-paying bracket. However, Income Tax records show only 42,900 of our taxpayers as self-employed. This means that at least 54,100 or 56% of the self-employed persons who have taxable incomes are not paying tax. By comparison with persons in the labour force who are employees and taxable, out of 247,800 such persons, only 1,000 or 0.4%, escaped the tax net. Therefore, the self-employed persons have not, as a class, been shouldering their fair share of the tax burden. My Ministry plans to bring these people into the tax net. Several measures have been taken to check tax evasion by the self-employed. Firstly, the Anti-Evasion Unit in the Inland Revenue Department has been paying increasing attention to the problem and stepped up its efforts particularly against evasion by self-employed persons. Secondly, income tax assessment forms were sent to identifiable self-employed persons, such as hawkers and taxi drivers. Thirdly, an exercise matching car-owners with taxpayers was carried out. As a result of the three measures taken, 18,425 new taxpayers have been netted up to 30th April, 1979.”
“Mr Speaker, Sir, so soon after the Budget session, when the same question of tax relief was asked and debated, the Member for Thomson surely cannot expect any answer than that the present rate of income tax relief will not be increased. As far as the first part of his question is concerned, the answer is that I am not aware that there has been much more difficulty in paying income tax recently because of the rising cost of living. The new Consumer Price Index shows that from the base of 100 for the period June 1977 to May 1978, there has been only a 3% rise in prices. The majority of taxpayers have surely had a greater increase than this in their earnings in the comparable period. In any case, the cost of living is not a major consideration in deciding our tax relief policy. An objective of taxation policy is to increase our tax base, to spread the load of taxation over as many people as possible, so that the cost of public services, including social and security services, will be more evenly borne. At present, 90% of the workforce in the US are taxpayers, in Australia, 95%, in Japan, 60%. In Singapore only 30% pay tax. Any increase in the income tax relief will have the effect, therefore, of reducing further the number of taxpayers. TAXATION OF SELF-EMPLOYED 16. Mr Rohan bin Kamis asked the Minister for Finance what are the plans to enlarge our tax-base to include those people who are self-employed and should be paying taxes.”
“Sir, I beg to move, "That the clause be read a Second time." Sir, the new clause seeks to amend section 78(5) of the Act to clarify that the word "Chairman" refers to the Chairman of the Board of Review and to enable any other member of the Board, chairing in his absence, to have a second or casting vote in the event of an equality of votes. This is a technical amendment which will reinforce the amendment made to section 79 as contained in clause 20 of the Bill. Question put, and agreed to. Clause read a Second time and added to the Bill.”
“New Clause - "Amendment Section 78 of the principal Act is of section amended by inserting, immediately 78. after the word - "Chairman" in the last line of subsection (5) thereof, the words "of the Board or any other member presiding".". - [Mr Hon Sui Sen]. Brought up, and read the First time.”
“In July, 1978, the Government again raised the maximum CPF contribution from 15 1/2% to 16 1/2%. To reflect these changes, clause 3 of the Bill seeks to correspondingly raise the employer's maximum contribution to 15 1/2% and to 16 1/2% for the purpose of tax deduction for the relevant periods. This clause has retrospective effect from 1st July, 1977, and from 1st July, 1978. In the course of administrating the Act, the Comptroller of Income Tax has been faced with the difficulty of collecting the 40% tax on director's fees paid to non-resident directors of Singapore companies. At present, although the tax liability exists, there is no provision in the Act to instruct the paying company to deduct the 40% tax at the time of payment of such fees. To enforce collection procedure, it is proposed to amend the Act to introduce a new section 45B to allow deduction of the non-resident director's tax liability at the time of payment. This is provided under clause 16. Clause 17 makes a consequential amendment to section 46 of the Act as a result of the insertion of the new section 45B. Clause 20 of the Bill amends section 79 of the Act to ensure that no peremptory objection can be made to the Chairman of the Board of Review in the hearing of an income tax appeal. This amendment is to tighten up the existing legislation in order to ensure effective functioning of the Board of Review. 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 [Mr Speaker in the Chair] Clauses 1 to 21 inclusive ordered to stand part of the Bill.”
“A sole proprietor or a partner of a professional firm can register his motor car as a private vehicle, use it in connection with his business, and claim tax deduction for expenses under section 14 of the Income Tax Act without having to pay the double road tax and Area Licence Fees applicable to business vehicles. To rectify this anomaly, clause 5 of the Bill seeks to amend section 15 of the Act to restrict the deduction for expenses only to motor cars which are registered as business service passenger vehicles. This amendment will take effect from 1st April, 1979. Clause 8 makes a consequential amendment to section 19 of the Act to restrict the granting of capital allowances only to cars which are registered as business service passenger vehicles. In recent years, there have been increasing instances of companies with accumulated trading losses acquiring the entire shareholdings of profit-making companies for the sole purpose of off-setting dividends declared by the acquired company against the accumulated trading losses of the "loss" company. To plug the exist4ng loophole in tax, it is proposed to amend the Act by introducing a new section 37A to disallow a deduction for any losses incurred by a company against dividends received by it from an associated company. This is provided under clause 10. The proposed section 37A also has provisions to ensure that bona fide companies are not thwarted in making acquisitions for normal commercial reasons. Under the Income Tax Act, an employer's contribution to CPF is an allowable deduction in ascertaining income, provided the CPF contribution does not exceed 15% of the remuneration paid by the employer to the employee. In July, 1977, the maximum CPF contribution was raised from 15% to 15 1/2%.”
“These three additional concessions are incorporated in clause 4 of the Bill. Industrial and farm buildings are currently eligible for depreciation at an initial allowance of 10%, with the balance of the capital depreciated over 45 years. To lessen the tax burden on owners of industrial buildings I had, in my 1978 Budget Statement, increased the initial allowance of 10% to 25% and reduced the depreciation period to 25 years with effect from Year of Assessment 1979. Since farm buildings are exposed to more rapid wear and tear, such buildings will be allowed an even faster rate of depreciation, over 15 years, besides the initial allowance of 25%. Clause 6 seeks to amend Section 16 of the Income Tax Act to provide for this. This amendment also provides for the granting of initial allowances to purchasers of an unused industrial building or structure, including the purchase of a leasehold interest therein of not less than 25 years, which was not occupied previously and for which no initial allowance has been granted. The reduction in the personal income tax rates applicable to individuals and Hindu joint families which was announced in my 1978 Budget Statement is provided under clauses 12 and 21. Clause 12 also limits the rate of tax on remitted income of the individual or a Hindu joint family to 40%. I now come to the amendments in the Bill designed to streamline procedures and improve existing legislation. The definitions of "business service passenger vehicles" and "private motorcars" under the Motor Vehicles (Registration and Licensing) Rules, 1972, have brought about an anomalous situation.”
“Clause 2 provides for a new section 13B to exempt from tax the dividends declared by a financial institution or an insurance company engaged in such activity so that the dividends when received by the shareholders are not taxed further. The 10% concessionary tax is the final tax. Export promotion has been the cornerstone of our trade development policies. The double tax deduction benefits currently given to participation in approved overseas trade fairs and trade missions have been of assistance to our manufacturers. In order to further encourage these efforts in export promotion, three concessions have been granted. First, with effect from 13th September, 1977, the double tax deduction benefits are extended to manufacturers who participate in approved local trade fairs which are organised to promote the export of Singapore-made goods. This concession, however, does not apply to enterprises which are already enjoying export or other incentives under the Economic Expansion Incentives (Relief from Income Tax) Act. Second, the eligibility for claiming double tax deduction in respect of participation in overseas trade fairs has now been extended to include traders and banks. Thirdly, with effect from 1st January, 1978, the double tax deduction benefits have also been extended to resident companies in Singapore, engaged in the manufacture of goods in Singapore or the export of goods manufactured in Singapore, for expenses incurred in maintaining an approved overseas trade office established exclusively for the purpose of promoting the export of Singapore manufactured goods. This concession which was announced in my 1978 Budget Statement is aimed at encouraging our exporters to undertake direct and intensive export promotional activities.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Income Tax (Amendment) Bill is necessary, first, to give legislative authority to a number of tax concessions previously announced and, second, to streamline procedures and improve existing legislation. Let me first deal with the concessions. In my 1977 Budget Statement, I announced that to further develop Singapore as a financial centre, the 10% concessionary tax will be extended to cover all offshore income derived from Asian Dollar Market operations, other than exchange profits and transactions with domestic banking units and residents. Clause 13 of the Bill now provides for this concession by re-enacting section 43A of the Income Tax Act so as to confer greater flexibility in specifying the types of offshore income which will qualify for the 10% concessionary tax. This concession takes effect from Year of Assessment 1978. Also taking effect from Year of Assessment 1978, tax on income from reinsurance business will be reduced from 40% to 10%. This concession is designed to develop Singapore as a centre for reinsurance business and to encourage reinsurance companies to remit back into Singapore premia earned from parties overseas. Clause 14 makes provision for this, by legislating a new section 43C to the Income Tax Act. As a consequential amendment, clause 9 seeks to amend section 26 of the Income Tax Act to provide for maintenance of separate accounts by insurance companies in order to ascertain income derived from reinsurance business. Income derived from Asian Currency Unit operations and offshore reinsurance is taxed at the concessionary rate of 10%.”
“The Fund, which will be administered as a trust fund by the Minister, will be used for co-operative education, training, audit and for the general development of the co-operative movement. The Bill also contains new provisions for the amalgamation of co-operative societies. This will enable small societies to amalgamate into bigger and more viable organisations. Other changes to be introduced are minor and they largely deal with the administration of the legislation and the organisation and management of co-operative societies. They are clearly spelt out in the explanatory statement at the end of the Bill. The proposed changes are extensive and will require the existing Act to be repealed and re-enacted. I therefore propose to refer the Bill to a Select Committee so that it can be examined in detail. Sir, I beg to move. Question proposed.”
“For the past several years, trade union co-operatives have successfully carried out their operations and have no doubt made a significant impact on the economic and social activities in Singapore. Under this Bill, the co-operative societies will, by definition, include trade union co-operatives. The Bill seeks to provide for more effective control of co-operative societies by the Registrar. It seeks to do this by increasing the Registrar's powers in relation to the audit, investigation, or liquidation of societies. The Registrar will have powers to suspend the operation of a society or to remove the management committee and appoint a new one to manage the society where the management committee does not perform its duties properly. With this Bill, a co-operative bank or an insurance co-operative will be exempted from provisions governing the granting of loans and credit facilities, the investment of funds and the maintenance of a reserve fund, since these matters are adequately provided for in the Banking Act and Insurance Act. Every co-operative society will be required to set aside 20% of its annual surplus towards its reserve fund, instead of 25% as provided in the existing Act. This transfer to its reserve fund may be reduced to 5% when the fund has reached 10% of the society's total paid-up capital. This Bill also seeks to allow co-operative societies to form an apex organisation. The apex organisation is desirable as it will provide technical, legal and financial advice and centralised audit and training services to its member societies. The apex organisation will be financed by a Central Co-operative Fund towards which all co-operative societies will be required to contribute 5% of their annual surplus.”
“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. REARRANGEMENT OF ORDER OF BUSINESS Resolved, "That item 11 on the Order Paper be taken now." - [Mr E.W. Barker]. CO-OPERATIVE SOCIETIES BILL Order for Second Reading read. 5.26 p.m. The Acting Minister for Social Affairs (Dr Ahmad Mattar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The existing co-operative legislation was enacted in 1925 and revised in 1953. Generally, this legislation has become outmoded owing to Singapore's rapidly changing socio-economic conditions and the diversification of co-operative activities in recent years. There are now 81 registered co-operative societies in Singapore, engaged in credit, consumer, housing, transport, producer, insurance and dental activities. The present legislation, as it stands, restricts membership of a co-operative society to individuals and does not allow institutions, for example, trade unions, to join or form a co-operative society. Of the existing 81 co-operative societies, 13 are co-operative ventures established by the National Trades Union Congress and other trade unions. They have been allowed to register by exemption from certain provisions of the present Act as granted by the Minister. Otherwise, they would have to be registered as companies. However, since the primary object of trade union co-operatives is to promote the economic interest not only of their members but also of the public, it is time to recognise in law the co-operative ventures of the NTUC and other trade unions.”
“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 85 and Clause 2 of Article 87 of the Constitution of Singapore for additional expenditure in excess of the provision authorised by the Supply Act, 1978. The additional sum has been scheduled as a Supplementary Estimate which has been considered and approved by the House as Command Paper 3 of 1979. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Therefore, the new Ministry will operate under my Head of Expenditure for FY 79 with the Development, Trade and Statistics Programmes under the new Minister. The additional expenditure requirements will be met by the issue of the necessary warrants. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In accordance with Article 85 of the Constitution of Singapore, heads of expenditure to be met from the Consolidated Fund other than statutory expenditure have to be included in a Bill to be known as the Supply Bill. The purpose of the Supply Bill before Members is therefore to give legislative approval to the appropriations from the Consolidated Fund to meet expenditure in the financial year 1st April 1979 to 31st March 1980. The heads of expenditure and the sums that may be incurred in respect of each head are shown in the schedule to the Bill. These have been approved by the House in the Main Estimates of Expenditure for the financial year 1st April 1979 to 31st March 1980, and appear on page 23 of Command Paper No. 4 of 1979. I should mention here that the corrigenda(Appendix II, Hansard, 14.3.79, cols. 657-8.) to the various typographical errors in Command Paper No. 4 of 1979 have been issued. The Supply Bill, when approved, will empower me to issue warrants, authorising expenditure up to the amount for each head as shown in the Bill to be paid out from the Consolidated Fund. May I take the opportunity here to mention the arrangement which has been made because of the creation of the new Ministry of Trade and Industry. The Minister for Trade and Industry has assumed responsibility for some of the subjects previously handled by me. It was not possible to amend the FY 79 Budget to reflect the change in Ministerial responsibilities and to rearrange the votes under my Head of Expenditure to provide a new Head for the expenditure of the new Ministry.”
“Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." Question put and agreed to. Resolutions accordingly agreed to. SUPPLY BILL Order for Second and Third Readings read. 5.19 p.m.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. First Resolution reported - "That the sum of $2,914,041,130 shall be supplied to the Government under the heads of expenditure for the public services shown in the Main Estimates for the financial year 1st April, 1979 to 31st March, 1980. contained in Paper Cmd 4 of 1979." Second Resolution reported - "That the sum of $2,560,208,470 shall be supplied to the Government under the heads of expenditure for the public services shown in the Development Estimates for the financial year 1st April, 1979 to 31st March, 1980, contained in Paper Cmd 4 of 1979."”
“Sir, the profit which is allowed to the Sugar Industry of Singapore is determined by the Government, I think it has been around 8% on the equity, only on domestic operations. If they can make money, for example, on export, I allow them the full profit because this is not a matter which should be controlled by the Government. In the same way, if they can, in buying the sugar or paying for it, make a profit on exchange, I think that is also a legitimate profit which should be allowed to the Sugar Industry of Singapore. On the other hand, of course, if they make a loss that would be entirely, again, charged to them. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1979 TO 31ST MARCH, 1980 Order read for resumed consideration in Committee Of Supply [6th Allotted Day]. [Mr Speaker in the Chair] 2.40 p.m. Head U (cont) - Resumption of Debate on Question [21st March, 1979], "That the sum to be allocated for Head U be reduced by $10 in respect of Subhead Code UE-01 of the Main Estimates." - [Mr Sia Khoon Seong]. Question again proposed.”
“Of course, the price of sugar can be cheaper when the world price is lower. It can also be very much dearer, and I mentioned that it could be $3.72 per kilogram, which was the price at its peak in 1973 or 1974.”
“Sir, in the case of sugar, the price has been based on a long term contract which has been entered into by a company in which the Government has full control and can be certain of the cost of manufacturing. In the case of the Sugar Industry of Singapore, I think we have roughly 40% of the equity, and we are therefore in some control. We know exactly what is happening in the company. In the case of flour, the consumption of flour from the mill is only a part of the total capacity of the mill which is also designed for export. Moreover, there are different varieties and it would be very difficult to control the price of flour. Also, the price of wheat flour fluctuates to such an extent that the mill should be asked to compete on a world basis. It would be to the interest of the Singapore consumer that wheat flour should not be controlled.”
“Many a developing country that has sought popularity by subsidising rice, sugar and other essential foodstuffs have distorted their economy and suffered endless economic woes. We must learn from other people's unhappy experiences.”
“Mr Speaker, Sir, it is not appropriate to judge the domestic price of sugar at any one point of time or only when the world prices are lower. Sugar prices often fluctuate rapidly on the world market. To ensure security of supplies of raw sugar and to help maintain the stable domestic selling price for refined sugar, the Sugar Industry of Singapore has had to enter into long term supply contracts. The long term contracts with Australia and Fiji, concluded towards the end of 1974, assured us of raw sugar supplies for 1975 to 1977, and thereafter up to 85% of our domestic requirements until 1980. The contracted price at $689 per metric ton was then extremely favourable compared to the prevailing market price of about $2,580 per metric ton. Thus, the Sugar Industry of Singapore was able to maintain the domestic retail price of refined sugar at $1.24 per kg from 1974 to April 1978 and at $1.20 per kg since then. Otherwise, Singapore consumers would have had to pay as much as $3.72 for their kilogram of sugar if they had to buy on the open market at the peak of world price fluctuations. Taking the period between 1974 and now, the price paid by our consumers on the average is about 7 cts per kg lower than the average world price of white sugar. We should therefore look at the price of sugar on a longer term basis and not be misled by the difference between the current Singapore price and the world price. There is no ground for Government to consider subsidising sugar prices when the average price paid by Singapore consumers is lower than the average world price. Moreover, to subsidise to lower the price of sugar is to invite disaster. We do not grow sugar.”
“I any afraid that even if the PUB raise the price of water by 100%, the cost of a cup of water will not be great. As for rice, there is some control on wholesale prices. We control the prices to both INTRACO and to the wholesalers who take from the Government stockpile. Then from their own private stockpiles, prices are a matter for them to fix. I do not think there is a definite price which has been fixed by the Government. In any case, at the retail end, there are various prices. The NTUC certainly has a different price from the other shops.”
“Sir, I do not really have very much more to say. As for setting up a small claims court, and setting up further legislation for control against people who fix prices and so on, we are just putting on additional layers of bureaucracy. I supported CASE because I thought they could organise consumer resistance. As I say, if every one drinks water instead of coffee, the price will definitely come down very rapidly. An hon. Member: The PUB will raise the price of water.”
“Mr Speaker, Sir, I am sure consumers in Singapore generally share the Member for Boon Teck's concern about unjustifiable price increases. However, I do not know what the remedy is. It may not be in the setting up of a new body to look into and check such price increases. There is already the Consumers' Association of Singapore which is doing a good job and, of course, the Member or his unions can also counter directly any increase in prices by offering competition in manufacturing. My Ministry has already, of course, a committee on profiteering and inflation to monitor prices and supplies. But the committee, quite rightly, concentrates on the more essential commodities like rice, sugar, wheat flour and bread. The committee, of course, would be happy to work with other organisations such as CASE, or the Member for Boon Teck, or NTUC Welcome to curb profiteering and to educate consumers.”
“Sir, on the last question, perhaps the matter can be taken up, that so far as money payments are concerned, the JTC hawkers can be put on a basis equivalent to the hawkers of the Ministry of the Environment. The other point is about the Singapore couple. I think this is a matter which, as the MP for the area, he should be able to make certain representations. But I am not in a position to answer whether or not his representations will be successful.”
“Finally, the Member asked why could the JTC not issue hawker licences instead of tenancy agreements. The JTC is not the hawker licensing authority, and so they are not able to issue licences like the Ministry of the Environment.”
“Families of one-room flats who request for transfer to bigger flats because their children have grown up are given priority in resettlement cases. In fact, 32 cases have been given such transfers in 1978. 3.45 p.m. The next question the Member asked was: would the JTC accept the application for one-or two-room flats from workers whose wages are as low as $250 to $300 instead of forcing them to take up three-room flats. The answer seems to be that the JTC is unable to accept applications for one- or two-room flats, as all these flats have already been fully occupied. It may not be desirable to put up more of these smaller flats. Singapore citizens whose pay is as low as $250 to $300 and who wish to rent one- or two-room flats are advised to submit their applications to the Housing Board which, I believe, may also not be in favour of building more of these units. I think one should consider the future of Singapore. In ten years' time perhaps all our citizens will want better than one- or two-room flats. The next question the Member asked was about Singapore citizen couples with children born in Malaysia being asked to pay non-citizen rates for JTC flats. The rationale behind this, of course, is that the main purpose of the public housing scheme is to provide low-cost housing and to promote home ownership by Singapore citizens. One condition which the applicant has to fulfil is, therefore, that he must be a Singapore citizen and that the majority of the occupants of the flats must be Singapore citizens or permanent residents. The Singapore couple with more than one child who is a non-citizen will not qualify under the criteria. That is probably the reason why the couple has to pay a non-subsidised rental.”
“Mr Speaker, Sir, the Member spoke of the single storey units built by the JTC in the initial stage and he asked whether the JTC would consider knocking down these units and replacing them with five-room flats. I believe the Member is referring to the blocks of single storey units at the junction of Yung Loh Road and Corporation Road. The site of these 18 blocks of single storey units has, in fact, been earmarked for redevelopment. But plans have not been firmed up as yet for the kind of development it should have. The Ministry of Education had at one time plans for building a school there, but I do not think that is the present plan. The Jurong Town police station presently occupies five blocks and will move to its new premises only around 1980, so that there is some time yet to consider what we should do with this property. The Jurong Town Corporation can then consider the construction of better housing in this area if the school is not to be proceeded with or if there are no other plans. The JTC itself, of course, has some doubts on whether we should build housing here because the better housing which they want to build can better be done on a site which has been earmarked, some 35 hectares on three sites facing Jurong Lake, which would be a better site for middle income housing. If such middle income housing is proceeded with, the HUDC will be invited to build such housing. That is the present position as far as the site is concerned. I cannot be more definite because it is still early yet for final plans to be made. He has also asked about priority to families living in one-room flats who want a transfer to bigger flats. I think this is already being done.”
“Mr Speaker, Sir, I am glad to see that the mantle of Mr Ivan Baptist has fallen on the worthy Member for Mountbatten's shoulders. My Ministry has been supporting CASE with annual grants ranging from $25,000 to $35,000 since, as he has informed the House, 1974. Whilst the Government considers CASE a most praiseworthy and viable organisation, it has always been our view that to be most effective the association should be a private and sturdily independent organisation. It is, therefore, Government's intention that the financial assistance it gives should be provided only on an initial basis and that CASE should gradually be self-supporting. CASE was told quite early of this intention. It was suggested that it should be self-financing after 1978. CASE was reminded of this when the grant for the financial year 1979 was given. Nevertheless, contrary to the view of the Finance Ministry being cautious or even stubborn, the Government has continued the grant of $25,000 for the next financial year. Thus, my Ministry cannot be said to be ungenerous. I would, therefore, suggest that CASE should begin a vigorous drive for new members so that it need no longer count on Government support.”
“It may be that we will merely be conferring benefits which do not affect adversely any rights of civil servants, in which case, there would be no need for consultation. But I can assure him that if there is a need to do so, we will consult the unions.”
“The Member spoke about the high turnover of staff in the Customs Department, I am not aware of this and maybe there has been no complaint because recruitment has filled most of the vacancies. So maybe it is not quite so serious a matter as the Member thinks. In any case, if there are these high turnovers then obviously my Budget Division should look very carefully at the situation. The next matter he raised was on the uniforms for Division IV grades. I am not quite sure what we can do about the system that we now have for obtaining uniforms for Division IV staff. The usual practice now is, of course, contract tailoring. I believe measurements and so on can be done, but obviously if tailoring is done on a bulk basis the standard could fall short of expectation of some more fashion-conscious officers. However, my Ministry has been monitoring closely the work done by the contractors and shortcomings which are brought to our notice would certainly be looked into. As regards uniforms for firemen, the explanation as to why we have not been issuing them with uniforms on an annual basis but on a replacement basis is that the firemen require a more frequent replacement than other grades of officers, and therefore a replacement basis is more practicable. That means they should be getting at least the minimum to which they are entitled under the Division IV agreement. In fact, since they are subject to unfair wear and tear as a result of going to fires, I think replacement would be a better method of dealing with the problem. Finally, the Member for Kolam Ayer raised the question of commutation of leave. The matter is still under consideration. If it is necessary to consult the unions then, as we did when we introduced the revision of the 1973 leave scheme, we will do so.”
“If the magistrate binds people over, so that a conviction is not recorded, or sends him to a drug rehabilitation centre, maybe without a conviction being recorded, then obviously that person is not a convict. I assume that under certain circumstances it may not be necessary to answer questions about conviction, if one has not been convicted. 3.15 p.m. But I think in certain sensitive departments it is very necessary to know the nature or the character of the applicant, whether he is subject to certain pressures in his job. For example, if he were a cashier in a bank or a pilot of an airplane, it may be necessary to know whether, in fact, he has a tendency towards drug taking and whether he has been convicted in a court of law. In those circumstances, I think it is pertinent that application forms should contain questions about such conviction, and I do not think there is any need for either the Government or the Singapore Airlines to apologise for asking questions which are necessary for particular jobs. In manual occupations, say, an operator in a factory putting transistors together, maybe there is no necessity to find out whether the applicant has any tendency to take drugs. The Member for Serangoon Gardens raised questions about the Customs and Immigration Services. In the case of the Immigration Department, there has been a request for a revision of salaries of officers and this is being examined by my Budget Division. But I would repeat my previous statement that in general the present Government policy is not to consider a salary revision except where necessary to rectify anomalies, to facilitate staff deployment or improve career development prospects.”