Lew Syn Pau
Singapore
“Mr Speaker, Sir, one of the greatest problems SMEs are facing in this downturn is the sudden decline in orders and decline in revenue and, as a result, some SMEs are not able to get enough cash flow to service the interest.”
“Sir, I thank the Minister for his reply. We look forward to increases to come. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $29,360,000 for Head F ordered to stand part of the Main Estimates. The sum of $3,716,700 for Head F ordered to stand part of the Development Estimates. Head P -”
“If you take a look at the Enterprise 50 companies, Sir, a lot of them have gotten to where they are today without financial support from the Government, and it has taken them a long time, many years. Some of them have been in operation for more than 10 years.”
“This is especially important for the design-and-build projects where the contractors take the lead in a construction team which even includes the appointment of a QP and the payment of his fees. This amendment Bill does not seem to address this concern.”
“Thus, the Government is not in favour of awarding prestige or acknowledgement scholarship without the scholar making a commitment to serve in the public service. There is already much flexibility in the treatment of Government scholars.”
“Sir, there have been a lot of discussions in the papers about compulsory acquisition of flats. Does the Minister not think that the compulsory acquisition of a HDB flat is a bit too severe, because it punishes the family members who are innocent, rather than the offender himself?”
The complete record
Every one of 352 lines we hold for Lew Syn Pau, in date order, each linked to its source. Free to read, in full, without an account. Page 7 of 8.
“Mr Speaker, Sir, I rise to support the Co-operative Societies (Amendment) Bill. Before I continue, I would like to declare my interest as the General Manager of NTUC Comfort, which is a co-operative society, and also as an Executive Committee Member of the Singapore National Co-operative Federation (SNCF). The main amendment is to section 71 which seeks to vary the amount of contributions made by co-operative societies to the Central Co-operative Fund (CCF). With the passing of this amendment, co-operative societies will contribute 5% of the first $0.5 million of their operational surplus to the CCF. For surplus in excess of $0.5 million, the co-operative societies will now have to contribute 20% of their operational surplus, but they can opt to pay this either to the CCF or the Singapore Labour Foundation. First of all, let me say that there are very few co-operative societies which have operational surpluses above $500,000 and hence would not be affected by this amendment. Those affected are the larger NTUC co-operatives such as NTUC Comfort, NTUC Fairprice and NTUC Income. This 20% contribution will bring the operations of larger co-operative societies more in line with that of companies under the Companies Act. Hopefully, this will lay to rest complaints of unfair competition from some quarters in the commercial world. However, I would like to take this opportunity to say that even under the present regulations which require only contribution of 5% of surplus to the CCF, many NTUC co-operatives are already contributing significant amounts of their surplus to support and sponsor NTUC as well as Singapore Labour Foundation projects and activities for the benefit of all workers, sometimes in excess of the 31% corporate tax paid by companies.”
“Sir, I am pleased to hear the Minister say that he will in future impose taxes for taxis very gradually. With that, I withdraw the amendment. Amendment, by leave, withdrawn.”
“In November 1989, the diesel tax was further increased by $2,200 and more recently, the $5,000 interim additional registration fee imposed on private cars was also applicable to taxis. The introduction of the $5,000 interim additional registration fee is meant to dampen the tremendous demand for cars. But the number of taxis to be put on the road is controlled by ROV. What then is the rationale to impose it on the taxis? Here we are not talking about a large business in perhaps a comfortable position to cushion such hefty increased cost. Here we are talking about a middle-age family man who drives 10 to 12 hours daily throughout the year for a living. In addition to these increases, the Yen has appreciated over the years which makes the taxi more expensive. The diesel price has also increased from 31.7 cents in October 1988 to 47.4 cents in March 1990. This is a hefty 50% increase. The higher operating costs which are beyond the ability of the taxi operators to absorb will inevitably bring about higher fares, which will in turn raise the cost of living for everyone. With regard to the fare increases, I would like to appeal to the Minister to get the Public Transport Council to be more realistic and responsive to the request for fare increases. We are proud of our land transport system and by and large we have got our land transport policies right. But I feel there is something not quite right with the policies on taxis. I would like to appeal to the Minister to review them. But if he is still convinced that the policies are necessary and right, and it is good for the nation, I will give him my full support. However, I would like to urge him to introduce the changes more gradually to allow the people affected time to make the necessary adjustments.”
“These people must be provided with viable alternatives. No doubt, we have the MRT and public buses but essentially these are mass public transport and run on fixed routes. Moreover, in terms of comfort, convenience and efficiency, they are no substitutes for private cars. There are certain needs of the people which only taxis can fulfil. Although a taxi is also nowhere close to a car, it is certainly the best alternative available. The taxi service serves not only our local commuters but also the many tourists who visit our country each year. The efficient services provided by our taxi drivers and the good reputation earned by our taxi service have helped to enhance the image of our country as an excellent place to invest and visit. If the intention of the Government is to discourage people from owning their own private cars so that our road system remains to be efficient to meet the needs of our national development, then I think it would be wise for the Ministry to ensure that the taxi service remains an affordable alternative for the people. The Ministry seems to have confused the taxis with private cars. Technically, taxis are cars, and they are right, but functionally, they are obviously wrong. The role played by the taxis is completely different from that of the private cars. Perhaps it is because of the belief that taxis are also cars and are equated to private cars that the Ministry has been taking all the necessary steps to bring taxis in line with the private cars. And over a short span of 1(r) years from November 1988, taxi drivers are slapped with rapid succession of increased up-front cost of more than $10,000. In November 1988, the diesel tax was increased by $3,300.”
“They are very concerned about the long-term implications of linking the taxi quota premium to the private vehicle quota premium of the 1.0 to 1.6 litre car category. In the future, when the ARF for private cars is reduced, the quota premium will rise correspondingly, affecting both commuters and taxi drivers alike. I hope the Minister will do this very gradually so that taxi drivers will have time to adjust their taxi fares and pass them on to commuters. Alternatively, the Minister may wish to decouple this linkage between taxis and private vehicles where the quota premium categories are concerned, so that a reduction of the ARF for private cars will not bring about the unintended consequence of very sharp tax increases for taxi drivers and commuters. Dr Wan Soon Bee (Pasir Panjang GRC): Sir, I would like to declare my interest. I am the Chairman, Board of Directors of NTUC Comfort. Sir, taxi is a public transport. This fact bears repeating. Taxi ridership is 700,000 passenger-trips per day. This is double that of the MRT. This high ridership clearly shows that taxi is an important mode of public transport. It also provides services which neither the buses nor the MRT can fulfil. It is also a very efficient mode of public transport. As the Member for Whampoa, Dr Augustine Tan, had rightly pointed out not too long ago during the Select Committee meeting on land transportation policy and I quote: 'Although the 10,000-plus taxis in Singapore comprise only 2% of vehicles, they provide 700,000 passenger-trips a day.' Coming from an economist, this is the best endorsement of the economic value of taxi services. The transport policies are expected to push up the cost of car ownership, and many people may have to give up owning a car.”
“Sir, I beg to move, That the sum to be allocated for Head I be reduced by $10 in respect of Code IC 1500 of the Main Estimates. Sir, today, 31% of the monthly operating cost of a taxi (including depreciation of the taxi) is made up of Government taxes, namely, registration fees, old and new, road tax and diesel tax. Just over a year ago, when diesel tax was only $1,100, tax made up only about 12% of the total monthly operating cost. In just over a year, the monthly Government tax on a taxi has gone up by $550. This is not an insignificant amount by any standard. Like all good citizens, taxi drivers pay income tax based on their net personal income from taxi driving. Taxes on taxis should be borne by commuters, not taxi drivers, since commuters are the ones who enjoy the personalised door-to-door service of a chauffeur-driven car. The demand for taxis, however, is quite elastic, as was shown during the taxi fare increase in 1985. When the taxi fare rises too steeply, the demand drops drastically. This is because there exist many other alternative modes of transportation to taxis, such as buses, MRT, private cars and walking. When taxes on taxis are imposed too steeply and too suddenly, the taxi drivers are unable to pass them on to the commuters at the same quantum and speed. Hence, they become financially worse off for quite a while until the commuters have totally re-adjusted to the new fares. The unhappiness of taxi-drivers, therefore, lies in what they perceive to be a lack of understanding of their plight on the part of the Government. They have not quite recovered from their indigestion before they were recently hit again by the vehicle quota premium they will have to pay when the quota system is implemented in May this year.”
“At present, not a few residents ought to be given agricultural compensation of $26,000. However, such money has been withheld for several months and no reason was given for withholding such compensation. So they are very worried. I hope the authorities concerned would within reasonable time try to enlighten them of the matter of $26,000 compensation as soon as possible. As for the compensation for fruit trees, when the trees planted are more than the density allowed, then the compensation would be based on the area of planting. I feel that such method is not very fair to the small holders. For instance, if the distance between two fruit trees should be 20 feet, then according to such calculation, for a piece of land measuring 40 ft x 40 ft they will get only compensation for four trees. In fact, if planted in equal distance and equal areas they could have got compensation for nine fruit trees. Therefore, I hope the Minister would give the small holders a fairer method of compensation.”
“The HDB estates have what are called RCs or Residents' Committees. RC centres are usually in void decks and they are rented from the HDB at very nominal cost. In private housing estates, I have been trying to encourage residents to form Residents' Associations (RAs), the equivalent of RCs, with great difficulty. One of the main reasons is the absence of a focal point such as a clubhouse or a centre where the residents can meet. I would like to ask the Minister to consider building RA centres in private housing estates and rent them to the RAs at nominal cost. This form of assistance will encourage the formation of RAs which will in turn help to develop community spirit among our residents. Dr Low Seow Chay (Chua Chu Kang)( In Mandarin): Sir, although our major construction programmes have come to an end, according to my personal observation, there are indications of a lack of coordination between resettlement compensation and re-housing. For example, some people who have been allotted flats for one or two years on resettlement have still not received their compensation. Second, at the same time, there are others after being resulted for a few months without receiving any compensation and have fallen into arrears of instalments, the Housing Board issued them pink notices asking them to pay up their arrears in loan payments. Third, certain resettled areas are left with a few squatters here and there and a few houses in derelict squalid living conditions in such areas are waiting for allocation of flats. I would like to ask the Minister whether it is because of a shortage of staff in the Resettlement Department. Does he have any special plans to solve such situations like the lack of coordination in resettlement?”
“Sir, I am happy to note that the Government will be setting aside $51 million to upgrade public housing estates. I support this decision because I believe this is a worthy project which will eventually give the majority of our people who live in public housing estates a better quality of life. However, I would like to bring to the attention of the Minister that there are many public areas within private housing estates which need to be upgraded too. Our people living in private housing estates, though small in number, account for a large portion of our personal income tax revenue. They too deserve to have their quality of life improved through better housing and through better public facilities within their estates. Many public roads in private housing estates were built long ago and are very narrow and congested, posing dangers to vehicular and pedestrian traffic. They should be widened and improved. Drains in the older estates are cracking, some caused by roots of trees. Some low-lying areas are still flooding occasionally during heavy rains, causing loss and damage to property and inconvenience to people. I would like to ask the Minister to consider upgrading the public roads and drains and, at the same time, improve the landscaping of parks and other open spaces in these older estates. Like the HDB's upgrading programme, the residents can be made to share a part of the costs required. The upgrading of public areas in private housing estates can be done in conjunction with the upgrading of the public housing estates, so that none of our people would be made to feel that they are not being given a fair share of the fruits of our nation's progress and prosperity. Next, I would like to touch on the subject of Residents' Association.”
“Many of us are travelling much more extensively now, firstly, in our jobs, as many companies we work in are either MNCs or local companies going international and, secondly, in our leisure, as we heed the call to make the world our playground. So this restriction in our passports is getting increasingly inconvenient and unjustifiable. I therefore urge the Ministry to change this policy. What reservists are asking for is not excessive or unreasonable but merely parity with females, foreigners and non-reservists. Some weeks ago, I read about the Minister of State for Finance and Foreign Affairs, BG George Yeo, talking about positive discrimination for reservists. I was pleasantly surprised as, in my view, we have not even resolved the problem of reverse discrimination in some areas. I would like to ask the Minister what steps towards positive discrimination for reservists have been or will be taken. For instance, as a recognition for reservist training, would the Minister consider allowing reservists' rank pay and make-up pay to be granted tax relief?”
“Mr Speaker, Sir, before I begin, I would like to declare that I am a reservist doing about 40 days of reservist training every year. In my view, reservists still do not get enough recognition for contributing 2-2 1/2 years of their youth for full-time national service and subsequently 3-6 weeks of reservist training every year for 13 years; for some, even longer. In fact, if I may say so, there is still reverse discrimination compared to the females and foreigners who have not done national service and are not doing reservist training. From the time the reservist starts work after full-time national service, he finds himself 2 1/2 years behind his colleagues who have not done national service. As mentioned by my colleague, some reservists even had to face the embarrassment of being interviewed for jobs by their female and non-Singaporean contemporaries. In the private sector, very few companies give recognition to reservists through higher starting salaries. The civil service attempts to make up for it by granting two extra salary increments. However, in terms of length of service, he will always be 2 1/2 years behind. This great setback is carried over for years and affects a lot of other staff benefits which are related to length of service, eg, annual leave, pensions and so on. In the civil service, staff with 10 years of service or more will enjoy seven days more annual leave. The civil service should take the lead by recognising the employee's full-time national service period as service qualifying for service related staff benefits. Secondly, as my colleague has mentioned, reservists are issued passports valid for only one year.”
“We must help them to share and get the benefits from Singapore's prosperity. Sir, on this note and with these comments and suggestions, I support the motion. 1.39 pm”
“I believe our data on investment per worker is low compared to those of Japan and our competitors. We should get our companies, especially the SMEs, to invest more in new plant, equipment, machinery and new technology and system which can help enhance productivity. One way to motivate them is to give more generous tax benefits for these investment expenditures. Because of our prudent financial management, we have managed to build a healthy financial reserve. For this year, as indicated by the Minister, we will have a budgetary surplus of $1.5 billion. If we include the capital receipts, the overall surplus will amount to $4.4 billion. We want to be a developed nation by the end of this century, and to give our people the ability to enjoy an enhanced quality of life. I note that the budgetary allocation to the Ministry of Community Development is only 0.5% of our GDP. I would like to appeal to the Minister to provide more funds here to help promote culture, the arts and sports. This will help enhance the quality of life. Sir, I agree that we should not give subsidies for consumption but I feel strongly that low wage earners and the poor should be given the ability to get good medical attention and to provide good education to their children. We should therefore keep a close check to ensure that hospitalization and medical fees are kept within their means. Also, there are sufficient educational grants to help our bright children in the poor and low income families to attend independent schools. Sir, the budget should cater for the needs of the low wage earners and the poor and a portion of the surplus should be devoted to programmes which can help them to cope with the rapid pace of development in Singapore. We must ensure that they must not feel left out.”
“Here, I would like to ask the Minister to see how best he can provide additional incentives, including tax allowances and benefits to our companies, especially our small and medium enterprises, to get them to spend more on worker training and especially to plan systematic training programmes for their workforce at all levels. Perhaps expenditure on training of workers could be given more generous concessions for tax purposes. Sir, I believe that in Japan and West Germany all training costs borne by employers for vocational training of workers are tax deductible. Similarly, in the United States, to encourage companies to provide training for their workers, various tax incentives are also given. The SDF levy, which is now payable for workers who earn less than $750 per month, should be extended to cover workers who earn less than $1,500 per month. Our companies should also have better programmes to provide middle level management training and special incentives should be given to companies which have developed these programmes. While workers' productivity is important, I feel that management's productivity is more critical. The fate of our companies will depend on how innovative their managers are in bringing new ideas and to take advantage of business opportunities that are present, and how well they motivate our workers to give off their best. And if our workers are motivated to be more productive, the companies can reduce their manpower needs. Sir, I also feel that more generous tax allowances should be given for investment expenditure in plant, machinery and equipment. In this connection, could the Minister comment whether existing investment allowances to stimulate capital investment are adequate and effective?”
“We will face greater competition with more countries, including some of our neighbours, joining the ranks of the NIEs. There are fears of protectionistic tendencies in the developed countries and the third world debt problem still defies solution. And will development in Eastern Europe attract away investments from our region? Sir, the Minister has identified five ways in which we can continue to grow. These are the expansion of the workforce, improvements in our productivity performance, to continue to remain competitive, our ability to seize opportunities and tap into regional and world growth, and making a contribution to enhance the prosperity of our neighbours. Sir, I would like to comment on the first three areas which are inter-related. We have to take serious cognisance of our scarce human resources, particularly our low labour force growth of 1% to 2% which would mean that we will always have to face the problem of labour shortage whenever our economy expands. We must indeed admit foreign workers. However, this must be in a controlled manner to ensure that they do not bring down the quality of life and also create social problems. Sir, the most effective solution to this problem is really to provide adequate training opportunities to our workers to help them obtain skills and knowledge which can enable the rapid introduction of new technology and work systems and help raise productivity performance. This means that our employers must be prepared to invest more in the training of their employees.”
“Encik Othman bin Haron Eusofe (Marine Parade GRC): Mr Speaker, Sir, I would first like to thank the Minister for Finance for presenting a painless Budget with many "goodies" like the across-the-board rebate of 5% on personal income tax for the Year of Assessment 1990, increased reliefs for care of aged parents and handicapped dependants and the additional procreation incentives. Sir, our finances are in a sound position and for the coming financial year we are expecting to enjoy a budgetary surplus of $1.5 billion. On this sound financial foundation, we can now embark on a new phase of economic development to bring Singapore into the ranks of the developed nations by the end of this decade. Sir, the Eighties was a momentous period in Singapore's economic development. In the early Eighties we enjoyed high economic growth. It was then a period of the high wage policy and economic restructuring. However, we soon became uncompetitive with our unit labour cost increasing above those of our competitors and as a result we landed ourselves in a recession in 1985. It was a traumatic time, especially for workers, as they had to face retrenchments and had to make painful adjustments. However, our workers were ready for the challenge, to make many sacrifices, including wage cuts and wage restraint, to help turn the economy around. This contribution made by our workers enabled us to make a dramatic recovery and by 1987 we began to enjoy good economic growth and now we have ended the Eighties with a good growth rate of 9.2%. We start off the 90s on a sound financial footing but the future will be more complex and we must prepare ourselves for the challenges and the uncertainties ahead. I think we must not forget the lessons of the 80s.”
“As a long-term policy, would it not be better for the corporate tax rate and the highest marginal tax rate for individuals to be kept at the same level? Next, on procreation incentives. I am concerned that the Government is beginning to use the age of women to offer the latest procreation incentives for second births. There is great danger that in so doing we may be alienating a group of women who because of priority for tertiary education and career building have delayed their marriages and family formation. In starting their families late, these women have contributed significantly to our economic growth. They should be given recognition rather than discrimination. Procreation incentives should be aimed at encouraging procreation irrespective of the age of the women. All other things being equal, I do not see any reason why a woman who bears, say, four children in her thirties should enjoy less tax benefits than one who bears four children in her twenties. I would like to urge the Finance Minister to consider extending the procreation incentive for the second child to all women and not only to those below 31 years of age. Otherwise women in their thirties will find it even harder to get married! Finally, I am pleased to note that self-employed persons who make voluntary contributions to CPF will be allowed to deduct 15% of their contributions from their assessable incomes, up from 10% in the past. If the long-term objective of the Government is to have a CPF contribution rate of 40%, ie, 20% from the employees and 20% from the employers, this rate of 15% for the self-employed persons should slowly be raised to 20% so that there would be encouragement for more savings and provision for old age by the self-employed. With these comments, I thank you, Sir.”
“However, what the Government can and should control are the cost increases imposed by the Government departments and statutory boards. In view of the strong economic growth in the last three years, many of these departments and statutory boards are seizing the opportunity to increase their fees and charges despite their already large surpluses. I would like to suggest that the increase of fees and charges of all the Government departments and statutory boards affecting businesses be coordinated by the Ministry of Trade and Industry so that the Government will have a clearer total picture of its impact on business. Next, I would like to turn to the issue of consumption tax. The Finance Minister has announced his intention to introduce legislation on a comprehensive goods and services tax this year. Japan introduced such a tax recently and encountered great opposition from the people. We should study their experience very carefully before proceeding with ours. The greatest concern of the people in the middle and lower-middle income groups as well as the lower income people is that such a tax will erode the purchasing power of their wages. Instead of being broad based, selective taxation on luxury items may be more appropriate. I would like to suggest that a dialogue and discussion with the people be held before the legislation is introduced. I now turn to the issue of personal income tax. I am sure as individuals we all appreciate the across-the-board once-off rebate of 5% on personal income tax for the Year of Assessment 1990. However, I am concerned that if the gap between the corporate tax rate and the highest marginal tax rate for individuals widens further, individuals may use companies as tax shelters.”
“Mr Speaker, Sir, I rise in support of the financial policy of the Government for the financial year 1st April 1990 to 31st March 1991. I am pleased to note that our prudent financial policy in the last three years has brought about strong economic growth. In 1987, we registered a growth rate of 8.8%. In 1988, we grew at 11%, the best economic performance in 15 years. Last year, we grew strongly again at 9.2%. This year, however, the economy is expected to slow down. The Government Parliamentary Committee for Finance, Trade and Industry, of which I am a Member, has met with business groups from time to time for dialogue and feedback. The main concern expressed is that our cost of doing business has gone up and, if we are not careful, we may see a repeat of the 1985 economic recession. According to the Ministry of Trade and Industry, the index of unit business cost has risen to 94, the peak being 104 during the 1985 recession. To me, this number 94 is getting uncomfortably close to that of 104 in 1985. I would like to urge the Government to continue to monitor business costs very carefully. Although manpower cost is a very significant part of total business cost, it is difficult and unwise to depress wages artificially too low because there is a tight labour market. The admission of foreign workers should be controlled and made more expensive than local workers so that employers will use them only as a last resort. However, I welcome the Government's decision to relax the foreign worker policy for the hitherto non-approved sectors. At a given price, the market should be left to determine more efficiently where foreign workers should be employed.”
“Mr Speaker, Sir, when the Minister links the taxi quota premium to that of the quota premium for the 1.0 litre to 1.6 litre private car category and calls it a concession, I presume he thinks that the quota premium for this category of private cars would be lower than that of the 2.0 litre category. In the event that this does not happen to be true, then would he consider allowing the taxi operators to pay the lower of the two quota premiums?”
“Mr Speaker, Sir, I am asking a question regarding the taxi business. So I would like to declare my interest. Would the Minister consider giving the taxis a totally separate quota without having to link it to the private car category of 1.0 to 1.6 litres? Let the taxi drivers themselves and the taxi organisations bid and set the price.”
“The Committee has been silent on the issue of company or "Q" registered cars and rental cars. In my view, company cars are really private cars and should be subject to the quota system. After tender- ing for the licence, the owner will have to pay the ARF and the cost of company registration as in the present system. Rental cars are public vehicles as they are available to members of the public. However, because of the availability of long-term leases, this makes them good substitutes for private cars. So not subjecting them to the quota will provide a loophole which may be exploited. With these comments, Mr Speaker, Sir, I support the Motion.”
“The Government should also set the quota on a yearly basis, taking into consideration the number of cars that have been scrapped. Licences should go with the car and not the owner, and should only be transferable upon transfer of ownership of the car. No hoarding of licences would therefore be possible. Successful tenderers of licences must be given a reasonable time frame of, say, six months to purchase a vehicle. In summary, the quota system should be simple but still addresses the equity issues confronting existing car owners and first-time buyers. With the introduction of a quota system for private vehicles, the public transportation system must be improved so that commuters can still enjoy a comfortable, convenient and efficient mode of travel. A lot has been done and is still being done by the public transport providers to achieve this. However, the Government should assist by improving the infrastructure for public transportation. I would like to suggest that to expedite the integration of public transportation, covered walkways be built to connect MRT stations and bus interchanges, bus stops and taxi stands. All bus stops and taxi stands should eventually be sheltered so that waiting for buses or taxis in our harsh climate becomes much more tolerable. In order to encourage people to leave their cars at home, feeder services must be made convenient and affordable to the residents. It is unlikely that individual private operators would be able to run them viably. I would suggest that feeder services be made part of the MRT bus integration network so that those who do not own cars or those who do, but wish to leave their cars at home on weekdays would have a comfortable and convenient alternative to use.”
“Those without will have to pay the ARF prices. The PARF system should continue in order to encourage owners to keep their cars new. However, I do not think it is necessary to have a sliding PARF from year 5 onwards. This will give rise to an unnecessary loss of foreign exchange. Most cars which are well maintained can last 10 years without much serious mechanical problems. Vehicle inspections can be made more stringent and frequent, if necessary, to ensure this. I would also like to support the recommendation that ARF be reduced at the introduction of the quota system. Thereafter no further adjustment is necessary as the licence price will move up or down depending on the quota set. There should also be just one type of licence for all cars. The Government should best leave to the market to decide what size of cars people wish to buy. The ARF system already makes it much more expensive to buy big cars. Having one type of licence and one price means the scrap car should not be used as a substitute for a licence. Otherwise the scrap car prices of different engine capacities will collapse overnight to that of just one common price, that of the price of the licence. Some of my colleagues have mentioned that the Government should divide the licences into categories according to the size of the engine of the car. I do not see any reason for this. Because if a person does not get a licence in the big category, this person will move down to the lower category and bid a higher price and so eventually the same situation will occur. The person who is willing to pay more will still get a licence to buy a car but he will end up buying a smaller car, and that is the only thing that would happen.”
“The greatest concern of the middle and lower-middle income class who aspire to be car owners is that the bidding system would push prices up so high that only the upper middle and the very rich people would be able to afford. Another fear is that dealers and other speculators may come together and corner the market leading to profiteering and high prices. I do not support the balloting of quota for cars. We should leave that to the issue of shares in the share market. Neither do I support the first-come-first-served registration system. Both systems cause distortions to the market as they do not make the buyers and users of scarce commodities pay the market price for them. This means that the demand for them will continue to increase and a black market for private cars will be established. I support the allocation of quota by bidding for licences through tenders. Bidders should also pay the actual prices bid, not the lowest or the average successful tender price. In this way, aspiring car owners would submit serious bids. However, I do not support the recommendation that the Government permit the purchase of new cars by allowing the scrapping of a used car eligible for PARF. This is tantamount to giving every used car on the road, now eligible for PARF, not only concessionary replacement prices but also a licence in perpetuity. A car not eligible for PARF now will get neither privilege. This is inequitable not only from the point of view of the non-PARF car owners but also first-time car owners. I would like to suggest that the Government addresses this equity problem by divorcing car licences from scrap cars. All those wanting to buy new cars must buy a licence valid only for the life-span of the car. So those with a scrap car can then pay the PARF prices.”
“Mr Speaker, Sir, first of all, I would like to congratulate the Select Committee headed by Dr Hong Hai for doing a good job of getting widespread views from the public on our land transportation policies. After considering the written submissions and oral evidence of the Committee, the Committee has also made some recommendations. I would like to take this opportunity to comment on some of these recommendations. The most significant and also most controversial recommendation is that of using a quota system to control the increase in the private car population. Let me say from the outset that I recognise the need to keep our roads free from severe congestion so that the movement of people and goods would be free and efficient. The number of vehicles on the roads must therefore be controlled. There are basically two ways of doing this. Firstly, by raising the price of vehicles through higher taxes and then letting market demand determine the final number. Secondly, controlling the numbers through the quota system and letting market demand determine the price. From an objective and unemotional point of view, I agree that the quota system is the most effective as it addresses the basic problem of numbers squarely. I consider the Committee's recommendation to change from the pricing system to the quota system as radical but bold and worthy of serious consideration. The quota on private vehicles can be economically allocated in several ways. The one suggested by the Committee is that of bidding for licences through tenders conducted at regular intervals. It can also be done through balloting, as suggested by some of my parliamentary colleagues, on a first-come-first-served registration system or a mix of both, bidding and balloting.”
“Mr Speaker, Sir, may I make a point of clarification? Dr Tan said that taxis are being subsidized by the Government. This is not true because NTUC Comfort is a cooperative founded by NTUC which is an independent body. All the welfare benefits which are provided for taxi drivers come from the surplus of the operations of NTUC Comfort. Comfort does not receive any money from the Government.”
“While the Government must necessarily and actively take positive measures in good time to regulate and improve the public transportation system to make it more comfortable, convenient, and attractive for car owners to travel by it, the Ministry of Communications has also to take some measures at the same time to prevent the worsening of the conditions of road traffic. Dr Beng had also said that certain measures taken are too harsh. It is a matter of subjective view which varies from person to person. My stand is there are two of the recently announced measures we may consider alleviating. The first item, the increase in season car parkingfees in HDB carparks from $25 to $50 can be implemented in two stages so that it will lighten the burden of the car owning HDB estate dwellers have time to plan in advance. The second item is about the evening ALS. Because it may cause more congestion along major ring roads, adversely affect CBD retail businesses and cause the residents inconvenience, I feel the Government should delay implementing the measure and allow the increase in CBD parking charges to work and reduce the increasing evening congestion in the city for the time being. Thank you, Mr. Speaker.”
“Sir, I therefore submit that although we need to control car growth in Singapore, the measures so far announced are not equitable and I would suggest that the Ministry spend a bit more time to reconsider them. Don't let us keep the car to the private homedwellers and the 5-room flatters, and the bus or the MRT to the 4-roomers and below. Have a system that enables greater mobility and more choice. Dr John Chen Seow Phun (Hong Kah GRC)( In Mandarin): Mr Speaker, Sir, yesterday the Member for Fengshan following Dr Hong Hai's motion supporting the principles in curbing road usage by vehicles added an amendment expressing regrets that some of the measures are too hastily introduced and too harsh and urged the Members and the relevant Ministry to reconsider. I do not agree to this proposed amendment. The reason is very simple. I am not objecting to his request for review of these measures by the Ministry. I feel that he should not say that the Government in implementing the various measures has been too hasty. I am one of the Members of the GPC on communications and information. I know that the recent plan and measures on road transport by the Government have been taken after careful thought and long consideration and implemented without choice but to run the dissatisfaction of the public. It is really hard on the Government with all its good intentions. The problems of road transport are just like those of Home Affairs. They are very difficult to tackle. I am very sure that our people do not mean that they just want the ministry to do nothing but allowing cars and road use to increase without restriction, because in the end when there is serious congestion on the roads and when road traffic is paralysed, then it will not be good to any body.”
“I wonder if they have the "middle end" charge. Sir, there is another poser. The person who lives in a 3-room flat may want to drive his family around during weekends to enjoy himself or he may just be someone who needs a car for his work . He may be a salesman in a small firm whose company does not provide a car but requires him to have a car before he can get the job. There are advertisements to this effect in the press occasionally. So how do we make 2 and 2 add up to 4? By the way, it is going to cost more too to visit friends and relatives in HDB estates over the week and I expect in due course the Member for Ayer Rajah will ask the Minister for National Development whether he will allow free parking in HDB estates for sons and daughters who want to visit their parents during the week. So, Sir, what is the net effect of just these two measures, meaning the change in car pool policy and the increase in HDB car park charges? The net effect is that those who can well afford a car will be happy. No doubt the 5-room flatter has to pay increased HDB car park charges but he is more than compensated for in reduced CBD charges. Those who need a car but are borderline cases, they drop their cars. Up to now, it may not be so bad. But when he has to resort to the motorcycle because he has to be up early and be in time for work, he not only faces increased charges but exposes himself to greater traffic dangers and the weather. If he resorts to the bus or the MRT, he may face greater inconvenience and having to rise very early to catch the bus or the MRT in time while many others are still resting happily at home.”
“The more ways people have to go to work, the less people will need to depend on one system. In this way, we reduce the inconvenience by giving people many choices and I thought the MCI espoused the thinking that the more people pay, the less each pays. Similarly, the more ways to go to a place, the less the inconvenience. By the way, in the evening, a person is further inconvenienced by not being able to car pool back home. This is one example of how we can affect some people's lives through a reversal of a policy which had hitherto worked quite well for many people. I wonder whether there are many other ways where other people around Singapore are being affected by this same reversal of policy. Then you have the increase in HDB car park charges. In increasing HDB car park charges, we need to be a little considerate. Sir, the increase paid by a person with a low income is more painful than that paid by a person with a higher income. Thus, to increase car park charges in HDB estates so steeply and across the board is not entirely fair. The person who lives in a 5-room flat or a maissonnette finds it less painful than a person who lives in a 3-room flat. Dr Hong Hai used the term "the appendage that does not belong" to describe the unusual event of increasing by 100% the HDB car park charges. To me, it is the appendage that was there which had become an "appendix". The surgeon in MCI has now used his sharp scalpel to remove the unwanted appendix. In discussing the increase in HDB car park charges, I am not even thinking of the "painlessness" felt by those who are currently residing in private homes and condominiums. Why? Because I am well aware of the fact that our civil servants these days have a famous dictum, ie, "front end", "back end" charges.”
“I am attempting to demonstrate that for certain people in certain parts of Singapore, the public transport system is still less than perfect, and it is exactly for the people living in these areas that I am speaking up for, ie, my friends and my constituents in Mountbatten. Sir, we were the ones who came out some years ago to encourage Singaporeans to car pool. Singaporeans, being cooperative, willing listeners, sensible, obliged and car pooled where possible. Now we are withdrawing this exemption for cars with four persons to travel free into the CBD. Question: are we letting Singaporeans down? How can we expect them to give us full cooperation the next time? Sir, in withdrawing the exemption, the Ministry gives the reason that they want to encourage greater use of public transport and that the people who were picked up for car pooling were actually bus commuters. But, as I have said earlier on, Sir, unless the public transport system works for as many people, ie, it is as convenient for any one person to travel from Point A, as it is for another to travel from Point B, as it is for another to travel from Point C, and so on, then to withdraw that exemption may be considered quite unfair. Unless the system is improved, you cannot do that. That is the reason why in my constituency people simply walk across the road, hop into a car that wants to get into the CBD with four persons free, and goes to where he wants to go. They have found a good solution, Sir, with a little more convenience and comfort to work. Let it be. After all, it is still the same person transporting his own body to the place where he wants to go without buying a car. Why should he be pushed into a bus or an MRT against his convenience?”
“The Senior Parliamentary Secretary to the Minister for Trade and Industry and the Minister for the Environment (Mr Eugene Yap Giau Cheng): Mr Speaker, Sir, first of all, allow me to seize this opportunity to thank the Ministry of Communications and Information for all the good things they have done for our transport system. Sir, it has always been my stand that as a Member of the Frontbench, I would leave it to the Backbench to question Government policies. However, you do get that odd moment when you see a policy sticking out like a sore thumb giving the impression that it was not carefully thought through and has the net effect of affecting certain quarters of the population and rather unfairly too. Not to speak up under such circumstances can be construed to mean irresponsibility on my part. Sir, I therefore rise to support the amendment of the Member for Fengshan. Although I do support the idea of Dr Hong Hai and some of my other colleagues in this House, I cannot support Dr Hong Hai's motion as it is directionless and if we adopt it, we will be going all over the place and be more confused. Sir, I submit the interim measures to control the growth of the car population will affect many of my constituents rather unfairly. Please allow me to explain. First, the change in car pool policy. My constituency is not fortunate as some others are into which the MRT runs, or where it is easy to get on to the MRT line. In certain areas, you cannot even hop into a bus and hope to travel to a place directly in that bus. You may have to hop into a bus, take a little detour somewhere, hop into another before you get to your desti- nation.”
“It only adds to the burden of the lower income car owners and taxi drivers who drive for a living. The second measure that will affect taxi drivers adversely is the increase in the Area Licence Fee for taxis from $2 to $3. This increase will reduce the number of commuters riding into the CBD in taxis in the morning. This will not reduce congestion caused by taxis because the number of taxis on the road is fixed in the short and medium term. Instead of driving into the CBD with commuters, these taxis will now just be causing congestion on the ring roads, as they ply around looking for passengers. In the afternoon the same thing will happen. There will be congestion again on the ring roads but a shortage of taxis in the CBD. Alternatively, the taxi drivers can buy the season CBD pass but this will raise the operational cost, again by another $2 per day but without any prospect of return. Since taxis are public vehicles, just like buses and MRT, I would like to urge the Government to retain the ALS fee for taxis at $2. I would also like to take this opportunity to urge the Government to review the taxi diesel tax increase scheduled for November this year. In conclusion, I would like to point out to the House that the recent measures to curb road usage together with the diesel tax increase have resulted in a drop in income by about 10% for taxi drivers since November last year. This setback is happening at a time when politicians, civil servants and many other workers are having salary increases and pay adjustments. From the taxi drivers' point of view, therefore, these measures are too harsh and they come too fast. Mr Speaker, Sir, I support the amendment to the motion.”
“Mr Speaker, Sir, this debate on our land transport policy would not be complete if I do not give this House the feedback of the taxi operators on the issue. At this point I would like to declare my interest again as the General Manager of NTUC Comfort. When I last addressed this House on this subject in January the taxi drivers were still reeling from the sudden hefty increase in taxi diesel tax in November last year from $1,100 to $4,400, an increase of $3,300 or 300%. This increase translated to a cost increase of $10 per working day. Since then the Public Transport Council approved only a 20 cents increase in flagged-down fare. Six months after the fare increase, daily collections have gone up only marginally - $2 in the case of single shift taxi drivers and $6 for two-shift taxis. In the same period, however, operating costs have gone up further because the price of diesel fuel has gone up in November last year from 34.2 cents to 42.9 cents per litre, an increase of 8.7 cents per litre or a percentage increase of 25%. This works out to an increase of about $3 per day for two-shift taxis. The net result therefore is that two-shift taxi drivers are still $7 worse off per day compared to pre-November 1988. Before enough time has been given for taxi drivers to recover fully they are now again hit by the recent measures announced by the Government to curb the usage of cars. There are two particular measures which hit them directly. The first one is the HDB car park fee increase from $25 to $50, an increase of 100%. This would translate to an increase of about another $1 a day for the taxi drivers. This increase is unnecessary at this time because this measure does not curb usage of taxis or cars at all.”
“The measures the Government has introduced so far, however, apply mostly to Singapore cars. I would like to take this opportunity to ask the Minister how many Malaysian vehicles visit Singapore regularly, whether they contribute significantly to the congestion on our roads, and whether the Government plans to introduce new measures to control their usage in Singapore, especially by Malaysians working in Singapore. Sir, I realize that this Bill is not going to be a popular one. However, if the Government is receptive to some of the suggestions Members have brought up, there should be minimal inconvenience and misunderstanding between the motorists and the Government.”
“In order to allow the use of petrol tax to be effective, the two markets of Singapore and Malaysia must be kept separate. The half-tank measure is one way. A toll at the Causeway seems to be another simpler way. This toll can be adjusted accordingly when the need arises. However, the toll may be more costly to motorists who do not go to Johor Baru with the sole intention of filling up their tanks. And from the feedback I have received so far and the press reports I have read, this seems to be the case, ie, most motorists do not go to JB just to fill up their tanks, except for some people I hear living in Marsiling or Woodlands New Town. If this is the case, then this new law would not be such a deterrence to tourism in Johor. It would also not unduly penalize tourists and businessmen who visit Malaysia for all the other kinds of things she can offer. As for the intrusion into privacy and further inconvenience to motorists, I am glad to hear from the Minister that only spotchecks would be conducted and this would be done as unobstrusively as possible. And also in case of doubt, the benefit would also be given to the motorists. But what I would like to suggest is that the authorities should also consider allowing motorists the option to pay a fee. The fee can be $5 or $10 or it can be varied as and when changes in the tax is introduced, in the event that some motorists genuinely forget to fill up at least half a tank before leaving for the Causeway, or for those who are in too much of a hurry to do so. To qualify for this payment, motorists must declare this before the spotcheck point. Mr Speaker, Sir, road congestion in Singapore is caused by all motor vehicles, irrespective of whether they are registered in Singapore or in Malaysia.”
“Mr Speaker, Sir, I will also be brief. When I first heard about the intentions of the Government to make it mandatory for all cars leaving Singapore for Johor to have at least half a tank of petrol, I was at first incredulous. The reasons have already been outlined by my colleagues such as, it seems like an unfriendly act towards our neighbours. It also seems like an intrusion into the privacy of motorists. And thirdly, inconvenience to motorists crossing the Causeway to Johor. However, as one thinks about the basic objective of this Bill, which is to alleviate the problem of leakage of petrol tax and allow the Government to continue to use the petrol tax to control the usage of cars, there seems to be no better alternative. On second thought, therefore, this law seems to be another one of those creative, novel but nevertheless effective way of resolving our traffic problems which our Government is now known worldwide. Let me now deal with the initial reservations I had, and probably most motorists in Singapore have, regarding this policy. Most motorists agree that the move away from high taxation solely on ownership of cars towards more taxation on usage is in the right direction. In principle, therefore, we must accept that a high petrol tax is preferable to higher ARF, road tax or registration fee, as it is a better proxy for usage of our vehicles. Greater usage, however, does not necessarily mean greater contribution to congestion on the roads in Singapore. In the absence of electronic road pricing and other technology that will enable us to tax users based on the congestion they cause, a higher tax on petrol seems to be the next best alternative.”
“Sir, I would like to declare my interest.”
“Sir, in asking Question No.3, may I also declare my interest in this subject. The Minister for Communications and Information (Dr Yeo Ning Hong): Mr Speaker, Sir, taxis are used very intensively for many hours on our roads each day. Therefore, for the safety and convenience of taxi commuters as well as other road users, they should be roadworthy and well-maintained. The annual mileage clocked by a taxi is on the average about 138,000 km, that is seven times that of an average car which is about 19,000 km per year. In other words, a 7-year old taxi would have covered as much mileage as a car in its 50th year and would be subjected to corresponding wear and tear on parts that are not replaced. The percentage of 3-year old taxis which pass their statutory inspections at first inspection is 67%. That is about the same as that for 9-year old private cars. Similarly, the passing rate for taxis in their sixth year is much lower than that of cars much older than 10 years old. In view of that, the Government does not intend to extend the 7-year statutory limitation on taxis. COMMITTEE OF SUPPLY TIME LIMIT FOR SPEECHES (Exemption from Standing Orders)”
“The incidence of such taxes, therefore, should fall upon them. Without any hidden subsidies, the commuters can then rationally decide on the mode of transportation to use, given the real market prices they have to pay. The operators are merely providers of transport service and they act as agents for the Government when they collect such taxes on road usage in the form of higher fares. No single transport provider in Singapore has monopoly over any transport service. Therefore, the fares which will eventually result will be dependent upon the market forces of supply and demand. In the move to change over to greater taxation on usage, I would like to urge the Ministry to move slowly and with caution so that both commuters and transport providers alike will have time to adjust. I also hope the Ministry will slowly remove all unnecessary regulatory mechanisms that may prevent the free market forces from achieving economic equilibrium. As we move away from high taxation on ownership of cars, the Ministry should also consider eliminating the aritificial price barrier between different categories of cars posed by the PARF system. As our nation becomes more developed, our people demand a better quality of life. Two of the most important indicators of quality of life are better housing and better quality cars. Quality housing has become much more affordable now, especially the younger middle income people through the use of CPF for housing. It remains now to make quality cars more affordable. This will go a long way to help stamp the flow of younger people who emigrate in search of a better life.”
“Mr Chairman, Sir, before I begin speaking on this subject on land transportation, I would like to declare my interest. Broadly speaking, there are two basic types of land transportation in Singapore. They are public and private land transportation. Public land transportation com- prise buses, taxis and the MRT. In terms of ridership, the buses are No. 1 with 2.5 million passenger-trips per day, taxis No. 2 with 700,000 passenger-trips per day, and MRT in third position with only 280,000 passenger-trips per day. Private land transportation consists mainly of passenger cars and commercial vehicles. Both public and private vehicles take up road space and add to road congestion. I am pleased therefore to note that the Ministry has finally decided to gradually move away from taxation solely on ownership of vehicles to taxation on usage and contribution to road congestion as well. This move is in the right direction and is long overdue. In order for taxation on usage to be effective, the incidence of such tax must fall upon the users. In the case of private vehicles, it is quite clear that the owners of the vehicles who are usually the drivers are the users. Greater taxation on such usage, whether it comes in the form of higher petrol tax or Area Licensing Schemes, or electronic road pricing, will hopefully deter high usage, especially in congested areas during peak hours. Those who use them for business or official duties will obviously eventually pass them on to their employers, and eventually their clients or customers in the form of higher fees or higher prices. In the case of public vehicles, however, the owners or operators of the vehicles are not the users. The commuters are the users of such public transport services.”
“In order not to be too dependent on foreign skilled resources in this area, how does the Ministry plan and coordinate the training of such skilled manpower at all levels for these industries which EDB is trying to attract? In the last recession when shipbuilding and ship repair was badly affected, many workers were retrenched - skilled labour, technicians and marine engineers alike. The polytechnics, however, were still training such skilled technicians in the midst of the economic downturn. When they graduated, many ended up in jobs totally unrelated to their area of training. This seems to be a waste of training resources. Recently, the ship-repair business has picked up. However, I am given to understand that many students in the polytechnics are still avoiding the shipbuilding and offshore engineering department. This may lead to a shortage of such skilled labour in the ship-repair industry later. I hope the Ministry will look into matching the training of our limited manpower resources to the needs of industry and the services which we provide so that our economic stability can be maintained in the long term.”
“Sir, the mission statement of the Ministry of Trade and Industry is to maintain economic stability in the country and to promote Singapore's economic growth. I wish to congratulate the Ministry for having done an excellent job and bringing about an economic growth rate of 8.8% in 1987 and 11% in 1988. Like my colleagues before me, I note with concern, however, that out of this 11% economic growth, 2.8% of this growth was contributed by foreign labour. To maintain strong economic growth with too much reliance on foreign labour is not sustainable in the long term, as many have pointed out. Too much reliance on foreign labour also artificially depresses our workers' wages and creates social and political problems. Therefore, in this respect, I am pleased to note that the Government has taken action to contain the problem in two ways. Firstly, by increasing the foreign workers levy and, secondly, reducing the ratio of foreign workers to total workforce from 50% to 40%. Hopefully, this will encourage employers to robotize, automate and computerize their operations and also employ retirees, housewives and the physically handicapped first before resorting to employing foreign labour. Despite the labour shortage, the EDB is still working very hard to attract foreign investments to Singapore. In view of our labour shortage problem, I would like to ask the Minister whether EDB is now more selective in the types of industries we are trying to attract and, if so, what are some of these industries? New industries will also mean greater demand for certain types of skilled manpower resources.”
“To the pensioner, this is very important because this may mean a difference of hundreds of dollars which he will have to live with, and probably gripe about for the rest of his life. Now I would like to turn to the matter of new development projects. The Minister for Finance mentioned in his Budget Statement that the share of total Government expenditure and of GDP taken up by capital investment has been declining in recent years. As a proportion of GDP, the development expenditure to GDP ratio in FY 89 would be about 8.2% as compared with 12.6% in FY 87. The Minister said that his Ministry will give priority to bringing forward the implementation of major new development projects of Ministries and statutory boards to make up for any investment shortfalls. I would like to ask the Minister what these projects are and how much would they make up for the investment shortfalls. Mr Speaker, I support the motion.”
“On top of that, we must remember that there is greater job security for civil servants than those in the private sector. Generally, starting salaries of civil servants are quite attractive. The salary scales of different grades are also very comprehensive and attractive. The problem arises because of the slow rate of promotions, especially in the Administrative Service. Administrative officers sometimes wait three to five years for a promotion that brings about an increase of only $500 in pay. For example, from Superscale Grade H to G, to F, and so on. In the private sector, a senior officer may get a salary adjustment in a good year. Secondly, the Civil Service system does not seem to pay officers based on responsibilities carried. There are cases of senior officers seconded to statutory boards being paid less than their subordinates. This situation I think is quite undesirable and should be rectified. The Civil Service should move towards payment for responsibilities shouldered rather than seniority in service alone. I would also like to suggest that Civil Service salaries be adjusted more frequently, but in smaller quantums instead of a substantial amount once in a long while. The Civil Service salaries were last adjusted back in 1982, and that was seven years ago. Adjusting Civil Service salaries more frequently will ensure that they do not lag too far behind the private sector salaries resulting in a spate of resignations before any action is taken to catch up. More frequent salary adjustments will also ensure that those who retire on pensions will not feel short-changed if they just missed the latest salary adjustments.”
“Too much foreign labour artificially depresses our wage levels and creates social and political problems. I understand that the crime situation in Singapore has been aggravated by such foreign labour. It is better to have steady but sustainable economic growth without too much reliance on foreign labour. Employers therefore should explore the possibilities of extending the retirement age of their workers, employing retirees, housewives and the physically handicapped before resorting to foreign labour. Turning to the budget for this year, it appears to be a painless one for most people except the smokers. If I may say so, it appears painless because all the pain has been inflicted much earlier before Budget Day: on employers of foreign workers, employers of foreign maids, motorists and, worst of all, taxi drivers. I am curious to know why all these taxes and levies could not all have been taken together during the Budget since they were not such urgent matters that could not wait a few more months. Increasing taxes and other levies only once a year will remove feelings of uncertainty and also allow better financial planning by companies and individuals alike. It also means that this House be given the opportunity to debate all these taxes and levies much fuller before its implementation. Now, if I may, I would like to comment on the subject of civil service manpower. I do not deny that the Civil Service and Statutory Boards must have dedicated and able officers at all echelons. To attract and retain such officers, we must pay them well. However, when we look at pay, we must look at the total remuneration package. In the case of civil servants, we must include the housing loan, car loan, pensions (for pensionable officers) and any other perks that they may get.”
“Mr Speaker, Sir, I rise to join my colleagues in supporting the motion on the Budget Statement. All Singaporeans are very happy to note that last year, the economy grew at an impressive rate of 11%. This is especially commendable given that 1988 was only a year after the worst stock market crash since the Great Depression. Not only was the economic growth the best in this decade, but it was also broad based. Credit must go to the Government for its sound financial and economic policies to stimulate recovery. At the same time, we must also not forget the role of workers. They tightened their belts during the recession, took steep cuts in employer's share of CPF contribution and accepted wage freeze and wage restraint on the understanding that when the economy recovers, they would be compensated for their sacrifices. I am happy to note that the Government has set an excellent example in this respect when it gave a bonus payment of 2(r) months (including one month AWS) to all civil servants when it was clear that the economic growth would exceed 10% last year. Most other employers followed suit, though to varying degrees, and some reluctantly. It is this kind of action by the Government in a good year that will instil confidence in workers in the move towards a flexible wage system. I urge all employers to follow the Government's example in this respect. Good industrial relations is one of the most important factors for economic growth. It should not therefore be taken for granted. Although the 11% economic growth last year is welcome news, one area of concern is that 2.8% of this growth was contributed by foreign labour. Although I sympathize with the plight of employers, I would also like to point out the dangers of overdependence on foreign labour.”
“In raising the diesel tax, the Government said that it was not meant to be revenue generating. If so, why then the great hurry to raise it so steeply, so quickly? Looking at the country's reserves, the Government is obviously not in urgent need to use the $58 million which the increase in taxi diesel tax will bring to its coffers. Yet, it refused to grant a longer period to phase in the implementation of the increase despite many pleas from taxi operators of financial hardship. It costs so little, it could have meant so much. If the Government thinks that taxi drivers are well off because they earn well, let me dispel this myth. 62% of NTUC COMFORT's taxi drivers live in only 1-, 2- and 3-room HDB flats. Another 29% live in 4-room HDB flats, making it a total of 91% who live in 4-room or smaller flats. This is much higher than the national average of 73%. Mr Speaker, Sir, I am now bringing to the attention of this House this disquiet among taxi drivers who feel that the Government does not want them to have a better life. This impression must be dispelled through concrete action and not just words. I would like to urge the Government to review this taxi diesel tax policy with greater understanding and compassion.”
“What this effectively means is that one-shift taxi drivers would take home only $1,107 per month and two-shift taxi drivers per taxi would be $2,262 per month after paying the full diesel tax. 85% of taxis in Singapore are on two shifts. So each two-shift taxi driver would then only earn a net income of $1,131 per month. Without CPF, AWS and bonuses, this income is equivalent to about $898. So this brings their income back to five years ago, to that of 1984. Compared to the average worker in the transport and communications sector, a taxi driver's income would be only 75% of that worker. His income would be only 65% of that of an SBS bus driver. I have attached all the calculations in this annex here. I am sure the press has got a copy of it. I am prepared to have these statistics scrutinized by both the press and the Ministry. Mr Speaker, Sir, at a time when the Government is laying down its programmes to create a better life for all Singaporeans in the next five years, it is my duty to alert the Government to the fact that the diesel tax policy will create a major setback by five years to the lives of 20,000 hardworking citizens who drive taxis 10-12 hours a day for a living. This setback will also be experienced by 80,000 dependants, 80,000 because the average family size of a taxi driver is 5. 65% of COMFORT's operators have three or more children. This is clearly very open and visible support for Government policy. Surely the Government then does not expect this large group of people to support this policy when, in doing so, they would be worse off economically. Not only did the quantum of the diesel tax increase raise doubts as to whether the Government wants taxi drivers to have a better life, but the manner in which it was done reinforced that impression.”