Lim Hwee Hua
Singapore
“Mr Chairman, Sir, I believe the Minister for Finance has actually addressed that quite adequately in the Budget Statement. I will encourage the Member to read the Hansard. As I recall, he did say that our projections for revenue have been made for the next five years and we do not target a particular source of revenue.”
“Mr Speaker, Sir, I would encourage the Member to file a question for MCYS, if she would like to discuss safeguards further. What I would comment here is that at the outset when we conceived the whole Integrated Resorts idea, there were many business risks: whether it is country risk or the timing of the business cycle and so on.”
“Mr Speaker, Sir, the supplementary questions raised by Ms Denise Phua have actually been debated to some detail under the different heads, in terms of the intended strategy – why we are having Integrated Resorts and casinos in the first place. This has been debated quite extensively by the Ministry of Trade and Industry.”
“Madam, I take the Member's point about the need for checks to be done professionally, and indeed this is the case, and that is why the officers would be sufficiently trained to conduct these checks in a professional manner.”
“The proposed amendments are necessary in order to effect the new financing framework, to allow for greater contestability to be injected into the RTS industry, as well as to ensure security and continuity of the RTS operations. Madam, I beg to move. Question proposed. 4.28 pm”
“Because of the complexity of the issues and the need for us to continue consulting other players who have already been operating in that space, as well as consulting the business community in greater detail, the study would take the better part of this year. OUTCOME OF 50PLUS EXPO 6.”
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“But we can view them as very much a complementary component of the entire bus route planning.”
“Sir, I would like to reassure the Member that the LTMP's focus and objective on the commuter remains there. The commuter remains at the centre of all our planning. As regards his observation that perhaps many members of the public do not seem to have been involved, there has been a lot of informal consultation going on. As Advisors would know, every CCC has been equipped with an LTA representative at the meetings, and bus routes and traffic conditions have all been part and parcel of that ongoing dialogue. Grassroots leaders themselves have very good ground connections and they are able to reflect the needs of the residents and this consultation has been going on as well. But for this central bus route planning, the LTA has adopted a structured approach in order to ensure that there is a formal process to it. This is not to say that the discussions and consultations are limited to this framework. Commuters at large are still welcome to contribute their inputs through the usual hotlines to either the LTA or PTC, and all inputs will be put together. There will also be consultations beyond the GRCs and the SMCs because a lot of the bus route planning tends to revolve around townships as well. As for the Member's second question about the role of the premium bus services, in this central bus route planning, it does not cover the premium or niche services. Nonetheless, based on the consultations that we have had so far, there tends to be discussions on such services. I would like to assure the Member that they will not be used to "plug the gaps", so to speak. We will be looking at how to refine the existing basic and feeder bus services. The premium and niche services will remain market-driven. They will go through the process as per now, which is application to the PTC.”
“Mr Speaker, Sir, LTA has been making good progress in preparation for its role as the bus network planner. LTA had earlier consulted transport experts, academics, operators and Government planning agencies to get input on the principles and strategies to guide the development of the network. It has since developed a draft Bus Routes Master Plan (BRMP), which will serve as the blueprint for basic bus services, with the aim of benefiting as many commuters as possible while maintaining the overall financial viability of the bus system. LTA has started to hold a series of consultations with the Advisors and grassroots leaders of all the Group Representation and Single-Member Constituencies, to share its assessment and discuss potential improvements to the bus services in each of these constituencies. The aim is to solicit feedback and suggestions on how best to improve the bus network. LTA targets to complete this series of consultations by the first quarter of 2010. Thereafter, LTA will seek the Public Transport Council's approval for the finalised bus routes, before gradually rolling out the changes. Mr Speaker, Sir, surveys conducted by SMU indicate that the majority of Singaporeans are satisfied with bus services today. This shows that our basic bus service network today is already quite good and fairly comprehensive. Hence when LTA rolls out the changes in the master plan, it will focus on modifying and improving the existing bus network. This is a better approach than undertaking a major overhaul of the system, which may excessively disrupt commuters’ routines or leave them worse off.”
“Sir, there have been anecdotal increases in public transport usage but I do not have the exact numbers with me here. Certainly, with the increased frequency, there have been heavier loads during the peak hours and, all in all, the main changes have led to a higher consumption of the public transport services than, say, private car usage. Column No : 1289 CENTRAL BUS ROUTE PLAN (Update) 4. Dr Lim Wee Kiak asked the Minister for Transport (a) if he will provide an update on the plans to implement a central bus route planning; and (b) what are the plans for public consultation.”
“Hence, there will be a challenge for IRAS to identify which are the ones that are ultimately meant for qualifying shipping vessels when that comes through. Nonetheless, let me once again thank Members for their support of the Bill. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. LEGAL PROFESSION (AMENDMENT) BILL Order for Second Reading read. 3.19 pm”
“Finally, and most importantly, the Minister for Finance has explained in his round-up speech that a 2% GST cut would be less effective in helping the lower and middle- income groups, than the measures that were announced in the Budget 2009 statement, to help households. A better way would be to target household assistance schemes at those who would require this assistance more. Let me now go on to Mrs Mildred Tan's comments. I would like to thank her for a very well argued suggestion to extend the GST scheme for the aircraft parts to the shipping equivalent. As she has said, this is also feedback that we have received during the recent consultation exercise. As the Member has also informed the House, a review is currently under way. But let me just lay out two complications if this were to be applied to the shipping industry or the equivalent, and these would be issues that we would have to address before we make any legislative amendments. Sir, the first is the concept of international travel. Unlike air travel where there is minimal if not zero risk of abuse, because all jets would be used for international travel as opposed to internal travel, there is a prevalence of local and dual usage of ships within Singapore waters. So it will be very difficult to identify ships that are used wholly for international travel, but it is not impossible. It is an issue that we would have to address. The second is that the regime for the use of aircraft parts in terms of regulation and requirements is more stringent and well specified. The certification of such aircraft parts and the linkages to qualifying aircraft are straightforward. However, there does not exist a similar stringent regime for ships.”
“Sir, first, let me thank both Members for their support of the Bill. Mdm Ho Geok Choo has asked a question of detail with regard to how a cash voucher might be used or rather how GST would be computed for a cash voucher where the amount redeemed is actually below the cap indicated on the voucher. Let me attempt to answer her question. As a cash voucher is a qualifying voucher, GST will be charged on the actual consideration received for the voucher, regardless of how much is actually redeemed or used. This is consistent with the use of all cash vouchers at the moment, regardless of whether or not there is a discount. Mdm Ho also asked, as a matter of policy, if GST could be reduced to 5% if the economic conditions deteriorate further. Sir, this proposal has been discussed and debated actively during the Budget debate. It is based on similar arguments, so I will refer the Member to the Hansard records. But let me just briefly recap the reasons why a reduction in GST is not desirable. Firstly, the GST is really a tax on the end consumer and businesses which can claim this GST paid back on the inputs from the Government. In fact, a temporary cut would result in more administrative cost because they would have to do it twice. This would actually lead to higher compliance costs. Secondly, a GST cut would not be effective in stimulating demand in the Singapore economy, which is quite clearly evident in the case of the UK where they cut their value-added tax and there were no perceivable effects in terms of an increase in consumer spending at all.”
“Sir, indeed Mdm Halimah is correct. It will be the track record when assessing the suitability of the bidders. It will be points as what she has raised, including whether they have been paying the CPF on time, because this will result in poor work performance and will ultimately affect the ability of the workers, and therefore the contractors, to deliver on time. If there is a bad track record, that would come under strong scrutiny at the point of assessment for other contracts. CHILDREN OF EUROPEAN-ASIAN MARRIAGES (Race classification in Primary One registration) 8. Mr Christopher de Souza asked the Minister for Education whether he will consider allowing children of European-Asian marriages to be classified as Eurasians for the purposes of registration into Primary One and, if so, whether he will confirm that the race of such children will be recorded as “Eurasian” and not “Others”.”
“Sir, the answer is "no". Mdm Halimah Yacob: The Minister mentioned that there is a tripartite advisory that is disseminated to the vendors. My question is: how does the Ministry ensure that the vendors actually comply with that, particularly on the law that protects the workers and also the law on payment of CPF to the workers?”
“Sir, as the Scheme has only been implemented since January, it is a little early to draw a definitive conclusion on the overall effectiveness. Suffice it to say that the anecdotal feedback from the employers has been rather positive. And many have indicated that the presence of the Jobs Credit Scheme has enabled them to re-assess their manpower requirements and many have actually constructively thought of ways of deploying the staff as well as sending them for training, whilst benefiting from the Jobs Credit Scheme as well. COACH OF THE YEAR AWARD (Roles and involvement of MCYS) 2. Mr Seah Kian Peng asked the Minister for Community Development, Youth and Sports (a) if he will outline the roles and involvement of the Ministry vis-a-vis the Singapore Sports Council, Singapore National Olympic Council and the various national sports associations; and (b) given the public interest on the nomination process of the former national table tennis coach for the Coach of the Year Award and comments made by the relevant bodies and persons, what are the learning points from the Ministry's perspective.”
“Sir, since the introduction of the Jobs Credit Scheme, about a hundred thousand employers, employing some 1.3 million local workers, have received S$920 million from the first of four payments of Jobs Credit in March 2009. This is based on the wages that they paid in October to December 2008. As to the split by SMEs and MNCs, I do not have that information with me. With regard to Mdm Halimah's question about whether there are ways to discover the phantom workers, the Ministry of Manpower (MOM) as I understand is working very hard to detect some of these companies. The point I want to put across is that as soon as we have any indication of such a possibility, the payments will be withheld. This is to prevent abuse.”
“Sir, indeed there are some companies that are under investigation and as I have mentioned in my reply, if the allegations are proven correct upon verification, the Jobs Credit payment will be withheld.”
“Sir, as a small open economy and financial centre, we need to be nimble and the recognition of this Standard is an acknowledgement that the world has changed and Singapore has never stood still. We continue to review all these changes and it is triggered really by the October 2008 move, or rather by the milestone, when the Standard was recognised as an internationally agreed benchmark by the UN Committee of Experts so there is broader recognition of that Standard. And in terms of when we will get onto the white list, basically as I have mentioned in my reply, the intention is to air for public consultation the legislative changes and at the same time we will work with our DTA partners on the changes for each treaty.”
“Mr Deputy Speaker, Sir, I would like to assure the Member that this is clearly a balance between not dragging out the process as well as making sure that we do not rush through the processes. But his comments are well taken. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." – [Mr Mah Bow Tan]. Adjourned accordingly at Twenty-three minutes to Eight o'clock pm to a date to be fixed. APPENDICES”
“As of 1st April, which is just recently, the two entities have actually crossed over into operational separation. The intention is for them to be legally separated by July. But, essentially, this is really work-in-progress and refinements will be made along the way. We are not in a rush, and we are continually reviewing it even post-corporatisation.”
“Sir, let me just conclude with the following comments that Changi Airport is where and what it is today really because of three key factors: firstly, the foresight in planning for and investing in capital intensive infrastructure; secondly, the rather enduring partnerships with the different stakeholders, especially the airlines, and most importantly, the dedication of the thousands of employees who have toiled hard and sought excellence every step of the way. These are the very same ingredients that we will need, going forward, as we can expect competition to intensify. So, a corporatised Changi Airport and a restructured regulator will help sharpen the commercial and competitive instincts while ensuring that the strategic interests are not compromised. There would no doubt be refinements and changes that we would need to make as we proceed but this Bill attempts to provide the necessary regulatory and economic framework upon corporatisation. Let me assure Mr Cedric Foo that MOT will monitor well beyond the legal separation of the two entities. Once again, let me thank Members for the support of the Bill.”
“The triggers, as I mentioned in my speech just now, would be two sorts, for example, the existing terminal capacity utilisation and, secondly, the constraints that may be posed by the runway and other capacity for aircraft movements. Terminal 4 expansion is really some years away. The appropriate funding model, whether it is Public Private Partnership (PPP), will be considered in due course. Let me now touch on some of the other questions which have been raised by both Mr Banerjee and Mr Liang on the capital structure of NewCo. Let me reiterate that there are no plans to privatise NewCo whether through a listing or otherwise. So there is no timeline for that. Post-corporatisation, NewCo will have to shape its capital structure accordingly for operational flexibility as well as financial soundness. The Government does not intend to regulate the level of gearing but will leave NewCo to decide on what is appropriate. NewCo's cost of borrowing, as Mr Liang is concerned about, will be priced commercially, and be more reflective of the underlying risk-reward profile that NewCo has. It is also useful to remember that the cost of Government's capital is not zero. There is an opportunity cost which will approximate the market cost of capital. Statutory boards are currently operating under a regime of value adding in excess of cost of capital. So, this is not too alien a concept to them.”
“The ex-ante standards are set for some key critical matrix, for example, passenger service and cargo. Specific standards will relate to short-shipped or mishandled baggage, passenger delays and passenger satisfaction, which will be through comprehensive surveys. Each key indicator will be linked to penalties for non-compliance or, if appropriate, incentives for over achievement. The ex-post monitoring would be done on other matrix where it can help ensure high safeguards whilst avoiding the impediments of excessive regulatory scrutiny. So this will cover areas such as other operational performance indicators, and are monitored on a quarterly basis, and where NewCAA, the restructured CAAS, may demand remedial actions by NewCo. Examples will include immigration and check-in procedures, for example, the percentage of passengers who cleared the check-in procedures within 10 minutes. So these service standards will be specified. Let me now move on to the development of Changi as an aviation hub and the masterplanning process. Let me assure the House that both NewCAA and NewCo will be jointly responsible for the development of Changi as an aviation hub, so it does not only reside in just one organisation. In fact, NewCAA will formally establish a new aviation development role. Both NewCAA and NewCo will jointly undertake masterplanning of the airport and adopt a long-term perspective, as a long lead time, as we all know, is required to add capacity. There is also a mandatory five-yearly review of the masterplan by both NewCAA and NewCo and triggers will be specified.”
“This is where a proportion of the non-aeronautical revenues or profits will be used to keep the aeronautical charges competitive, thereby providing some incentives for the operator to enhance its non-aero revenues. Sir, a commonly asked question, including by Mr Foo, is whether corporatisation will lead to higher charges. Let me now remind the House that the very aim of corporatisation is to ensure that Changi's competitive edge is maintained. The concerns about monopolistic pricing risk should really be discussed in the context of Changi's role as a hub airport where competition is actually a lot tougher than that for a non-hub airport, because competition is regional and global in nature. And Changi, through the years, has been very much alive to these real pressures regardless of its legal structure even in its current state as a statutory board. Nonetheless, we will institute a price-cap regulation as it will serve to protect strategic interests better. This mechanism will apply to aero charges including items like the passenger service charge. And the Government has decided that there will be no change to Changi Airport's charges for a period of two years after corporatisation. Let me reiterate again that the competitiveness of Changi Airport remains an overarching consideration and concern of the Government. Should there be exceptional circumstances, for example, a severe economic recession or the emergence of a new competitor playing along rather different pricing rules, the Government will be prepared to step in with other measures. Sir, let me now move on to service standards. Essentially, the service standards will be a combination of ex-ante and ex-post service standards. Let me explain.”
“Mr Deputy Speaker, Sir, first allow me to thank all three speakers, Mr Foo, Mr Banerjee and Mr Liang for giving their support to the Bill. I think Members have obviously recognised and underscored the importance of a world-class airport to Singapore's economic future. What is important is to understand that an excellent Changi Airport is really only the means to an end and the end is to entrench Singapore as a major business and trading hub. All Members have raised a very important concern and that is the question of balancing the strategic interest with the corporate interest. And this is mainly because the airport generates, as we all know, positive externalities for the Singapore economy as a whole but which may not accrue to the airport company itself. Hence, when we designed the economic regulatory framework, we took pains to align the interest as far as possible. Let me give a few examples. For example, NewCo is strongly incentivised to grow passenger traffic as it will raise its own revenues in the process of doing so. The service standards will be specified and closely regulated, so that there will be no slippage. The planting of infrastructure will also be clearly specified as part of the licence. So these are some of the safeguards. Let me now briefly expand on each of the three very important areas which Members have raised. Firstly, price regulation to ensure competitiveness. Secondly, maintenance of the service standards. And, thirdly, the development of Changi as an aviation hub which includes masterplanning. Firstly, on price regulation. I agree with Mr Banerjee that there is a need to balance the achievement of the aeronautical and the non-aeronautical revenues. Let me inform the House that we will adopt a hybrid till.”
“Sir, if there are significant improvements in the traffic speeds, these would be captured through the quarterly reviews and adjustments will be made accordingly. UPDATE ON SCAPE BUILDING 7. Mr Seah Kian Peng asked the Minister for Community Development, Youth and Sports (a) whether the economic downturn has affected the budget and construction schedule of the *scape building; (b) how much is the viability of this development dependent on the revenue from retail space; and (c) what is the status of the development to-date.”
“Sir, I would agree with the Member that there are many areas that the review would have to take into account, such as the ethical and performance standards – as he has described – as well as the mode of licensing. These will be the very issues that the review would cover. 2.29 pm”
“Sir, the Government notes that the current state of the industry is not satisfactory. Indeed, there have been frequent complaints against unscrupulous housing agents. The relevant Government agencies, including MND/HDB and MOF/IRAS, are reviewing possible ways of strengthening the regulatory framework and raising overall professional standards. Amongst other things, there is a need for greater control by the housing agencies over the conduct of their agents. The review will cover areas such as qualifications and training requirements, a dispute resolution mechanism and an enforcement framework against agencies with errant agents. The Government will announce details when the review is completed.”
“Instead of a set of rigid eligibility criteria, we encourage jobseekers to approach career consultants at the Community Development Councils (CDCs) or NTUC's Employment and Employability Institute (e2i) for assistance. This is because the training allowance is not an entitlement but depends on the circumstances of the jobseekers which may differ widely. The career consultant will then be able to assess the jobseeker's training needs as well as his commitment to find a job after training, in deciding whether he will receive a training allowance. In addition, the career consultant can also provide advice on training and career opportunities to help the jobseekers. This approach is more flexible, yet rigorous and effective. TRIPARTITE GUIDELINES FOR MANAGING EXCESS MANPOWER (Severance coverage) 9. Ms Eunice Elizabeth Olsen asked the Acting Minister for Manpower (a) what guidelines are there with regard to severance for those who are not covered by the Employment Act as this does not seem to be included in the Tripartite Guidelines for Managing Excess Manpower; and (b) whether the Ministry has plans to be more proactive on the issue of severance.”
“Sir, to Ms Sylvia Lim's first question, the answer is "yes". But, if I may reiterate, Temasek is not part of the Civil Service. So as and when there is a need for anyone to be in receipt of sensitive information, that will be treated separately from the employment as a Temasek employee. The second question is regarding the access to information on past reserves. As CEO of Temasek, he will obviously be in possession of information that is proprietary to Temasek and that will include the size of specific company's assets and so on. That itself will only form part of the overall size, so the CEO will not have full information on the overall size of Singapore's reserves. As to whether there is any purpose that, as a foreigner, he would be bound, well, the OSA covers all situations. Besides that, his own employment contract with Temasek would have certain provisions. These are the same provisions that employees with all companies would have regarding the privilege that they have in terms of possession of information, which they cannot subsequently divulge after they have left the employment of the company. So on both fronts, if he were covered by OSA, that would have been catered for or otherwise, his own employment contract would cover all these provisions as well. TRAINING ALLOWANCES FOR SPUR COURSES (Eligibility criteria for unemployed workers) 8. Mdm Ho Geok Choo asked the Acting Minister for Manpower what are the eligibility criteria for unemployed workers to qualify for training allowances if they undertake SPUR-approved courses. The Acting Minister for Manpower (Mr Gan Kim Yong): Sir, the fees for courses under SPUR are highly subsidised by the Government at 90%. Trainees who are unemployed may receive training allowances of $4 per hour.”
“Temasek also has some foreign Board members, although the Board remains in the effective control of Singaporeans. These practices are part of an open and meritocratic approach to building the organisation, so that Temasek can perform and continue to maximise the long-term value of its assets. However, if Ms Sylvia Lim is asking whether Temasek employees have access, in the course of their work, to information on the size of the Government's total reserves, the answer is "no".”
“Mr Speaker, Sir, Ms Sylvia Lim has asked why the Civil Service's hiring practice of restricting access to state secrets to Singaporeans is not applied to Temasek Holdings. Let me first clarify that Temasek is not part of the Civil Service or the public sector. It is a commercial company that is wholly-owned by Government. However, even in the public sector, the Government has not taken a view that all confidential information must be restricted to Singaporeans only. Government employees handle a whole range of confidential information, with varying degrees of sensitivity. The Government has engaged non-citizens, even for sensitive work and projects, where such persons are assessed to have the requisite expertise and have been cleared. Ms Sylvia Lim's question may have been prompted by the appointment of Mr Charles Goodyear as CEO-designate of Temasek. As Temasek CEO, Mr Goodyear would be privy to information about the company's operations. Although Temasek publishes all key information about the company and the value of its assets, some information about its operations is proprietary and restricted to those who need to know it for proper management of the company. In all instances, however, access to any information the Government considers to be confidential is bound by the Official Secrets Act (OSA). Before endorsing the Temasek Board's proposal to appoint Mr Goodyear, the Government had carefully assessed these implications as well as broader considerations such as the role of Temasek, and concluded that it was not necessary or desirable to require the position of the CEO of Temasek to always be held by a Singaporean. Indeed Temasek engages many foreigners, including at senior management levels.”
“As regards the comment that Mr Dhanabalan has reportedly made regarding the need for the CEO to be a Singaporean, the situation then was completely different. Temasek, at that point, was undertaking a re-orientation and definition of its strategy which includes the definition of the Temasek Charter. That is strictly a strategic piece of document which articulates its position with the shareholder as well as with the whole of Singapore. Therefore, the circumstances have changed. Temasek today is completely different from the Temasek at the time when Mr Dhanabalan is purported to have made that comment. HIRING PRACTICE AT TEMASEK HOLDINGS 7. Ms Sylvia Lim asked the Minister for Finance why the Civil Service's hiring practice of restricting access to state secrets to Singaporeans is not applied to Temasek Holdings.”
“Sir, it is important for the CEO of Temasek to be aligned with its long-term orientation regardless of the nationality of the CEO, in other words, whether he or she is a Singaporean or a non-Singaporean. I should add that Mr Charles Goodyear has been appointed as a permanent employee, similar to the arrangement for the incumbent CEO. So, in other words, he is not a contract employee. The Temasek Board has decided on the choice of Mr Goodyear as the next CEO based purely on merit, as I have elaborated in my reply. And the key factor, as explained, is really an assessment that he shares the values of Temasek and its position as a long-term investor committed to delivering sustainable returns. Let me just refer very quickly to an elaboration in the Temasek Review which explains how this long-term alignment is translated into terms of compensation. In the Temasek Review 2008, it is stated that Temasek adopts a well-balanced compensation framework which "puts the institution before the individual, emphasises long term over short term, and aligns employee and shareholder interests". A major part of the employee incentives is funded by Temasek's wealth-added or excess returns above the risk adjusted hurdles. Distribution of this incentive is in accordance with the contributions made by the individuals and a significant part of the incentives awarded to individuals is actually deferred to future years and only payable or vested when the wealth-creation is sustained. The deferred bonus portion is subject to deductions if the wealth added is not sustained. This framework of sharing rewards and risks affirms the principle of alignment with sustainable value creation.”
“Mr Chairman, Sir, I think I have stated quite clearly that our priorities are really to grant access first, before we talk about shortening the walk in whatever manner or form. But I should add that for the Khatib station in point, it is actually going to be included in the 70% of the population of existing stations that we will be equipping an additional barrier-free access. In other words, two more entrances to the station would be given additional ramps and this will be done by the third quarter of this year as opposed to the middle of next year. I certainly hope the Member is happy with that.”
“Sir, I would like to assure the Member that LTA in deciding on the locations of the different taxi-stops and stands, has been working very closely with the taxi-drivers as well as the Associations. But as the situation is fluid and travel patterns change, LTA will continue to monitor the situation and decide if certain locations should be changed. I would like to assure the Member that LTA is not going through an experimental process in terms of trying to have the taxi-drivers test the different propositions. In his cut earlier, he did mention that some taxi-drivers are at the mercy of passengers who asked to alight at the places that are prohibited. I would like to assure him that in enforcing the rules, compassion is exercised and the benefit of doubt will be given to taxi-drivers where such situations arise.”
“Going forward, on 1st April this year, CAAS will be separated operationally into the two new entities. This will allow staff in the entities time to get used to the new environment, to test out the operating systems and to iron out any teething problems. The legal separation is scheduled to take place formally on 1st July. Mr Chairman, Sir, allow me to conclude by noting that while the economic crisis we are facing now is unprecedented, the strength of our aviation industry, in particular of Changi Airport, has put us in a good position to weather the storm. Not only will we survive the current downturn, but also will we emerge from it stronger. It is this kind of unexpected and sudden crisis that necessitates the greater flexibility that corporatisation will give to Changi Airport. With the corporatisation of Changi Airport, we will be better prepared not just for the recovery but also for the long-haul. Maritime Hub”
“It is understandable that some of the CAAS staff might be apprehensive about the exercise. Let me assure them, and Members, that this corporatisation is not a cost-cutting exercise, i.e. saving money by cutting jobs. In fact, because we have to create a new regulatory interface and split corporate functions like human resource, finance and legal between the two new entities, more jobs will be created. No retrenchment of staff is thus expected in this exercise. In addition, as Changi Airport is a critical infrastructure, the legislative model of corporatisation will be adopted to ensure the least disruption to Changi’s operations. My Ministry will hence be introducing a Bill in this House soon, to effect the corporatisation. The key consideration in the assignment of staff will be the roles that they are assigned to the new entities. For example, airport management staff will likely be transferred to the new airport company. Others who are involved in strategic or regulatory roles will most likely be designated to the new Civil Aviation Authority. For those performing corporate functions common to both organisations, such as the ones I mentioned – human resource, finance and corporate services – postings will be based on organisational needs, and ensuring an equitable talent spread and critical mass in the two entities. This arrangement will ensure that officers are deployed to where they can best contribute to the organisation, based on their experience and expertise. Finally, all staff will join the new company and the new Civil Aviation Authority on 'no worse-off' terms at the point of transfer. They will be able to carry out their pre-corporatisation salaries and benefits – such as leave and medical benefits – to the new entities.”
“This will ensure that Changi will continue to offer the best value-for-money to its customers and thus ensure Singapore’s position as a global aviation hub. The economic downturn has not diminished the rationale for corporatisation. As part of the corporatisation exercise, the Ministry of Transport and CAAS have made study visits to important and busy airports around the world. These include Australia’s Sydney Airport, Holland’s Schipol Airport, Germany’s Frankfurt Airport, and the United States’ JFK Airport. Important lessons, especially on regulation and competitiveness, were learnt which have been incorporated into the corporatisation design for Changi Airport. Sir, we are mindful that Changi Airport brings positive externalities, not all of which accrue to the airport operating company. Hence, we set out to design a regulatory regime that will balance Singapore’s interest in strengthening Changi as an air hub, vis-à-vis the need for the airport to deliver sustainable economic value and be innovative in its services. The regulatory system will have sufficient levers on the company to ensure competitive prices, service excellence, and timely investments in airport infrastructure. Let me add that there are currently no plans to privatise the corporatised entity, which is in itself a separate and distinct decision that has not been taken at this time. The design of the two entities and the regulatory framework has been completed and the implementation is now in full swing. To ensure a smooth transition, CAAS has held a series of engagement sessions with staff to update them on the corporatisation exercise, to seek their views, and to address any concerns.”
“Once the industry structure is in place, it is up to the companies to compete with each other for market share, grow the business and remain viable. In the immediate term following Swissport’s exit, ground handling costs are unlikely to rise as the ground handlers are still bound by existing contracts. Sir, going forward, we are committed to maintaining contestability in the ground handling market, and are prepared to issue another ground handling licence should a suitable bid be made. Mr Chairman, Sir, Mr Foo and Dr Lam asked for an update on the progress of the corporatisation of CAAS for reassurances on the management of the airport’s staff during the transition, and also on whether the current crisis would have any impact on the exercise. 5.15 pm Last year, we informed this House that the government will restructure the existing Civil Aviation Authority of Singapore (CAAS) into two entities, namely a new company to run Changi Airport and a new Civil Aviation Authority for the regulatory and strategic functions. CAAS currently manages Changi Airport, provides air traffic services, plans and implements future airport expansion, regulates aviation matters and advances Singapore’s strategic interests in the international aviation arena. Corporatisation will separate its regulator and business functions so that each entity can focus on its respective roles. Corporatisation will give Changi Airport the flexibility to respond to changes in the aviation industry and the global business environment, and to stay ahead of the competition. As a corporate entity, it will be better able to attract and retain global talents. It will also be able to pursue overseas business ventures and investment opportunities more aggressively.”
“At a total estimated cost of $500 million, the upgrading will improve operational efficiency and provide users with a more integrated and appealing environment for travel, shopping, dining and entertainment. When the work is finished, the upgraded Terminal 1 would virtually be a new terminal. The expansion of Budget Terminal is scheduled for completion in April this year. This will increase its passenger handling capacity from 2.7 million to seven million passengers per annum. This expansion is necessary to facilitate the growth of the Low-Cost Carriers (LCCs) sector. In 2008, almost all (93%) of Changi’s growth came from the LCCs, compared to around half in 2007. Sir, let me now address Mr Wee Siew Kim’s question on the pullout of the third ground handler, Swissport, from Changi Airport. After operating for four years, Swissport made the decision to exit Changi in January 2009 as it was unable to gain sufficient market share to ensure commercial viability. Let me assure this House that Swissport’s pull-out does not lessen our commitment to uphold competition in the ground handling market at Changi. When we decided to award a licence to a third ground handler back in 2005, our objective was to allow for greater competition into what was then a duopolistic market structure. Following Swissport’s entry, there was a general lowering of ground handling rates to the airlines by around 15%. Further, the increased competition led to new products and initiatives being introduced by the incumbents, such as the new CIAS lounge in Terminal 1 and a new business model to cater to LCCs by SATS. The Government should not intervene in the market just to ensure the survival of a third player or a certain number of players.”
“Singapore has and will continue to work towards air rights liberalisation on a bilateral basis with other countries. The pursuit of liberalisation is critical to Changi as a hub because the starting point to an air hub’s connectivity is the rights for the airlines to operate. The benefits of liberalisation can be seen in the opening up of the Singapore-Kuala Lumpur sector in 2008. Rights for two additional daily flights were added in February, and full liberalisation implemented on 1st December. The results speak for themselves. In 2008, passenger movements for the sector grew by 11% to 1.89 million passengers. This impressive growth demonstrates that there is potential in the Southeast Asia market yet to be tapped, due to the limits imposed on the market. That is why we will continue to push for liberalisation within ASEAN under the Roadmap for Integration of Air Travel Sector (RIATS) and beyond. This will benefit not only our economy, but also that of our ASEAN partners as well. Looking outside the region, ASEAN is working towards air services liberalisation based on the RIATS, with key Dialogue Partners such as China and India. It would set the stage for new vistas of air traffic expansion in and beyond the region, enabling ASEAN to participate in the robust economic growth of Asia's foremost economic powerhouses. Finally, let me touch on the upgrading and expansion of our airport infrastructure. Two key projects are currently underway – the upgrading of Terminal 1 and the expansion of the Budget Terminal. These will not only help the economy, but also position Changi for more growth and widen its lead when the economic crisis is over. Sir, the work on Terminal 1 started in May 2008 and will be completed by end 2011.”
“To do so, we will need to do three things: – First, to help the aviation industry to reduce and contain costs; – Second, to push for greater liberalisation in the regional air travel market; and – Third, to continue with infrastructure upgrading and expansion. First, with airlines cutting back flight services to rationalise their networks, it is our aim to keep Changi Airport as high up the list of destinations airlines must retain as possible. To do so, Changi must continue to offer the best value for money even though it cannot be the lowest-cost airport. Towards achieving this objective, we have set aside for 2009 a further $130 million under the Air Hub Development Fund to finance programmes such as an increase of landing fee rebates from 15% to 25%, a Growth Incentive Scheme and a Route Development Incentive Scheme to help airlines grow their traffic out of Singapore. These measures are targeted at helping airlines in hard times, and to entrench them in Singapore. With the drop in passenger traffic numbers, the shops at Changi Airport are also feeling the pinch. CAAS has set aside more than $60 million in the form of a rental relief package for retail, food & beverage, and services concessionaires. This will lower the concessionaires’ rental cost and help them remain viable through this period of lower sales. Let me now move on to our continuing efforts to liberalise the air travel market which goes beyond addressing the short-term dip in travel pattern. With airlines' bottomlines severely affected by the current downturn, there is a possibility of national governments becoming more protectionist so to shield their struggling national carriers.”
“Mr Chairman, Sir, I thank Mr Cedric Foo, Mr Ong Kian Min, Mr Wee Siew Kim, and Dr Lam Pin Min, who have asked about the impact of the economic crisis on the aviation industry as well as the corporatisation of Changi Airport. Members have asked about the strategies and measures that are put in place to maintain Changi’s competitiveness in the face of the economic crisis. 2008 has been a tough year for the global aviation industry. First, the airlines were hit by a sharp increase in oil prices, which reached a peak of US$146 per barrel in July 2008. Then, the global financial crisis broke in September, triggering a severe global recession that the industry has not seen in quite a while. Sir, we are already witnessing the impact on Changi Airport. Passenger traffic dipped from a growth of 1.8% in October to a 3.2% decline in November 2008 and a decline of 0.6% in December 2008. Air cargo fared even worse. The 8% decline in October deteriorated further to a 14.2% drop in November and 21.4% drop in December. As Mr Ong has observed, as Changi did well in the first three quarters of the year, it managed to end the year 2.7% up for passenger traffic, serving some 37.7 million passengers while suffering a drop of 2% in air cargo, moving 1.85 million tonnes of cargo. Again, as Members have noted, the full impact of the global downturn can be expected to be felt in 2009. We expect Changi to welcome 8.5% fewer passengers or some 34.7 million for 2009. And consistent with the weaker trade flows and economic conditions, Changi is expected to move only 1.77 million tonnes of cargo or a drop of 5.1%. Sir, in the face of this slackening demand, how do we protect the competitiveness and dynamism of our air hub?”
“All existing MRT stations already have at least one station entrance fitted with a lift and a barrier-free route. LTA is currently installing additional lifts to 16 existing stations. LTA is also building ramps so that 70% of existing stations have at least two barrier-free routes by 2011. By 2010, 40% of our public buses will be wheelchair accessible, and we intend that by 2020, the entire fleet will be so. We will also be spending $60 million to ensure that road facilities islandwide are accessible for all pedestrians, including the less mobile by 2010. Sir, this is our priority at this time, to make sure that our less mobile residents can reach the station first, before seeing how we can shorten the walk. But we have taken onboard her feedback. LTA will study the viability of installing and maintaining lifts at pedestrian overhead bridges near MRT stations where there is sufficient usage to justify it. The same goes for providing covered linkways. This is again a popular request with Members. The principle here is to target our limited resources at places where it will make the most difference to residents. LTA’s main focus is on connectivity from transport nodes and transport facilities (ie, bus stops or taxi stands) to amenities like schools and polyclinics. But LTA will always consult the advisors when deciding where to erect such covered linkways, and there have been several occasions where LTA has adjusted their plans to take in the feedback. Beyond this, Town Councils can make use of their CIPC funds to further improve the connectivity within their estates if they choose to. 4.30 pm Cycling”
“Giving information too far ahead of a work site will unwittingly cause traffic to slow down too early and increase the inconvenience to drivers. In order to minimise the disruption, it is necessary to place the warning signs at an optimum distance from the work site. For expressways and other roads with speed limits of 70 kph and above, we would also require the deployment of truck-mounted attenuators to help absorb the impact in the event that vehicles miss all the advance notices and crash into the work site. Notwithstanding the comprehensiveness of the Code of Practice, there could still be instances where contractors do not follow LTA’s requirements strictly. Motorists can call LTA’s hotline if they spot any unsafe practices at road works and LTA will look into them. Let me now turn to the issues that Er Lee Bee Wah has raised. Let me first of all commend her for her persistence in raising these issues to serve her residents’ needs. I would like to assure her that we listen to feedback and suggestions, even if at times we are unable to accede to them immediately. One of the realities that my Ministry faces is that we have limited resources. We, therefore, have to prioritise as there are trade-offs involved in how we allocate funds and resources. Sir, we recognise that our population is ageing and we want to build a more inclusive society. Members would recall that one of the three strategic thrusts of the LTMP launched last year is meeting people’s diverse needs. This is why my Ministry has been spending more so as to ensure that our public transport system is accessible to the less mobile, not just in the Member’s constituency but for all Singaporeans islandwide.”
“Taxis that wait for passengers at taxi stops obstruct the flow of traffic and cause danger to other road users, just like taxis that queue beyond the allocated lots at taxi stands. This is why they are not allowed to do so. Nevertheless, if there are taxi stands where Mr Low feels more taxi lots are needed, I welcome Mr Low to let LTA know where these are, and LTA will be happy to look into his suggestions. Sir, let me now turn to Mr Chiam’s comments on better warning for road works. To ensure that contractors carrying out road works make necessary provisions for traffic warnings, LTA requires them to comply with a Code of Practice for Traffic Control at Work Zones (COP). Under the Code, contractors must provide sufficient and early warning to motorists approaching the work zone. The minimum sizes and distances for warning signs vary with the speed limit of the road. For example, a road with a 40 kph speed limit would require warning signs with a minimum size of 90 cm by 90 cm. The first warning sign is typically placed 120 metres upstream from where the lane begins to taper off. The signs for an expressway have to be at least 120 cm by 120 cm, and placed 480 metres away. Additional warning signs should also be placed closer to the work zone provided that there are not too many close to each other such that they end up confusing drivers. Contractors have to apply these guidelines according to the ground situation. The priority is to ensure that the signs are visible and motorists have sufficient time to digest the information and react accordingly. These guidelines were developed after extensive reviews of the standards and practices of other developed countries.”
“There are no demerit points for the offences and repeat offenders will be issued with the same amount of fine. As regards the increase in the number of taxis drivers caught, I would like to inform the House that arising from the greater awareness, the number of taxi drivers caught stopping indiscriminately along the main roads in the CBD area has actually declined by more than 80% since March 2008, from the high of 566 at the point of implementation to about 76 as at January 2009. Let me just recap for the House again why we have this CBD taxi rule. In the CBD where demand for taxis and traffic volume is high, some measure of control is necessary to prevent disruption of traffic, which may be caused by taxis stopping suddenly or changing lanes along public roads in the CBD to pick up or to alight passengers. This is largely a safety issue. There is, however, a trend which could have contributed to the supply and demand issue and which has exacerbated the situation. The increase in the number of offences can also be attributed to the drop in taxi ridership in 2008, due to the revision of taxi fares that took effect from December 2007, as well as difficult economic conditions in the later part of 2008. So with the supply of taxis exceeding demand, especially during the off-peak periods, there were longer queues of taxis at taxi stands, particularly in the CBD area. And this is despite LTA increasing the number of taxi waiting lots in the CBD by about two times, from 101 to 296. Sir, LTA has to balance the convenience of taxi commuters and taxi drivers against the safety and needs of other road users.”
“Mr Chairman, Sir, Mr Low Thia Khiang has commented on the surge in summons received by the taxi drivers on account of offences committed at taxi stops and taxi stands, whereas Mr Chiam See Tong has requested for more prominent road signs further upstream to alert motorists to ongoing road works. Er Lee Bee Wah has raised several requests to improve the connectivity and accessibility to public transport facilities in her constituency, as well as concessions for polytechnic students. As Minister Raymond Lim has spoken on her last two points, in terms of bus services and polytechnic students, I will not cover these, but will take the rest of the questions in turn. Sir, on the rule to disallow taxis from waiting for passengers at taxi stops or waiting beyond the allocated number of lots at taxi stands, this is really to ensure the safety of all road users. Taxi stands are intended to allow taxis to wait for passengers within the number of taxi lots allocated at each stand without impeding the flow of traffic. This allows both passengers and taxis to queue up in an orderly manner, without blocking the traffic lane. However, where traffic is heavy and due to space constraints, there are no lay-bys and no space for taxis to wait or queue without obstructing traffic, taxi stops would be assigned instead. Taxi stops are, therefore, intended only for the picking up and dropping off of passengers. Thereafter, taxis must move off from the taxi stop immediately. If there are no passengers wishing to board immediately, taxis should not wait at the taxi stop. Taxi drivers who are booked for waiting at taxi stops or queuing beyond the allocated number of lots at the taxi stands will be given a composition fine of $50.”
“Sir, I have given that reply to a previous parliamentary question, that GIC has actually registered a significantly lower reduction in value than the World Equity Index which I believe was 41% – let me just clarify that it is actually in the Hansard *. *Vol. 85, 4th February 2009.”
“Sir, the incentives, as we have been discussing, in a way reflect the attention that is paid to vehicles that are more environmentally friendly. But I would like to make a point about fuel taxes because I think that is an important point. It relates to usage, rather than the question of what technology and whether it is environmentally more friendly. If I may just repeat, fuel taxes serve, first and foremost, to price in vehicle usage. Therefore, there is no reason to exempt CNG cars from fuel tax permanently. Hence, the move to go forward with a rate, which some may mistake as a regressive step of imposing something for a "cleaner" vehicle. But that is really to harmonise the system back to the original intention of pricing in usage.”
“To answer the second question first, the new Budget has been drawn up with all those considerations that Mr Liang has raised, in terms of the impact of the markets on the NII, as well as taking into consideration the NIR that has been determined. As to whether the rates going forward, will be lower, I will say that the rates have taken into account the projections of the outlook going forward, as well as the current market conditions. Er Edwin Khew Teck Fook: A point of clarification for the Senior Minister of State. How does MOF correlate between a healthy environment and taxation? We have, currently in Singapore, a situation of an unhealthy situation with regard to particulate matter. If we do not allow enough time to encourage the use of cleaner fuel to improve the situation, we will still continue to have the situation.”
“Sir, I would like to assure Mr Seah that the public sector does not live by a survey alone. It constantly tracks all the different surveys, whether it is local or international, and always attempts to find out where the gaps are, with the view to fixing these gaps and better addressing the needs. As to whether there should be a discrete or definite benchmark to achieve, it is a suggestion that I can bring back to the Ministry for consideration, but we generally would look at the whole spectrum of measures, rather than just one particular measure. As I mentioned, the first "SPAR" will appear in 2010.”
“Sir, our current taxation system is really predicated on the divide of profits, as I have said, and that would remain so. But there is certainly scope if the Member were to evolve the social enterprise model, such that she can segregate the not-for-profit and the profitable parts of it, certainly, that is a conversation that can be taking place. As to whether the Government is sym- pathetic to the current problems that social enterprises or, for that matter, charities and VWOs might be having in this downturn, it is something that we are all aware of except that the Government cannot differentiate its treatment in terms of assistance to normal businesses and that to businesses which happen to be social enterprises. The treatment has to be consistent and the same.”
“Sir, as I was saying, when we were considering the whole NIR framework, we have actually considered the liquidity issues very carefully and taken stock of what we do have. As I said, we do have substantial holdings in cash and highly liquid fixed income instruments. So to answer Mr Inderjit Singh's question, Temasek and GIC will not have to liquidate the investments, so as to provide the stream of income. And this is the nub of the whole basis for going on to an expected return versus the actual returns. As to whether there should be another fund to rescue companies, this is an assessment that the Government will have to make over time to see whether there is a need for, almost like, a third investment company. But there are currently schemes under the EDB like SEEDS, which cater specifically to smaller companies and these are actually better equipped and are in a better position to assess the possibilities for investments in such companies.”