Mah Bow Tan
Singapore
“The previous generation of Singaporeans overcame huge odds together to create this improbable nation which we call home. Let this generation work as one to define our country for the next lap of our journey. Sir, on this note, I fully support the amended Motion. Page: 143”
“Like all upgrading programmes, there is a certain budget, and a certain pace at which we will build. We have completed the LUP and now we are going on towards the HIP. The Estate Upgrading Programme (EUP) is ongoing.”
“For those who cannot afford home ownership, we will provide rental flats. For the rest where there is hardship involved, that is where the safety net comes in. I do not think we should make the safety net so wide as to bring in everybody.”
“Building a studio apartment is no different from building any other HDB flat. If a person applies now and the building works start now, he can get it in two-and-a-half years to three years. We have stepped up the building of studio apartments over the last couple of years.”
“Mdm Halimah Yacob asked the Minister for Health (a) how many people have signed an Advance Medical Directive (AMD) and how many have revoked them since; and (b) whether there is a need to review the current rules on AMDs which do not require a person who has revoked the AMD to inform the Registrar, thus causing uncertainty for hospitals t…”
“Parents who wish to exert more control over the maximum mobile service charges incurred by their children may consider service options such as mobile pre-paid cards. IDA is aware of the public's concerns on mobile subscriptions, and will continually review policies and look into measures to further protect the interest of consumers.”
The complete record
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“Sir, I would like to inform the Member that I am in favour of his suggestion that taxi companies and taxi operators be allowed more flexibility in setting their fares. I think it is a good proposal as it will allow the various operators, as he puts it, to exercise more imagination and more innovation in the provision of taxi services. I would just like to add a few words of caution in this respect, ie, taxis are public service vehicles whose charges impact the public. So any changes that we make will have to take into account the interest of the public, in particular, the problems relating to confusion over too many different taxi fares and the more serious problem of overcharging by some taxi drivers. In other words, we must make sure that passengers do not get taken for a ride in more ways than one. I will ask the PTC to look into this matter to see how taxi operators can be given more flexibility in setting their fares without causing the attendant problems that I indicated earlier. But I would like to add that the Council has been quite receptive in allowing taxi companies to set differential fares. The Member has mentioned that the London cabs operated by TIBS are allowed to charge an extra $1. Passengers are free to choose to pay this extra dollar and if they do not wish to do so, there are many other cabs that are available. Sir, on the idea of setting a high ceiling, I will pass on to the PTC to consider the matter. But let me just say that, at this very moment, taxi companies are flexible. They are free to set fares which are lower than the current gazetted maximum fares that have been set. If taxi operators wish to do so even now, I am sure there will be no objections from the PTC.”
“This then is the service obligation that SBS has to fulfil - to run not just profitable routes but also unprofitable but essential routes. Of course, the definition of "essential" varies from person to person. This is where the Public Transport Council comes into play. Their job is to make sure that they assess all requests, either from the bus companies to implement new routes, to withdraw routes or requests from grassroots leaders or members of the public, especially Members of Parliament, requesting for new routes. The PTC has a difficult job but, so far, it has done an admirable job and I believe if there are inadequacies in any area they will be very happy to consider such requests on a case-by-case basis.”
“As he is aware, this was one of the objections to the Hong Kong system that was proposed and one of the reasons why that system was dropped. Sir, my Ministry will keep motorists informed and updated regularly on the progress of the ERP. It is an exciting development. If it works, as we intend it to, there would be benefits all round. We can keep our roads free-flowing and at the same time we can allow for more people to own cars and other vehicles. Sir, I turn now to the points raised by Dr Michael Lim. He asked whether bus companies conduct surveys. I believe they do. They conduct regular surveys, particularly when there are requests from residents and Members of Parliament and grassroots leaders on the inadequacy of services in their area. How do they conduct these surveys? I am afraid I am not in a position to answer that specifically but I would be very happy to ask the bus companies to enlighten the Member if he so wishes. The point that Dr Michael Lim makes that is more important is whether SBS only serves profitable routes. I have asked SBS this question and they have responded both to myself and to the Ministry as well as to the various Members of Parliament, and I would like to take this opportunity to repeat it. The current status, according to the Public Transport Council, is that out of all the services that are operated by SBS, roughly one-third of those services are not profitable, they are losing money. Another one-third are breaking even and another one-third are profitable. This is part and parcel of the obligation that SBS is required to fulfil. Yesterday, in this House, I explained at great length why we have allowed SBS and another company to more or less have a monopoly on routes in certain areas in exchange for service obligation.”
“I can tell him that the progress of the ERP project is on schedule because we have recently called for pre-qualifications and tenders will be called very soon. The contractor who is awarded the tender will be required to develop a mini system for demonstration in 1994 and, barring any unforeseen circumstances, we should be ready to pilot the project in 1996, with a full-scale system in operation soon after. Mr Leong was also worried about the cost. I can assure him that the cost of implementing the ERP will be more than offset by the manpower savings from the current manual system as well as by other benefits and conveniences that will accrue to motorists. What the ERP system will do is to charge motorists according to road usage. It will be a fairer and also a more flexible system. We can fine-tune the charges according to where the congestion takes place, and how severe the congestion is. In other words, we can use the system to keep traffic moving freely in all parts of the island. What is equally important, and I must stress this point, is that if the ERP proves to be effective in regulating the usage of vehicles -- we think it will -- we should be able to relax the vehicle quota system to enable more people to own cars. We may also review other statutory charges on vehicles, such as the road tax, when we implement the system. Details are now being worked out by my Ministry. Mr Leong expressed some fears that the system will encroach on the privacy of motorists. He will be pleased to know that a by-product of the system is that the specifications that we have drawn up will protect the privacy of vehicle users, because they will be charged there and then through pre-paid smart cards and their movements will not be captured on the central computer.”
“Sir, first of all, may I respond to Mr Leong. Yesterday, in this House, he raised the issue of the evening ALS once again and in his remarks he prefaced it by saying that he was trying to flog a dead horse. May I try to lay the horse to rest once and for all. Sir, in my reply to him in an Oral Question, I quoted some figures which the PWD gave to the Ministry of Communications indicating that after the opening of the CTE tunnel, the traffic counts showed that there was no change in the volume of traffic entering the restricted zone during the hours of 4.30 pm and 6.30 pm. I did not give him some other information which I think is material to the point that he was making, and that is, the volume of traffic waiting to enter the restricted zone after 6.30 pm has been rising steadily and, in fact, in the last six months, the volume of traffic waiting to go in has risen something like 20%. In other words, if there was no evening ALS, the volume of traffic entering the restricted zone would have risen something like 20%. Under the circumstances, if we lift the evening ALS we can expect traffic condition to worsen. I am afraid, therefore, I cannot agree with the Member's proposal and I hope that settles the matter. Sir, in so far as the Electronic Road Pricing (ERP) system is concerned, I would like to inform Mr Leong that we are going ahead with the ERP. However, as he has rightly pointed out, we should be cautious in the matter. The reason is very simple. The technology is available for us to implement but we will be the first to implement this system on such a wide scale island-wide. So we will be proceeding cautiously.”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 1992/1993, and ask leave to sit again tomorrow.”
“Sir, Singapore Telecom, as I have stated, is in the process now of reviewing this time-based charging system and all the views and options that have been expressed will be taken into account in this review and an announcement of the outcome will be made in due course. When Singapore Telecom is privatised, the TAS will be reconstituted as a statutory board and the activities of Singapore Telecom will be overseen by this statutory board. I wish to assure the Member that the interest of consumers will be safeguarded under the new situation when there is a separate statutory board. On the point of unhappiness of private factory employees not being allowed to use the telephones, I am sure Telecom will be pleased to install additional coinaphones for them if they wish to do so. I think I have addressed the points that have been raised.”
“Sometimes, I would like to think of our airport as a huge bus interchange with flights coming in and out at such frequent intervals that people would rather come to Singapore, catch a flight and then go on to their final destination rather than go directly because it is faster and maybe even cheaper to do it this way. While we continue to adopt this open sky policy, I must mention the fact that it does not mean that Singapore is prepared to give away more than what we actually receive. In this respect, whenever we have air services negotiations, it is the overall package of exchange that must be an equitable one. When I say "equitable", I am talking about there being a balance of opportunities, not a balance of benefits, for both sides. And the reason why we ask for a balance of opportunities is simply that we know, under such a situation, we can compete with the best in the world. Sir, I turn to Encik Harun Ghani's points. I thank him for his concern that Singapore Telecom's profit will be reduced because of the introduction of time-based charges. He asked for some latest statistics on telephone usage under the time-based charges. Sir, in January 1992, 69% of the people paid less under the time-based charges than under the flat rate system. So 69% of the people benefited from this conversion to the time-based charges. The corresponding figure for February 1992, last month, was 72%. The figure for December 1991, which was the first month that the time-based charging system went into operation, was very close to this, 73%. In fact, Singapore Telecom collected less revenue, $4.6 million less in the three months, December 1991 to February 1992, compared to what it would have collected under the old system.”
“There are other ports that are coming in the region, they are also, believe it or not, trying to be number one. They have all upgraded their facilities in the last few years. In terms of the kind of business that the Port of Singapore carries out, we have to continue to make sure that we are more cost-competitive than them, more efficient and we provide the best supporting services. If we can continue to do this, we will continue to remain as the number one port in the region and in the world and we will continue to reap the benefits. Sir, the Government is aware that the PSA must have the necessary support, particularly, in the area of port capacity. We must be able to provide sufficient capacity to handle the amount of cargo that is going to come our way. PSA is now working closely with the relevant Government agencies to plan a new container port which will meet the needs of Singapore beyond this century and keep us as number one. Sir, Mr Charles Chong also asked about our liberal open sky policy. It is a well-known fact that we have consistently adopted such a policy. Basically, what it means is that while we negotiate air rights on a bilateral basis with different countries, we want to have as many of these bilateral agreements as possible. Once such an agreement is concluded, we allow the other countries' airlines to fly to Singapore, even if our national carrier has no immediate plans to fly to that country. Why do we do this? The reason is very simple. It brings us many benefits. It enhances tourism, business from all parts of the world can get in and out of Singapore quickly and conveniently, encourages investment, it benefits trade. And most of all, consumers will benefit from a wider choice of airlines and more convenient itineraries.”
“Sir, Mr Charles Chong asked why we are so obsessed in always being the best in the world. It is my fervent belief that we must maintain this obsession and I use the word "obsession" without apology. Maintaining the number one position for us is not an end in itself but the means to an end. If I can use our sea port as an example, ie, why do we push and strive to keep the Port of Singapore the number one container port, in terms of shipping, and so on. To remain as the number one port is not just a matter of collecting accolades which all Singaporeans can be proud of. Surely we are proud to be the number one port in the world. But more importantly is that with this achievement comes not only pride but also very, very tangible benefits. Economically, the port creates jobs and it creates wealth for our people. There are 7,000 workers directly employed by the PSA. There are another 38,000 workers employed in industries which are related to the port. In 1990, the PSA contributed something like 2% to the national wealth and if we add the port-related industries, warehousing, ship chandlering, etc, the contribution rises to something like 3% to 4% of the national wealth. This is something like one quarter of the transport and communications sector's contribution to the national economy. It is not just a matter of being number one for its own sake but striving to be the best and, in the process, finding that we are the best in the world, we are number one in the world, and trying to maintain that position. There is no reason for us to feel apologetic about it. If we can do it, we should continue to strive for it. But I have to add that this is not going to be plain sailing.”
“Sir, in reply to Mr Chiam, it is the intention of the Ministry not to control the number of taxis on the road and to actually leave them free to decide how many taxis they want, depending on how much they are prepared to pay for the quota premium. I think we would like to reach that situation as quickly as possible. With the quota system, we are now in a position to do so. It is up to the taxi operators to decide how many taxis they want to put on the road. On the point raised by Mr Heng, I just want to say that it was not my intention to compare SBS with China Motor Bus, but to make the point that in terms of dividends paid out, not in terms of profitability, the numbers that we are looking at are not unduly excessive. Finally, just quickly to respond to Dr Wang, CAAS is looking at privatisation. We have a consultant looking at the feasibility of a privatisation exercise. The report is just in, and we have not had the chance to study it. But I just want to say that if privatisation helps CAAS, helps the airport, and helps Singapore to maintain its position as the air hub of the region, then we will consider it.”
“But it fell simply because there was no demand; or very low demand for cars during that time. And then again in February 1991, there was another reduction, a further 10% reduction in the ARF. The quota premiums of cars in February 1991 were lower than in January 1991. Again, they fell. Sir, in view of this very uncertain linkage, I do not think that we are in a position to accede to the Member's suggestion at this stage. In view of the time constraint, I will only reply very briefly to Mr Lew Syn Pau's point about diesel tax. I think we have debated this matter in this House many, many times. Whether we call it a diesel tax, or a taxi tax, it is not material. The point of the exercise really is that as a result of a review, and indeed we have done this review, of the role that the taxi plays in the scheme of public transport in Singapore, there was no legitimate reason for it to be paying the taxes that it was paying at that point in time. We have done the review and the Ministry feels that there is justification for this tax, call it whatever you like, but without this tax the whole tax structure for the taxis would have been quite unfair. Finally, the point about the prevailing quota premiums (PQPs) being valid for 10 years while the taxi is only valid for seven years. I think the Member has a point here. I will ask the Registry of Vehicles to look into this and to see how we can fine-tune the system further.”
“Unlike buses and MRT which carry large numbers of people, taxis are not efficient carriers of people. Therefore, because they provide a service, we grant them a concession. We group them under Category 2, which is a large category, so the pressure on COE prices is not too high. And secondly, we allow taxi operators not to bid for COEs when they replace their taxis. These are two concessions which I think the Members of this House must recognise as concessions because of the special nature of taxis. 4.00 pm Dr Wan has proposed a separate category for taxis. I am not so sure whether by having a separate category it will work out. And the simple reason is that there are only so many players in the taxi market. If you take NTUC Comfort as operating some 60% of the taxis in Singapore, and you look at SBS, TIBS, SAABS, you are looking at four or five different players. With only so many players, any tendering under a separate category for taxis would be quite meaningless. Sir, Mr Heng has also brought up an interesting point about the prevailing quota premiums being inflated by the fact that the ARF has been reduced. I think, conceptually, I can agree with him that there has been some shift or some pressure on the COE prices because the ARF has been reduced by 25 percentage points. But I must point out that it is not the only factor that impacts on COE prices. In fact, the evidence suggests that a more dominant factor on COE prices is simply the market demand for new cars. Let me just take a simple example. During the Gulf crisis we had the ARF being reduced twice, once by 15 percentage points and once by 10 percentage points. We reduced 15 percentage points in November 1990, the quota premiums for cars fell. The logic of it is that it should go up.”
“As the Member has rightly pointed out, there are other airports in the region which are hot on the heels of Changi Airport, as it were. It gives the Changi Airport authority even more reason to continue to do what it has been doing and doing well. It has done a first class job. It has been able to continuously draw in the talents to keep up its performance. I am glad that Dr Wang has taken such a keen interest in the Meteorological Service. The Meteorological Service plays a very quiet but important role in aviation and I can only assure him that the development in recent years, in so far as acquisition of hardware and software and training are concerned, allows the Meteorological Service to continue to keep up with the state of the art and to provide a comprehensive service to support our efforts to be the communications and air hub for the region. 3.58 pm [Mr Deputy Speaker in the Chair] Sir, I turn now to the points made by Mr Heng on the COEs on taxis. Sir, I think the point has also been made by Dr Wan Soon Bee and Mr Lew Syn Pau. Let me reiterate once again what the purpose of the Quota System is. The Quota System is meant to control the number of vehicles on our roads. By "vehicles", I am referring to all vehicles, including public transport. Strictly speaking, we should also impose a quota and require public buses to bid for the COE. But public buses are very efficient carriers of people. So we make a concession. They are not required to bid for the COE. On the other hand, the taxis are no different from a chauffeured car. They provide a personalised door-to-door service for passengers, a useful and essential service, if I might add, but nevertheless, a personalised chauffeured car service. They too contribute to congestion, like the private cars.”
“They are aware that unless the Public Transport Council is fully satisfied that they have done their best to keep their cost down, they have been told, "do not come to the PTC for a fare increase". Given these factors, the three operators have decided to go for the second option. They decided to get together and to work towards this integrated bus/MRT system. The PTC accepted their proposal in 1990. The implementation commenced from 1991. In improving these changes, the PTC would take pains to ensure that the interests of the majority of commuters are protected and if there is a disruption, and it is completely unavoidable, it is kept to a minimum. As the Member has rightly pointed out, integration is the way to go for public transport in Singapore. I will ask the PTC to ensure that the operators do not lose sight of this fact. Sir, I would like now to turn to Dr Wang's comments on air transport policy. Sir, I only need to say, after listening to Dr Wang, that I agree entirely with what he has said. We will continue to pursue our tried and tested air transport policy with, if I may use his words, "dogged determination". I can assure him that we will continue with our open sky policy in spite of some setbacks to our bilateral air rights negotiations. In the case of Indonesia, we have managed to resolve it amicably. In the case of Canada, the talks are still going on, but we will pursue our case, which is a strong one, to the hilt. He will also be pleased to know that we will continue to upgrade our airport. The fact that Changi Airport is consistently ranked as No. 1 in the world is not an insignificant achievement. But it requires constant maintenance, it requires constant effort and planning.”
“I thought I should put these figures to Members to bring across the fact that while it has enjoyed this position, it is my belief that it has not either declared excessive dividends nor, as far as I know, paid out excessive salaries or perks to its management and staff. Sir, the Member has also spoken about the need for a bus/MRT integration exercise. I am pleased to note that the Member supports this exercise. In fact, this exercise is really a result of the need for all the operators, and by "all the operators", I am talking not just of the bus operators but also the SMRT, to cut their cost in the face of wasteful duplication and excessive capacity that came about when we introduced the MRT in 1987. When the MRT was introduced, it ushered in a new era of public transportation in Singapore. But it also resulted in an overnight increase in the carrying capacity of our total public transport system by something like 30%. There was no way that the demand could correspondingly increase by a similar margin to match that new capacity. So we had two choices. The first choice was to do nothing. If we did nothing, it would mean a wastage of resources. It would mean excess capacity in the public transport system. It would mean higher operating costs. The operators would eventually come to the Public Transport Council for fare increases. Everyone would be affected. The other option was for the operators to come together to work to reduce their operating costs by reducing this surplus capacity, and, therefore, to delay the need for fare increases. This option meant that only some commuters would be affected, not all. The three operators are very clear in their minds that they cannot expect any hand-outs from Government.”
“We now had a basis to compare the managements of two different bus companies operating in two different areas; how well they were doing in terms of service level, how they did in terms of utilisation of their buses, manpower, human resource management, fuel consumption, maintenance, etc. Because of this competition, both companies strove to keep their management trim and efficient. They introduced double-deckers and one-man operation, and as a result the two bus operators were able to keep fares constant during this period. There was no fare increase during this period, as a result of the savings and competition. It was a creditable achievement. I have mentioned in this House before that due credit should be given to the bus operators. Sir, I come to the question that Mr Heng asked on whether SBS, because of its monopoly position, is making too much profits. Mr Heng gave some figures to allude to the fact that SBS was making excessive profits. I believe the operative word here is "excessive" because I do not think he begrudges the fact that SBS is making a profit. So what is considered "excessive"? It might be better if I let Members form their own judgment on this. In the last 10 years, SBS made a return on capital employed, averaging something like 9%-9 1/2%. In the last 10 years, it paid out dividends, for the first eight years 7 1/2%, and for the last two years 10%. As a comparison, the China Motor Bus Company in Hongkong, which has a monopoly franchise to operate in a particular part of Hongkong, is guaranteed a return of 15%. It is not for me to defend SBS in this House.”
“And after they had caught it, they would have to cling on for dear life, otherwise they would not be able to get to school or to work on time. At that time, what we were talking about was a need for reorganisation and for more regulated environment. So the 11 bus companies were merged into four, and even that was not enough. In 1973, the four had to be merged into one to form today's SBS. Even that was not enough because the infrastructure was sadly lacking, the management could not cope. It took a massive effort on the part of Government to get our public transport going again. A Government team of officials was seconded to help reorganise SBS. Basic infrastructure had to be put into place and slowly, but surely, SBS regained public confidence. In 1978, SBS became financially strong enough to be publicly listed. CPF holders were allowed to purchase the shares and the Government assured the public that SBS would be managed well enough to be able to pay not less than 7 1/2% dividend to its shareholders. In return for this, SBS had to fulfil its obligation. This obligation was to provide a comprehensive route network at a good level of service and at reasonable fares. The result was that when SBS was listed, shares were over-subscribed by something like 27 times. Once SBS had settled down and the bus service had stabilised, we recognised that its monopoly position was not desirable. We needed some basis for comparison. So we had to inject some competition to allow us to make such a comparison. In 1983, Trans-Island Bus Service (TIBS) was formed. It was given its own territory to operate. The Member is correct in saying that there was no direct competition in terms of routes, but there was certainly competition in terms of the management.”
“First of all, let me address the point that was made by Mr Heng on public transport. Mr Heng spoke at some length about the special protected position of our two bus companies. He is correct in saying that the Government was responsible for creating such a situation. Some Members of this House may be wondering why this is so, especially why, amidst so much discussion of the virtue of the free market, we do not allow more competition in this particular area of public transport. Perhaps it would be useful for me at this stage to bring Members back to how and why the situation came about. 3.45 pm First of all, I must add that we are not alone in this situation. Hongkong practises the same philosophy in so far as public transport is concerned. It grants a franchise to a few bus companies, guarantees them a certain rate of return, and in return asks for certain obligations. In fact, Kuala Lumpur is thinking of doing exactly the same thing. Sir, Members of this House will recall, in the 1960s and the early 1970s, bus services were operated by something like 11 bus companies, none of them having any special privilege or special protection. Indeed, at that time, anyone who wished to operate a bus company could do so. So there was no lack of competition. But there was also no lack of wasteful duplication and a total lack of coordination of services. Bus companies went all out to undercut one another, profit margins were squeezed, operators were not able to upgrade, buses became run down, poorly maintained, services infrequent and inadequate. I could not help thinking at that time that when people were talking about catching a bus, they literally had to run and catch a bus.”
“Mr Speaker, Sir, first of all, may I know how much time I have left?”
“Sir, I assure the Member that as soon as the Public Transport Council has deliberated and approved it, SBS should be in a position to implement it. ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1992 TO 31ST MARCH, 1993 Order read for consideration in Committee of Supply [3rd Allotted Day]. [Mr Speaker in the Chair] Head Q (cont.) -”
“Mr Speaker, Sir, the Public Transport Council has received an application from SBS to run a new bus service which will connect Bishan East, Bishan North, Sin Min and Shunfu Estates. In this application, SBS has also proposed withdrawing the existing Service 57 which will extensively duplicate this new service. The Public Transport Council will be meeting later this month to deliberate on the applications made by SBS to introduce these two changes to the bus service in Bishan. Encik Ibrahim bin Othman: Sir, could the Minister look into the possibility of expediting the implementation? I do not know whether the Minister is aware that the residents in that area have been asking for this service for more than two years, if I am not mistaken.”
“Mr Speaker, Sir, the residential telephone subscribers enjoy a peak and off-peak tariff structure mainly because there is a very distinct peak and off-peak usage pattern. When Telecom charges the off-peak rate, which is half the peak period rate, there is sufficient capacity during the off-peak period for such off-peak traffic to be handled. However, I do not think there is such a distinct peak/off-peak usage pattern for handphone users. Nevertheless, I will ask Telecom to look into this matter and see whether it is feasible to implement an off-peak rate. SUPPLY AND SUPPLEMENTARY SUPPLY BILLS (Business Motion) Resolved, That, notwithstanding the Standing Orders, the second and third readings of the Supply Bill for FY 92/93 and the Supplementary Supply Bill for FY 91/92 may be proceeded with immediately after the conclusion of the proceedings on the Main and Development Estimates for FY 92/93 - [Dr Richard Hu Tsu Tau]. ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1992 TO 31ST MARCH, 1993 Order read for consideration in Committee of Supply [1st Allotted Day]. [Mr Speaker in the Chair]”
“Mr Speaker, Sir, handphone users today are already paying according to usage. Apart from the subscription of $50 per month, they pay a traffic charge of 20 cents per minute for both incoming as well as outgoing calls.”
“CUSTOMS (AMENDMENT) BILL "to amend the Customs Act (Chapter 70 of the 1985 Revised Edition)", recommendation of President signified; presented by the Minister for Finance (Dr Richard Hu Tsu Tau); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. NANYANG POLYTECHNIC BILL "to establish the Nanyang Polytechnic and for matters connected therewith", presented by the Minister for Education (Mr Lee Yock Suan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. NATIONAL COUNCIL OF SOCIAL SERVICE BILL "to establish the National Council of Social Service and for matters connected therewith, and to repeal the Singapore Council of Social Service Act (Chapter 299 of the 1985 Revised Edition)", presented by the Minister for Community Development (Mr Yeo Cheow Tong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. TELECOMMUNICATION AUTHORITY OF SINGAPORE BILL "to reconstitute the Telecommunication Authority of Singapore and to provide for the transfer of its property, rights and liabilities to successor companies, to make financial arrangements for those companies and to provide for the sale of their shares, and to repeal the Telecommunication Authority of Singapore Act (Chapter 323 of the 1985 Revised Edition)", presented by the Minister for Communications (Mr Mah Bow Tan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE INSTITUTE OF STANDARDS AND INDUSTRIAL RESEARCH (AMENDMENT) BILL Order for Second Reading read. 1.12 pm”
“Sir, the standard that is set by the Ministry of the Environment is 67 dBA over an hour. BILLS INTRODUCED DRUG TRAFFICKING (CONFISCATION OF BENEFITS) BILL "to provide for the confiscation of benefits derived from drug trafficking and for purposes connected therewith", presented by the Minister for Home Affairs (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. WILLS (AMENDMENT) BILL "to amend the Wills Act (Chapter 352 of 1985 Revised Edition) to provide for the formal validity of wills and to restrict the operation of section 9 of that Act", presented by the Minister for Law (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. LIMITATION (AMENDMENT) BILL "to amend the Limitation Act (Chapter 163 of the 1985 Revised Edition)", presented by Prof. Jayakumar; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. TRUSTEES (AMENDMENT) BILL "to amend the Trustees Act (Chapter 337 of the 1985 Revised Edition)", presented by Prof. Jayakumar; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CRIMINAL PROCEDURE CODE (AMENDMENT) BILL "to amend the Criminal Procedure Code (Chapter 68 of the 1985 Revised Edition)", presented by Prof. Jayakumar; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.”
“Mr Speaker, Sir, the noise levels of passing trains throughout the MRT system are generally within the guideline recommended by the Ministry of the Environment. This guideline is comparable to the noise standards that are adopted by other countries which have MRT systems. At Simei, recent measurements by the Ministry of the Environment showed that the noise levels meet this guideline at the noisiest stretch which is also near the Pan-Island Expressway. Building sound-proof shelters will not eliminate the noise completely. With its high capital and maintenance cost, sound-proof shelters are also not the most cost-effective way of reducing the noise. SMRT will continue to monitor the situation to ensure that the noise emission is kept as low as possible. Where necessary, they will take remedial steps to reduce this noise by grinding the rails and maintaining the wheel profiles of the trains frequently.”
“Under special circumstances, the Ministry has actually made certain changes to the evening ALS. In fact, there was a recent case when the eve of the Lunar New Year fell on a Monday which we predicted would have some effect on the pattern of traffic in the evening. And for that reason we did make a special case for removing the evening ALS during that time. But until such special circumstances occur, I see no reason why we need to change a system which has proven effective in controlling congestion, which was the original objective of the evening ALS. SALE OF COMMERCIAL/SHOP UNITS IN PUBLIC HOUSING ESTATES (For use as offices of MPs/political parties' branch offices) 8. Mr Chiam See Tong asked the Minister for National Development whether the Housing and Development Board is planning to sell commercial and/or shop units in public housing estates for use as constituency offices of Members of Parliament and/or political parties' branch offices.”
“The PWD and the Registry of Vehicles will continue to monitor the traffic situation. So far, the counts which have been done on a random basis show that there is no change in the pattern, but I can assure the Member that we will continue with these investigations into the traffic patterns.”
“Sir, the traffic counts that were conducted by the Public Works Department, before and after the opening of the Central Expressway Tunnels, showed no change in the volume of traffic entering the Restricted Zone during the evening restricted hours between 4.30 pm and 6.30 pm. There is therefore no reason to remove the evening ALS.”
“Sir, the Ministry of Communications and the Ministry of Finance have agreed to compute the road tax and diesel tax for all vehicles, including taxis, on a daily instead of monthly basis. This change will result in revenue loss estimated at $2.5 million per annum. The change in the basis of computation requires an amendment to be made to the Customs Act to enable the Minister for Finance to make rules to pro-rate the collection of diesel tax. The Minister for Finance will be introducing a Bill in Parliament soon to amend the Customs Act. EVENING AREA LICENSING SCHEME (Removal) 7. Mr Leong Horn Kee asked the Minister for Communications whether fewer vehicles are entering the Central Business District in the evenings, with the completion of the Central Expressway, and if his Ministry will consider removing the evening Area Licensing Scheme.”
“Sir, I would like to inform Dr Arthur Beng since he was away, that his friend only told him half of what I said. Yes, I did say that I would like to see more cars in Singapore because that would indicate that the economy is still doing well. But at the same time, I would also like to see less car usage. If that is ever possible in Singapore, perhaps with more use of public transport, then I think that would be a very ideal situation for us.”
“Sir, the question of specific bus services that the Member for Hougang has raised, I would rather leave to the operators to answer. But, in general, there has been a conscious effort on the part of the bus operators to provide an adequate level of service, a minimum standard of service, from each of the new towns in Singapore. You have to recognise that there are limits to the resources that are available to them and within these limits, they do try and make adequate provision for all bus services. If the Member wishes to put his request in writing to me, I will refer it, like all other requests, to the relevant authorities. BILL INTRODUCED SMOKING (PROHIBITION IN CERTAIN PLACES) BILL "to repeal and re-enact with amendments the Smoking (Prohibition In Certain Places) Act (Chapter 310 of the 1985 Revised Edition) and to prohibit smoking in specified places and vehicles and to provide for matters connected therewith", presented by the Minister for the Environment (Dr Ahmad Mattar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. PRESIDENT'S ADDRESS Debate on the Address (Third Allotted Day) Order read for Resumption of Debate on Question [13th January, 1992], 'That the following Address in reply to the Speech of the President be agreed to:- "We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the Opening of the First Session of this Parliament.".' - [Dr John Chen Seow Phun]. Question again proposed. 12.42 pm”
“Sir, I will be happy to receive those proposals and refer them to the relevant authorities.”
“Mr Speaker, Sir, there are plans to build a bus interchange at Hougang North to serve the north-eastern sector of the island which includes the Punggol ward of the Cheng San GRC. The bus interchange will be built in two phases. Phase I will be built starting in financial year 1992, ie, this year. When it is completed in 1993, there will be a total of eight trunk and two feeder bus services operating from there. The trunk services will link residents to major destinations like Orchard Road, Shenton Way and Chinatown and also to nearby HDB towns like Serangoon, Ang Mo Kio and Toa Payoh. Phase II of the interchange will be built later when the plan for the MRT is finalised, and for which I have given an answer just now.”
“The Government has indicated that when the line is extended to Woodlands, it will provide an opportunity for an extension, in one form or another, of a mass rapid transit system to Johor Baru. This of course would have to be undertaken jointly with the Malaysian authorities. PUNGGOL WARD OF CHENG SAN GRC (Building of bus interchange) 2. Dr Michael Lim Chun Leng asked the Minister for Communications whether there were plans to build a bus interchange, and to increase the bus services in the Punggol ward of Cheng San GRC and, if so, what was the current status of these plans.”
“It is a reasonable request and I will certainly ask the authorities concerned to look into it.”
“Sir, it depends on many factors. I am afraid I am not able to give him a categorical answer. The Ministry of National Development will first have to firm up its plans for housing in that sector before the trains can go there. I think the question should also be directed at the Minister for National Development.”
“Sir, the truth of the matter is that the MRTC decided to extend its line to Woodlands before the north-east sector mainly because HDB firmed up its implementation plans for housing in Woodlands before the Hougang area. The other reason is the question of costs. The Woodlands line, according to the criteria for viability, is more likely to be viable under the present situation. It would take something like $1 billion to build the Woodlands line whereas it will cost four and a half times that to construct the north-east sector line.”
“Mr Speaker, Sir, as I said in my reply, the line itself is only approved in principle. We have not actually made provision for any station along the route. This will depend to a large extent on what the housing developments are like.”
“Mr Speaker, Sir, the Government announced in August 1988 that it has given in-principle approval for the north-east sector MRT line. Punggol will be served by this line. However, the timing for the construction of this line will depend on HDB's programme for housing developments in the north-eastern sector. This is to ensure that there will be sufficient demand for the MRT when it is ready. The north-east sector MRT line is estimated to cost the Government $4.3 billion (1990 prices). This is a very heavy investment. The Government is prepared to bear the construction and capital costs. But there must be sufficient traffic to cover the operating cost, otherwise the operators will have to subsidise this line with revenue from its other lines. This will eventually lead to higher fares for all MRT users. The bulk of the housing developments in the north-east sector is due for implementation only after the year 2000. The Mass Rapid Transit Corporation (MRTC) can only firm up its plans nearer this date. Meanwhile, we are undertaking technical work to determine the route alignment for this line.”
“Sir, we can consider that when Prof. Choo's proposal, if it is found workable, is implemented in the second tranche of the 12-month trial. BILLS INTRODUCED 2.11 pm EDUCATION ENDOWMENT SCHEME BILL "to establish an education endowment scheme and for matters connected therewith", presented by the Minister for Education (Dr Tony Tan Keng Yam); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. LEGAL PROFESSION (AMENDMENT NO. 2) BILL "to amend the Legal Profession Act (Chapter 161 of the 1990 Revised Edition)", presented by the Minister for Law (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. GOVERNMENT SECURITIES BILL "to establish and regulate the Government Securities Fund and to provide for the borrowing of moneys by the issue of Government securities in Singapore", recommendation of President signified; presented by the Minister for Trade and Industry (BG Lee Hsien Loong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. TRADE UNIONS (AMENDMENT) BILL "to amend the Trade Unions Act (Chapter 333 of the 1985 Revised Edition)", presented by the Minister for Labour (Mr Lee Yock Suan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CENTRAL PROVIDENT FUND (AMENDMENT) BILL "to amend the Central Provident Fund Act (Chapter 36 of the 1991 Revised Edition)", presented by Mr Lee Yock Suan; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. PRESIDENTIAL ELECTIONS BILL Order for Second Reading read.”
“Sir, I think the wisdom was that it was transferability that created these high COE prices. I think there was little public speculation that it was any other factor. What the Government is trying to do with this trial is really to test this theory that it is the transferability aspect of the Vehicle Quota System that is causing prices to shoot up to unacceptable levels. If that is true, then I think it is incumbent on the Government to make sure that we change the system. But we have stated all along that it is due to market forces. It is not due to transferability. Let us test it out for 12 months.”
“No. The reason why we extended the period from three months to six months is really a practical one because if it remains transferable, the COE can be disposed of after three months. So if there is a real genuine difficulty in not registering the car, one could always sell it away. This is really part of the convenience of the transferability system. But if you take that away, then you are left with a certificate which cannot be transferred. If for whatever reason you are unable to register your vehicle, then it would be a worthless piece of paper after three months. I think in consideration of that and in view of the representations that have been made, we have decided there is no harm in extending it to six months, which is a reasonable period. But we have decided not to have any refunds. That was the other alternative.”
“I am not so sure whether I understand the question correctly. But I did indicate that extension from three to six months is only for non-transferable COEs. So I do not see any more opportunity for the so-called speculators to play the market in the new system.”
“Sir, I think it is an interesting proposal. The Ministry will study it. We still have some time, because we are in the first stage of this proposed two-step cross-over trial. We can take it in two bites.”
“Mr Speaker, Sir, as I indicated in my reply earlier, even if we were to move into the system of pay-as-you-bid, it does not necessarily follow that everybody who is a successful bidder will be happy because there will be a range of successful bids. The present practice is that everybody who is successful pays the same. I think there are merits in the current system and we should keep it unless it is conclusively proven that it is inferior to any other proposal. Assoc. Prof. Maurice Choo (Nominated Member): Sir, would it not be more accurate to conduct the trial in two stages? Firstly, a 12-month cross-over from transferability to non-transferability, and then a 12-month period when you cross back. This is a basic principle in comparison. You have to cross over twice to minimise the effect of time.”
“In the pay-as-you-bid system, some will be paying higher and some will be paying lower, and it does not automatically follow that those who pay lower are the ones who are in more urgent need of a car or the ones who are in the lower income group. It really depends on how urgently and how great a desire they have to own a car. So I do not think at this moment it is superior to the current system. And for the purposes of the trial, I suggest that we stick to the same principles as we had before the trial to make sure that there is some reasonable measure of comparison.”
“Let me just remind the House that this trial is intended to test the proposition that transferability causes prices to go up. My Ministry contends that prices go up and down as a result of market forces. During the Gulf War, prices went down because demand was low. Prices are now up because demand is high. It is as simple as that. So one of the ways that we will be monitoring the trial is to check or monitor the COE prices of each of the categories of vehicles before and during the trial. Dr John Chen has asked what specific criteria we will use. We can use several criteria. One would be to check the average prices before the trial and compare them with average prices, 12-month average prices, when the trial is going on. Another way is just to graph them and to plot a mean. These are areas which we can continue to discuss with the GPC. But if prices do go up during the trial, then I think we would be quite safe in saying that transferability is not the factor that has made COE prices to go up. One other point that Dr John Chen has mentioned is whether we should consider making COE bidders pay what they bid. At the moment the system that we are practising, the so-called Dutch auction system, is a system which has been practised successfully in other tendering exercises. I mentioned, for example, the tenders for textiles quotas and for CFCs. There is no clear-cut evidence that one is different from the other as far as total revenues are concerned at the end of the day, and it is not Government's intention to use a system which can collect more revenue. But let me just say that the pay-as-you-bid system that has been suggested does not mean that everybody is going to be very happy. The reason is very simple.”
“Mr Speaker, Sir, let me take Dr Wang Kai Yuen's questions first. He asked why motorcycle COE is made transferable. I think that was the gist of the question. The question as to why I am more generous does not come into the picture, because the GPC itself has done an excellent job in canvassing a wide range of opinions and has come out with a report which has captured, I should say, the bulk of the views that have been expressed. In fact, the argument could very well be made to include every category, all the eight categories, of vehicles in the trial, and make them non-transferable. It was, I should say, a very tempting alternative. But the arguments for keeping buses and trucks and the Open category transferable were convincing ones. And this is why we have kept them out of the trial and just stuck to the six categories. Why motorcycles? I think I did explain in my statement earlier. Reading the GPC report carefully, it was clear that the people who are making the point that motorcycles are not subject to speculation were mainly the motorcycle distributors. I think that is a correct interpretation of the report. I am anticipating that the motorcycle buyers themselves, when they see that their motorcycle COE prices are also going up, will start to lobby and ask why is it that they are not included in the trial. So I am anticipating a situation which is very likely to arise and I would rather put them in now. If, as the Member suggests, there are demands for them to be left out of the trial, this is something that we can consider after the 12-month trial is over. What are the criteria to be used? Again, this is another point that I have touched on in the statement. Maybe I could repeat the point that I made earlier.”