Ong Teng Cheong
Singapore
“Mr Speaker, Sir, as of now, the position is this. We have signed an in-principle agreement with the Suzhou Municipality to help plan, develop and manage a township. There are two parts to this development. So far, we have put up a rough outline plan for the development of the township.”
“The consortium would include members or companies from both the Government as well as the private sector. Whether SLF will hold a significant share it has yet to be decided. I believe SLF will hold a very small share or no share at all, because, as I have said, our role is that of a facilitator.”
“Like all other projects undertaken by SLF, such as the Pasir Ris Resort, the Sentosa Beach Resort and the Orchid Country Club, the ultimate objective of SLF's investments is to help raise the social and economic status of our workers, and ensure that our workers will continue to enjoy a fair share of Singapore's progress.”
“Sir, I think Mr Chiam has got all this confused. PAP and NTUC run BEST classes jointly. NTUC does not run BEST classes by itself. George Sita, he is referring to, is a member of the SDP who stood against the PAP in the last election. He was employed jointly by NTUC and PAP.”
“NTUC Comfort is a co-operative. The taxi-drivers are members of the co-operative, and there were more than two members who had been removed from membership of the co-operative because of misbehaviour or misconduct, or arrears of their instalment payments, or whatever it is. There were many reasons why they were removed.”
“But when members of the co-operative are actively involved with opposition political parties against the PAP or NTUC, then they are acting against the resolution of the National Trade Union Congress, and it was a compliance of that resolution that action had to be taken against them.”
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“I assure the Member that such powers already exist in the present Telecoms Act and the present Telecoms has been able to provide an efficient service - which he has admitted himself - so far with this provision in the Act. I assure him that the Minister does not appoint the Chief Executive himself. The Chief Executive is recommended by the Board and appointed by the Board. Seeking the approval of the Minister is only an additional safeguard in case there may be other factors which may not be known to the Board. The same applies to the appointment of the other members of the Board. The provision for appointment of members to the Board by the Minister also exists in the present Act, and the Minister is normally guided by the Public Service Commission and by the other Board members who come to know of individuals who are conversant and competent in the field of telecommunications and they are nominated and appointed accordingly. The Member also raised about the content of clause 18 regarding investment of funds elsewhere other than in Singapore. This relates to investment of the Authority on submarine cables outside Singapore, on telecommunication satellite that goes outside the territory of Singapore. I hope that clears the point.”
“I am sure the management of the new Corporation will do the necessary in line with Government's policy to develop its human resources to its fullest potential so that the new Telecoms can provide a more efficient postal and telecommunication service. I understand that upon merger plans will be made to design and conduct training courses to help staff, both clerical and uniformed staff to upgrade their skills. A traineeship scheme will also be introduced for the postal clerks, similar to the one for the Telecoms clerks. Courses will also be developed to enable staff, particularly postmen, to undergo upgrading courses so that they will be able to apply for higher grades in their merged organization, either within the postal services or the other services in the organization, such as artisans and technicians. In-service courses would also be provided to prepare staff to operate the various machines and equipment that will be installed in the future. This will also ensure that they will not be redundant with the introduction of mechanization and automation, besides widening their job responsibilities. All staff of the merged organization will be eligible to apply for training awards, if they have the prerequisite qualifications, which can benefit their career in the new Telecoms. These training awards will enable such selected staff to do part-time courses at the Vocational and Industrial Training Board, Ngee Ann Polytechnic, Singapore Polytechnic and the National University of Singapore. The Member for Anson has a number of observations. First of all, it is about clause 10 on the appointment of the Chief Executive. He claims that the Minister's power is so unlimited that it appears that the Board would not be able to do anything without the permission of the Minister.”
“Mr Deputy Speaker, Sir, first, I would like to thank the various hon. Members for their support of the Bill. I cannot agree with the Member for Geylang Serai more on his statement that the quality of the information communication services which the new Corporation will provide will depend greatly on the quality of its workforce and the work environment. This is one of the reasons why the Government thought it would be prudent for the postal facilities at Nelson Road to move over eventually to the new complex which will be built in Eunos Estate. We have heard of complaints from the postal staff and also from the late Mr P. Govindaswamy, the previous Member for Anson, years ago when he brought up the plight and complaints of postal workers about the poor working conditions at the Nelson Road Mails and Parcels Centre. The facilities have been improved from time to time but that was only a temporary measure and it was done on a piecemeal basis. We hope we will eventually give them a proper and permanent workplace. As far as the statement made by the Member for Geylang Serai is concerned, I am sure the present Telecoms and the Postal Services Department are fully aware that the quality of service depends greatly on the quality of its workforce. The Member is also concerned that the new Corporation, because of its size, may become impersonal, with little compassion for its workers. I must say that it all depends on management. Some smaller organizations are more impersonal than larger organizations. So it all depends on whether the management is an enlightened one or not. It is in the interest of the Corporation itself to win over the trust and loyalty of its employees and motivate them into giving of their best. An enlightened management must surely understand this.”
“In seeking to effect the merger of the Postal Services Department and the Telecommunication Authority of Singapore, I must stress that skilled and experienced manpower in the field of information communication technology in Singapore is very limited. Our limited manpower resources will be stretched to keep up with the ever-increasing pace of technological advancement in this field. It is, therefore, sensible that we merge the two organizations and pool their resources together so that the new Telecoms is able to develop Singapore as a communication and information centre more effectively. Sir, I beg to move. Question proposed. 6.02 p.m.”
“The new Telecoms will be run by a Board consisting of a Chairman, the Chief Executive and up to seven other members. All Board members, including the Chief Executive, will be appointed by the Minister. The Board shall be responsible for submitting a report on the activities of the organization to the Minister every year. The report in turn will be presented to Parliament. The new organization will be fully responsible in meeting its financial obligations. It may, with the approval of the Minister, borrow money by issuing debentures, shares or stocks of various classes or raise capital from banks and other financial institutions in Singapore or abroad. Any operating surplus will be used to finance capital expansion so as to improve the level of information communication services and upgrade existing facilities. With the easy availability of more and more sophisticated telecommunication equipment all over Singapore, we must be constantly vigilant to ensure the proper use of such equipment. The existing power of seizure for the illegal use of radio-communication equipment has therefore been extended to include telecommunication equipment and attachments. Such seized equipment, if not claimed by the owners after two months, may then be disposed of by the new Telecoms in any manner considered desirable. The Bill also authorizes the Chief Executive or any officer authorized to act for him to arrest or search any person or to search any place if there is good reason to suspect that an offence under the Bill is being committed or is about to be committed. The organization is also empowered to compound certain offences so as to avoid having to go to court on minor offences. These then are the major highlights of the Telecommunication Authority of Singapore Bill, 1982.”
“Mr Speaker, Sir, I shall now go through the main sections in the Telecommunication Authority of Singapore Bill, 1982. The Bill is basically an amalgamation of the Post Office Act (Chapter 84) and the Telecommunication Authority of Singapore Act, 1974. Editorial changes have been made to bring in line similar provisions in both Acts and to combine them into one provision whenever possible. The new Telecoms will continue to be given the existing exclusive privilege of operating and providing information communication systems in Singapore. The term "information communication" will cover the modes of post and telecommunication, which are used for communicating information from one place to another. The only exceptions are the telecommunication systems operated by the Singapore Armed Forces and the Singapore Police Force as well as the broadcasting system operated by the Singapore Broadcasting Corporation. All others wishing to operate or provide postal and telecommunication services in Singapore must apply to Telecoms for a licence. All postal and telecommunication officers will be transferred to the service of the new Telecoms on terms no less favourable than those currently enjoyed by them in their respective organizations. In the case of common-user employees in the Postal Services Department, provision has been made for those who wish to remain in the Civil Service to do so. Those officers wishing to remain in the Civil Service will be posted to other departments on the same terms and conditions of service. All postal employees transferred to the new Telecoms who wish to remain on the pension scheme may also do so. The others will be emplaced on the Central Provident Fund Scheme.”
“The existing network of 72 post offices all over Singapore could also serve as outlets where various telecommunication services could be provided. The public will then be able to send letters and parcels, buy stamps, make international telephone calls, send telegrams or bring telephone sets to be repaired or replaced - all these at a post office. Separate telephone area offices in land-scarce Singapore would therefore not be necessary. It is not unusual for one organization to be responsible for both postal and telecommunication services in a country. After all, postal and telecommunication services complement one another. Anyone wishing to communicate with another person could either make a phone call or send a letter. He could, of course, do both. This is acknowledged, perhaps implicitly, in countries such as West Germany, Japan, Switzerland, New Zealand, Brazil and the Netherlands where postal and telecommunication operations are handled by a single organization. The Bill before the House seeks-to effect the merger of the Postal Services Department and the Telecommunication Authority of Singapore into a single statutory board. The present name "Teleommunication Authority of Singapore" or Telecoms, for short, will be retained for the new organization. The public has accepted the name "Telecoms" as synonymous with efficiency and technological progress. I do not wish to change the name for the time being because I want the new Telecoms to maintain the tradition of providing the best possible service at the cheapest cost to the public. I am confident that it will be able to do so. Steps will be taken to publicize that the new Telecoms will be responsible for both postal and telecommunication operations in Singapore.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In Singapore today, the Postal Services Department is responsible for the conveyance of letters, postcards and parcels both within and outside Singapore. On the other hand, the Telecommunication Authority of Singapore is responsible for the provision of domestic and international telephone, telex and telegram services. The idea of merging these two organizations into a single organization responsible for both postal and telecommunication operations arose a few years ago. It was then recognized that with the advent of electronic mail in the near future, the transmission of messages over vast distances by electronic means would soon be faster and cheaper than that by post. With this development, the functions performed by the Postal Services Department and the Telecommunication Autho- rity of Singapore would overlap to some extent. It would be administratively neater for the postal and telecommunication functions to be performed by a single authority. Merger would also reduce competing demand for scarce technical staff and enable the two organizations to concentrate their efforts to provide the most efficient and cheapest service to the public. Singapore will benefit from the merger of the Postal Services Department and the Telecommunication Authority of Singapore. Scarce resources, especially manpower, would be deployed more efficiently. For example, one person could deliver letters and postcards, as well as telegrams, instead of two persons, one to deliver letters and postcards and the other to deliver telegrams. Vehicles belonging to both organizations could be pooled together with resultant savings in fuel and reduction in the number of vehicles, drivers and mechanics employed.”
“Driving a taxi, like any other job, requires certain basic skills. To be a competent taxi driver, a person must not only possess good driving skills and knowledge of places but also the ability to communicate with his passengers. Therefore only those who satisfy all these requirements will be given taxi vocational licences. Aspiring taxi drivers are required to speak some simple English because many people in Singapore speak the language. Chinese applicants are in addition required to know some simple Mandarin because it is our policy to promote the use of Mandarin instead of dialects. Mandarin is not relevant to Malay and Indian applicants. The oral Mandarin test is a simple test and very simple daily Mandarin conversation is required. This test does not pose a problem to the majority of the Chinese applicants. More than 90% of the applicants who have been interviewed by the ROV passed the test. ALLOCATION OF FLATS IN ANSON CONSTITUENCY 3. Mr J.B. Jeyaretnam asked the Minister for National Development whether there was any reason for the departure from the hitherto followed practice of balloting when flats were recently allocated in the newly completed blocks in Anson constituency and, if so, what was the reason.”
“The other area is to mechanize the washing of void decks, building aprons, markets, food centres and bin compounds by using high-pressure washers which pump out water in a powerful fine jet spray. These machines can also be used for the washing of common corridors and staircases. By the use of these machines, about 60% to 70% of estate cleansing operations can be mechanized. A full-scale evaluation of these machines in use is being carried out in Ghim Moh Estate. If the results are good, these machines will be used in all the other HDB estates. HDB ESTATES IN BOON TECK (Low water pressure) 8. Mr Liew Kok Pun asked the Minister for National Development (a) what measures are being taken to raise the low water pressure in high-rise Housing and Development Board apartments; and (b) when these measures will be taken in Boon Teck Constituency.”
“Its recommendations will involve many Government Ministries and will require the cooperation of a wide range of public and private sector organizations including the NTUC, the Employers' Federation, the Chambers of Commerce and Industry, professional and welfare associations, religious groups, and other community and civic organizations. The scope of the Committee's enquiry is so wide that it prefers not to spell out the specific areas where it would like recommendations, suggestions and assistance from the Government bodies, public organizations, community and civic groups, or for that matter from Members of Parliament and their constituencies. The Committee welcomes views and suggestions from those who are able to make representations to it and I can assure the hon. Member for Kampong Kembangan that the Committee will carefully study any representation that he may care to make. HOUSING AND DEVELOPMENT BOARD (Mechanization of cleansing operations) 7. Mr Liew Kok Pun asked the Minister for National Development whether the Housing and Development Board has examined the feasibility of mechanizing the present labour-intensive method of cleaning the common corridors of its flats. The Minister of State for National Development (Mr Lee Yock Suan) (for the Minister for National Development): Mr Speaker, Sir, the Housing and Develop ment Board has conducted studies to evaluate the effectiveness of various types of machines to perform estate cleansing operations. These studies have identified two major areas where mechanization can be intro duced. The first area is to mechanize the sweeping of large open spaces, such as car parks and aprons of building blocks.”
“These illnesses include cardiovascular diseases, cancer, diseases of the respiratory system, and other new illnesses that are constantly being discovered by medical science, plus accidents on our roads, at the workplace, and at home. It may be necessary for the Committee to pay attention to these problems. The Committee includes representatives from the NTUC, the Employer's Federation, the Chambers of Commerce, the Ministries of Health, Social Affairs, Trade and Industry, and Labour as well as well-known social workers. They will all help to identify the problems and make recommendations. However, the problems of the aged are not new or peculiar to Singapore. Hence, rather than reinventing the wheel, the Committee plans to seek advice, to collect information and to learn from the experiences of other countries like UK, US Australia, and Japan. These will go a long way towards assisting the Committee in its deliberations. The experience of Japan in dealing with problems of their old age citizens may be of particular significance. Mr Wee Mon Cheng, our former Ambassador to Japan, can make invaluable contributions not only from his personal knowledge of the Japanese society but also to establish contacts to obtain information, official documents, and published materials of the Japanese experience. Our senior consultant physicians in the Ministry of Health have been looking after many of our older people in the community. Their experience will be invaluable to the Committee not only on how best to deal with health problems but, more importantly, how to avoid or prevent them before they become very serious. The Committee has set itself the target to complete its work in one year.”
“If more preparations had been made in the earlier two segments, the chances are that the problems can be reduced to manageable proportions. Our society is in the process of transition from the old to the new. Under the old dispensation, most of our people had to struggle very hard to earn low wages, to eke out a subsistence level of livelihood, to raise their children, and to maintain a family. There was not much time or money to spare to think in terms of providing for old age. Many worked up to 60 years and even beyond to keep body and soul together. Having suffered from the ravages of poverty, malnutrition, illness and disease in their early lives, many of our older citizens are at a stage of life when their need for medical, financial, and other welfare attention and assistance will increase in the next 20 years. The Committee will be investigating these areas to suggest how best attention and assistance should be provided. Under the new dispensation, with the efforts of the Government in various fields of maternity and child welfare, better education, better employment opportunities, higher incomes, and better medical and social welfare services, life expectancy has been extended. But in our modern urbanized and industrialized society, increasing affluence has brought with it problems of pollution of various kinds, stress and strain both at home and in the workplace, increasing numbers of motor vehicles, and fast lifestyles as well as undesirable eating habits, drug addiction, etc. These have counter-acted the benefits of modern medical science and advances in technology, and today more and more of our people are suffering from serious often incurable illnesses long before they get to the third segment of life.”
“In this respect the Committee will look into recommendations for improvements to our maternity and child welfare service, school health and preventive and public health services which cover the first of the three segments of a person's life span. During this segment of life from birth to the age of 18 years, the foundations of a person's physical well-being will be decided. Should adequate attention have been paid to child nutrition and welfare, immunization procedures and preventive measures against diseases to ensure healthy growth, and should proper physical education, training, and health education and physical exercises be encouraged in schools, then our citizens will at an early age form the habit of keeping physically fit throughout life. The second segment covers the person's working life from the age of 19 to 55 or 60 years. During this period, the citizen's responsibilities will gradually increase as he forms his family, acquires a home, brings up and educates his children, and strives to improve his earnings to provide beyond the necessities of life. Should he be taught the virtues of filial piety, he would demonstrate this by his own example and should his three-tier family be living together, his children will have the benefits of a closely-knit entity. As he approaches 50 years of age his children would have completed their education and obtained employment on their own. His responsibilities towards the family will begin to lessen and his burden becomes lighter. He can begin to plan in terms of the third segment of his life from 55 years and beyond. The Committee's main concern is with this third segment of life when most of the problems of old age citizens can arise.”
“,Continuing advances in medical science and technology will extend the life expectancy of many senior citizens to 80 years and beyond. The Committee will conduct studies on how our citizens should prepare for old age. The ideal for the Committee will be to permit the average citizen not to remain a work-horse all his life, but to suggest that he should make plans on how and when he should slow down long before he is due to retire. At an appropriate stage in his life he should be able to decide that he need not necessarily put in the full 42 hours each week till he reaches 60 years, but rather that in his own long term interests he can work shorter hours or opt for a lesser work load. His surplus or spare hours can be spent on activities from which he derives joy and satisfaction or on making contributions to the community. Psychologically an active mind keeps an active body, while an active body in turn nurtures an active mind. A person in enforced idleness will decline rapidly in mind and body. The Committee has laid down certain guidelines to get on with its work. It welcomes recommendations and representations from community and civic organizations, knowledgeable professionals and experts on the subject of old age, as well as from members of the public, on the general problems of the increasing numbers of older people in our society and also on the eight specific areas that I have outlined. Those who wish to put forward their views to the Committee can do so in writing or in the form of a memorandum. Our citizens should be advised to prepare for old age long before they face the problems.”
“Secondly, the Committee will focus particular attention on eight specified areas and make recommendations to deal with them; viz, how to - (i) change accepted ideas and attitudes of society towards old age; (ii) change entrenched practices towards compulsory retirement; (iii) adjust employment patterns and create more job opportunities for older people; (iv) enable older workers with reduced incomes to continue to lead a normal active life; (v) provide medical examinations to monitor the physical and mental health of the older people; (vi) foster greater filial piety and responsibility so that children and relaives will support and look after their parents and elders; (vii) grant assistance and encouragement to charitable and religious organizations to set up homes for those aged people who cannot look after themselves and have no one to depend on; (viii) consider legislation to require certain religious institutions to be licensed, and in so doing to stipulate that they must run homes for the aged as well as to ensure that all homes for the aged are properly run. These Terms of Reference are comprehensive and hence the programmes of the Committee must attempt to cover every facet of the problems related to the increasing numbers of older people in our community. In the 1980 Census some 7.2% of the population are above the age of 60 years. Improvements to our economy, social welfare, and medical services have, raised life expectancy and by the year 2000 the over-60 age group will comprise more than 10% of the population. Compulsory retirement requires a person to stop work at a cut-off age irrespective of his physical condition and competence to make further contributions in his job.”
“Mr Speaker, Sir, I do not see the point. Nobody is starving in Singapore. As to his point about whether, in working out the rate of CPF contributions, the Government has taken into account the ability of the employee to save, my answer is yes, that has been taken into account. COMMITTEE ON PROBLEMS OF THE AGED (Objectives and programmes) 6. Encik Mansor Haji Sukaimi asked the Minister for Health the objectives and programmes of the Committee which was formed recently to study the problems of the aged and to state the types or areas of problems that will be looked into by this Committee, and whether community or civic organizations in constituencies can be of any assistance to this Committee and, if so, what are the specific areas where such cooperation can be made. The Minister for Health (Mr Howe Yoon Chong): Mr Speaker, Sir, the objectives of the "Committee on Problems of the Aged" are outlined in its Terms of Reference and are in two parts. Firstly, the Committee will study the general problems affecting the increasing numbers of people over 60 years old in our population, their repercussions to our society, and to recommend measures to prevent, ameliorate, and deal with those problems.”
“Mr Speaker, Sir, the Member for Anson obviously was not listening carefully to my answer. The CPF contribution is a saving. The employee is not giving it up. I have explained earlier that this saving is necessary for security purposes -for his old age and to help him to own a home. Without CPF savings, this home ownership scheme would not have been possible. Singapore will not have achieved the housing programme that we have achieved so far.”
“Or they may be in what the Japanese call "sun-set industries", that is, industries in which most firms are uncompetitive for one reason or another. Here again, the solution is to let the sun set quietly and as painlessly as possible. The workers so displaced can easily get new jobs elsewhere provided our economic growth is sustained at a high rate. The Member for Anson does not understand that in an economy short of labour as a result of fast economic growth, wages must rise and employers who cannot afford to pay higher wages should either improve on their performance or give way to more efficient employers.”
“The result has been a high rate of economic growth and an increase of both incomes and savings. That is to say, both take-home pay and CPF contributions have increased. This has made it possible for Singapore to achieve what Professor Walt Rostow called "the take-off into self-sustaining economic growth". Very few Third World countries have achieved this take-off. The reasons are manifold but two common features are found in these unhappy countries. First, a lack of effective government and second, an abundance of political opportunists. In 1981, gross fixed capital formation in Singapore was $11,158.1 million out of a gross domestic product of $27,279.5 million, or 40.9%. This compares with 32.0% for Japan, 31.8% for South Korea, 17.8% for the UK and 18.2% for the US, just to take a few examples. Third World countries generally register 15% or less and hence their poor rates of economic growth. Our public housing programmes would not have been possible on the scale achieved but for CPF savings. 69% of Singaporeans are decently housed in HDB estates. Further, accumulated CPF funds have allowed large numbers of Singaporeans to own their homes. No less than 228,459 families, or 64% of those living in HDB estates, are proud home-owners. As at the end of 1981, home-owners have withdrawn $3,175 million from their CPF contributions to pay for instalments on home purchases. As regards the second part of the Member's question, where the employer does not implement the NWC wage increases, the employee will suffer a reduction of wages, 1% to be exact. Employers who cannot give wage increases are of two kinds. They may be inefficient or uncompetitive. It is better that they close down and release workers to those who can afford to pay better wages.”
“Mr Speaker, Sir, the Member for Anson regards CPF contributions as an exaction. The Oxford English Dictionary gives the following definition of the word "Exaction":- 'The action of demanding or requiring more than is due or customary; an illegal or exorbitant demand; extortion; an arbitrary and excessive impost.' As the Member is a lawyer, one must assume that he chooses and uses his words with care and deliberation. If so, he clearly does not understand how Singapore's economy works, and how CPF contributions play a pivotal role in our economic growth. I cannot possibly dispel his ignorance of the subject within the time at my disposal. I can only try my best. The rate of growth of an economy, that is, how fast new jobs are generated and people's incomes increase year by year, depends to an important degree on capital formation. This means the construction of new factories, installation of new plant and equipment, expansion of infrastructure - roads, ports, telecommunications, etc. building of houses and so on. These desirable facilities do not fall like manna from heaven. They do not come about because politicians preach compassion and talk about a caring society. They have to be paid for in hard cash. Of course, a government heading for bankruptcy can borrow from foreign banks in the Euro-market, for instance, at exorbitant rates of interest. Worse still, the government can print notes and the result is runaway inflation. Some governments do both these things and the country runs into big trouble. The PAP Government does not resort to trickeries of this kind. We know that capital formation must come out of savings by people and entrepreneurs. That is why over the years, rates of CPF contributions have proportionately been increased even as we have increased wages.”
“Jeyaretnam asked the Minister for Communications and Minister for Labour what were the compelling reasons for the latest increase in the contributions to the Central Provident Fund exacted from employees and employers and if he realizes that in the cases where the employer does not implement the NWC award the employee will suffer a reduction in his wages.”
“Mr Speaker, Sir, the full MRT system, including the extensions to Bukit Batok, Tampines and Yishun, will take some 10 to 12 years to complete. One of our first tasks therefore is to carefully determine the staging programme and time-table to be adopted for the construction. Providing maximum relief to traffic congestion is a major consideration. But there are other equally important factors. One, for instance, is our objective of maximizing the development potential of our Central Area and the reclaimed land in Marina South. And whilst the Member for Kebun Baru has rightly identified the north-south corridor as deserving top priority from the standpoint of traffic congestion, it is the east-west line - not the north-south line - that is expected to carry the most passengers. In addition, engineering considerations must be taken into account. For example, the first section of the line should be linked to the depot. We also have to spread investment over a number of years in a way that would not overheat the economy. Having said that, let me add that regardless of which of the two lines comes into operation first, it does not mean that we have to complete the first line before commencing work on the second line. The staging programme may well be staggered in such a manner that part of the second line could come on-stream shortly after the first line is completed. We are now studying the matter more carefully, and hope to have more positive answers within a month or two. CENTRAL PROVIDENT FUND (Increase in contributions) 5. Mr J.B.”
“I have already said no, it is not necessary.”
“Sir, the answer is no, it is not necessary. The Member for Anson, in fact, has misled his client by advising him to refer the matter to the court which has no power to order a reinstatement. If he had advised his client correctly by referring the matter to the Ministry of Labour, the Ministry of Labour after due inquiry and investigation could make an order of reinstatement free of charge without having to refer it to the court.”
“Mr Speaker, Sir, I thought I have quoted the Judgment in clear plain English. There is no need for an amendment to section 14 of the Employment Act. There is provision in the Act where an employee who is dismissed without due inquiry can seek redress from the Minister. And if the Minister after investigation found that it is true, he could order a reinstatement. I am not sure which part of the Employment Act that the Member for Anson thought that it was inadequate in this respect. Perhaps he could tell the House the nature of the amendment that he has in mind. If he has difficulty with section 14, I have a copy of the Act here to help him.”
“Any employer who fails to comply with the Minister's order of reinstatement will be guilty of an offence under the Act. Perhaps the Member for Anson can explain why he misled me and the House when he asked me to consider making an amendment to this section of the Act, when it is clear from the Judgment that no such amendment is necessary.”
“Mr Speaker, Sir, on 19th March 1982 at Question Time, the Member for Anson asked me a supplementary question, following my reply to Question No. 2 on the Order Paper. His question was whether I was aware of a case in the Court of Appeal where the Court held that there need be no enquiry held before a worker is dismissed and whether I would consider taking steps to amend the legislation to put that right. I presume he was then referring to the case of Lim Tow Peng and Another vs the Singapore Bus Services Limited, as reported in 1976 in Vol. 1, Malayan Law Journals at page 254. I have had the oppor- tunity since last Friday, Sir, to obtain and read the Judgment of the Court of Appeal. The Court held, and I quote the following passage at page 257, , from the Judgment of the Court: 'In our judgment the provisions of section 14 are not mandatory. An employer is not obliged to comply with section 14 but if he disregards section 14 and dismisses an employee without an enquiry, as in this case, the dismissal can be enquired into and reinstatement with full pay ordered by the Minister whose decision cannot be challenged in any court. The effect of section 14 is that a dismissal without notice before due enquiry is wrongful and not that it is ineffective or null and void.' Mr Speaker, Sir, I am only a layman when it comes to legal matters. But the Judgment seems to be clear enough. It is not necessary for an employer to hold an inquiry under section 14 of the Employment Act, but where an employee is dismissed without notice before due inquiry, the dismissal is wrongful and the employee has the right to present a complaint to the Minister who has the power to direct the employer to reinstate the employee.”
“Mr Speaker, Sir, as I explained to the House on 5th March 1982, 1981 was a fortunate year for SBS. The price of diesel did not escalate as much as SBS had feared at the time that fares were increased across-the-board on 1st April, 1981. The weakening of some foreign currencies against the Singapore dollar also contributed to the favourable position by way of cheaper spare parts. At the same time, determined efforts by SBS to cut costs and improve productivity led to more cost savings primarily through more extensive use of OMO services. For these reasons, a second across-the-board fare increase planned for late 1981 was averted. One could argue that this is tantamount to a reduction in fares in real terms. To reduce fares now will almost certainly mean that future increases have to be larger. A more sensible approach would be to intensify the search for cost-saving measures and hope that external factors remain favourable. In this way, future bus fare increases can be kept to the minimum. RADIO AND TV LICENCE FEES (Request for reduction) 3. Mr Hwang Soo Jin asked the Minister for Foreign Affairs and Minister for Culture whether, in the light of the considerable profits made by the Singapore Broadcasting Corporation during the past year, he will consider a reduction in Radio and TV licence fees.”
“If there is a case for an employee to claim compensation from an employer for termination after long years of service, there is equally a case for the employer to request for similar consideration. From our experience of termination cases in the past, by and large, employers have not abused the right to terminate. In a tight labour situation, employers are unlikely to abuse this right, as it will only work against their own interest. However, there may be isolated cases of abuse of this right. For such cases, it is best to deal with them administratively and to publicize these employers who abused their right as a deterrent to other employers. There is nothing to prevent unions from negotiating for such compensation and incorporating them in a collective agreement. Since the Member for Kebun Baru feels strongly on this issue, I shall request my officials in the Labour Relations Department to take another look at the matter.”
“Under the Industrial Relations Act, only managerial, executive and confidential staff are not covered. Therefore, the question of whether or not the junior management staff are covered is a matter for negotiations, and if no agreement is reached between the parties, then the President of the Industrial Arbitration Court will decide. Perhaps the Member for Kebun Baru can provide more specific details of his request so that my Ministry will be able to look into his suggestion. But ultimately, if the matter is referred to the Industrial Arbitration Court, then the President of the IAC will decide. The Member for Kebun Baru has also proposed that employers who terminate the services of employees who have long years of service and who are old should pay some form of compensation to the employees. The fundamental feature of a contract of employment is that either party may terminate the contract with appropriate notice. To require an employer to compensate an employee for termination on account of old age and service would change this basic principle and it would work only in favour of the employee. The Member's argument would probably be that by virtue of the employee's old age, he would find it difficult to find employment and ought to be compensated. The employer could equally argue that he would suffer a loss, especially if the worker has been trained and has gained useful experience. Cases of employees, for example, sales personnel and skilled workers, who leave their employers to set up their own business are not uncommon. These employees take away part of the employers' business and clients.”
“Mr Speaker, Sir, I am afraid I have little time to answer the points raised by the Member for Anson. I think it has already been answered by my colleagues in this House. I only wish to tell him that since he is interested in legislation, there are a number of labour legislation amendment Bills that are being tabled in the British Houses of Parliament presently. If he is interested to know what these are, I would suggest that the Mem- ber for Anson write to the Secretary of Employment in Britain. In case he does not know who he is, he is Mr Norman Tebbit, who can give him more information about what is going on there. On the point raised by the Member for Kebun Baru regarding the objective of labour legislation, I agree entirely with him that the objective of labour legislation is to promote, protect and enhance the welfare of workers and not strike. The promotion or organization of strikes cannot be the objective of our labour legislation or of our union. In this regard, I agree that the objectives of the trade unions in the legislation need to be redefined. My Ministry will consider amendments to the various sections of the Trade Unions Act to bring it up todate and in line with our current policy to promote teamwork and better industrial relations within the enterprises. The Member for Kebun Baru has also touched on labour legislation to cover the junior management staff. He would like to see the scope of trade union membership redefined. The term "junior management staff" can be used differently under the Employment Act and the Industrial Relations Act. The Employment Act covers all workmen and other employees, including junior management staff whose salaries are below $1,250 per month. The question is whether we should raise the ceiling of $1,250 per month.”
“The other point I would like to raise is whether the Hon. Minister for Communications and Minister for Labour would let this House know whether the quantum of compensation is sufficient, especially with continuously increasing cost of living. I would also like to know how the quantum of compensation compares with those of the advanced countries.”
“There are 442 PSA employees under this category, of which 276 are container port workers. As explained in the answer to the first question raised by the hon. Member, it is not proper for PSA to transfer the moneys standing to their credit to their accounts in the Central Provident Fund. No statements of account have been issued to these employees as no one has requested for them. It appears from the question by the Member for Khe Bong that there is an interest in these statements. I am, therefore, asking the PSA to send these statements to all the employees involved. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1982 TO 31ST MARCH, 1983 Order read for resumed consideration in Committee of Supply [5th Allotted Day]. [Mr Speaker in the Chair] 2.35 p.m. Head R (cont.) - Resumption of Debate on Question [22nd March, 1982], "That the sum to be allocated for Head R be reduced by $10 in respect of Subhead RD-02 Object Group 1210 of the Main Estimates." - [Mr Lim Boon Heng]. Question again proposed. Dr Wan Soon Bee (West Coast): Mr Speaker, Sir, I must commend the Ministry of Labour for setting up statutory requirements for compensation to be paid to an injured workman or to his dependant if he is deceased as a result of an accident which occurred during the course of his work. One can easily imagine the misery that would befall the dependants if such a move was not initiated. However, I would be pleased if it could be explained to this House the rationale for setting the ceiling of $1,250 for monthly earnings beyond which a workman cannot claim compensation. I would like to recommend to the Ministry of Labour to periodically review this ceiling, especially with rising wages due to the restructuring of our economy.”
“Mr Speaker, Sir, the PSA Daily-rated Employees Gratuity Scheme is a form of pension scheme inherited from the Singapore Harbour Board. This scheme applies only to daily-rated employees who joined PSA service before 1970. At the same time, these employees have also been placed on the CPF scheme since the inception of the Central Provident Fund. In 1980, PSA and the Singapore Port-workers' Union agreed that all PSA dailyrated employees should be placed on the CPF scheme only and that the Daily-rated Employees Gratuity Scheme for those who joined PSA before 1970 should be frozen as from 1st July, 1980. At the request of the Union, each daily-rated employee who had the gratuity benefit frozen was given a statement on 31st May, 1981, indicating the estimated amount which they would receive on retirement, provided that he is at least 45 years old and has at least 10 years of continuous service. These moneys are only indicative of what these employees may receive upon retirement. They will not be entitled to these moneys if they do not fulfil the conditions stipulated in the regulations governing the payment of gratuity when they leave the service. It is, therefore, not proper to transfer these moneys to their accounts in the Central Provident Fund. As regards the second question, only daily-rated employees are eligible for the Daily-rated Employees Gratuity Scheme. Daily-rated employees who were promoted to monthly-rated posts would cease to be on the Scheme as from the date of promotion. The moneys standing to the credit of these employees were frozen on the date of promotion and will be paid to them upon their retirement provided the conditions for gratuity payment are fulfilled. The amount payable will be based on the duration of their service as daily-rated employees.”
“Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates for the financial year 1st April, 1982 to 31st March, 1983 and ask leave to sit again tomorrow.”
“If the Member for Kebun Baru is interested in the details of this particular case, I suggest he submit a question for written answer.”
“Further, the National Productivity Board has been providing training and development of management personnel to give them a better appreciation of the techniques involved in managing their human resources. I hope that management will respond to these efforts and change their attitude towards union activities.”
“Why not put up a proposal? Furthermore, there are provisions in the Industrial Relations Act which make it an offence for any employer to dismiss or threaten to dismiss a worker on account of his involvement in trade union activities. An employer who contravenes any of these provisions is liable on conviction to a fine not exceeding $2,000 or to imprisonment for a term not exceeding 12 months, or to both such fine and imprisonment. Therefore, our laws are stringent enough to deter any employer from taking an antagonistic stand towards workers who wish to join a trade union. As a matter of fact, an employer who does not wish his workers to join a trade union should show greater concern for his workers' interest and welfare as workers generally join a trade union because they feel that their interest and welfare were neglected by their employers and we have enough examples of this kind in Singapore to show the employers the proper way. But once the union is formed, employers should take steps to win over the cooperation of the union in the interest of promoting better labour-management relations and with better labour-management relations can the company hope to increase productivity. And only with increased productivity can it hope to increase its profit. The Ministry has continually exhorted management to consider workers and unions as joint partners of their enterprise and workers and unions to consider the employer and the company as an engine for growth and generator of wealth. The whole thing is mutual. Through the National Productivity Board, Sir, my Ministry has been promoting joint consultations between man- agement and workers through the setting up of work excellence committees.”
“It is a reasonable quantum to pay if employers retrench because of restructuring. This is especially so in a tight labour market situation where the workers can easily find alternative employment. I entirely share the view of the Member for Boon Lay that management must adopt a more enlightened attitude towards their workers and unions. Unions in Singapore are responsible unions, unlike unions elsewhere. An employer should regard workers and unions as partners of their enterprise and not as adversaries, otherwise I do not see why they employ them in the first place. My Ministry will not condone any employer who adopts an antagonistic attitude or place obstacles to thwart the workers' effort to organize or form a union. We will not hesitate to prosecute such employers. The Ministry will also take action against employers who unilaterally withdraw benefits from workers merely because they join a trade union. I am aware of the case mentioned by the Member for Boon Lay, and I would like to assure him that there are adequate provisions in our law to safeguard the workers' right to form or join a trade union. Under the Employment Act, an employer who prevents an employee from joining a union or participating in the activities of the union or from organizing a trade union is liable on conviction to a fine of up to $500 or imprisonment up to six months, or to both such fine and imprisonment. If the Member feels that $500 is insignificant, we could review this.”
“Sir, I share the view of the Member for Kebun Baru that employers should not dismiss their employees at their whims and fancies. There are provisions in the Employment Act and the Industrial Relations Act to protect employees against such unjust termination or dismissal by their employers. An employee who feels that he has been dismissed without just cause or excuse or even terminated by an employer without just cause or excuse can appeal to the Minister for Labour for reinstatement. If the Minister is satisfied that the dismissal is without just cause or excuse, the employer will be ordered to reinstate or compensate the employee depending on the merits of each case. The Member for Kebun Baru cited the case of an employee who bears the same name as that of his manager. The matter was brought to the attention of the Ministry of Labour which did look into the matter in detail. But the Ministry of Labour did not direct the employer to reinstate the employee who had indicated to the Labour Ministry officials that he did not wish to be reinstated. So the discussions in the Ministry of Labour therefore centred on the amount of compensation to be paid to the employee, and this was finally settled amicably between the parties. On the question of retrenchment benefits payable, I wish to point out that such benefits are subject to negotiations between employers and employees or the union. The quantum of retrenchment benefits negotiated and settled vary from a few days' salary up to 1" months' salary for each year of service. In most cases, including cases where companies retrench because of restructuring, the retrenchment benefit payable is one month's salary for each year of service. I think the retrenchment benefit of one month's salary for each year of service is reasonable.”
“Sir, I thought I have already explained that it is voluntary for the applicant to show that he is in support of our family planning policy; that he understands what the Government policy is all about.”
“Sir, I thought I have already explained that it does not mean that all applications for marriage from couples who intend to marry will be automatically approved if they offer sterilization as a point for consideration. As I mentioned earlier, the majority, or 83% of the applications to the Commissioner for Employment for approval to contract marriage were approved, and out of these only about 10% had offered sterilization for consideration by the Commissioner for Employment. So it does not mean that if they offer voluntary sterilization, the application will be approved. There are a lot of other factors involved, such as whether the applicant has the necessary skill, whether he has the necessary qualifications to continue to work in Singapore, and whether he is able to support his family in Singapore. So there are a lot of other considerations that have to be taken into account.”
“Sir, on the point raised by the Member for West Coast on sick leave, perhaps it is also opportune at this time to ask the officials to look into this as well while we are reviewing the whole series of provisions in the Employment Act to bring it up to-date. But I am not able at this stage to say whether his proposal will be accepted. However, I would suggest that the Member for West Coast and other Members of this House who are closely involved in union activities and are concerned with workers to put forth their proposals to my Ministry for consideration while we are in the process of reviewing the Employment Act and other related labour laws.”
“But as far as the one month basic bonus quantum for negotiation purpose is concerned, I think that should remain. Sir, I think I have covered all the points raised.”
“The Ministry of Labour is presently studying into ways to get women with grown-up children out to work. Some of the measures considered are encouraging employers to introduce part-time work or flexi-time work. This will allow women with school-going children to be gainfully employed while their children are at school and be at home when the children return home. This would involve amendments to the Employment Act which is currently being looked into by the officials of the Ministry. The Member for West Coast touched on a similar vein within the Employment Act, about annual leave benefits. I think his proposal merits consideration. Instead of 14 days' annual leave for 10 years' service and only seven days' annual leave for under 10 years' service, he has proposed a gradual increase in annual leave over a period of employment. It has merit and deserves consideration. This would also involve an amendment to the Employment Act, and I will definitely ask the officials in the Ministry to consider this seriously. On his other proposal about the frozen quantum of annual wage supplement (AWS), I am afraid the maximum of one month for negotiating purposes which has been established since 1968 should remain in order to maintain the peaceful industrial scene that we have. There is no need to review the frozen quantum for the payment of AWS up to one month's salary at this stage. As far as the legislation is concerned, there is no need to raise the ceiling of the frozen quantum. However, we are now considering the removal of the ceiling of three months' salary so that the employers have the discretion to pay higher AWS. I think there is some merit in the proposal, I will ask the officials in the Ministry to look into this.”
“However, in addition to the task of preventive mediation and the resolution of conflicts between management and workers, labour-management relations are also being improved through the promotion of good work attitudes and the training of personnel in the techniques of man management and staff supervision. The National Productivity Board which is undertaking this task has increased its establishment of professional officers from 40 in FY 81 to 72 in FY 82. The National Productivity Board will therefore be adequately staffed to help achieve the objec- tives of improving labour-management relations in Singapore. The Member for Kampong Kembangan touched on the implication of getting more women to join the workforce. My Ministry agrees that it is socially desirable for women to stay at home when their children are young. The formative years are important years requiring a mother's attention to inculcate moral values and nurture linguistic abilities. But once the children have grown up, the need for a mother's constant presence is reduced. The hon. Member for Kampong Kembangan knows that Singapore has a sizable foreign workforce. We can only depend on foreign workers to meet our labour needs in the short term. Over the. long term, they can generate social problems which I have cited earlier. In the light of this, the foreign workforce is now being gradually phased out. While the foreign workforce is being phased out, it makes sense for us to get our own women to join the labour force. From our survey, there are more than 400,000 economically inactive women. Some of them are probably already engaged in part-time work, such as giving private tuition or piano lessons or as domestic help. The others, however, constitute an important pool of workers we can tap.”
“For the same reason, Sir, the proposal of the Member for Ayer Rajah and other Members, like the Members for Toa Payoh and Kampong Kembangan, cannot be agreed to under the present policy because this will open up a pandora box. Everybody would want to put their hands into their savings and leave nothing for their old age. Nevertheless, some of the points raised by members do have merit and I will ask the CPF Board to examine the merits of the various proposals put forth by Members today. The Member for Geylang Serai asked about the Labour Information Service. He wants to know more details of the Labour Information Service. I suggest that perhaps he send in a Question for Written Answer because it is pretty dull to go into the details of the Service and in order not to waste too much time, I suggest that he bring this up separately and we will give him the full details of the Service in writing. The Member for Khe Bong is concerned about the staff resources of my Ministry in carrying out the work relating to improving labour-management relations. He wants to know how it is possible to achieve the objective of improving labour-management relations with no corres- ponding increase in staff to do the work. My Ministry is able to carry out this task of improving labour-management relations with a marginal increase in staffing position by one post through better deployment of its officers. This was achieved through integrating the work of the individual disputes section of my Ministry with that of the Labour Inspectorate of the same Ministry, thereby releasing five officers to perform preventive mediation and conciliation work.”
“This has enabled them to invest their savings in property as a hedge against inflation in the long-term. Contrary to the contention of the Member, the CPF contributions cannot be regarded as an erosion of income of the workers. It is, in fact, a form of forced savings and it remains a part of the income of the workers which is set aside for old age security. In any case, the Member may wish to be informed that the rate of interest payable on CPF deposits is now being reviewed. The Member for Telok Blangah has made a suggestion on the use of CPF savings to promote greater family ties. He wants to know if it is at all possible to allow CPF money to be used to assist other members in the family to buy their flats, if the CPF contributor has already a flat of his own and has a large sum of money in his CPF account. I wish to reiterate, Sir, that the primary objective of the Central Provident Fund is to provide old age security for its members. Therefore, CPF savings are not transferable or assignable to another person before the member reaches 55 years. To allow CPF monies to be used to assist others to buy flats would amount to a premature transfer of part of a member's savings to another person. This is not consistent with the objective of the CPF. If it is the intention to promote closer family ties, perhaps it would be better for the Member concerned - I am not referring to the Member for Telok Blangah, who has cited a case of a person who already has an HDB flat and a large sum of CPF savings - to upgrade to a larger flat to enable both his parents and his brothers to stay with him. The present CPF housing scheme does provide for such an arrangement. 7.15 p.m.”
“Whether the applicant has stayed in Singapore for over a period of time in the past or he has a family here has no bearing on his work permit application. As for an application to stay in Singapore, it will have to be considered under our Immigration Act. I suggest that the Member concerned raise this matter further with the Minister for Home Affairs. The Member for Leng Kee has raised the point that the CPF interest rate is below the inflation rate. I wish to point out that this situation happened only in recent years when inflation due to the world economic situation was high. Perhaps at this point, I will ask the Clerk of Parliament to circulate an Annex (Cols. 1401 - 1402) showing the CPF interest rates over the last 16 to 20 years in comparison with the inflation rates, the interest rates of POSB and bank deposits. [Copies of Annex circulated to hon. Members.] Annex - TRENDS IN CPF INTEREST RATES, INFLATION RATES, POSB INTEREST RATES AND BANK DEPOSIT RATES IN SINGAPORE, 1955-1980 (Cols. 1401 - 1402) Members will note from the Annex that for 16 years out of the last 20 years, the CPF interest rate was higher than the inflation rate. Even when compared to the bank deposit rates, the CPF interest did not fare too badly. Between 1975 and 1978, the CPF interest rate was generally higher than the bank deposit rates, although it was overtaken considerably in the last three years. However, I would like to remind Members that except for the POSB the CPF interest, unlike the interest on bank deposits, does not attract tax and is, there- fore, not too unattractive when the two are compared. Besides, members are allowed to use their CPF savings for the purchase of low-cost housing in the public sector and recently for private residential property.”