Peter Sung
Singapore
“After all, we are on the same side as the Frontbench. We say these things out of concern. We say these things because we are concerned for the children, for the future of our children. There are residual concerns and the Minister shall hear more about them in the course of this debate. The Opposition, Where Are They?”
“Sir, I have already made remarks about creating a business library and I shall not repeat them. The Ministry of Information and the Arts has published the Library 2000 Report. I agree with the proposals and the plans set out by the Ministry.”
“In terms of both geographic and economic development, Singapore is well endowed to become an international centre for the arts. It can serve as a centre for the exchange of South-East Asian cultures as well as between the western and eastern cultures. I would like to know more details about this project.”
“In fact, as an MP, I have received many pictures sent to me which have very explicit scenes. We should not copy this liberal lifestyle of the other countries.”
“That film was brought into Singapore with the full blessings of the Government. How this helps, I do not know. I notice that the Police and the Ministry of Home Affairs are concerned. I also notice that MITA and SBC are reviewing the position. This is comforting and encouraging because it is not too late to mend.”
“We must systematically organise and cultivate our people's interest in the arts and improve their standard of appreciation. On the other hand, the Government should also assist and help our artists to venture into the international market. Mr Speaker, Sir, in order to do that, we need a lot of money.”
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“That film was brought into Singapore with the full blessings of the Government. How this helps, I do not know. I notice that the Police and the Ministry of Home Affairs are concerned. I also notice that MITA and SBC are reviewing the position. This is comforting and encouraging because it is not too late to mend. Another Chinese saying goes like this: wang yang bu lao, you wei wan yi. ( ) The sheep has left the arena.”
“' What Mr Major is quoted to have said is tantamount to admitting that there is nothing the Government can do to control the supply of undesirable material. He has asked parents to control their children and prevent them from watching such films. In other words, the Government will continue to allow the supply of these nasty things and parents should take on the role to control their children, to curb the demand and prevent the children from watching them. Sir, I do not want to be critical of another government. But this may well be a case where the government has abdicated its role. Let me turn to another example. America mounted an exercise called "Operation Longarm". This is an exercise to try to foil the importation of sexually-explicit pictures of children involved in sexually-explicit acts. These were imported to America through phone lines and modems through computer bulletin boards. The US Government wanted to stop this. Why? It is clear that even for a liberal country like America, it has been found necessary to exercise control or, shall I say, to re-establish control. Do we want simply to copy from these liberal countries? Do we want to go the way of countries which are more liberal in their views and thoughts? I urge MITA to be cautious and to remember the Chinese saying qian che zhi jian, ( ) meaning that the vehicle in front of you on the road has fallen into a ditch. Do we want to follow suit? The Consequences Should the Government be an accessory to make undesirable films available knowing full well that they may get into the wrong hands. If we do this, we do so at our own risk. We will not forget a recent newspaper report that pupils were caught watching a R(A) film. In that incident, some 30 students were caught watching the R(A) film -The Lover.”
“But making them available in Singapore may lead some to copy. Hero worship Sir, I may be old-fashioned. For people of my vintage, the popular screen heroes were Robin Hood, Superman, Tarzan, Yue Fei, Huang Fei Hong, etc. Knowingly or unknowingly, we try to emulate the heroes and heroines in the films. Through entertainment, we were exposed to virtues which may be embodied in four Chinese words: ren yi dao de ( ). These are ingredients that make up a gentleman. And in those films, those who score poorly in these ingredients usually end up in a bad state. Films have a moral and educational undertone. So, with apologies to Peter Drucker, may I say that it would be "entertainment by objective". The way we choose or censor films can be used as a tool for character building. Why can we not use this to help foster the development of a nation whose people are upright and virtuous? 4.15 pm Government needs to maintain control Yes, the Government should listen to the people's views. They should provide variety so that people from different sectors of the community have something for them in the art scene. But at the end of the day, the Government has to make difficult choices. In doing this, it may be well to bear in mind that the Government must maintain control because, in some ways, it is the guardian and protector of public morality. Sir, let me quote an example. Some 10 days ago, the British Prime Minister, Mr John Major, said at a Conservative Party Meeting in Harrogate in England that violent scenes in videos and television lead to an increase in juvenile crime and parents should control what their children watch. Let me quote what he said: `We can't censor television. But we can say to parents - control what your children watch.”
“Censorship relaxation Sir, censorship rules have been relaxed. What are the reasons for this? Is it because we want to keep up with world trends? Or is it because there is a push for us to have more explicit scenes on our cinema screens? I believe there is a cycle. Whether it is a vicious cycle or a virtuous cycle, I do not know. We first relax censorship standards. Then the shows get more explicit. That becomes the new norm. There will be more pushes at the margin. We relax standards again. The shows get even more explicit; and so on. The limits get pushed bit by bit. For some, this is freedom. For yet some others, there may be a commercial reason to perpetuate this move. In the end; well, I do not know what will happen in the end. In January this year, I asked MITA for some information about films screened in Singapore. The information that MITA produced showed that less than 1% of the films were of the general category and more than 99% needed parental guidance or they were of the restricted category. I hope MITA will closely monitor the situation and make adjustments where necessary. This is because members of the public are concerned. Many feel that matters for the bridal chamber should stay there. Copying from abroad We know that many Singaporeans do travel. On their return, some of them would like Singapore to copy things from the countries they have visited. Should we oblige and, if so, to what extent do we do this? I urge the Ministry to consider this particular position. Let them go where they want to go, to do what they want to do and see what they want to see. But be careful about bringing these things back to Singapore, because these things may influence other people who have no intention to do the same thing in the first place.”
“Sir, I beg to move, That the total sum to be allocated for Head R of the Main Estimates be reduced by $100. Sir, I have two cuts under this amendment. May I take them together? The Chairman: Yes, please proceed.”
“On this note, I support the motion and once again congratulate the Finance Minister for being able to offer such an attractive package this time. 1.10 pm”
“Conclusion Finally, Mr Speaker, Sir, may I make three other points? Firstly, I quote from the Finance Minister who in March 1987 told this House that a broad-based consumption tax will only be introduced if the revenue shortfall is substantial and a permanent deficit inevitable. There is no permanent shortfall now. But even so, I support the Finance Minister in the introduction of the GST because he is preparing for a rainy day. He is putting the machinery in place at a time when it is very auspicious and very convenient for him to do so. He has got sufficient revenue reserves to buffer any unforeseen effects of the introduction of GST. But because we are in such a happy situation, I hope the Finance Minister would be generous in the initial years of the introduction of the GST. Secondly, I hope the Ministry will continuously monitor the machinery for the collection of GST to make sure that it is as uncumbersome as possible in order not to increase the cost of collection of GST. Thirdly, financial prudence is very important for a country. As a result of a long and uninterrupted period of financial prudence, Singapore is in a strong financial position. With GST in place, a firm foundation would be laid for the long-term financial stability of the country. I would ask the people of Singapore to have faith in the Government. After all, the Government has a very good track record for the last so many, many years. The country is financially strong. The Government knows what to do to maintain this position and to keep it strong. And with GST in place, the future of Singapore will be secure from the financial prudence and financial management point of view.”
“Thirdly, I think people will make their own adjustments. In order to minimise the effects of GST on themselves, companies may integrate vertically. Vertical integration means that less transactions are made, and taxes will not be paid when no sales are made. And the tax on the value added will only be paid towards the end when the transactions actually take place. Also, the fact that we exempt companies with turnover of less than $1 million would mean that companies would sometimes split up their operations in order to take advantage of the tax situation. Vertical integration has one advantage. Companies become bigger; and bigger companies may be in a better position to strike out overseas. The effect of companies splitting up into smaller ones is left to be seen. I hope the Finance Ministry will closely monitor the situation so that we do not have undesirable effects developing as a result. Fourthly, consumption taxes are paid at the point of sale. So companies will pay tax whether they make profits or not. In the case of direct taxation, companies only pay tax when a profit is made. In this situation, companies that are marginal may go bust earlier. Whether this is a good thing or not is really a moot point. Fifthly, consumption tax being regressive, I hope that the Finance Ministry will closely adjust the proportion of taxes to be collected from direct taxes on the one hand, and the GST on the other, because to have too high a proportion of taxes collected through GST will be to place an undue burden on the poor. I hope the Government will continuously monitor the position of the bottom, say, 5% of the population, to ensure that they are not badly off but, of course, doing so in a way that does not encourage dependency.”
“And those people who have worked for international companies will realise that their salary levels are higher than those paid by local businessmen 20-30 years ago. Foreigners investing in Singapore have raised the standard of living and the level of wages to the point that even local businessmen have to follow suit, if they were to attract the best talent. So if Singapore does not stay tax-competitive, foreign investors will not come. They will go to places where they can have a better return on their investment. In that case, our standard of living may drop, our salary levels will drop and we would not have such a comfortable situation, economically speaking. Long-term effects of the GST Mr Speaker, Sir, first the Finance Minister has said that he would not change the GST rate for at least five years and after that, he hopes not to raise the rate unless it becomes necessary to do so. How would such a necessity arise? Firstly, if the Government is spendthrift and spends money on unworthy and unproductive projects, then this necessity may arise. Secondly, if the people were to pressurise the Government to increase expenditure and subsidies on all types of services, then the need may again arise. So the lesson to learn from the very beginning is that the people must encourage the Government to be frugal; then there will be less need for the GST rate to go up. Second, consumption taxes have one particular advantage. We only pay GST when we consume. The choice is ours. We pay more when we consume more. In this respect, the Finance Minister is like jiang tai gong diao yu [ ]. In other words, those who are willing will pay. Those who do not want to consume more do not need to pay more. This will in the long term, I hope, encourage people to be personally more frugal.”
“To be sure, such effect is just one time and would have very little effect on the long-term profitability of companies. But companies operate on a much shorter time-frame than the Government. If there is a decision to be made, I hope the Government will be generous. And, if it has to make a mistake, it should err on the generous side. After all, GST is now introduced not as a means to raise revenue immediately and the amount of revenue forgone would be very small to the Government. Why GST? Mr Speaker, Sir, why is it that the Government is going to introduce GST now? The Government, if it needs to, can always increase revenue by increasing direct taxes if GST is not in place. By introducing the GST, it is going to lose revenue. As the Finance Minister has said, GST will be implemented in a revenue negative way. Besides, there is also a political price to pay. Some Members of the Opposition are likely to confuse the people about the intentions of the Government and the efficacy of GST. They will hope to generate more heat than light both in this House and outside. Although their claims and accusations may be ill-founded, I am afraid that there will still be a political cost to the Government. So why would the Government introduce GST now when it loses financial as well as political points. I believe it is because GST is the way to go for the future. With GST in place, the Government can make sure that Singapore remains tax- competitive. And this will ensure that we will continue to be able to attract foreign investors to come to Singapore. We must not forget how important foreign investments have been to us in the past 20 to 30 years. They bring in new technology. They bring in new investments. They bring in new jobs.”
“For the poor, the package of offsets, rebates and subsidies, which the Finance Minister has introduced, should ameliorate the effects of the GST. Implementation of the GST I would like to make some comments. First, GST is new to Singapore. In the process of implementation, it is possible that snags can surface, especially in the initial period. There may be a small section of the community which would miss the safety net which the Finance Minister has put out. The Government has chosen to use the Citizens' Consultative Committees (CCCs) to help reach out to these people. CCCs have an important role to play; it is an additional role. And I hope the $3 million that the Finance Minister has put aside will be sufficient. If not, I hope the Minister will increase the amount. Second, I support the GST from a macro-economic point of view. However, there may be people who suffer financial hardship in a way that is not intended. I hope the Government will closely monitor the implementation and introduce modifications and adjustments wherever necessary. If the people are confident that the Government would do this, I feel sure that they are more likely to accept the GST. Third, in the implementation of GST there may be practical and technical issues. For example, an architect may have done some work for a client. Part of the work is done before the effective date of the GST and part of the work after. It is not easy to determine exactly which part of the work falls during which period. I am sure the Finance Ministry will get tax experts who have experience in the application or implementation of consumption taxes to help technically. But the way in which a decision is made will have an impact on the bottomline of companies. It will have an effect on the profit and loss.”
“Mr Speaker, Sir, I would like, first of all, to congratulate the Minister for Finance for this year's Budget. Tax changes that support an external economy The measures which the Finance Minister has outlined are a substantial beginning in the Government's efforts to support Singaporeans in their effort to go overseas. How successful these measures will be is left to be seen. But I feel sure that once the Government has decided, it would take appropriate measures from time to time to make sure that we would succeed in our effort to develop an external economy. What I had hoped to see was a package of measures to help the individual Singaporean. As we know, Singapore companies find it difficult to recruit Singaporeans for overseas postings. In large measure, this is due to the lack of basic facilities such as education and health facilities in some overseas cnetres. Singaporeans will be reluctant to consider postings overseas where the country to which they are supposed to be posted has facilities that are very different from ours, because it is very comfortable to stay home in Singapore. I hope that in the course of this debate the Government would give some indications as to what it would do in this direction. The GST Mr Speaker, Sir, the intention of the GST is to make everyone better off. The GST comes in a package which as a whole and on the average makes people better off, at least in the first five years. And the Finance Minister has said that he would not raise the rate after that, unless there is a need to do so. Mr Speaker, Sir, consumption taxes are regressive. Therefore, the rich and the upper-middle class should welcome indirect taxation.”
“On this note, and with this expectation, Mr Speaker, Sir, I support the motion.”
“Mr Speaker, Sir, the arguments on both sides of the issue had been made in the last sitting of Parliament and as the Minister urged, I would not go into them again. There were two NMPs in the last Parliament and obviously their performance would be something that Members would want to look at to see whether NMPs should or should not be included this time. The principles apart, I think it is important to look at the practice. I would like to touch on the possibility of NMPs being office holders in future. Sir, are elected Members the ones that make the best Ministers or best office holders? Should we equate elected MPs as good or right as Ministers, or that unelected ones to be no good or not right? If you look at the history of nations, I do not believe there were many countries that were led by Cabinets which were fully elected at the height of their glory. Also, in our neighbourhood, Tun Daim is well known to have been a good Finance Minister. When he first went into Parliament he was not an elected MP. I think we should keep our options open despite whatever pronouncements that have been made on this subject. It will give us the flexibility of bringing in people to manage our country for the long-term good of the citizens should this be required sometime in the future. Mr Speaker, Sir, in the last Parliament we had two NMPs. For this House to vote against NMPs this time would mean that when we want to reintroduce them in future, it would be slightly more difficult. Therefore, I would like to support this motion in order to give ourselves this flexibility. It remains for the Government to bring into this House suitable persons who can and will perform their roles in a manner that will justify the high expectations we place on them.”
“We must systematically organise and cultivate our people's interest in the arts and improve their standard of appreciation. On the other hand, the Government should also assist and help our artists to venture into the international market. Mr Speaker, Sir, in order to do that, we need a lot of money. So I hope the Minister for Finance would be more generous in allocating more funds for the promotion of the arts in Singapore. Mr Speaker, Sir, Singapore is but a tiny island. Yet, it has occupied a prominent space in the economic map of the world. Let us put in a concerted effort to make Singapore occupy also a very important position in the art map of the world. Sir, I support the financial policy of the Government as presented by the Finance Minister.”
“Apart from this, we should also encourage our private sector to set up art galleries and to increase the exchange and sale of work of arts. Secondly, we have to cultivate more talents in the various arts. The Government should sponsor the two private arts schools that we have in Singapore today. We have the Nanyang Academy of Fine Arts and the La Salle College of Arts. Apart from this, the Government should also provide more scholarships for our students to go overseas to improve themselves in their arts. We should also encourage the private sector to set up more scholarships for the study of arts, in addition to the existing scholarship for academic studies. Thirdly, the Government should take the lead in the collection of works of art and also allocate more funds for the purchase of works of famous artists. The reputation of a museum can be greatly enhanced if it has a good collection of famous paintings and antiques. Once the Museum is completed, we must try our best to enrich it. We would encourage private collectors to donate their collection to the museum for display. The Government on its part should also set up more funds to purchase works of art. Fourthly, we must relax our regulations and provide tax incentives to develop Singapore into an international auction centre for works of art, because with the establishment of an auction centre we can stimulate more related activities. We also need more experts, for example, the art authenticators, valuers, and framers. With the gathering of all these experts in Singapore, it would surely stimulate and develop Singapore into an art activities centre. Fifthly, we must let art reach out to the people.”
“There will come a time when the material life of our people has reached a saturation point and then they will start to seek a fuller and richer spiritual life. Sir, from the simple analysis above, we could see that the 21st century will be a time when people begin to pursue better spiritual life. Culture and the arts will receive unprecedented encouragement and sponsorship. People will pride themselves with their artistic cultivation. Sponsoring and participating in art activities and the collection of work of arts will be a major activity of our people in their leisure. In fact, some people say that the 21st century will see another Renaissance. Sir, I must declare my interest as an amateur artist. But I must tell our hon. Members in the House that the collection of work of art is not a consumption. It is in fact a valuable investment. This activity will not only promote the development of art, but also increase your wealth. The only thing in the world that will unfailingly appreciate in value with time is the work of art. For instance, 100 years ago a painting by Van Gogh cost not more than US$200, but today a painting by Van Gogh can easily cost as high as US$20 million, and many antiques are being auctioned off in international markets at millions or even tens of millions of dollars. Sir, facing the 21st century when people will be enthusiastically pursuing a richer spiritual life, are we prepared for it? I think this is something which we are very concerned with. I think we should put in more efforts in the following fields: Firstly, the Government should provide adequate infrastructure. Government has already announced the establishment of five museums and the construction of an ultra-modern National Arts Centre for the performing arts.”
“Senior Minister Lee Kuan Yew has rendered outstanding services in the construction of modern Singapore. His name will go down in history and be crowned with eternal glory. The solid foundation that he has laid down will be carried forward and be manifested by Prime Minister Goh Chok Tong and his team. So long as we put in our concerted effort, there is no reason why we should not succeed. Sir, Singapore is a country without any natural resources. To survive, we have to expand and develop externally, and to develop externally, we have to face keen competition from outside. Therefore, we have to be fully prepared. The Finance Minister has allocated more funds in the field of education, training and research. This is a move in the right direction. With our people generally receiving education, their wisdom will be enhanced and their vision widened. No matter which trade or work that we are engaged in, we must not close our door or be complacent and conservative. We have to take a broad view of the world and also to look ahead to the 21st century. Sir, let us take a look at the world situation today. Communism has collapsed and the Soviet Union has disintegrated. The traditional confrontation between the East and the West no longer exists. Although there may be, from time to time, some conflicts in some sectors, the situation of the world as a whole is inclined towards peace and harmony. Under these circumstances, there will come a day when the various countries of the world will spend only on basic military facilities. There is no more need for them to spend large sums of money to compete in armament. This would also mean that the money originally meant for military facilities could be used to improve the standard of living of our people.”
“Of course, I would urge the Ministry of Finance to develop a machinery that is itself not too elaborate or expensive in order not to increase the cost of implementation both in the public as well as in the private sector. The Senior Parliamentary Secretary to the Minister for Information and the Arts (Mr Ho Kah Leong)( In Mandarin): Mr Speaker, Sir, on 29th February 1992, the Finance Minister presented the Budget for the next financial year. It can be said to be a prudent and thoughtful Budget, although it is inevitable that certain people in some social strata may receive more benefits than other people in the other social strata. But, generally speaking, the Budget is a fair one. That is to say, people who pay more taxes will receive more rebates in absolute terms, than those who pay less taxes. However, the spirit of the whole Budget is aimed at encouraging and stimulating the further growth of our economic development and to appropriately distribute its expenditure on social development and looking after the welfare of our people. Generally speaking, the Budget reflects the ruling Party's ideology and the model of society it seeks to mould. Therefore, in formulating its policy, the Government must have a thorough understanding of the domestic and foreign situations and the global trend of changes so that it can take a broad and long-term view to put our Republic in an invincible position in the long-term and to chart out the right direction ahead. Sir, although Singapore is a small country with a small population, we have enjoyed a good reputation internationally over the years. Leaders from the superpowers are frequently visiting us. This is due in no small measure to the fact that we have a very strong Government to lead us over the last decades.”
“' And in this year's Budget speech, he said: 'If the economy performs as well as we expect, and we are careful with Government expenditures, we should run a budget surplus in the next few years.' Sir, with this happy situation, the people should encourage the Government to continue to be frugal and be prudent in order to avoid the need for more taxes. In this regard, it may be necessary to note that consumption taxes will be levied sooner if the people were to ask for more subsidies for education, for health or for other expenditure. As the Chinese saying goes: (yang mao chu zai yang shen shang). In other words, he who calls the tune must pay the piper. With a prudent Government and a circumspect approach by the people in asking for additional social services, a broad based consumption tax may not have to be imposed even after the machinery is in place. In conclusion, Mr Speaker, Sir, the Government must know the arguments for and against consumption taxes. It has decided to proceed, not because it is heartless or insensitive to the people's needs but because it is being prudent. This is one characteristic that has enabled us to prosper in the past. We should not compromise on this very basic principle. However, I urge the Government to consider the points I have made. They may mitigate some of the undesirable, and perhaps unintended, effects of consumption taxes and may make the taxes politically more palatable. The Finance Minister himself had suggested that consumption taxes may not be levied for some time yet. However, he wants to put the administrative machinery in place. Another Chinese saying goes: (wei yu chou miao), ie, we must be prepared before a rainy day. This again is a hallmark of good Government.”
“Of course, I am sure that the Minister will bear in mind the economic situation of the country when he decides eventually on the introduction of consumption taxes. Sir, we may want to ask when more taxes are necessary. I would like once again to quote Dr Richard Hu who, in March 1987, told this House, and I quote: ' ... consumption tax will only have to be introduced at a time when we are compelled by international competition to reduce direct taxes to the point where compensatory consumption taxes will have to be introduced.' I take comfort in two words. First, the word "compelled", and the other wword is "compensatory". It means that he will not move unless he has to do so. It also means that he will take from us only what he would return to us in a different form. Singaporeans know that the physical infrastructure is by and large in place, thanks to the good work of the Government. The need for development expenditure over the next few years is reduced unless, of course, if there are new ideas for spending huge sums of money for infrastructure. I also believe that our defence equipment are by and large in place. These two items are the biggest users of development expenditure, and if they are not needed in the future, the need to have more taxes may be reduced. I again quote the Finance Minister. In March 1987, he told this House that: ' ... a broad based consumption tax will only be introduced if the revenue shortfall is substantial and a permanent deficit inevitable.' A year earlier, he said: 'With increased economic activity, it may be possible to reduce direct taxes without necessarily introducing consumption taxes.”
“At present, consumption taxes are already levied on tobacco, liquor, petroleum, cars, utilities, foreign workers and on entertainment, such as expenditure in hotels, restaurants, cinemas and horse-racing; although in the case of horse-racing, I am not quite sure what is being consumed. The Government intends to extend the list of selective consumption taxes in order to meet shortfalls in revenue. The time-based telephone charges might have been one example. When introduced, it raised a big howl and I feel sure the Government has learned from the exercise. If a way had been found for the "poorer people", then some of the emotions might have been dissipated. For example, subject to some mechanism to prevent abuse, residents in 1- and 2-room HDB flats could have been treated differently. Apart from this, and the occasional murmur when foreign worker levies were increased, selective indirect taxes seem to have been accepted. The Government may wish to review expenditure patterns and introduce indirect taxes which will fall less on the lower income group and more on conspicuous consumption and on those who can afford it. After all, if the Government plans to reduce income tax to 20%, as recommended by the Economic Committee, nobody needs to be worse off if he is frugal. Timing A word about timing. Currently, the economy is facing a slowdown. Quite coincidentally, when consumption tax was first mentioned in this House in 1986, the Singapore economy was then also experiencing a slowdown. I think the Finance Minister must be complimented on this timing. He is introducing this topic at a time of a slowdown in the economy, meaning that the tax will not be introduced right now and that the people can be assured that there will be no immediate implementation.”
“What is required now is for the Government to announce details of these exemptions in order to allay public apprehension and to relieve the anxiety of the people. Second, fixed income earners and pensioners, especially those who are now not paying income taxes, will be the worse hit. Government may wish to review pension payments and other forms of assistance to the really poor. This may be a one-time adjustment. However, I emphasise I do not advocate any scheme that would encourage dependency. Exemptions Since one objective of consumption taxes is to avoid unnecessary consumption, the Government may wish to waive taxes on those consumption which are necessary, such as basic foodstuffs as well as those expenditures which are not wasteful such as health and transport. The Government may wish to consider exemptions for hawkers and shopkeepers in HDB and Ministry of the Environment markets. These are usually small-time businessmen whose livelihood is often difficult. The Government may also wish to find ways to identify those transactions which result in the creation of wealth rather than consumption and exempt them from the new taxes. Import duty As most of what we consume are imported, would it not be simpler to introduce an import duty instead of consumption taxes? Import duty will be easier to collect. There will not be a snowballing effect when an item is sold from one company to the next before being bought by the consumer. However, having said that, I wonder how an import duty will be justified in these days of liberalization. Selective consumption taxes Mr Speaker, Sir, a word about selective consumption taxes.”
“Indeed, over the last two decades or so, it was foreign investments which enabled us to generate higher levels of income and it was indeed foreign companies that have paid higher wages resulting in a higher standard of living for Singapore. Even for local businessmen, a high rate of direct tax would discourage enterprise and stifle entrepreneurship. A tax on consumption, accompanied by an equivalent reduction in direct income tax, means that individuals will not be worse off. However, this gives him more choice in his use of his income. If he spends more, he will pay more tax. If he spends less, he will pay less tax. Therefore, this will certainly discourage wasteful consumption. Implementation Mr Speaker, Sir, whilst the principles for consumption taxes are logically based, I would like to make a few comments on its implementation. First, the low-income group. The low-income group will be hit. The Government needs to study the pattern of consumption and provide exemptions for some of these items. In this respect, I would like to quote some statements. In February 1986, the then First Deputy Prime Minister, Mr Goh Chok Tong, now the Prime Minister, said: 'Essentials will not be taxed, in order to minimize the regressive effects of consumption taxes.' In March 1986, Finance Minister, Dr Hu, said: '... my Ministry officials who are now studying the issue will make every effort to ensure that the less desirable side-effects are mitigated.' He added: '... the needs of the lower income group will be looked after by ensuring that essential commodities will not bear this tax whenever possible.' Mr Speaker, Sir, these are laudable statements. They show that the Government cares for the poor.”
“Thank you, Mr Speaker, Sir, for allowing me to join in this debate. I would like to touch on consumption taxes. We are all familiar with the criticisms against indirect taxes. These are that they are regressive, they are inflationary, they have a snowballing effect, there are difficult problems on the retail and tourist trade, and perhaps they are cumbersome to collect. These arguments have been made in this House before and I believe that they must be known to the Government even if they were not made in this House. Is it that the Government is ignorant of these shortcomings? If not, is the Government insensitive to the needs of the people? I do not think so. Why indirect taxes? Why are indirect taxes useful? The basic reasons for replacing some direct taxes with some indirect taxes are sound. Direct tax is a tax on production whilst indirect tax is a tax on consumption. Therefore, direct tax discourages the accumulation and creation of wealth. Whereas indirect tax discourages consumption. A switch from direct tax to indirect tax means that the people can choose to spend less. If they spend less, they will be taxed less. Perhaps they would choose to spend less in Singapore and save up for spending elsewhere where they are not taxed. The need to reduce direct taxes is quite clear. With the world economy slowing down, there is that much less foreign investment available and there are more and more countries vying for this foreign investment. Foreign investors will naturally go to countries where their investments will yield them maximum returns. In this respect, if our direct taxes remain high we may drive away foreign investors. Mr Speaker, Sir, we must not underestimate the contribution of foreign investment to our growth.”
“The business library may also consider publishing information about countries, industries and products. These publications will enable small and medium-sized companies, and perhaps even the larger ones, to look at industries that may be of concern or interest to them. Even the larger companies may find such publications useful. One may ask, who will benefit from such a business library? I would say that Singapore companies intending to go overseas to expand their operations will certainly benefit. Even Singapore companies not in that league will benefit if they will provide support services, products or components to those companies that are going abroad. Foreign companies looking for partners in Singapore or looking for expansion plans or looking for new opportunities here or in the region would also find such a library useful. In the end, when these facilities are developed, Singapore can become a reliable centre for corporate and business information for businessmen intending to do business in this part of the world. I hope the Minister in charge of Information will give some consideration to this suggestion. Sir, with that, I support the motion.”
“Mr Speaker, Sir, in the last lap, the development of Singapore has been based on an international approach. We have international trade, we have investment from international sources and we have international companies coming in to set up businesses here. In the Next Lap, I believe we need to be even more international. And many ingredients are required for success in the further internationalisation of Singapore. I would like to raise one for discussion today. Before doing so, I would like to declare my interest, Mr Speaker, Sir. What I am going to suggest will be of benefit to the private sector, and being a member of the private sector, I would also be in that category. In the further internationalisation of Singapore, information will be required by Singapore companies. The collection, collation and preparation of such information require time, effort and a lot of resources. Small and medium-sized companies may not have enough resources to do this, and perhaps the Government can come in to help in a small way. This could be done by the establishment of a business library. This business library can, to begin with, pool together information that already exists in various Government departments or statutory boards such as the Economic Development Board, the Trade Development Board, the Statistics Department, maybe also the Stock Exchange of Singapore, the Chambers of Commerce, and so on. The business library can also network with other information sources in other countries. It would be useful to study information and facilities available in, for example, the London Business Library, or Companies House in London, and similar establishments in New York, in Germany, in Tokyo, in Hong Kong, Seoul and Taipei.”
“Mr Speaker, Sir, I rise to support the motion standing in the name of Dr John Chen. The principles embodied in the Presidential Address are well-founded, well-tested and are worthy of our continued support. The programmes outlined in the Presidential Address, when fully implemented, will take the country to the first few steps in the Next Lap. There are, however, one or two statements in this Presidential Address which may raise concerns and members of the various GPCs will voice them in the course of the next few days. Whatever these concerns may be, the Government's programmes have been and will continue to be of benefit to the people. It has been this way for the last 30 years. However, if there are unintended effects of some policies or programmes, I am sure the Government will introduce modifications to make them more palatable and more suitable for the people. The various GPCs will draw the attention of the Ministers to the people's problems and their difficulties. We will also bring out the aspirations and feelings of the people by expressing the people's views in Parliament. We hope the Government will have a better understanding of such views and problems, and for the Ministers to take them into consideration when they formulate policies for Singapore. In fact, members of the public are encouraged to write to the various GPC Chairmen to tell us their concerns so that we can bring them forward. In so doing, of course, they should not raise their very personal concerns. Those should be raised with their own Members of Parliament during the "meet-the-people" sessions. But problems that concern a section of Singapore or, better still, the whole of Singapore, could be addressed to us so that these can be brought forward for the consideration of this House.”
“The answer is yes, Sir. VEHICLE QUOTA SYSTEM (Statement by the Acting Minister for Communications) 1.27 pm”
“Mr Speaker, Sir, Serangoon North Neighbourhood 5 is about five minutes walk from another NPP located at Block 108 of Serangoon North Avenue 1.”
“Sir, I am answering on behalf of my Minister. The Public Works Department (PWD) will build a temporary signalised pedestrian crossing across Ang Mo Kio Avenue 3. This will be done by early September 1991. In the longer term, PWD intends to build an overhead bridge. The construction of this overhead bridge will be done in conjunction with a flyover which the PWD will build across Yio Chu Kang Road at Ang Mo Kio Avenue 3. We expect the construction of the overhead bridge to start at the end of 1992 and to be completed in the middle of 1993. SERANGOON NORTH NEIGHBOURHOOD 5 (Neighbourhood Police Post) 17. Mr Heng Chiang Meng asked the Minister for Home Affairs whether there are plans to establish a Neighbourhood Police Post in Serangoon North Neighbourhood 5.”
“Mr Speaker, Sir, the decision as to where exactly to locate the shops is a decision which we leave to the professionals in HDB. If we have too many shops in too many corners of the estate, it will, firstly, be difficult to manage and, secondly, as I said earlier, it may result in there being too many shops with too little business. PEDESTRIAN CROSSING ACROSS ANG MO KIO AVENUE 3 (Completion date) 16. Mr Heng Chiang Meng asked the Minister for National Development (a) when will the PWD-proposed pedestrian crossing across Ang Mo Kio Avenue 3, serving residents of Serangoon North Neighbourhood 5, be ready; and (b) whether there are plans to eventually replace the pedestrian crossing with an overhead bridge and, if so, when.”
“Mr Speaker, Sir, I understand the successful tenderer of the shoplet at Block 523 is now renovating the shoplet. I am sure it is in his interest to open for business as soon as he is ready to do so. To build more shops in addition to the 120 shops in the neighbourhood centre may result in a situation where there are too many shops and the shopkeepers complaining to the MP that they have no business.”
“Mr Speaker, Sir, the neighbourhood centre is about 400 metres from Serangoon North Neighbourhood 5. Of course, we do not measure from one corner to the other corner. It is the average distance. In terms of convenience items, HDB has a shoplet at Block 523. This would be for convenience items which should help the residents in that neighbourhood.”
“Mr Speaker, Sir, the Primary Production Department does not have any record of persons in large numbers who have been so affected. But if there is a widespread problem of people who are so affected, we will study the problem and see what appropriate measures should be taken. SINGAPORE GENERAL HOSPITAL (Profiles of "C" class patients) 8. Dr S. Vasoo asked the Minister for Health whether he will provide the profiles of patients admitted into "C" Class wards in the Singapore General Hospital and an assessment of this service so far.”
“Sir, we are going to buy another 30 cameras for use in various places. The cameras cost about $60,000 each.”
“Sir, yes, indeed $1.85 million has been provided. This is for the purchase of red light cameras.”
“This means that for every major crime committed in Singapore, there were more than five in France, more than eight in Germany, and more than 14 in London.”
“The Ministry of Home Affairs is also developing a link with the Judiciary by means of electronic data mail which would enable all parties to check on cases that are lodged, for application for subpoena as well as summons, for status of cases, for court decisions as well as for information on appeals. The Police will also introduce an all-in-one enquirer which will enable a database to be created for the Police in their investigations. Sir, we are in fact putting a lot of attention on this computerisation effort and a total of 130 people are engaged in this effort. In addition to computerisation, the Police is also planning to use high technology forensic techniques in crime detection. This includes DNA finger printing which uses the De-oxyribo Nucleic Acid characteristics which are unique to individuals. Police will also use vacuum metallisers which lift finger-prints, polilights which detect finger-prints using laser beams, voice spectrograph which compares voices of people making calls. These are particularly useful when we analyse voices of people who are involved in phone hoaxes, in lewd phone calls, kidnappers, and other criminals. Police is also planning to use polygraphs which are lie detectors. In summary, Sir, manpower shortage notwithstanding, the Police will press on with its task of preventing, investigating and fighting crime, in law enforcement and in delivering police services to the public. Our performances are very commendable. Statistics available for the year 1989 show that major crimes measured in terms of number per 100,000 population are as follows: Singapore - 233; Tokyo - 274; Hongkong - 355; London - 3,267; France - 1,226; West Germany - 1,904.”
“Also, a traffic computer system is being implemented. This records violations, licensing, demerit points, as well as accident investigations. In crime investigation, at the moment, photographs are being manually fitted. We intend to introduce computerised photo-fitting. The Criminal Intelligence System is being studied and we aim for it to be implemented by 1995. This system can enable the police to match suspects, to link the Police Force with the Prisons as well as CNB and Immigration. This provides a common database for all departments in MHA to track down criminals and also to analyse the pattern of crimes. In addition to these programmes, others are being studied. These include a Command Control Communication and Information System. This can also include a Mobile Digital Terminal to be installed in mobile patrol cars as well as in outposts for communications during an incident. This enables mobile resources to have direct access to the Computerised Operations Room. It will also enable us to have continuous communications and monitoring of our mobile resources and to despatch these resources to the scene of incidents. We are also studying a one-stop, non-stop service for information sharing. Applications will include the tracking of warrants of arrests. This would link, for example, the Police, HDB, URA, ROV, CPF, Income Tax Department, Inland Revenue Department and Immigration. If a person is wanted by any of these agencies, this system can enable us to share information, and when he turns up at any of these outlets, he will be met by the long arm of the law.”
“Sir, on behalf of my Minister. Mr Loh is indeed right in saying that manpower shortage will prevail. Despite the various measures that the Ministry of Home Affairs has adopted to increase manpower such as better salary scales, better conditions of service, recruitment programmes, career planning and development programmes, we do expect that the Police Force will not have enough manpower. As of now, we have 23% in vacancies among senior officers, and 5.1% vacancies among junior officers. For that reason, the Ministry and the Police Force are using labour-saving and time-saving devices in crime detection. For example, we have the National Identification Data bank (NID). This is a people data hub which links information in the NRIC, the register of births and deaths as well as the register of citizenship. Another programme that we have is called AFIS, which is the short form for Automated Finger-print Identification System. This system will be implemented in July this year and would facilitate the matching of finger-prints of various people. This system will also be linked to the IC system in the NRD. We also have in operation what we call COP, which stands for Computerised Operations Room system. This system manages the "999" calls and despatches police cars to the scene of incidents. This system is also linked to the Civil Defence Force which enables them to send their ambulances as well as their fire engines if these are needed. The COP system is also an electronic mail system which links ROV and Telecom to enable people as well as vehicles to be screened. For example, if a "999" call comes to the operations room, and if it is a nuisance call, our links with Telecom will enable us to identify who the caller is and the police will contact them in due course.”
“Mr Chairman, Sir, before Town Councils take over the management of estates, there is widespread publicity, so that citizens and residents would know about the roles of the Town Councils. Also, Town Councils have their own newsletters and, I think, through this process, the knowledge would be spread. However, HDB and Town Council officers coordinate with one another and they continue to do so. When HDB officers visit the estates or the flats, queries that are addressed to the HDB officers will be noted and these will be passed on to Town Councils. We should encourage HDB Branch officers and Town Council officers to coordinate with one another. On CIPC funding, I would like to inform the House that for year 1990, there were sufficient funds. In 1990, there were 230 projects which were funded by CIPC. The total amount spent was $7 million out of the $10 million budget. If there is a need for more funds, HDB or MND will find the money. We will try to get more funds from the Ministry of Finance. We will encourage residents, through their CCCs and their Town Councils, to contribute to and participate in the upgrading and beautification of their estates. As to the types of projects that would be funded by CIPC, we can consider improving or increasing the list when worthy projects are put forward.”
“Mr Speaker, Sir, for these interim uses that we are planning or looking into, no mass resettlement of the islanders is envisaged. SPECIAL ASSISTANCE PLAN (SAP) SCHOOLS (Statement by the Minister for Education) 1.24 pm”
“Mr Chairman, a good class residential development is one in a good environment. In this particular case, it is the seafront and is very near to recreational facilities.”
“Sir, I would like to assure Mr Eugene Yap that he will not be too disappointed by what Government is going to do. A Master Plan for the area has been developed. It was publicly exhibited in December 1988. A public dialogue was held in April last year. As a result of the feedback from the public, the URA has prepared a revised Master Plan and Implementation Strategy for that area. The Ministry is now studying this revised Master Plan produced by the URA. There are some shipyards in the area. Those shipyards will have to be relocated by the middle of 1991. Such relocation is necessary before we reclaim the land around that area. Existing shipyards will be offered alternative sites by JTC. Some of the land in that area will have to be acquired. Small private lots that cannot be developed independently will have to be acquired. The sites where the existing shipyards are located will also have to be acquired if they are not relocated by mid-1991. There are also large tracts of land owned by single owners. The Government is now considering one of two options. One is to acquire the land so that it will facilitate speedy comprehensive development of the area. The second option is to allow existing owners to re-develop their properties in conformity with the Master Plan for Tanjong Rhu. The redevelopment envisaged a number of features. These are: a good class residential development along the waterfront. There will also be an enhanced recreational environment for the Kallang Basin which would link to the sports facilities at the Kallang Stadium. There will be sandy beaches and facilities for boating and other sea sports.”
“Mr Eugene Yap Giau Cheng: Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, to answer Mr Eugene Yap's question about recreational facilities at Changi and Pasir Ris, the Urban Redevelopment Authority is developing a development guide plan for the Changi Point area. The study covers an area of about 170 hectares bounded by Upper Changi Road, Loyang Avenue, Changi Golf Course, Sungei Selarang and the East Johor Straits. The hilly topography, the serene environment and the scenic views in that area lend itself to development as a seaside resort for the enjoyment of both Singaporeans and tourists. Preliminary ideas for the development of that area consist of a wide band of sandy beaches, some marine recreation and sea sports. Also the area around Changi Village and Changi Creek can lend itself for enhancement into a hotel and entertainment area and also a resort centre with holiday flats, chalets and bungalows. The development guide plan for that area is still in a very preliminary stage of planning and more details will be made known. Parts of those plans that lend itself to private sector participation will of course be made available to the public to participate. On Mr Chng's request for more land to be set aside for golf course uses, we are happy to announce that several sites are being studied for potential use as golf courses. This would include land around catchment areas which are not suitable for other development or for land in areas which have restrictions on height or pollution considerations. Those land will also be set aside for study as potential use for golf courses. Of course, vacant reclaimed land which is not immediately required for development can also be studied for such purpose. We shall be implementing a plan to release more land for golf and other recreational uses.”
“Dr Koh has raised the question of the CPIB investigating certain cases of farmers cheating the Government by fraudulent claims on the quantum of compensation in the past two years. It has resulted in more stringent standards being taken by the Resettlement Department, thus affecting the reduction in payment of compensation. Sir, this is because we had to plug all the loopholes so that squatters would not be able to cheat the Government. As to whether their rates of compensation were reduced because CPIB stepped in, my answer is 'No'. The approved rates of compensation will not be affected by the investigation of CPIB. Our approved rates of compensation will not be affected by the investigation of CPIB. Our policy guidelines of computing the compensation remains the same. Whether the cases are investigated by the CPIB or not, the approved rates of compensation remains the same. The quantum payable to eligible squatters is still based on the same guideline of computation. It would not be more and it would not be less before or after the investigation. Therefore, I hope MPs would assure their constituents that there is no such reduction, ie, the current policy guidelines of Resettlement Department remain unchanged. Question on the amendment put, and negatived.”
“In many case, the planting of fruit trees are just like the planting of bean sprouts where they are planted so close to each other that they are unlikely to bear fruits. It is very obvious that such planting is for the purpose of claiming more compensation. This is very unreanable. Such abuses must be stopped. Otherwise, it will not be in the public interest. The present method of compensation prevents abuse. Under the present guidelines, compensation is subject to maximum ceiling per ha. Planting in land smaller than 1 ha will have a proportionately lower compensation. As for the method proposed by Dr Low, I would direct the Resettlement Department and the Primary Production Department to study his method. If it is found that such a method is feasible and would prevent our scheme being abused by the settlers, the Resettlement Department will be prepared to accept such a method. Sir, another issue raised by Dr Low is whether in some affected areas it is possible to resettle quickly the remaining one or two squatters who are still on the site. How are we going to solve this problem? Sir, the Resettlement Department has an annual plan of resettlement schedules which are carried out according to the relative priority of land use. In certain areas clearance was delayed because some squatters stayed behind. As a result, the development of the area has been affected. If, As Dr Low has mentioned, there are one or two families still remaining in such areas, then let me assure him that I would direct the Department to take note of this. If specific cases are referred to my department, my Ministry will pay special attention and deal with them expeditiously.”
“Under this new system they would have to wait for the completion of the flats before they are able to move into them. If there is a time gap between the completion of flats and the effective clearance date, they would find it difficult to find alternative accommodation in between the gap. What the Resettlement Department did was done with good intention. Sir, we have enough staff in the Department at present. The Department has mobilised its manpower so that speedy compensation can be given to the settlers. Probably from this month up to September this year, they will be able to receive their compensation. For those who have planted a lot of trees on their plot of land or who have put up illegal structures, because they wanted to make fraudulent claims in order to get a bigger quantum of compensation, as has been mentioned by Dr Koh, such fraudulent cases have to be investigated by the CPIB or the relevant authority. Therefore, it would need more time for the investigation to be completed and hence the delay in their getting the compensation. As to how long more before they can get the compensation it would depend on how soon the investigation is completed, which has to be carried out thoroughly. Dr Low raised another issue regarding the method of computing compensation for fruit trees. Under the current policy guidelines used by the Resettlement Department, the computation of payment for the fruit trees is assessed proportionately to the net planting area and the maximum ceiling. The maximum ceiling for fruit trees compensation is determined in relation to planting density. The Resettlement Department cannot pay compensation based simply on the actual number of trees planted because many squatters have planted fruit trees excessively.”