Tang See Chim
Singapore
“In this Bill, Sir, 4 1/2 pages of the Bill out of 20 1/2 pages are devoted to the definition of terms used in the Bill and almost every other clause defines one term or another. Finally, Sir, what about the agent of the corrupt person, the go-between, the abettor of the crime?”
“Sir, maybe it was a misplaced metaphor. Maybe I should say a skunk smells just as evil by any other name. This is exactly the position. There is no point your telling us that conditions have now returned to normal when manufacturers are asked to pay a higher rental. They have to compete.”
“Sir, the Minister said that he has not increased rent but he just revalued the value of the land. This is exactly the same as increasing rent. I mean you call a rose a rose. You increase the rent whether you call it the rent or call it the base value of the property. To the manufacturer, it is still the same.”
“The Senior Parliamentary Secretary said that the rent demanded by the JTC is comparable to that for private premises outside. But I think the JTC has almost a monopoly on industrial property. I just do not see how the Senior Parliamentary Secretary could make such a comparison.”
“Sir, the difference is that once they get the entry visa, they will be allowed permanent residence in the United Kingdom. Whereas here, we may allow them to enter for two weeks and after that we will turf them out. Also, may I just take up this further point.”
“Sir, I just want to take up with the Minister on the regulations he read out from the booklet. Indeed, if all those conditions are met, the person will be given an entry clearance and then he will be able to enter the United Kingdom.”
The complete record
Every one of 698 lines we hold for Tang See Chim, in date order, each linked to its source. Free to read, in full, without an account. Page 5 of 14.
“DEVELOPMENT LOAN BILL Order for Second Reading read. 6.45 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time". The Timber Export Industry Board was established under the Timber Export Industry Board (Incorporation) Act passed by Parliament in 1966. This is a joint Singapore-Malaysian Board and is an example of the close cooperation between our two countries. Since its establishment, the Board has been doing a good job in regulating and improving the timber export industry. The principal source of the Board's funds comes from the collection of cess on the export of timber. Section 20 of the 1966 Act provides for the establishment of the Timber Export Industry Fund into which all monies collected by the Board are to be paid. There is, however, no provision in the Act for the investment of the surplus funds. At present, the Timber Export Industry Board has accumulated some $960,000 of surplus funds which are held in fixed deposit accounts because of the lack of power of the Board to invest these surplus funds in other forms of securities. An amendment to the 1966 Act is, therefore, necessary to enable the Board to invest its surplus funds. And this Amendment Bill seeks to do just that. A new section, section 20A, is to be added to the 1966 Act to empower the Board to invest its surplus funds in investments or securities authorised for the investment of trust funds. The Minister may also direct the Board to invest in any of these authorised investments and securities as he may think fit. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tang See Chim]. Bill considered in Committee: reported without amendment; read a Third time and passed.”
“Mr Speaker, Sir, I beg to move, In page 3, line 31, to leave out "or" and insert "in". Sir, this is just to correct a clerical error. Amendment agreed to. Clause 6, as amended, ordered to stand part of the Bill. Clauses 7 to 26 inclusive ordered to stand part of the Bill. Bill reported with an amendment; read a Third time and passed. TIMBER EXPORT INDUSTRY BOARD (INCORPORATION) (AMENDMENT) BILL Order for Second Reading read. 6.42 p.m.”
“Yes, Sir. Mr Speaker, Sir, may I have your consent and the general assent of Members present to move an amendment to correct this small clerical error?”
“When the Corporation is established, all immovable and movable properties in Sentosa will be transferred to it on such terms and conditions as the Minister may determine. Prior to this date, the Minister is empowered to make such contracts and agreements on behalf of the Corporation for the development of Sentosa and such contracts or agreements shall be deemed to have been made by the Corporation when it is established. The immediate task of the Sentosa Development Corporation will be to, take over the implementation of numerous projects which have already been launched and are in various stages of implementation. It will also have to evaluate, reassess and implement the many other projects proposed for Sentosa. In the long run, it is anticipated that the Sentosa Development Corporation would, at the least, be self-supporting. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tang See Chim]. Bill considered in Committee. [Mr Speaker in the Chair] 6.39 p.m. Clauses 1 to 5 inclusive ordered to stand part of the Bill. Clause 6 -”
“The Sentosa Development Corporation will be placed under the guidance of the Economic Development Division of the Ministry of Finance, under whose purview is the development of our tourist industry. The Corporation will be run by a Chairman, a Deputy Chairman and such number of other members as the Minister may from time to time determine, provided that there will not be less than eight or more than 15 members. For the day-to-day administration of the Corporation, a General Manager will be appointed. Apart from the development and administration of Sentosa, provision has also been made to enable the Corporation to develop other areas in Singapore as touristy centres to complement the work performed by the Tourist Promotion Board which, due to lack of physical resources, may not be able to undertake such development. With regard to financing, the Corporation may, with Ministerial approval, borrow funds for its operation. Further, provision has also been made for loans and grants to be made to the Corporation from the Government for capital and recurrent expenditure. As for its surplus funds, the Corporation is empowered to invest these in trustee securities. The Corporation's accounts will be audited by auditors appointed with Ministerial approval. An annual report of the Corporation, together with its annual audited accounts, shall be submitted to the Minister and presented to Parliament. The Bill has general provisions to exempt the Corporation from stamp duty and income tax and also provisions to appoint committees and, with Ministerial approval, to establish superannuation schemes for its employees. Clause 25 of the Bill empowers the Minister to make such regulations for carrying out the provisions of the Act.”
“The proposals include a vacation complex comparable to the best in the world, centralised shopping facilities, recreational amenities such as a golf course, an open-air theatre, a gun museum, a maritime museum, a marine complex consisting of a corallarium, a pirates cove, and an aquarium, together with first-class hotels and restaurants. In the creation of these facilities, the greatest care will be taken to ensure that there will be no conflict between tourist facilities on Sentosa and tourist facilities on the mainland. I should mention perhaps that, in fact, a few of the essential projects such as the golf course, the cable car and beach facilities are already in various stages of implementation. It is anticipated that by March 1973, there should be adequate attractions on Sentosa to make a visit to the island worthwhile. It will be appreciated from the above remarks that the development of Sentosa is a major undertaking. This requires the establishment of a permanent organisation which will be responsible not only for the implementation of the numerous projects but also for the efficient administration of the island after the expected completion of all projects by 1979. It is, therefore, proposed in the Bill now before the House that there should be established a Sentosa Development Corporation with responsibilities for the control and administration of Sentosa, and for the development of services and amenities for tourists and the public. This will reduce the burden shouldered hitherto by various Government Departments such as the Jurong Town Corporation and the Urban Renewal Department which, despite their stretched resources, have hitherto been responsible for the implementation of the initial projects on Sentosa.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Annual Budget Statement mentioned our intention to further develop the tourist industry to increase the flow of foreign exchange earnings and to strengthen the balance of payments position. It was indicated that though there are encouraging signs of success in our efforts in promoting tourism, we still need an intensive programme to .attract more tourists to Singapore. The programme would include the laying of a tourist infra-structure by the provision of additional amenities and facilities and the development of projects which would help to encourage a greater flow of tourists and to increase the length of their stay in Singapore. The Government decided as early as 1969 to develop Sentosa as a tourist resort. An internationally known firm was asked subsequently to study the feasibility of so developing Sentosa. This study, which was completed in September 1970, confirmed that the proposal was a viable one and that it would play an important role in substantially increasing the rate of growth of tourists coming to Singapore. The study envisaged that the development of Sentosa into a tourist resort would require Government investment to the extent of $68 million spread over a period of nine years until the whole project is completed. The private sector too is expected to play an important role by investing about $56 million. These sums will have to be spent on the development of infra-structure and the creation of facilities for tourist attraction.”
“Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolution." Question put, and agreed to. Resolution accordingly agreed to. SCIENCE COUNCIL OF SINGAPORE (AMENDMENT) BILL Order for Second Reading read. 4.15 p.m.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply has come to a certain resolution. Resolution reported - "That the sum of $1,230,465,920 shall be supplied to the Government under the heads of expenditure for the public services shown in the Estimates of Expenditure for the financial year 1st April, 1972, to 31st March, 1973, contained in Paper Cmd. 3 of 1972."”
“Mr Speaker, Sir, the Member for Punggol can be rest assured that everything will be done, in cases where a tax liability has been established, to ensure that collection will be made as far as possible, but in cases where the taxpayers have already gone overseas, the law, as I said, is such that extradition is simply not applicable. However, if we can trace or find out that there is any property in the name of the taxpayer who has gone abroad, such property can be proceeded against for the recovery of tax.”
“Sir, the Anti-Evasion Unit became operational in 1970, and in that year it successfully completed investigations into 107 cases. In 1971, the Unit succeeded in dealing with 136 cases. The amount of income tax and penalties recovered was $3.9 million in 1970, and $11.6 million in 1971. I am afraid, Mr Speaker, Sir, at the moment I do not have the figures for the number of cases prosecuted in court and also those settled out of court. However, if the Member is interested, I will be happy to supply him with the figures. Steps have been taken to ensure that taxpayers do not escape tax by going overseas - for example, by withholding their passports as soon as we have a definite case of tax liability. However, in, cases where taxpayers are already abroad, I am afraid it is not possible to extradite the taxpayer because this is a revenue case and extradition is only applicable in criminal cases. I want to point out that as a result of the work of the Anti-Evasion Unit, this operation has also helped to induce taxpayers voluntarily to make more accurate and complete returns and to pay their taxes in accordance with their true incomes.”
“Sir, members of the public are entitled to do what they want. If they buy a television set, they will have to pay $36 a year. But then they will not be able to receive any radio broadcasts.”
“Sir, it is, of course, always possible to impose an additional tax on a radio set owned by a person who also has a television set. I wonder whether the Member for Anson would like Treasury to consider that! However, I gather that by asking: whether or not something can be done to regularise the position, he does not really want this to be done. Let me, therefore, set out the way of our thinking about the tax to show that, we do not discriminate between running: a television set and running both, a television set and a radio set. First, let me explain that the technical difference between a radio set and a television set, as defined by the Broadcasting and Television Regulations, 1963. A radio set, as we understand, is a broadcast sound receiver used for aural reception of broadcast matters transmitted by radio waves, wire or cable; whereas a television set is a, broadcast television receiver capable of aural as well as visual reception of broadcast matters by radio waves, wire or cable. The only distinction between the two is the visual or picture reception in a television set. The common feature in both is the aural or sound reception. A fee of $12 per year is charged for sound reception in a radio set or in a television set or both. However, as the television set is also capable of receiving pictures, it is charged an extra $24 per year. Thus, the licence fee for a radio set is $12 per year, and that for a television set $36 per year. It is still $36 per year for both a television set and a radio set, or for that matter two or even three radio sets.”
“Sir, to answer the Member for Jurong, first. I really cannot say whether or not we will exempt the Singapore Amateur Basketball Association from income tax. Maybe he would like to put in his application. To answer the Member for Tiong Bahru, the best thing would be for these various groups to come under the umbrella of the National Sports Promotion Board. As this Board is a statutory body and, in fact, being given tax exemption, the various sports groups can get subsidies from the Board. Can the Member for Tiong Bahru imagine what will happen if, for example, every little sports group calls itself a sports promotion group and is entitled to tax exemption? Of course, if that were the case, we will not be able to collect any revenue at all. I could easily set up an XYZ sports promotion group, and put every cent of my income in there and get exemption from income tax! Then, where do we get our revenue from? We would only he inviting serious tax evasion.”
“Sir, I am not quite clear as to what the Member's point is, because there are various sports promotion groups that it would not be possible really to give tax exemption to every little group that promotes any type of sports. To do so would only be inviting trouble. But as the Member rightly pointed out, we have, in fact, given tax exemption to the National Sports Promotion Board. This is one national organisation that looks after sports promotion. The Member should be quite happy that Government is giving every encouragement to sports. Mr Ch'ng Jit Koon(In Mandarin): Sir, I think the Minister of State is not very clear about how the National Sports Promotion Board is promoting sports activities. The National Sports Promotion Board is promoting sports through its various affiliated sports bodies, such as the Basketball Association, for the promotion of basketball. To take another example, table tennis is promoted through the Singapore Table Tennis Association. These Associations raise funds from members of the public for this purpose. Therefore, should these funds be regarded as income, and taxed?”
“Sir, not all voluntary organisations registered under the Societies Act are subject to income tax. Voluntary organisations which are charitable in nature and are organised to relieve distress, to advance science and education, or to promote health or services conducive to the welfare of the public as a whole, are exempted from income tax. These organisations include the Singapore Anti-Tuberculosis Association, Singapore Association for the Blind, Singapore Arts Council, Society for the Aged, and many others. There are other voluntary organisations which are formed to serve a more sectional interest and which do not cover the well-being of the community in general. It is, therefore, not appropriate to subsidise such organisations through income tax exemption, as they do not serve the community at large and do not comply with the requirements for a charitable organisation. The tax liability of such organisations depends on the ratio of their income from members or non-members. If more than half its income is from members, then it would not be liable to tax, but if more than half of its income is from non-members, then it will be liable to tax. To suggest that voluntary organisations should one and all be exempted from income tax is to invite tax evasion, as potential taxpayers will soon run their businesses as voluntary organisations. With reference to the Member's suggestion that certain projects run by voluntary organisations, for example, an education fund, be exempted from income tax, if such an education fund is, in fact, for the benefit of the community at large and not just covering sectional interest, it can be exempted from income tax.”
“Mr Speaker, Sir, the Management Services Unit is being established with the main objective of undertaking a systematic review of the administrative machinery in Government Ministries and departments, with a view to modernising and improving the administrative methods and procedures adopted and also to introduce mechanisation and computerisation. Whereas the work of the Organisation and Methods Branch of the Ministry was manly concerned with ad hoc studies undertaken on the basis of the immediate needs of the departments on matters relating to organisation, and methods and requirements of office machinery and equipment, the Management Services Unit will function essentially as a management consultant group with a much wider scope and with authority to make substantial changes in the organisation of departments and the working systems and procedures currently adopted. One of the main areas of work of the Management Services Unit will be the making of specific studies and recommendations for greater use of office machines and equipment and the computerisation of activities at present undertaken manually. In this task, it will work very closely with the reorganised Computer Services Department, which was formerly known as the Electronic Data Processing Unit. The staff of the Unit will comprise, in addition to the staff of the former Organisation and Methods Branch as well as the former staff inspectors of the Treasury, senior management officers trained to undertake this type of work, This will include not only administrative officers but also accountants, systems analysts and engineers. From time to time, experienced staff from the various Ministries and departments will also be co-opted to undertake specific reviews wherever necessary.”
“Sir, I cannot give him that assurance at all. I can only give the undertaking that we shall consider providing an adequate sum for cultural promotion in next year's Estimates.”
“Mr Speaker, Sir, the provision in the Estimates is, in fact, what we thought the appropriate sum that would encourage such development. The Government is more than aware that, unless our country has some form of culture, we cannot withstand the stresses and strains of industrialisation. And for Singapore as a nation to long endure, we must promote culture. But as I have said, the sum allocated is, in fact, what we thought would be adequate.”
“Mr Speaker, Sir, I share the sentiments of both the Member for Punggol and the Member for Jurong. I appreciate their points of view. However, as I have pointed out, the Government always has to balance between competing claims. Our opinion is that while the sum may not be enough to cover everything, it does at least give encouragement to cultural organisations to initiate their cultural activities. Moreover, culture cannot he fostered from above. It must spring from the grass-root level. We can only give encouragement. It will be a truer type of culture if it springs from the grass-roots. Mr Ng Kah Ting: Mr Speaker, Sir, I wholeheartedly agree with the Minister of State for Finance that we should encourage culture to spring from the grass-roots. However, the point at issue is whether or not his Ministry will consider increasing the contribution to cultural organisations from $10,000 to a bigger sum. That is the main question, and I think it is quite simple to answer it.”
“Mr Speaker, Sir, while we appreciate very much that cultural activities should be subsidised by the Government, there are always other claims and my Ministry can only allocate funds according to the priorities set down by the Government. In the particular case of the Adelaide Festival, to which we sent a very successful cultural mission, may I point out that no provision was, in fact, made in the 1971-72 Estimates. However, because of the importance of participation in this particular festival, the Ministry of Finance did provide the money even though there was no provision in the Estimates. Therefore, it can he seen that the Government is, in fact, placing considerable emphasis on culture. Like the Member for Jurong, the Government does not want our people to become "Ugly Singaporeans'.”
“Section 12 of the Act, which gave specific powers to the first Council of he Singapore Society of Accountants hen the Act became operational in1963, is now obsolete and opportunity therefore taken to repeal this section. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tang See Chim]. Bill considered in Committee. [Mr Speaker in the Chair] 6.54 p.m. Cause 1 -”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Singapore Society of Accountants Ordinance, 1963, now called the Accountants Act (Chapter 212 of the 1970 Revised Edition of the Laws) was enacted to register accountants and to regulate the practice of accountancy in Singapore. This legislation, which was passed nine years ago, gave recognition to locally-trained accountants and accorded them professional standing in line with the other professions. Section 8 of the Accountants Act provides that the Society of Accountants may, with the approval of the Minister for Finance, make rules for the administration of the Act. This is cumbersome and unsatisfactory as, in effect, it means that all such rules have to be considered and deliberated on by the general body of the Society at a general meeting. In most other professional Acts as, for example, the Legal Profession Act, the authority for the making of such rules lies with the Board of Legal Education. It is therefore proposed to amend section 8 of the Act to provide for the Council of the Society to be vested with this function. This amendment will bring it in line with a similar provision in the Legal Profession Act. Section 9 of the Act provides for the University of Singapore to be represented on the Council, but there is no similar provision for Nanyang University. Both the Universities award Accountancy degrees which are recognised by the Singapore Society of Accountants. It is therefore logical that Nanyang University should also be represented on the Council. Accordingly, it is proposed to amend section 9 of the Act to provide for representation by the Nanyang University on the Council of the Singapore Society of Accountants.”
“There are also provisions in the Bill to enable tourist establishments required to pay cess to recover from their customers the cess payable. Customers are, however, protected under the Bill from payment of cess to unauthorised establishments. Other new provisions in the Bill enable the Tourist Promotion Board to recover cess due to it on the basis of an estimate made by the Board, and to sue for cess outstanding by way of a specially endorsed writ of summons. Where legal proceedings are instituted by the Board, it is entitled to all costs allowed by law against the person liable. Cess owing to the Board shall rank first in priority to all other debts in any bankruptcy proceedings or in the distribution of the property of a person dying insolvent. Also, persons who attempt to evade cess are liable on conviction to heavy fines and/or imprisonment. The Bill also provides for the prosecution of any offence under the Act to be conducted by officers of the Board or the Government with the sanction of the Public Prosecutor. These new provisions in the Bill are considered necessary to enable the Board to collect cess more effectively. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tang See Chim]. Bill considered in Committee. [Mr Speaker in the Chair] 6.50 p.m. Clause 1 -”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Singapore Tourist Promotion Board commenced collection of cess horn hotels in January 1964, and from tourist public houses and food establishments in March 1970, following the necessary amendments to the Tourist Promotion Board Act. The collection of cess is currently being undertaken by the Department of Customs and Excise on behalf of the Board, in accordance with the Regulations established under the Act. With the passing of time, it has been found necessary to introduce various amendments to the Act to prevent tax evasion and unauthorised collection of cess, as well as to enable the process of cess collection to be undertaken more effectively. To this end, it is proposed to incorporate within a single Bill all legislation pertaining to the imposition and collection of cess which will also repeal the existing provisions on cess in the Tourist Promotion Board Act. There will be no change in the rate of cess levied. This will remain at 3 per cent. However, instead of imposing the cess only on the sale of food and drinks in tourist establishments, as provided in the Tourist Promotion Board Act, this Bill seeks to widen the scope of the cess so as to cover sales and charges levied or collected by all tourist food establishments and by tourist public houses. This is thought to be fair and reasonable because many of these establishments benefit from tourists visiting Singapore but are not contributing to the upkeep of the Singapore Tourist Promotion Board and its promotional efforts. This amendment would bring in additional income to the Tourist Promotion Board to supplement its promotional efforts, and it is also expected to facilitate the present administration of the tax itself.”
“Mr Speaker. Sir, I beg to move, In page 7, line 16, to leave out "reasonably" and insert "unreasonably". Sir, this is just to correct a grammatical error. Amendment agreed to. Clause 6, as amended, ordered to stand part of the Bill. Clauses 7 to 9 inclusive ordered to stand part of the Bill. Bill reported with an amendment; read a Third time and passed. TOURIST PROMOTION (CESS COLLECTION) BILL Order for Second Reading read. 6.45 p.m.”
“Sir, the provisions of the Bill have been carefully considered, and it is thought that a fine would be a sufficient penalty for the contravention of the provision on the use of the Board's symbol of the Merlion, and no imprisonment is necessary. However, if we find that such penalty is inadequate, an amendment can always be made to the law. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tang See Chim]. Bill considered in Committee. [Mr Speaker in the Chair] 6.43 p.m. Clause 1 -”
“Sir, the Board's jurisdiction is confined to tourist promotion and, of course, within that sphere it will do its best to see that tourists who come to Singapore have an enjoyable holiday and that their stay here is as comfortable as possible. If it comes to our notice that certain organisations are, in fact, using the term "girl guides" or whatever -description to hoodwink the tourists, then, of course, my Ministry will see to it that they do not do so. Mr Cheong Yuen Chee (Toa Payoh): Mr Speaker, Sir, I would just like to -draw the attention of the Minister of State for Finance to the provisions of the new sections 15D and l9C. Sir, you will notice that the penalty imposed on any business, which describes itself as a tourist service without the permission of the Board, carries a higher penalty than a business which makes use of the symbol of the Board. However, I believe that the latter offence is more serious. And in this respect, the penalty is only a fine, and there is no additional provision of a term of imprisonment as provided for under the new section l5D. May I -seek clarification from the Minister of State for Finance?”
“Sir, I think this matter is well out of my province. Perhaps the Member could address it to the Girl Guides Association.”
“Further, to keep the travel business in Singapore in a healthy state, travel agencies will in future be licensed. AU these measures are designed to protect the tourist from exploitation and to ensure that during his stay in Singapore he will only be exposed to bona fide travel agencies or tour operators. Another amendment to the Tourist Promotion Board Act enables the Board to acquire shares in any company or to invest in any business which will promote the tourist trade in Singapore. Such direct financial participation by the Board will accelerate the development of the necessary touristy facilities in Singapore which are necessary to support the overseas promotional programme. This will not only encourage more tourists to come to Singapore but also to prolong their stay here. Other amendments, as proposed, seek to prevent the indiscriminate use of the Board's official symbol, the Merlion, and to protect funds credited to any superannuation scheme or provident fund established by the Board for its employees from being utilised for the payment of an employee's debts should he be made a bankrupt. Sir, I beg to move. Question proposed.”
“To bring together in one co-ordinated effort the promotional efforts of the various private organisations engaged in the tourist business with those of Government, the Tourist Promotion Board Act is being amended to enable any person, who is carrying on the business of a tourist enterprise, to become an Associate Member of the Board's organisation. Two Associate Members will he appointed to the Tourist Promotion Board to advise on policy matters as well as on operations. Whilst Associate membership will give certain advantages, as all Associate Members will stand to gain by way of publicity and business, it will alto entail the responsibility of the member for maintaining high standards at all times in the conduct of his business and adherence to any regulations made by the Board governing touristy operations. In anticipation of the coming into effect of this scheme of Associate membership to the Tourist Promotion Board, the Singapore Tourist Association has dissolved itself so that its members, comprising various tourist establishments from the private sector, can join the organisation of the Singapore Tourist Promotion Board. In keeping with the objective of making the stay of a tourist here a comfortable and a satisfying one, the Tourist Promotion Board Act is also being amended to regulate and control tourist and travel business in Singapore. These amendments prohibit a person from describing his business or activities as a tourist or travel agency, without the prior approval of the Tourist Promotion Board. The amendments also restrict a person from using the words "tourist" or "travel" except with the prior permission of the Board. The purpose of this is to prevent those persons operating social escort agencies from describing their activities as tourist services.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Singapore Tourist Promotion Board which was set up in 1964 is now well on its way to being firmly established as the major organisation for promoting Singapore internationally as a tourist centre. To finance its opera-lions, the Board collects a three per cent cess on hotel charges and on the sale of food and drinks in the Republic's higher class tourist establishments. The annual income of the Board is about $5 million, of which $3 million has been set aside for overseas promotion during the current fiscal year. This is some $1.7 million more than the sum budgeted for promotional work for the last fiscal year, and it is aimed not only at intensifying the international advertising and promotion programme but also at setting up new overseas representations, one in Frankfurt and one in New York possibly, to supplement the efforts of existing ones in Tokyo, Sydney and San Francisco. Whilst the Board is successfully promoting Singapore as a tourist centre internationally, there is a great need to co-ordinate the efforts of the various promotional agencies in Singapore, so that Singapore can be promoted as a tourist centre in the most effective manner possible by both Government and the private sector. Furthermore, there is a pressing need to develop within Singapore those touristy facilities which would result in tourists extending their stay in the Republic by an additional day or two with consequential benefits to hotel occupancy rates.”
“ACCOUNTANTS (AMENDMENT) BILL "to amend the Accountants Act (Chapter 212 of the 1970 Revised Edition)", presented by Mr Hon Sui Sen; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. CUSTOMS (AMENDMENT) BILL First Reading Certificate of Urgency signed by the President in respect of the Bill, laid upon the Table by the Minister for Finance.”
“Mr Govindasamy, Sir, the Central Provident Fund Approved Housing Scheme Regulations, 1968, permit contributors to the Fund to use their contributions towards the purchase of Housing Board and Jurong Town Corporation flats. The scheme was introduced specifically to assist Singapore citizens, whose family income is below $1,500 a month, to own public low-cost houses. There would, therefore, be no objection to persons qualified under the scheme to use their contributions towards the purchase of the Corporation's executive flats in Jurong Town. BILLS INTRODUCED 3.22 p.m. ADOPTION OF CHILDREN (AMENDMENT) BILL "to amend the Adoption of Children Act (Chapter 43 of the 1970 Revised Edition)", presented by the Minister for Social Affairs (Inche Othman Bin Wok); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. TOURIST PROMOTION BOARD (AMENDMENT) BILL "to amend the Tourist Promotion Board Act (Chapter 205 of the 1970 Revised Edition)", presented by the Minister for Finance (Mr Hon Sui Sen); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. TOURIST PROMOTION (CESS COLLECTION) BILL "to make better provisions for the collection of cess by the Tourist Promotion Board and to repeal the provisions relating thereto in the Tourist Promotion Board Act (Chapter 205 of the 1970 Revised Edition)", recommendation of President signified; presented by Mr Hon Sui Sen; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.”
“No, Sir. The Minister for Finance does not propose to consider giving any bounty to civil servants of all categories. The fact that some employers with large profits have given bonuses to their employees has no relevance to the Government services which are not run for profit. CENTRAL PROVIDENT FUND CONTRIBUTIONS (Purchase of Jurong Town Corporation's executive flats) 26. Mr Ho Kah Leong asked the Minister for Finance if he will request the Jurong Town Corporation to consider the utilisation of contributions to the Central Provident Fund for the purchase of the Corporation's executive flats in Jurong Town.”
“Mr Govindasamy, Sir, between 1st January, 1971. and 31st October, 1971, a total of 98 officers were reported to the Public Service Commission for disciplinary action on account of indebtedness. Of these cases, 35 are still under investigation. The penalties imposed in respect of the 63 completed cases are as follows: Not proceeded against 5 Office deemed vacated 4 Dismissed 1 Retired 3 Rank reduced 2 Pecuniary penalty 21 Reprimanded or warned 27 -- Total 63 == Under the present regulations, an officer is liable to disciplinary action with a view to dismissal if he is found to be indebted in any way. The ultimate penalty of dismissal is inflicted in cases where, in addition to the indebtedness, the officer's work and conduct are not altogether satisfactory or where the officer is a known habitual borrower. In all other cases, the penalty imposed depends upon the circumstances in which the debts are incurred, the amount of the debt and the officer's record of work and conduct. NEW YEAR BOUNTY TO CIVIL SERVANTS 25. Mr Ang Nam Piau asked the Minister for Finance, in view of the payment of bonuses to their employees by employers in the private sector, if he will consider giving at least one month's salary as a bounty to civil servants of all categories, two weeks before the commencement of the new year.”
“Mr Govindasamy, Sir, There are already more than 10 cooperative thrift and loan societies in the public service, including some run by registered trade unions, which exist principally to encourage thrift and grant loans to civil servants who are in genuine need of financial assistance in circumstances including those mentioned by the Member for Kallang. In addition, personal advances on salaries have been given to civil servants in special circumstances where the merits of the case justify the granting of such advance. For instance, there have been cases, amongst others, where personal advances were granted to officers to meet medical expenses and tuition fees for courses undertaken on their own. These cases should continue to be considered on their individual merits. It is not, therefore, proposed to formalise any Government loan scheme, as loans under such a scheme may be taken for granted and would, in due course, encourage improvidence and discourage savings and membership of co-operative societies. The necessity of putting aside some savings for the rainy day is one which should be especially emphasised for civil servants. CIVIL SERVANTS (Disciplinary proceedings for indebtedness) 24. Inche Abdul Aziz Karim asked the Minister for Finance against how many civil servants were disciplinary proceedings taken for indebtedness during the first ten months of 1971; how many more cases of indebtedness are under investigation; and what disciplinary action has been and will be taken against civil servants who have resorted to borrowing money from moneylenders and finance companies.”
“Sir, I think the Member is referring to our total reserves and not just our currency backing in foreign assets. The total of our foreign assets exceeds S$3,800 million. Just over 40 per cent of this is in the form of Sterling assets, while the balance is composed of gold and various other holdings denominated in U.S, dollars, German marks, Japanese yen and Swiss francs, etc. CIVIL SERVANTS (Establishment of loan scheme to meet urgent legitimate expenses) 23. Inche Abdul Aziz Karim asked the Minister for Finance if the Government will establish a fund from which loans at reasonable rates of interest can he given to civil servants to meet funeral, medical and other legitimate expenses.”
“Mr Govindasamy, Sir, part (b) of this question has been answered already. With regard to part (a) of the question, the Member for Punggol is probably aware that the official price of gold as against the free market price of gold has remained at U.S. $35 per ounce for over 30 years. It was, however, difficult in the past, and impossible now that the United States has closed the "window" for converting the U.S, dollar into gold, to buy gold at this price. Even if gold can be so acquired, there is some disadvantage in holding most of Singapore's external reserves in gold. Gold stored in vaults does not earn any income - and in fact storage and security costs are incurred. Nevertheless, we do believe that we should hold some part of our reserves in gold. It is not correct in saying that the Singapore dollar is backed 100 per cent by gold. Our currency backing is in the form of gold and in foreign exchange reserves, and these reserves have enabled the Currency Board to earn over SS21 million for the year ended 31st December, 1970. As long as a policy of diversification is pursued and we respond quickly to world monetary trends, it is not necessary to hold all of Singapore's assets in gold. Mr Ng Kah Ting: Mr Govindasamy, Sir, can the Minister of State for Finance enlighten this House with more details and state the total amount of Singapore's foreign currency reserves?”
“Mr Speaker, Sir, I beg to move the motion+ standing in the name of the Minister for Finance on the Order Paper. + The motion reads as follows: `That this Parliament, pursuant to section 9 of the Financial Procedure Act (Chapter 68), resolves that the total amount of moneys which are approved to be paid out of the Consolidated Fund for the purpose of making advances is to be increased from $43,172,019 to $71 million.' The purpose of this motion is to augment the total amount for the Advance Accounts to cope with the present and future requirements. The details and reasons for the increases are set out in detail in Paper Misc. No. 4 of 1971, which was presented to this House on 23rd September, 1971. Additional large amounts of funds are required mainly to cover increasing needs for funds in three accounts, namely, Building Loans, Conveyance Advances, and Recoverable Costs. Increases for other items are needed to meet normal growth of requirements. Sir, I beg to move. Question put, arid agreed to. Resolved, That this Parliament, pursuant to section 9 of the Financial Procedure Act (Chapter (8), resolves that the total amount of moneys which are approved to be paid out of the Consolidated Fund for the purpose of making advances is to be increased from $43,172,019 to $71 million. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed."-[Mr Barker]. Adjourned accordingly at Fourteen minutes past Seven o'clock p.m, to a date to be fixed.”
“Sir, most of our re-exports are in the form of primary produce from the surrounding countries and, as I pointed out in my main answer, primary produce which is not dutiable is not subject to the 10 per cent surcharge. GANJA AND MX PILLS (Prevention of illicit use of, and number of persons arrested) 19. Inche Rahmat Bin Kenap Al-Haj asked the Minister for Home Affairs (a) what action has been taken to prevent the spread of the illicit use of ganja and MX pills in the Republic; and (b) how many persons have been arrested for trafficking, illicit use, etc.,, of the drugs since January 1970.”
“If it is prolonged, the surcharge would distort international trade since the more important question of international currency adjustments is linked to the import surcharge. A shrinkage of overall world trade would have adverse repercussions for us. This would also affect new investment necessary to sustain growth and modernisation in our economic structure.”
“Furthermore, most of these' companies are selling to their parent companies in the United States and there has been no drop in demand. With regard to textiles and garments, those from cotton are subject to quota and therefore exempt from the surcharge. Our export of synthetic textile products. to the United States is quite small and, from recent press reports, would also, be exempt. Petroleum products and crumb rubber are not dutiable and so not subject to the surcharge. Plywood and veneer do have to pay duty, but the demand depends on construction activity in the U.S. If the United States economic measures result in stimulating construction activity, they will be importing more plywood and veneer and their importers may have to absorb part of the surcharge. On the whole, therefore, the surcharge has not affected us very much. In some instances, we may have a temporary advantage. Certain equipment manufacturers such as household appliances in the United States have been facing severe competition from other industrialised countries. To improve the competitive position of their products made in the United States, they have to import certain parts and components from us. With the surcharge, they may increase sales which would thus lead to greater demand for our parts and components. On the other hand, a few specific companies here making finished products such as pleasure craft which are dutiable may have to face some temporary difficu1tes. They should, however, be able to make the necessary adjustments with a little bit of belt-tightening. While, in the short term, we are not seriously affected, we nevertheless hope that the problem will be settled quickly.”
“Mr Speaker, Sir, first I should perhaps explain briefly the nature of the 10 per cent import surcharge and the pattern of our trade with the United States. The 10 per cent import surcharge' was imposed by the American Government on 16th August, 1971, as a temporary supplemental duty and as one of the measures to cope with their balance of payment difficulties. It is applicable to goods entering the United States which are already subject to import duty. Raw materials and primary produce which were not then dutiable' and products which were subject to import quotas, such as petroleum and cotton textile goods, are exempt from the surcharge. In addition, for certain products assembled from American parts and components, both import duty and the surcharge are levied only on the value added, i.e., the difference' between the f.o.b price (Singapore) of the product and the cost of the American parts and components. The domestic exports of Singapore to' the U.S.A. were $246 million in 1970 and about $148 million in the first half of 1971. Of these, the most important items are electronic and electrical products which account for nearly 50 per cent; textile and garments, 20 per cent;, processed rubber, 20 per cent in 1970, 12 per cent in 1971; timber products, including plywood and veneer, 6 per cent; petroleum products, 1.5 per cent in 1970, 7 per cent in 1971; pleasure craft, 2 per cent. These are the main Singapore-made exports. As far as the electronic and electrical products are concerned, the surcharge falls on the value added. As much of it is assembled from U.S, parts and components, the effective rate of the surcharge is probably less than 5 per cent.”
“Furthermore, people should have found out whether there were substitutes for plastic tubs for the storage of water. If people had not rushed all at once to buy plastic tubs, or if they had looked for substitutes, then the price of plastic tubs would not have gone up, at least would not have gone up two or three times overnight. The price of plastic tubs has now dropped back to its original level because the demand for them has eased. Those who panicked and rushed to buy plastic tubs at exorbitant prices had only themselves to blame. In the final analysis, Mr Speaker, Sir, the Government believes that with a well-informed consuming public and efficient port services and free competition in Singapore, we would be able to maintain a stable price level for the benefit of us all. Mr Speaker, Sir, I am happy to associate myself with the motion thanking the President for the speech which he delivered on behalf of the Government at the opening of the Second Session of this Parliament. 2.49 p.m.”
“The Government, however, would like to emphasise the positive side of encouraging competition and fair prices rather than the negative side of regulation and control. One of the ways of encouraging traders to sell at fair prices is to give these traders maximum publicity. This we hope to do by enlisting the help of hon. Members of this House. This is what we are going to do: The Inspectorate of the Trade Division, in their rounds of price checking, have come across many shopkeepers who sell at fair prices. In fact, it can be said that unscrupulous traders who are out to make a fast buck is the exception rather than the rule. This is also confirmed by the Consumers' Association. What we are going to do is to publicise the names of these traders who sell at fair and reasonable prices by putting their names on a notice board in the community centres of the areas concerned. And hon. Members can help by giving the fullest publicity to what we are going to do. This free publicity will give fair and reasonable traders a competitive edge over the others, and will encourage other traders to follow suit. The consumer himself can help in maintaining stable prices. He should keep himself informed and see whether there are substitutes for what he wants to buy. I think an example will make this clear. When the Public Utilities Board announced some time ago that there would be a possibility of water rationing, people rushed to buy plastic tubs for the storage of water. Because of this rush, the price of plastic tubs went up two to three times overnight. The rush, however, was entirely unnecessary because the P.U.B, did say that ample notice would be given before the imposition of water rationing.”
“The Member for Sembawang raised the question of cement shortage. My Ministry is aware of the situation and has requested Intraco to import 60,000 metric tons of cement, the first shipment of which is scheduled to arrive in about a week's time, and the second shipment of 10,000 tons by about the end of this month. Further, the three cement manufacturers have been requested to maintain minimum levels of production to ensure adequate future supply. We are keeping a close watch on the situation, and, if it warrants, further imports by Intraco will be made. The Member for Sembawang, together with the Member for Bukit Ho Swee, also raised the question of price increases. This subject was thoroughly debated during the budget debate in March this year. During that debate, Members were informed that, because of the openness of our economy and because we import almost everything we use and consume, we are very much dependent upon world prices, and that in recent years there has been worldwide inflation, especially in the developed countries. What we can do to help is to ensure that there is an efficient port and that competition in Singapore is free, so that we could import at the cheapest price, and that there is no monopoly which could artificially manipulate prices to the detriment of the consuming public. Since then, a Consumers' Association has been formed, and this Association, which works very closely with the Trade Division of my Ministry, has been able to exert considerable influence on the price level. The Trade Division on its part has been giving considerable encouragement and help to the Consumers' Association and has been sending out inspectors to check on prices whenever there is report of any unjustifiable price increase.”
“The manufacturers will also be taking part in the "Partners for Progress Exhibition" to be held in Berlin in October this year. The Member for Whampoa himself led a large mission to Tokyo in connection with the Jetro Fair last April. From experience gained in the participation of trade fairs and missions abroad, action is now being taken to expand the Export Promotion Advisory Committee so that it will be better able to serve the promotion and sale of our goods abroad. Export financing is intimately tied up with export promotion. At present, a great deal of export financing is through short-term trade bills financed by our commercial banks. A careful study was made on an Export Guarantee Scheme by my Ministry some time ago but its introduction was found to be inadvisable at the moment. At present, short-term financing is not a serious problem but when we start exporting more sophisticated goods and capital equipment, long-term finance would then become more urgent. My Ministry is keeping .a close watch on this matter and we are exercising our minds in devising a solution. The Member for Whampoa also asked whether the Government will help to identify limited areas where local capital and enterprise can be encouraged to go into. My Ministry will give consideration to this suggestion. Where the market is entirely local, there appears to be justification in trying to obtain at least a share for local capital and enterprise. The Member also complained that the 10 per cent tax on P.U.B, bills is a regressive tax. It may interest him to know, however, that more than 115,000 out of a total of 320,000 accounts do not pay the 10 per cent tax because they consume less than $13 a month. These represent some 36 per cent of the total number of accounts.”
“Mr Speaker, Sir, may 1 be allowed to make a few remarks in reply to some of the points raised by hon. Members in this House during the last few days, so far as these points relate to the Ministry of Finance. The Member for Whampoa raised the points of export promotion and finance. With the rapid industrial growth in Singapore and our emphasis on export-oriented industries, it follows that we should give emphasis to export promotion. As early as 1966, an Export Promotion Council was established with the objective of servicing the industrial and business communities by way of supplying them with commercial information as well as assisting them in the organisation of trade fairs and missions abroad. With the establishment of Intraco (International Trading Company) in 1968, the Export Promotion Council was transferred under its wings. Intraco's main task is the development, promotion and marketing of Singapore-manufactured goods throughout the world. It now has overseas representatives in Indonesia, the U.S.S.R., Australia, West Germany, Holland, South Vietnam and Cambodia all this with the aim of helping to promote and sell Singapore-made goods. There is also an Export Promotion Advisory Committee in the Trade Division of the Ministry of Finance. Representatives from the joint Chambers of Commerce, the Singapore Manufacturers' Association, Intraco, and the Economic Development Board, sit on this Committee, the main function of which is to advise on participation by Singapore manufacturers and exporters in international fairs overseas. With the encouragement and assistance given by the Trade Division, our manufacturers participated in the Jetro Fair held in Tokyo in April this year, and at the present moment are participating in the Djakarta Fair.”