Hansard, 1960-11-29

The following Member has, under the provisions of sub-section (2) (g) of section 42 of the Singapore (Constitution) Order in Council, 1958, obtained from the Speaker, permission to be or to remain absent from sittings of the Assembly: Inche Ahmad Bin Ibrahim (Sembawang), Minister for Health - 29th November, 1960.

I have received information from His Excellency the Yang di-Pertuan Negara that the following Bills were assented to by His Excellency on the 19th day of November, 1960:-

asked the Minister for Labour and Law (i) how many (a) males, and (b) females, were registered is unemployed at the Labour Exchange as at 1-11-60, and (ii) of these how many had been on the register prior to 1-11-58.

Mr Speaker, Sir, the number of persons registered as unemployed at the Labour Exchange on 1st November, 1960, was 52,963. The number of persons so registered prior to the 1st of November, 1958, was 11,186. It is not possible to say how many of the 52,963 persons registered on 1st November, 1960, have been on the register prior to 1st November, 1958. The registration is fluid and only those who re-register for employment are retained on the register. The persons registered are not registered according to sex, and therefore it is not possible, without a great deal of research, to state the separate figures for males and females registered at the Labour Exchange.

asked the Minister for Labour and Law how many registered unemployed persons had been placed in employment between 1-11-58 and 1-11-60.

Mr Speaker, Sir, the number of registered unemployed persons placed in employment between 1st November, 1958, and 1st November, 1960, is 5,693.

asked the Minister for Labour and Law how many members of the Work Brigade were taken directly from those registered at the Labour Exchange.

Mr Speaker, Sir, nearly all members of the Work Brigade have been persons taken directly from those registered at the Employment Exchange.

2.35 p.m.

"to amend the Immigration Ordinance (Chapter 102 of the Revised Edition)", presented by the Minister for Home Affairs (Mr Ong Pang Boon); read the First time, to be read a Second time on Thursday, 29th December, 1960, and to be printed.

"to repeal and re-enact the law relating to Muslims and to make provision for regulating Muslim religious affairs and to constitute a Council to advise on matters relating to the Muslim religion in Singapore", presented by the Minister for Labour and Law (Mr K. M. Byrne); read the First time, to be read a Second time on Thursday, 29th December, 1960, and to be printed.

"to provide for the levy of a tax on immovable properties in lieu of the rates previously leviable by local authorities and to regulate the collection thereof", presented by the Minister for Finance (Dr Goh Keng Swee); read the First time, to be read a Second time on Thursday, 29th December, 1960, and to be printed.

Resolved, "That at its rising this day the Assembly do adjourn to 8th December, 1960."-[Dr Toh Chin Chye].

Order for Second and Third Readings read. 2.38 p.m.

Mr Speaker, Sir, I have the Yang di-Pertuan Negara's recommendation that this Bill be proceeded with. Sir, I beg to move, "That the Bill be now read a Second time." Under section 97 (2) of the Singapore (Constitution) Order in Council, 1958, the Minister for Finance may at any time before the end of the year introduce into the Assembly a Supplementary Appropriation Bill containing Supplementary Estimates voted by the Assembly during the year. In the course of this year, two Supplementary Estimates were approved by the Assembly for expenditure out of the Consolidated Fund. The expenditures from the Development Fund fall to be dealt with under the Development Fund Ordinance, 1959, and do not have to be included under any Appropriation Bill. The two Supplementary Estimates approved by the Legislative Assembly were $2,312,190 as the First Supplementary Estimates, and $212,240 as the Third Supplementary Estimates, giving a total excess expenditure of $2,524,430 over the authorised expenditure of $246,646,260 in the 1960 Estimates. These excesses are detailed in the Schedule to the Bill and have received the consent of the Legislative Assembly. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time.

Will the Minister proceed with the Third Reading?

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time."

Question put, and agreed to. Bill accordingly read a Third time and passed.

Order for Second Reading read. 2.40 p.m.

Mr Speaker, Sir, I have His Excellency the Yang di-Pertuan Negara's recommendation to proceed with this Bill and I move, "That the Bill be now read a Second time." Before the Minister for Finance can formally present the Budget Estimates for the following year, the Assembly should first approve, in principle, this Bill which will integrate the Budgets of the former City Council and the Singapore Government. It would perhaps be helpful if I were to outline the method and process by which the integration of the City Council and the Rural Board into the Government Ministries is to be achieved, and I hope this will put the Bill in its proper perspective and make its purpose more clear. There are three stages of integration: first, administrative integration; second, financial integration; and third, complete integration legally by the transfer of staff and property and the establishment of a Public Utilities Board. As regards the first, His Excellency the Yang di-Pertuan Negara in his Address at the opening of the present Session of the Legislative Assembly has stated that "all departments are now administratively integrated with and directed by the respective Government Ministries". It was achieved at the beginning of this year when the various departments were allocated to appropriate Ministries and came under their control and responsibility for day-to-day administration and policies. This was a purely administrative arrangement whereby Ministers in charge of the Ministries acquired authority over the running of those departments of the City Council which were transferred to them, but legal and formal responsibility lies with me together with financial and staffing matters. In the course of this year, Sir, the departments have therefore been functioning within the Ministries, and I hope they have all gained valuable experience in advance of complete legal integration. The Ministries in turn have become acquainted with their new responsibilities. They have drawn up new organisational and establishment charts and are ready to assume formal responsibility. The second stage is that of financial integration which must take effect from 1st January, 1961, by virtue of the fact that we have now, in the Budget Estimates to be put forward by the Minister for Finance, integrated the Budgets of the City Council and the Central Government. Two Bills are necessary for this purpose: one, the Property Tax Bill and, two, the Local Government (Financial Integration) Bill. As regards the Property Tax Bill which the Minister for Finance has just introduced for First Reading, I would like to anticipate the Bill by making a brief reference in case property owners are unduly upset by the nomenclature of the Bill, that it is an administrative device whereby local rates on assessments are no longer payable as a result of the abolition of the Local Government Authority, and a property tax in lieu of the local rates is to be introduced by the Property Tax Bill. The assessment provisions of the Municipal Ordinance and the Local Government Ordinance will no longer apply in 1961 and they will be replaced by similar provisions in the Property Tax Bill coupled with the Local Government (Financial Integration) Bill. The final stage of integration, which we hope will be completed by the beginning of next year, will be when the whole process is completed and the Public Utilities Board is set up; and the staff, assets and liabilities as well as the formal transfer of those functions, duties and powers now exercised under the provisions of the Local Government Ordinance and the Municipal Ordinance, are transferred either to the Public Utilities Board or the Government Ministries. And this last stage will be completed by two further Bills, the Local Government (Integration) Bill and the Public Utilities Bill. We hope to introduce these two Bills, either in January or in February next year. The intention is that they should all become operative by the 1st of July, 1961. This is the date from which the staff would be formally transferred either to the Government or to the Public Utilities Board, and from that date all Ministries - I will divest myself of formal responsibility for the overall control of staff and other matters of the City Council - will assume formal responsibilities for the departments allocated to them and for their functions and duties, which they are already doing administratively. As regards the Local Government (Financial Integration) Bill, its object and purpose is to enable all moneys received by virtue of the Local Government Ordinance and the Municipal Ordinance, excepting certain moneys specified in this Bill, which are to be excluded, to be paid into the Central Government's Consolidated Fund. It also provides for payments connected with the Local Government services and other functions performed by the Local Authority to be charged to the Consolidated Fund. Clause 3 of the Bill provides for this. The three trading departments are specifically excluded from the provisions of the Bill since it is the Government's intention to establish a Public Utilities Board comprising the Water, Gas and Electricity Departments. Their moneys shall be continued to be kept separate, and they will operate their own Budget. As hon. Members who have already had advance copies of the Estimates will notice, the Budgets have already been integrated. This is a purely administrative Bill to legalise the fusion of the two Budgets, the Government's and the City Council's. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[The Prime Minister]. Bill considered in Committee reported, without amendment; read a Third time and passed. 2.55 p.m.

Mr Speaker, Sir, I beg to move. That this Assembly approves the financial policy of the Government for the year 1961. This is the second budget of the P.A.P. Government. The background against which this budget is being presented is markedly different from that a year ago. Then we had to contend with an atmosphere of uncertainty. The P.A.P. Government had been in office for barely five months and we saw how during election campaigning, irresponsible Right-wing Parties worked themselves into a fright. It would not have mattered if the hysteria they generated confined itself to those parties and their few well-wishers. But in the nature of things, the fright campaign must have further repercussions. Although by November of last year we managed to stabilise the position considerably, there still remained some hesitation and uncertainty which had to be removed before the economy could settle down to effective work. Now we are in office for nearly a year and a half. In making a review of the economic position in 1960, I have the advantage that there has now been sufficient time for our policies to make their impact and for results to be known. This is the ultimate test. For a government is judged not so much by its expressions of good intentions but by its concrete achievements in the way of economic prosperity and public welfare. By this standard the people of Singapore have done well. The year under review has been a good one for Singapore. There has been a marked expansion in trade, in industrial output, in the standards of personal consumption, in business confidence, in the conditions of workers, and in the level of public services. I shall elaborate on this in more detail at a later stage. First, since Singapore is a centre of international trade and part of the world economy. I must make a brief review of major economic events and trends in the world at large, and more particularly in our two neighbouring territories, the Federation of Malaya and Indonesia. In both the western world and the communist countries. 1960 has generally seen sustained economic expansion. The industrial countries of Europe consolidated the gains initiated in previous years. In America, however, the expansion was halted in the third quarter of this year and important economic indicators showed a downward trend. However, the economies of the western industrial world had been strengthened to a marked extent in the last 15 years so that, even if a recession were to take place in the United States, it is unlikely that it would lead to a general world recession. We have moved a long way from the late 40's and 50's when even a mild recession in the United States brought misfortune to other countries. Economic Development in Asia In Asia, the newly independent countries struggle valiantly to achieve economic development. India prepares for a massive third Five-Year Plan in an effort to lift her four hundred million citizens from the age-old and dire poverty. The Plan envisages a capital outlay of 100,000 million Rupees. The rate of gross capital accumulation is to be increased from about 11 per cent at present to about 14 per cent by 1965-66. Large new industries are being established. Through extensive community development schemes, India tries to spur on her stagnant rural economies to race ahead of population pressure. Other South and South-Eastern Asian countries too have accepted the over-riding importance of economic development as a national objective, though most of them have not achieved, so far, the success in planning and execution that India has. In East Asia, the other Asian colossus, China continues to make great strides in economic development. Through the stern discipline of the Communist society, the Chinese have been able to mobilise the manpower resources more effectively than those countries constrained by the processes of democratic persuasion. When six hundred million industrious people apply their brain power and muscle power in a concerted effort, the result cannot be other than a prodigious advance in material output. Among the non-Communist Asian countries, Japan has shown the most striking expansion of industrial output. The Japanese plough back no less than 25 per cent of their national income to expand their economy, a rate that has few equals in contemporary history. The result has been a rate of development that exceeds the best achieved by Western Germany, whose economic revival after the war has been acclaimed by all as nothing short of miraculous. In 1959 the Gross National Product of Japan increased by 16 per cent, a world record. Industrial output increased by 29 per cent. Yet this phenomenal expansion did not bring in its train price-inflation or balance of payment difficulties. Prices were steady and Japan's foreign exchange reserves actually increased. So the general picture in Asia is one in which every Government has accepted, as a prime objective of policy, the conquest of poverty through the expansion of material output by the application of capital and know-how. Asians no longer accept poverty, disease and ignorance as the natural order of human society. All move forward, or try to do so, towards improved material well-being. But the journey is a long and harsh one and not everyone is aware of the sustained effort and sacrifices that this must impose. Federation of Malaya In 1960, favourable conditions in the Western industrial world send their impulses to the raw material producing countries of tropical Asia through better prices of raw materials. In our case, this takes the form principally of higher prices for rubber and tin. Rubber remained at over $1 for the best part of this year, reaching the peak of $1.43 in May. Since the latter half of September, there has been a sustained decline in prices of rubber. Rubber and tin prices have brought about a marked increase in prosperity in the Federation through increasing both the Government revenues and the incomes of companies and persons. In Indonesia, rubber prices had not only increased her foreign exchange earnings, but also increased the physical quantity of her rubber exports. The effect of this has been to increase the purchasing power in these two countries. Singapore has directly benefited from prosperity in the Federation, although in the case of Indonesia, the level of trade has not expanded. The long-term prospects for rubber, according to expert opinion is sound. Furthermore, extensive replanting of rubber undertaken by the Federation in past years will be reflected in the years to come in increasing production. Part of this increased output will flow to the world's market through the port of Singapore, and this is something which we can look forward to with gratification. In my last budget speech, I referred to the necessity for establishing some form of common market arrangements with the Federation. Members already know that discussions on this proposal had already commenced with the Government of the Federation of Malaya, who are making a close study of the scheme which we submitted to them. As the matter is still under consideration, I do not think it appropriate for me to make any public comment on it. A matter of vital importance in our economic relations with the Federation of Malaya is one that affects our currency arrangements. The currency we are using is one in which the Governments of the five territories participated, namely, Singapore, the Federation of Malaya, the State of Brunei, Sarawak and North Borneo. In February this year, the five Governments initialled an agreement which makes for certain changes which are necessary by virtue of the status of the Federation of Malaya as an independent State. This agreement has been given legislative effect by the passage through this Assembly of the Currency Ordinance on the 21st of September this year. It now remains for all the participants to bring into force the various ordinances taken through their legislatures. As a trading centre, we understand the imperative need for a strong and stable currency. The Malayan dollar with its automatic convertibility into sterling, made possible by substantial overseas reserves, provides such a strong currency. So now we have five territories in this area, which have a common historical background of British colonial rule, sharing a common currency. This surely stands as a stabilising economic force to the advantage of all the participants. It is the hope of my Government that it would be possible to retain, if necessary with suitable modifications, the present co-operative arrangement between the five territories which has worked so well. A strong currency is something we enjoyed for so long in the past that its importance has often been taken for granted and even overlooked. But without the firm financial base of a sound currency, no underdeveloped region can hope to tackle the immense problems of economic development. Indonesia I now turn to Indonesia. The improvement in our relations with Indonesia, to which I referred last year, continues to make progress. A Fact Finding Mission was sent by the Indonesian Government to Singapore and it held talks with officials of the Singapore Government at which useful interchange of views took place. The Singapore Government intends to dispatch its own Fact Finding Mission to Djakarta to clear the way for a trade agreement. Many of the problems arising in our trade with Indonesia are long standing and difficult. While we are a free trade economy with controls reduced to the barest minimum, the Indonesians prefer a policy of "guided economy". This, in effect, means the imposition of controls over all major aspects of trade and production. What we have to do is to meet the legitimate requirements of Indonesia's guided economy in such a way as not to destroy our entrepot trade. Again, as this is a matter which is under discussion between the two Governments, I do not think it appropriate for me to make any detailed public comments, except to hope that the solution which will be mutually satisfactory to both countries will emerge. In the meantime, we are pressing ahead with our plans to establish a Trade and Cultural Commission in Djakarta. I expect that this will be established early next year. During the period under review, trade with Indonesia fell to a slightly lower level as compared with 1959. Our exports to Indonesia averaged $9.8 million per month this year as against $10.9 million in 1959. Certain items, such as textile yarn, showed a substantial increase, being about $943 thousand per month this year as compared with $553 thousand last year. But many items declined. Following upon the strengthening of the Indonesian foreign exchange reserves, there has been a greater diversification in the items in our export to her, and one hopes that this trend will continue. Our imports from Indonesia averaged $83.4 million per month as against $94.6 million in 1959. Rubber, the most important commodity, showed little change, averaging $50.0 million per month this year as against $49.7 million last year. Petroleum products showed a severe decline. Improvement in Singapore in 1960 Let me now review how Singapore has fared so far this year. I referred before to the improved conditions in the trade and industry of our State. May I be permitted to amplify this statement. There was an increase in our foreign trade, as I mentioned before. Total imports and exports increased from $5,348 million for the first 9 months of last year to $5,720 million for the corresponding period this year. In percentage terms this means an increase of 7 per cent. This increase did not result entirely from higher prices of rubber and other primary products. There was also an increase in the physical volume of goods handled. The greater physical volume of trade shows itself in the figures of cargoes discharged and loaded in Singapore. From January to July this year the general cargo discharged at the Harbour Board wharves was 1.215 million tons compared with 1.132 million tons last year, representing an increase of 7.3 per cent. Cargo loaded rose from 1.035 million tons last year to 1.074 million tons this year. The improved trading position is reflected in the financial statistics of the country. Bank advances to customers increased from $503 million in January to $569.5 million in September. The major part of this increase in bank advances went to trade and commerce. In January this year, $336.7 million was advanced to trade rising to $388.4 million in September, an increase of more than 15 per cent. The manufacturing industries of Singapore saw a general advance in production. Published material on this subject is somewhat patchy. The Government has decided to remedy this state of affairs for, having regard to the importance which it places on industrialisation, it is vital that much more statistical information about our industries should be at our disposal than now exists. Accordingly a census of manufacturers was carried out in the third quarter of this year and the results are being compiled. The census of manufacturers is based on a coverage of all firms employing 10 workers or more per factory and a sample survey of 10 per cent of the smaller establishments. It is proposed to carry out this census annually so that the Government shall have at its disposal comprehensive and reliable data on the progress of industry. The results will not be available for some time yet and we have to rely on the scattered information which it had been the past practice to collect. This shows a fairly substantial all round increase in the output of manufacturing industries. Other than soft drinks and soap, all industries covered show considerable advances. The cigarette industry continues to make great strides, the quantity produced in the first nine months of the year increasing from 1.6 million pounds in 1959 to 2.1 million pounds this year, an increase of 28 per cent. Other industries which show substantial progress are coconut oil, 25 per cent increase, rubber footwear, 23 per cent increase, and remilled rubber 36 per cent increase. The electric power consumed by industries increased by 13 per cent. The construction industry which had been depressed for some considerable time began to press ahead. This was principally due to the building programme of the Housing and Development Board, which was established this year. The Board lost no time in getting down to work and pulling itself out of the difficulties created in the S.I.T. by the mismanagement of the former Minister for National Development. The Housing and Development Board has to date awarded contracts to the value of $21.8 million and by the end of this year expects to increase it to $27.3 million. This will mean that in about a year's time, when all these houses and flats would be completed, 8,350 new homes will be available for the ill-housed citizens of Singapore. An innovation which the Housing Board intends to introduce is the $20 per month one-room flat for workers whose income do not permit them better accommodation. The revival of the construction industry this year brings about improved figures in the production and import of building materials. The output of sawn timber has increased from 10,300 cubic tons in January this year to 16,700 cubic tons in August. Imports of cement and steel bars increased substantially in the course of the year. For the third quarter of this year, these are 34 per cent and 20 per cent higher respectively than the average for last year. Bricks have gone down badly but this appears to result from the greater use of substitute material, principally cement blocks. With the expansion of trade and industry going on at the rate described above, it is to be expected that, as people have higher incomes, they will purchase more goods. There are certain consumer goods the demand for which reflects sensitively changes in personal incomes. These are the luxury and semi-luxury goods. The import of refrigerators showed a continuous increase during the year. For the third quarter of this year, the number of refrigerators imported was more than 50 per cent higher than the average for 1959. The registration of new motor cars showed a similar marked increase. Compared with the 1959 average, new motor car registrations were 39 per cent higher in the third quarter of this year than in 1959. The number of motor cycles registered showed an even greater increase - in the third quarter of 1960, it was more than 2½ times last year's average quarterly rate. So too were the number of new driving licences. This showed a continuous increase during the year, from 5,500 in the first quarter to 6,300 in the third quarter. All in all, the indications are that there was a solid and substantial revival of the economy this year. What is remarkable in this economic revival is that the expansion in trade and production did not bring about any inflationary process. The currency in circulation for the Malayan dollar area remained practically stationary, being $1,162 million in January and $1,166 million in September. Prices of consumer goods did not rise. On the contrary, the official index of retail prices showed a decline of 5.4 points from 317.2 in January to 311.8 in September. I am acutely aware of the inadequacies of the present official price index and am taking steps to institute a new series which will have a more scientific and realistic basis. Whatever the faults of the present index, if there is any error introduced, it would be in the direction of understating the fall in prices. This is due to certain technical reasons into which I need not enter here. Taking into account all items of consumer goods in the course of the year, there has been a significant fall in prices. There are very few instances in contemporary economic history where economic expansion and falling prices occurred simultaneously. New Industries The rate of industrial expansion has shown improvement since the last budget. There are now no less than 54 projects under various stages of consideration for the award of pioneer status. Twenty-six projects can be considered to be firm proposals and gazette notifications have been issued or will soon be issued in respect of those that qualify for pioneer status. The two oil refineries have already been awarded pioneer status and construction work has commenced. Some of the new industries for which pioneer status is being considered include the manufacture of a wide range of consumer goods such as condensed milk, chocolates, toothpaste, garments, matches and so forth. Among the major proposals are flour milling, textile weaving and a steel rolling mill. The total capital involved in all these projects is well over $100 million, and when they are in operation, they would provide employment for more than 2,500 workers. Projects still in the exploratory stages include a wide range of industries. I do not, however, propose to supply more information about them at this stage. The authorized capital of these projects is estimated to be in the region of $70 million and they would provide employment, if carried to fruition, for some 2,000 workers. As distinct from the establishment of new industries, the expansion of existing ones proceeds apace. Many of these are small establishments. Since we assumed office, 85 small factories have been established providing a total employment of 1,049 workers. In normal circumstances, industrial expansion of the scale I have described can be considered satisfactory. However, in the present situation of Singapore with its population explosion, much more is required. An expansion of at least 2 to 3 times the present rate would be necessary. Much more needs to be done to accelerate the growth of industry. Members are aware of the various teams of international experts who have recently been in Singapore and who are, at the present moment, conducting their investigations here. There is Mr P. L. Schereschewsky who came to Singapore in July this year on a preliminary study of the prospects of establishing a steel industry in this island. He has completed his preliminary report and will return soon with a larger team of specialists in various lines of steel production and marketing. The Mission sent by the United Nations Technical Assistance Administration to study methods of industrial expansion in Singapore is the most powerful team that has been dispatched by that organisation. It is headed by Dr Albert Winsemius who has a distinguished record both as a Government official and as an industrialist. Members of his team include an Electrical Engineer, a Chemical Engineer, a Mechanical Engineer, an Industrial Site Planner and a Shipbuilding Engineer. The team has been working very hard since their arrival in October this year and we look forward to receiving their report. Among the conditions necessary for rapid industrial growth is peace and stability in labour-management relations. The P.A.P. Government is a Government elected by the people and is one that is partial to the working class. It is to be expected that workers and their unions would take steps to redress the disparity of power which they experienced under the previous Government. There have been a number of claims for wage increases nearly all of which were settled amicably by negotiation. There have been more claims for fringe benefits and substantial gains were made in respect of these. It is natural that employers profess alarm at the revival of trade union strength. Although there have been some individual instances where the unions displayed an unnecessary waywardness, on the whole the labour position is well contained through co-operation between the union leaders and the Ministry of Labour and Law. For the most part both labour and management have shown good sense to effect settlements satisfactory to all. Those who take alarm at the manifestations of increasing activity of the unions should not lose their sense of proportion. The P.A.P. Government is fully aware of the need for peace and stability. This is one of the basic pillars of our policy. The close attention with which we have paid to this problem has expressed itself in many items of legislation, particularly in the recent establishment of the Industrial Court. The P.A.P. Government is as anxious as anybody else to press ahead with the industrialisation of Singapore, which cannot be brought about under unsettled labour conditions. The Government has asked the Singapore Trades Union Congress for full and wholehearted co-operation in bringing about this stability and discussions are in progress on how this can be brought about. The Economic Policy of the P.A.P. Government I have discussed industrial expansion and its relation to labour and capital in the circumstances we find ourselves in Singapore. The policy of the P.A.P. Government in these matters is implied rather than explicitly stated in my remarks. I wish to take this opportunity to dwell more extensively on it for now we are entering an area in which the cobwebs of prejudice and preconceptions abound and frustrate clear thinking. It is important that these cobwebs be swept aside so as to leave no room for misunderstanding. There is no doubt that the volume of misunderstanding is considerable among the unthinking sections of the population. The businessman is somewhat surprised that not only have we not expropriated his property but we have given him every encouragement and opportunity to expand his enterprise. Some doctrinaires are angered that we have not pulled down the house in the name of revolution. The economic revival which I discussed has been contrived principally through the existing institutions of free enterprise. A number of persons in left wing organisations, trade unions, political parties and so forth on noticing this phenomenon have expressed dissatisfaction. It is sometimes alleged in these quarters that the P.A.P. has moved away from its revolutionary ideas. I want to examine these allegations in some detail and in so doing to clarify the economic policy of the P.A.P. Government. Some persons who call themselves socialists almost regard as an axiom that when a socialist government assumes power it must set about the task of socialising the means of production. In simple words this means nationalising private business. What is the P.A.P. policy on this? Did we say to the electorate that we intended to nationalise private business and on assumption to office go back on our words? All the evidence points to the contrary. In the series of electoral statements which have been compiled in a volume entitled "The Tasks Ahead - P.A.P.'s 5-Year Plan - 1959-64", the chapter dealing with economic policy states quite clearly that the industrialisation programme will be achieved through the institution of private ownership and free enterprise. We even went to the extent of stating our stand towards foreign businessmen, and I quote from page 25 of Part I of the "The Tasks Ahead": "Foreign business concerns which wish to establish factories in Singapore will be given all the encouragement and assistance they need. We shall give them guarantees in regard to security of capital, remittance of dividends and other matters which all modern governments regard as normal practice". In the Fourth Anniversary Celebration Souvenir number of the Party published as early as 1958, it was made quite clear that we have not the slightest intention on assumption of office to go for nationalisation. May I quote from page 14 of the Souvenir number: "The first and most obvious conclusion we can draw is that the scope of realising socialism in Singapore is narrow. The entrepot trade cannot be socialised. Such factories as we now have are hardly worth nationalising and they should remain in private ownership. What is required in the next few years is a substantial expansion of manufacturing industries. How is this to take place? It is obvious that private enterprise should be given the maximum encouragement to establish new factories in order to provide employment for our increasing population". Nothing could be clearer than that we have been consistent in our actions and that our present policies date back from unequivocal statements made before the elections to the public and to the electorate. It is therefore absolute nonsense to say that we have deviated from our previous intentions. How can our policies be distinguished from those of a non-socialist government? The answer to this question can be set out both in terms of general principles and in relation to the specific problems facing Singapore. In countries emerging from colonial rule, an immense amount remains to be done to bring about equality of opportunity, in the abolition of unearned privilege, in the attack on the evils of poverty and ignorance and generally in laying the foundations of a more just social order. It can redress the imbalance between the working class and the employers which in the colonial regime was tipped strongly against the workers. Under the colonial regime, many persons had their opportunities limited through no fault of their own. In Singapore we know how circumscribed were the opportunities for useful careers open to those who did not receive an English language education. We have also seen how the P.A.P. Government has brought about greater and more equal opportunities for those who have been to the middle schools and Nanyang University. A socialist government would not merely bring about equality of opportunities between groups and classes in the country. It would also try to expand opportunities for all to exercise their abilities to the full for the benefit of society. In Singapore this is a most urgent problem because of our rapid population growth and the prospect of mounting unemployment. A right wing government would view this not with alarm but with delight. For increasing unemployment must sap the strength of the working class movement by reducing the bargaining power of organised labour. When this happens then wages will go down, exploitation of workers intensified and profits increase. A Right-wing government would therefore feel no urgency about expanding the economy and increasing employment opportunities through industrialisation. It will leave the free play of economic forces to produce the desired adjustment, which will be to the benefit of employers and the detriment of workers. A socialist government, on the other hand, views the prospect of increasing unemployment with grave anxiety and will strain itself to the utmost to avoid this situation. The expansion of the economy however means that money will have to be found somehow to finance those additional economic and industrial services and facilities which are needed. A socialist government will get the money through taxation in such a way that those who can afford to pay taxes share the greatest responsibility. Therefore by fiscal measures wealth is withdrawn from those who are better off and put to uses for the benefit of the whole society. All this can be done within the framework of private ownership of industry. In the modern state, the instruments of regulation that have been developed in so many countries have become both varied and refined. They can be used for any number of purposes according to the policy of the government of the day. For instance, they can be used for the purpose of preparation for war in support of aggression against other countries. Or they may be designed to enrich those who are already rich and impoverish those who are poor. Or they may be used both to increase the national wealth and to redress gross inequalities in its distribution without at the same time destroying the incentives to effort and enterprise which sustain the functioning of the system of private ownership. Review of Expenditure in 1960 Mr Speaker, Sir, from this long but necessary dissertation on basic principles, I now turn to more mundane affairs. In fact I turn to a review of Government expenditure and revenue in 1960. The 1960 Estimates were framed on the basis of expenditure being in the neighbourhood of $275.3 million and revenue at $269.2 million. In other words, there would have been a deficit of $6 million to be paid from cash reserves during the year. In addition to estimated expenditure, the Assembly was asked during 1960, to approve Supplementary Estimates of $2.5 million, $200,000 of which was met from savings, making a net additional expenditure of $2.3 million. Thus, the total estimated expenditure for 1960 was $277.8 million and the estimated deficit was increased to $8.5 million. This sets the picture out in so far as Estimates are concerned. However, there is the question of ability to fulfil these Estimates and here there is some doubt as to the possibility of spending $277 million this year. The main reason for this can be said to be that the machinery of Government in 1959 - in fact commencing from the latter half of 1958 - was severely curtailed in its activities because of restrictions imposed on expenditure due to the decline of economic activity in the State and the slight world recession in trade. This is evidenced by the total expenditure over the various quarters of the years concerned. In the first quarter of 1959, total expenditure was $50.9 million; for the second quarter, $57.7 million; for the third quarter, $52.0 million, and for the fourth quarter, $54.6 million. In 1960, the downward trend continued but there are now signs of improvement. About $50.0 million was spent in the first quarter; $52.0 million in the second quarter; $54.0 million in the third quarter and it is estimated that $65.0 million excluding a transfer of $20 million to the Development Fund would be spent in the fourth quarter. This, however, still gives a shortfall of about $30 million on the total budgetted expenditure for the year. It may also be noted that total expenditure never does keep up with the Estimates, there being time lags in payments, delays in fulfilling orders, difficulties of recruitment, or planning and implementation problems. For instance, from 1950 to 1958, total expenditure had never exceeded total estimates except in 1954 when $240.5 million was voted and $248.9 million spent and it was only in 1951 and 1952 that estimates were nearly achieved by actual expenditure. For the rest, expenditure fell short of estimates and in 1955 and 1953 under-expenditure was $32.8 million and $40.7 million respectively. So far the general picture has been given. Now with regard to the details of under-expenditure. The following is an indication, Ministry by Ministry, of under-expenditure against the 1960 Estimates. The Prime Minister's Ministry has underspent to the extent of $3.6 million. The main reason for this is the fact that Rural Board works on roads and building constructions have been delayed by a lack of engineering staff. In addition, about $1½ million will not be spent by the Public Works Department because of lack of engineers and architects to supervise maintenance work for which an estimate of $6.8 million was made in the Budget. Roughly only $5½ million will be spent. In this connection, it must be stated that though every effort is being made to bring the establishment of the Public Works Department to strength, there are still deficiencies in a number of senior posts which cannot be filled substantively since experienced men are not available. The Ministry of Health will underspend to the extent of $6.8 million. The large under-expenditures occur under Personal Emoluments where it has been extremely difficult to recruit professional medical officers and specialists and where there have been substantial delays in recruiting and training of ancillary staff. Then, under Special Expenditure, there has been a drop in Hospitals Board and Tan Tock Seng Hospital's expenditure because of the shortages of staff referred to above. The Government is now taking action to recruit overseas trained personnel to strengthen the establishment of the Ministry of Health and it is hoped that under these conditions, the Ministry will be able fully to perform its functions. Under the Ministry of Finance, under-expenditure of about $7.4 million will occur in 1960, the main reason being that it was not necessary to seek loan money to such an extent as was envisaged. $2 million therefore remains unspent on account of the Public Debt. In addition, Pensions, Retiring Allowances and Gratuities amounted to only $16.6 million as against the estimate of $18.6 million, there being smaller pensions payable than have been estimated for, thus affecting both commutations of gratuities and rates of pensions payable. Finally, it is estimated that because of stricter controls on travelling and courses, fellowships and scholarships abroad, expenditure under the head "Ministry of Finance" would be smaller than expected. There has also been staff re-organisations so that it has been possible to keep down the cost of the votes providing for replacement of officers under training, on short leave, sick leave, etc. There has been some slight under-expenditure in the Accountant-General's and the Inland Revenue Departments totalling roughly $200,000 and these are accounted almost completely for by the shortage of personnel in Division I of the Public Service. With regard to the Ministry of Labour and Law, there will be a very small under-expenditure of about $½ million and this is accountable almost completely by more careful administration of residential institutions, community centres, creches as well as stricter investigation of all claims for public assistance. In the Ministry of Culture, under-expenditure will be also very small, roughly $400,000. This is due to under-expenditure in the Broadcasting Division as well as the Printing Division because of a more careful distribution of work and better and more efficient organisation of facilities. Under the Ministry of Home Affairs, about $2½ million will not be spent. This is mainly due to under-expenditure on the Defence Services because of the abolition of the M.A.A.F. and delays in recruitment and problems of obtaining seconded personnel to the Singapore Military Forces. Also $1.2 million will not be spent from Police votes because of vacancies in senior appointments, difficulties in recruiting constables of the higher standards now laid down and delays in fulfilling requisitions for equipment and furnishings. Finally, there will be about $5.3 million underspent for Education because of controls on grants-in-aid payments and appointments of teachers where it has not been possible to recruit qualified personnel. Revenue in 1960 Of the principal items of revenue, income tax yield is estimated at $75 million for 1960 as against the provisional estimate of $65 million at the beginning of the year. At the beginning of the year, it was expected that the slightly less favourable trading conditions would result in lower incomes and lower income tax collections. This increase is attributable to more energetic measures being taken in following up assessments and ensuring speedy collection and the policy to deal with the large assessments at once leaving the smaller assessments to later in the year. As against the estimated revenue of $43.1 million in respect of tobacco duty, the collections up to the end of October amounted to $33.2 million and it is likely that the end of the year figures will show collections about $3 million below the original estimates. This is in the main due to a change in consumer habits away from foreign imported brands of cigarettes and tobacco to locally manufactured products. The rate of duty on these is smaller. There was also a switch in use by manufacturers from cut rag to tobacco leaf, the rate of duty on the latter being lower. Petroleum revenue was estimated at $40.4 million. Figures for the first ten months indicate that the actual revenue will be in the region of $38 million, a shortfall of $2.4 million. This year's collection will, however, be higher than the actual revenue of $34.2 million in 1959. The revenue estimates will not be reached partly due to the lower petrol consumption of smaller cars which are more popular nowadays. There has also been an increasing tendency for taxis to switch from petrol to diesel fuel. Liquor revenue was originally estimated at $23.5 million and this would probably be realised. There has been an increase in demand for imported beer at the expense of imported spirits and local beer but the overall production at the two local breweries has exceeded the previous year's figure. The anticipated revenue of $7 million for Entertainment Duty this year is likely to be achieved by the end of the year. As against an estimate of $4 million on taxes on totalisators and sweepstakes, the actual collections for the first ten months amounted to $4.7 million and it is anticipated that the original estimate will be exceeded by $1.2 million by the end of the year. The intensification of the war on bookmakers has resulted in higher takings on the tote, thereby increasing the amount payable to the revenue. Stamp Duty was estimated at $3.8 million but there is likely to be a shortfall of $½ million. As against this, Estate Duty may yield an excess of $400,000 over the estimated figure of $4 million. Surplus for 1960 The main revenue sources I have mentioned will, in the aggregate, achieve an excess of $5.7 million as compared with the original estimates. There was, in addition, a welcome addition to our funds which was not provided for last year. The Government of the Federation of Malaya agreed to commence the repayment of the $30 million loan made by the Singapore Government in 1954. This repayment is not due until 1964 at the earliest. However, in view of the extremely strong financial position of the Federation Government, we made a request to them that the $30 million loan be repaid earlier than scheduled, in three annual instalments of $10 million each. The Federation Minister of Finance took a very sympathetic view of our request which was based on our urgent need for development finance. I am sure Members will join me in expressing our appreciation of the sympathetic manner with which the Federation Government met our request for early repayment. By the accounting convention regulating Government accounts, which is conducted on a cash basis, the $10 million capital repayment was credited to the revenue account. This has enabled the revenue to exceed the estimates by nearly $16 million. The result of combined under-expenditure and revenue excess is that the year 1960 is likely to end in a substantial surplus of $37 million. Expenditure should stand at $248 million and revenue at $285 million. Even after taking into account the capital receipt of the loan repayment, a sizable surplus still remains in the Ordinary Estimates. Insofar as this surplus is the result of strict control of expenditure exercised by the Government, the position is gratifying. But there is another reason for under-expenditure which is less welcome. This is the inability of departments to realise their special expenditure items. Such expenditure requires a fairly prolonged period of preparation and planning. This is especially true of public work and construction. Owing to the shortages of Engineers, Architects, Surveyors and other technical staff, much of this construction work could not be initiated early enough this year for completion and payment during the year. These bottlenecks to expenditure have, as I stated before, given grounds for anxiety. It is apparent that there must be a review of policy in regard to methods of preparation, planning and supervision of special expenditure and development projects. The Government has already set up a Commission to enquire into the capacity of the building trade. This Commission has submitted its preliminary findings and has made a number of valuable proposals in regard to the organisation of Government Departments concerned in building and construction. These are under examination. The Government intends to strengthen the technical personnel of the Public Works Department by recruitment or secondment from overseas countries. We are holding discussions with the United Kingdom Commission, Commonwealth and consular representatives of various overseas governments to obtain their assistance in this matter. The first result of this policy has come to light only a few days ago. Last week a team of six Japanese Engineers and Industrial Planners arrived in Singapore. These were appointed by the Japanese Government, at the request of the Singapore Government for assistance in making physical plans for the Jurong Industrial Estate. It is likely that we shall make use of technical assistance of this kind from overseas countries for several of the major projects entered in our Development Plan. The Government is also considering other methods whereby our shortage of experienced technical staff may be overcome. There is the possibility of more extensive use of Consulting Engineers and the adoption of the system of international tenders for design and construction for major projects. By such methods, it is hoped that the substantial volume of construction work, which will have to be undertaken in the next four years, can be successfully undertaken. The 1961 Expenditure Estimates I will now deal with the 1961 Estimates. First the Ordinary Expenditure. By far the most important feature of the 1961 Budget is the inclusion within it of monies for Government to undertake all functions, other than those of the public utilities now performed by the City Council. In the People's Action Party manifesto, the intention of abolishing the politically separate entities of the City Council and Rural Board has been stated as one of the planks of the Party platform. Over the past 12 months, therefore, administrative arrangements have been gradually unfolding to provide for the absorption of the local government functions into those of the State. It is now possible to take the final step which will completely merge in all respects these organisations into the Central Government. The Budget has, therefore, been framed on this basis and in 1961 all monies payable to the Municipal Consolidated Rate Fund will now come to the Government, except for those specifically allocated to the public utilities functions of the City Council. With regard to the Rural Board, the procedure is much simpler since Government financed the difference between revenue and expenditure by means of an annual contribution and it has meant amalgamating physically the Rural Board estimates into those of Government Departments which will undertake its work. Following on this, all the facilities provided by the City Council and Rural Board have got to be undertaken by Government. Wherever possible, similar facilities undertaken by Government have been reorganised or expanded to take into account new undertakings in the city and rural areas. It has resulted, in some instances, in considerable savings in expenditure due to the possibility of removing duplication or, in some instances, a slight expansion of Government facilities with a withdrawal of the cost of the Local Government function. However, certain administrative difficulties are bound to arise, the main of which are those relating to personnel and finance. There are the problems of maintaining the same status and terms and conditions of service of City Council employees within the Government framework. Since about 8,000 employees are concerned, this is a question of some magnitude. However, there have been established working parties to go into these problems and their reports which take into account organisational and establishment aspects of integration with regard to staff matters are now under consideration by Government. Negotiations will commence with the respective staff associations to work out an equitable means of absorption of City Council employees into Government. There is no intention to reduce salaries, retrench staff or generally vary terms and conditions of service. However, a large measure of "give and take" will be necessary since two relatively separate structures are being interwoven into a pattern of Central Government organisation. On the financial side, the main problems are what one would call "accounting difficulties". The City Council has run its budget on an accrual basis, i.e., income and expenditure were the basis of the accounting system. Government, however, runs its accounts on a cash basis and frames its budget on receipts and payments. The two systems are quite incompatible and it has been necessary to make a number of accounting adjustments to provide for the gradual transfer of the accrual to the cash basis. Fortunately, in this respect there has been time and with the advice of three experts loaned by the Canadian Government, it has been possible to devise a satisfactory compromise which will come into operation on the 1st January, 1961. It will be possible therefore to operate a Budget which takes into account the new Integrated Departments though still acknowledging that certain procedures will have to be continued with the City Council techniques. There will, for instance, have to remain the entity of a Municipal Provident Fund and contributions will have to continue until such time as an amicable and workable arrangement has been resolved with regard to the retiring benefits of City Council employees. However, it is hoped that during 1961 most of these problems will have been resolved and consolidation of the local government functions into the Central Government sphere will be accomplished in time for the 1962 Budget which could be in all senses a Central Government Budget of the State of Singapore. So much for the integration of the Local Governments into the Central Government. Now for the more specific increases in expenditure on account of Government Departments in 1961. The total estimated expenditure for what could be called "Government Departments" will be $308.5 million, an increase of $33.2 million over the 1960 Estimates. By far the largest and most important increases have occurred under the Ministry of Health ($6.5 million), the Ministry of Finance ($16.8 million), the Ministry of Labour and Law ($4.5 million) and the Ministry of Education ($2.8 million). The large increases in the Ministry of Health are due to two important changes in the Budget. The first is the necessity to provide in the Budget now for Hospitals' Board's expenditure and the expenditure formerly incurred by the Tan Tock Seng Hospital Corporation. Both these organisations have been abolished and the Ministry of Health now undertakes the direct administration of the two organisations. The reasons for this have already been explained and could be summarised in one word as "organisational" though also the question of the responsibility for health services resting with the Minister for Health and not with these independent organisations was also another valid reason. The revenue and expenditure of these two bodies will now be part of the Government account. An addition of roughly $3 million which was before found from the Hospitals Board's and Tan Tock Seng Hospital revenue will now have to be provided as expenditure from Government because these revenues will be paid straight into the Consolidated Fund and cannot be netted against expenditure. In addition, there has also been an increase in estimated Hospitals Board's expenditure by about $3 million for 1961. The same procedure would have to be applied for Tan Tock Seng Hospital where the whole expenditure is now shown under the Ministry of Health though in fact here the increase is much smaller since only $100,000 or so of Tan Tock Seng Hospital's revenue has got to be met from Government funds. There is also an increase in estimated expenditure on personal emoluments by about $2½ million because of the increase in nursing staff and ancillary medical workers, the total number of new posts being roughly 300. There have been relatively small increases in the professional grades since it is proposed to fill existing vacancies before new posts are created. The total number of Divisions I and II new posts is 50. The large increase in the Ministry of Finance is due to two factors: one is the increased contribution of $10 million towards the Development Fund. As stated before in the revenue estimates, there is expected to be a payment of $10 million by the Federation of Malaya towards repayment of the $30 million loan made to it by Singapore in 1954. There has been a first payment of $10 million this year and there will be a final payment of $10 million in 1962. It is essential that what is virtually a capital payment should not be dissipated on recurrent expenditure. However, because of the limitations of the Constitution, it is necessary that this windfall payment be made direct into the Consolidated Fund. The only way to transfer it out to the Development Fund is by means of the Contribution towards Development vote under the Ministry of Finance or by Supplementary Estimates under the Development Fund Ordinance, both ways are legally permissible. It is therefore felt that the Contribution towards Development under Head 28, Subhead 53 of the Ordinary Estimates should be increased from the normal $20 million to $30 million. This is an indication of the importance Government attaches to the expansion of economic development and industrialisation of the State. The other increases are due to $2 million being provided as an Advance Account to enable the Pubic Works Department to make forward purchases for the integrated City Engineer's Department; $2.8 million for the Public Debt and $2 million for Pensions, Retirement Allowances, etc. Another significant increase in the Estimates is the Ministry of Labour and Law's provision of $3½ million for the Work Brigade and the Industrial Arbitration Court. The functions of the Work Brigade have also been explained when the 1960 Budget was introduced in this Assembly. Members were told of the provision of $7 million as unemployment relief works to be executed through the Work Brigade. Already a large number of labour intensive projects have started. The establishment of camps has already taken place and recruitment and training of the Brigade is taking place. There is now available a core of experienced and hardworking personnel available to Government to undertake some of the more intensive labour projects of the development programme. A Director has recently been appointed who will now co-ordinate the administrative and technical aspects of the Brigade. It is no longer felt that the provision for the Work Brigade should be regarded as a developmental expenditure and therefore the monies are being provided in the ordinary Estimates under the Ministry for the administration of the Brigade and expenditure on its projects. Another very significant development is the establishment of the Industrial Arbitration Court. The Court has already begun to function and in time will take its place as one of the major pillars of the State ensuring industrial peace with justice. The total cost is estimated at about $100,000. Then there will be an increase of about $1 million for expenditure on public assistance and the development and integration of community associations. The latter is now being firmly pursued through the People's Association. A large number of community centres have been built and work on providing integration and development is being pushed ahead. With regard to public assistance, with the improved tempo of economic activity in the State and more careful scrutiny and investigation of claims, it will be possible to keep expenditure within reasonable bounds and therefore only a small increase is contemplated for 1961. Finally, there is the large increase of the Ministry of Education of $2.8 million for new posts of teachers and expansion of educational facilities in the State. It will be seen that about 880 new posts are being provided to the Ministry and the largest number of these will be about 680 teachers in Division II. The next largest increase will be ancillary staff to maintain and upkeep school compounds and buildings. In all about 150 Division IV employees will be appointed next year. Other significant developments are the sums of money provided for scholarships and fellowships and over $1 million more for the University of Malaya. There will be further increases to provide for more science facilities and teaching equipment. It will be seen, therefore, that 1961 will be a year of considerable expansion in the basic facilities provided to the public, both in the economic and social spheres. It will be a year when more rational expenditure of public funds should occur. It will also be a year when larger calls will be made on the Government machinery to expand and develop the already existing facilities. It will be a year when Government itself will have to carry the new responsibilities of providing the facilities which were previously provided by the local Governments. Development Plan The first draft of the Development Plan was completed in June this year and some of the details had been published. Since then, the Singapore Government has approached the U.K. Government and the World Bank for financial assistance in financing the Development Plan. The World Bank sent its mission to Singapore last month. The results of discussions with the U.K. Government are known. Though the amount that we obtained by way of assistance in loans and grants is not as much as we had hoped for, nevertheless this would be a useful addition to our resources. It had been my intention to publish the Development Plan at about the same time as the Estimates. Unfortunately, circumstances prevented this. It was necessary to amend the Plan in the light of discussions with the World Bank, the U.K. Government and the U.N. experts. The work involved in making these amendments and adjustments throughout the Plan to preserve consistency is both intricate and considerable. At the same time, the staff engaged in this work had to meet many other urgent calls on their time such as preparing material for the U.N. experts and the World Bank team and arranging their programme of work in Singapore so that their expertise and energies may be used to the best advantage in the short time they are here. The result has been a delay in finalising the details of the Plan. I wish to emphasize that the Plan itself deals only with capital expenditure by the Government and public authorities, such as the Trading Departments of the City Council, the Singapore Harbour Board, the Singapore Telephone Board and the Housing Board. It does not take into account capital outlays in the private sector, for these, by and large, are something that cannot be forecast with any accuracy in Singapore. So far as the capital outlays by the Central Government are concerned, the details for the period 1961-1964 appear in the Development Estimates. Both the expenditures provided for 1961 and the costs of completed projects are entered in the Development Estimates. I wish to emphasise that, in many instances, the total costs are provisional estimates and are subject to revision. Further, in the light of the financial position in the years to come, it may be necessary to revise either by way of amendment, deletion or addition the capital outlays entered in the Estimates. The Development Plan, therefore, is not a rigid programme of capital expenditure but objectives which we think, in the light of present circumstances, are attainable and desirable. They do not constitute authority for expenditure and, as I mentioned before, revisions will be made to the Plan from time to time. It is not my intention here to go into the details of this Plan. When the report on the Plan is published, which I expect to be early next year, the public will be able to know exactly what we want to do, why we want to do it and what we expect to result from the Plan. But some broad indications of the magnitude of expenditure may be usefully made here. The total capital expenditure for the Central Government is envisaged at $746.8 million for the years 1961-64. Of this, my own Ministry claims the largest share, $194.2 million. This consists of $100 million for the Economic Development Board and $93.7 million for developing the industrial site in Jurong, reclaiming land in the Kallang Swamp and other minor items. The other major item of capital development is in public housing and no less than $203.1 million has been provisionally allotted to the Housing and Development Board. Social services have staked their claims on our capital resources and both the Ministries of Education and Health have been allotted considerable sums, more than $100 million between them - for the construction of new schools, hospitals, clinics and so forth. Apart from the expenditures of the Central Government, the Trading Departments of the City Council - soon to be integrated into a Public Utilities Board - have been allotted $147 million for the expansion of public utilities. The Harbour Board has in the course of execution capital expansion works which will amount to $18 million, while the Telephone Board plans to expand its services by $17.5 million. The total expenditure during 1961-64 therefore amounts to $929.2 million. It is expected, however, that some of these projects will not be completed during the Plan period and a reduction of $53.0 million is being allowed for. There is, therefore, a balance of $876.2 million that has to be provided by way of revenue surpluses, additional revenue, domestic loans and loans from overseas. It is not my intention here to enter into the details of how a development programme of this magnitude will be financed. I only want to develop two points. The first is what we hope to achieve by the development programme, and I also want to say something about the burden which the citizens of this country would have to shoulder to provide the resources to carry out the Plan. The principal objective of the Plan is to promote a sustained growth of the economy, in particular to bring about industrial expansion at an accelerated rate. Thus, special attention is being paid to providing what is commonly known as the industrial infra-structure. This consists of the building of better communications, such as sea ports, roads, airports, railways, the provision of ample and cheap power and industrial water, and the development of an industrial estate of adequate size with all the facilities for the transportation and marketing of raw materials and finished products. In this way, capital expenditures of the Government would induce and encourage investment of private capital both from local and overseas sources. I have already referred to the rate of industrial expansion now going on. If we have achieved so much with so little effort, there is every hope that if we increase the inducements and facilities for private capital investment, we have every chance to achieve a sufficiently high rate of growth to provide work for our growing population. Our present rate of industrial growth demonstrates that there are ample opportunities in Singapore and that there are persons with both capital and enterprise who are prepared to make use of these opportunities. This is one of our strongest assets which we should cultivate and encourage with care and attention. Revenue Proposals It is hardly necessary for me to explain that the State will not be able to carry out the development programme on a scale that we planned without further increases in revenue. I have already explained that, in part, the surplus was due to the inability of departments to implement development projects for this year to the extent that had been allowed for. With the measures that we have in mind and which I have described, to strengthen the technical personnel in Government, this administrative bottleneck will be reduced and finally eliminated. Further, the surplus in Government accounts can be misleading, because of the separation of the Ordinary Estimates from the Development Estimates. If we take both estimates together, the picture is less attractive. Indeed, in the years to come when development expenditure gathers momentum, it is likely to be the case that our financial resources will be strained to the utmost. In planning for the future, we cannot work on an annual basis, but must have regard to the total period of the Development Plan. In this respect, the calculation of available financial resources against anticipated expenditure will leave no room for complacency. In the next four years the total expenditure on development is estimated at $876.0 million. The amount of money we can raise internally from loans, profits of public utilities, appropriations from the revenue and running down of reserves will provide no more than $500 million. About half this sum will be provided from appropriations from the revenue of the Central Government and from the trading profits of public utilities. The other half will be financed through loans, both long term and short term, which the Government proposes to float in Singapore. A substantial part of these loans will be taken up by the Central Provident Fund but banks, insurance companies and the general public are expected to take up the rest. The estimates of available finance are based on current rates of taxation. A gap of $376 million remains to be filled. Part of this, we expect, would come from loans from overseas. We have been promised by the U.K. Government a loan of $42.8 million. It may be possible to borrow more. There are other sources of finance available to us, such as the World Bank, the International Development Association, trade credits from suppliers of equipment and so forth. We can hardly expect, however, for other Governments, the World Bank and other United Nation agencies to consider our applications for loans in a favourable light unless we ourselves have put in all the effort possible to help ourselves. Singapore is still one of the most lightly taxed countries in the world. It is true that there are Colonies, such as Hongkong, Sarawak and North Borneo, where taxation is even lighter, but if we look around in the developing countries of Asia, we will find that their taxation rates are incomparably higher than ours. For instance, in India the rates of personal income tax go up to as high as 45 per cent in respect of income more than $15,000 per year together with a surcharge of 5 per cent and a supertax of 15 per cent. Above that there is the capital profits tax. And there are import duties and sales tax on a large range of goods. In framing the new taxation proposals, the Government has four principal considerations in view. First, the new taxes should be borne by those who are enjoying the largest benefit from the expansion of the economy. Next, those who have been left out of the taxation orbit will be called upon to make their contribution. Thirdly, our taxation rates must have some relation to the tax structure in the Federation of Malaya. Finally, taxes should influence the use of our scarce resources, especially land, in such a way as to promote maximum economic advantage for the State. With these in mind, the following new taxes will be introduced in the coming year:-

The Question is, "That the Assembly approves the financial policy of the Government for the year 1961." In accordance with the provisions of paragraph (1) of Standing Order No. 83, the debate now stands adjourned. Debate to be resumed, what day?

December the 8th.

I suspend this sitting, and shall take this Chair again at 5.35 p.m. Sitting accordingly suspended at 5.05 p.m. until 5.35 p.m. Sitting resumed at 5.35 p.m.

Order for Second Reading read. 5.36 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill, which follows the provisions of the United Kingdom Judicial Proceedings (Regulation of Reports) Act, 1956, seeks as stated in the long title of the Bill to regulate the publication of reports of judicial proceedings in such a manner as to prevent injury to public morals. Clause 2 of the Bill provides that in the case of judicial proceedings generally, it shall not be lawful to print or publish, or cause to be printed or published, any indecent matter or indecent surgical or physiological details being matter or details which would be calculated to injure public morals. The clause then provides that in the case of judicial proceedings for divorce, dissolution of marriage, nullity of marriage, judicial separation or restitution of conjugal rights, the reports of the proceedings shall be confined to particulars of the parties and the witnesses, a concise statement of the charges, defences and counter charges, submissions on questions of law and the decision of the court thereon, the decision of the court and any observations made by the court. The Bill does not affect the printing or communication of proceedings or evidence for use of the court proceedings, or the printing or publishing of any notice or report in pursuance of the order of court, or the printing or publishing of any matter in law reports or technical publications for circulation among members of the legal or medical profession. It is provided that prosecution under the Ordinance may only be brought with the sanction of the Public Prosecutor. It is considered that it is desirable to have some measure of control over the reporting of judicial proceedings and this Bill seeks to enact the provisions which have been accepted in the United Kingdom. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Mr Byrne]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 5.41 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill to change the name of "Raffles National Library" to "National Library" is not a manifestation of oversensitive nationalism nor is it an attempt to obliterate the name of Raffles from the history of Singapore. His name will continue to find a place in the history of Singapore though the place accorded to him in the future may be somewhat different from that accorded him by imperial romantics. Where before the dreams and ideals of Raffles were the motivating force of the ruling class, today new ideals and aspirations have replaced those of Raffles. It is therefore fitting that an institution like our library should reflect these ideals not only in spirit but in name as well. If the spirit of Sir Stamford Raffles is, at this very moment, hovering in this august chamber, I am sure he will accept this inevitable change with good grace. He could have no objection to a national institution, like the library, becoming a symbol of national loyalty and aspiration. After all, Sir, modern Singapore is not the creation of Sir Stamford Raffles alone. Hundreds of thousands of nameless people contributed to its growth by their blood, sweat and tears. Therefore, by this change of name, we are merely acknowledging a historical fact which fanciful historians sometimes overlook. Mr Speaker, Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Mr Rajaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 5.45 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The object of the Bill is exactly the same as that of the Raffles National Library (Change of Name) Bill, 1960, which was passed just now. What has been said by me in regard to that Bill applies equally to this Bill. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Mr Rajaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 5.47 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill seeks to enable a person, who is born in the Federation of Malaya, or who is a citizen of the United Kingdom and Colonies, or the Republic of Ireland, or who is a Commonwealth citizen (other than a citizen of Singapore), to be registered as a citizen of Singapore if he has served for a period of not less than three years full-time or five years part-time in the Armed Forces of Singapore. At present under subsection (2) of section 15 of the Ordinance, provision is made for citizens of foreign countries to qualify for Singapore citizenship by way of naturalization if they have served satisfactorily for a period of not less than three years full-time or of four years part-time in the Armed Forces of Singapore. Previously, until section 8 of the Singapore Citizenship Ordinance was amended by the Singapore Citizenship (Amendment) Ordinance, No. 41 of 1960, the period of residential qualification required in respect of persons born in the Federation of Malaya or citizens of the United Kingdom and Colonies, for Singapore citizenship by way of registration was only two years. It did not matter very much that this concession as regards satisfactory service with the Armed Forces of Singapore was not extended to them, because under section 15 of the Ordinance this concession was only made applicable to applicants from foreign countries serving not less than three years full-time service or not less than four years part-time service, which was longer than the two-year residential qualification under section 8. But as the period of residential qualification required under section 8 is now eight years, it is considered reasonable therefore to take into consideration satisfactory service with the Armed Forces by persons born in the Federation, citizens of the United Kingdom and Colonies or of the Republic of Ireland or other Commonwealth citizens applying for Singapore citizenship. Therefore, in clause 2 of the Bill, section 8 has been amended to provide that the period of such service should be three years full-time and five years part-time. Since the period of residential qualification under section 15 of the Ordinance has been extended from eight years to ten years, it is also considered reasonable that the period of full-time service and part-time service should be increased from three years to four years, and from four years to six years respectively. This is done in clause 4 of the Bill. Recognition of such full-time and part-time service in the Armed Forces of Singapore by applicants for Singapore citizenship under sections 8 and 15 of the Ordinance is meant as a reward for the demonstration of their loyalty, affection for and willingness to serve the State. Sir, the opportunity has also been taken to introduce an amendment in clause 3 of the Bill to make applicable to applications for Singapore citizenship, by way of naturalization under section 15, the provisions of section 11 of the Ordinance which provide that certain periods of residence shall not be taken into account when considering applications for citizenship. Section 15 only came into operation on 2nd November, 1959, when the provisions of section 9 which dealt with citizenship of aliens by registration lapsed, and this is the reason why section 15 was not mentioned in section 11 when the Singapore Citizenship Ordinance came into operation on 1st November, 1957. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Dr Lee Siew Choh]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 5.55 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the present Mental Disorders and Treatment Ordinance (Chapter 145), as amended in 1957 by the Mental Disorders and Treatment (Amendment) Ordinance, enabled police officers to apprehend persons believed to be mentally ill and to have them admitted to a mental hospital for observation. It has been found in practice that an increasing number of mentally ill persons are taken by the relatives or others direct to a doctor in a Government hospital for examination and treatment. Unfortunately, the existing Ordinance does not allow a medical officer in a Government hospital or, for that matter, a private practitioner in the City or rural areas to send any person believed by him to be mentally ill to a mental hospital for examination and treatment. Therefore, doctors have had to refer the relatives of such persons to the nearest police station for action to be taken by a police officer under the powers provided in section 32 of the Ordinance. This Bill amends the present Ordinance to enable a medical practitioner, including a medical officer, to send persons believed to be mentally ill direct to a mental hospital for observation and for treatment. To simplify and facilitate the examination of persons believed to be mentally ill, the Bill also provides for such mentally ill persons found by the police to be taken to a doctor of a Government hospital. It will be for the doctor to decide whether the patient should be sent to the mental hospital for observation. This latter provision is also based on the precept that the doctor and not a police officer should decide whether a compulsory psychiatric examination is required in any suspected case of mental disease. Not only will such a medical examination serve to establish whether treatment should be therapeutic or psychiatric, but by ensuring examination by two doctors prior to admission to a mental hospital, it will provide a satisfactory safeguard for the patient himself. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Dr Sheng Nam Chin]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 6.00 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Hitherto, under the Printers and Publishers Ordinance, only books printed in Singapore must be sent to the National Library. It has been found that the law is defective in that books printed outside Singapore by local publishers do not come within the scope of the Ordinance. In that way, many valuable publications are lost to the National Library and other institutions which are entitled to them. This defect also enables publishers to go outside Singapore for their printing. This Bill, therefore, seeks to remedy this defect by bringing within the scope of the Ordinance all books published in Singapore, whether printed here or not. The onus of submitting the printed publications or books to the National Library now rests with the publisher and not the printer, for it is obvious that if books printed outside Singapore but published in Singapore are to come within the scope of this Ordinance, then it must be the publisher and not the printer who must be responsible for delivering the publications or books to the National Library. Apart from shifting the onus from the printer to the publisher, and from bringing all locally published material within the scope of the law, this Bill also requires the publisher to deliver free of charge six copies of any book printed or published in Singapore to the National Library instead of the present three copies. This will enable the National Library not only to keep a complete record of all books published here but also to send the books to such institutions as will benefit by having such books. The fine for default under the Ordinance has also been increased. It should also be noted that publications printed by the Government Printer or on behalf of the Government are now not exempted from the Ordinance, and six copies should be delivered to the National Library as in the case of all other publications by members of the public. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole Assembly. Assembly immediately resolved itself into a Committee on the Bill. -[Mr Rajaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read. 6.06 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The object of this Bill is to amalgamate the Queen Street and the Silat Road Sikh Gurdawaras under a single constitution and management. The Silat Road Gurdwara and the Queen Street Gurdawara are, under the provisions of the Silat Road Gurdwara Ordinance (Chapter 318) and the Queen Street Gurdawara Ordinance (Chapter 311) respectively, placed under the management of two separate Boards of Trustees. In recent years, the Silat Road Gurdwara had encountered financial difficulties through lack of regular income, and the maintenance of the temple became a matter of concern. For this reason, the present Boards of Trustees of the two temples applied to the Government to effect an amalgamation of the two Gurdawaras, because it was felt that if the Silat Road and the Queen Street Gurdawaras were placed under one management, the funds of the financially more viable Queen Street Gurdawara would be available to the new Board of Trustees for the better management of the Silat Road Gurdwara. This amalgamation is made with the approval of all sections of the Sikh community. This Bill repeals the Queen Street Gurdawara Ordinance and the Silat Road Gurdwara Ordinance, and provides for the constitution of a Board of Trustees consisting of nine members drawn proportionately from the different sects of the Sikh community. This Bill also includes the names of the first nine members of the Board who have been proposed by the Sikh community. Mr Speaker, Sir, the new Bill provides under sub-clause (3) of clause 2 that the common seal shall be in the custody of the President of the Board, and lays down the procedure for signing documents and affixing the seal of the Board. Clause 3 lays down the powers of the Board, and clause 4 vests in the Board all the land, premises and monies at present held by the two Gurdawaras, and the responsibility for the maintenance of these two Gurdawaras, and generally for their financial and other involvements. In clause 5 the Board is given power to acquire and deal with property, and clause 6 lays down the procedure for the disbursement of funds belonging to the Board. Finally, in clause 9, the Board is given powers to make rules not inconsistent with the provisions of this Bill. Sir, I beg to move.

Question put, and agreed to. Bill accordingly read a Second time.

Sir, as you, Mr Speaker, had ruled that in your opinion this Bill is a hybrid Bill. I therefore move, under Standing Order 65 (1), That the Bill be referred to a Select Committee consisting of Mr Speaker as Chairman and seven Members to be nominated by the Committee of Selection.

Question put, and agreed to. Resolved, That the Bill be referred to a Select Committee consisting of Mr Speaker as Chairman and seven Members to be nominated by the Committee of Selection.

6.10 p.m. The Deputy Prime Minister (Dr Toh Chin Chye): Mr Speaker, I beg to move, That this Assembly do now adjourn. Question proposed.

Mr Speaker, Sir, on the evening of the 17th of November this year, the Professor of English at the University of Malaya delivered an inaugural lecture on the subject of "Robert Graves and the Decline of Modernism". A report of this appeared in the Straits Times of Friday, the 18th. This report gave the impression that the lecture was mainly directed at the Government on a matter of policy in which the Government was interested. On the following morning, that is, Saturday, there appeared in the Straits Times a letter purporting to have been written by the Acting Minister for Labour and Law to the Professor concerned, stating in no uncertain terms what the Government thought of this particular Professor and his lecture. So, Mr Speaker, Sir, on Saturday morning the public was able to read this letter of the Government which, in my humble opinion, was couched in language quite unbecoming of a Minister. On reading the report, Mr Speaker, Sir, it seemed to me that three issues arose from that publication. The first issue is the question of academic freedom and the question of University autonomy, both matters being inextricably mixed one with the other. The second issue which seems to arise was the wording of that letter and the manner in which it was couched, and whether it was a kind of letter which a Government Minister of the State of Singapore should write to any person, be he an alien or a citizen. The third issue that seems to arise, Mr Speaker, Sir, was the proposition by the Government that aliens in Singapore - and by "aliens" the Government meant non-Singapore citizens or non-Federal citizens - should be permitted to speak on matters which the Government thought were matters of policy and, therefore, political. Since then, the University of Malaya Students Union have held a dinner, and events have since taken place between the publication of that letter and today which seems to me to have satisfactorily disposed of the question of academic freedom and University autonomy. Apparently a modus operandi has been arrived at between the Government and the University of Malaya; and the statement of the Prime Minister assuring the University that there was no intention of encroaching upon the academic freedom or the autonomy of the University, which I was very gratified to note, disposes of what I thought was the first issue when I read the letter in the Straits Times. But there are two other issues which remain undisposed of, and it is on those two issues, Mr Speaker, Sir, that I would like to say a few words. Mr Speaker, Sir, the trouble arose out of matters related to what is culture and what is not culture. We are all fully aware that the Government is embarking on a praiseworthy mission to create a Malayan culture out of all the cultures that we now have here, and to give it a direction and a purpose; and out of that direction and purpose to create something which will be ours, and ours alone. A very praiseworthy mission! When somebody comments on it, even though he has violated the rules of hospitality - shall I put it that way, even if that is accepted, which I do not - should we, as a Government, address that person in terms to say the least of it unbecoming of a Government? Terms like "mendicant professors" and "asinine remarks" were used which, I think, Mr Speaker, Sir, would be unbecoming if they were used in this Assembly. What more when a responsible Minister speaking for the State of Singapore, Mr Speaker, and not for the P.A.P.? What some of our Ministers do not understand, Mr Speaker, Sir, in my humble view, is that they are no longer P.A.P. members when they write letters as Ministers of the State. As Ministers of the State they belong to the State and not to the Party. If our Ministers would appreciate that, then I think we would have gone a long way along the road to understanding what democratic concepts are. Was it right and becoming that a Minister should write such a letter on such an occasion couched in such terms? I think it was not. I see that the Professor concerned has sent in a letter couched in terms acceptable to the Government. In this letter the Professor has said that no slight was intended. I have not seen any Government letter yet in the Press apologising for the terms in which their first letter was couched. This letter took the fight far beyond the Professor when it included the phrase "mendicant professors". It takes in, with one fell swoop, all the Professors in the University who are either not Singapore citizens or Federal citizens. Subject to what the Minister for Education has to say - and he is an authority on this subject - I understand at least 60 to 70 per cent of the teaching staff in the University, at least at the higher levels, are not Singapore citizens or Federal citizens. Anyway, the point is that quite a large proportion of the teaching staff of the University are non-Federal citizens or non-Singapore citizens. So, in carrying the fight to this Professor who, in the Government's view, had erred, they took the fight further than the Professor and, if I may say so, gratuitously insulted the rest of the teaching staff in the University. Sir, we are a young State setting out on quite a perilous journey. We know that the perils which the State is facing are getting greater and greater from day to day. I think the Finance Minister appreciates that, and I think most of our Ministers are beginning to appreciate that. Running a State of 250 square miles, with difficulties surrounding us all around, is not an easy matter. We have always talked about the creation of confidence. Mr Speaker, Sir, this is no way to create confidence in the State of Singapore. A letter of this nature, I dare say, would have been wirelessed all round the academic world. We are still going to the academic world outside for recruitment. The Prime Minister himself has said that for years to come we have to go abroad to recruit teaching staff. Is this then the way to recruit teaching staff abroad by calling them "mendicant professors who make asinine remarks"? The third point, Sir, deals with aliens. It would appear from the tone of the Government's release on the Prime Minister's statement that if the statement complained of had been made by a Professor who was a Singapore citizen or a Federal citizen, then the Government would have taken no action on it. This statement comes from the Prime Minister, and I accept that statement. Therefore, we reach the position then that any alien in Singapore, be he a Professor or otherwise, who dabbles in politics or makes statements which might relate to Singapore politics, will be slapped down. If that is the policy of the Government - perhaps they may be right - then I think they should see that that policy is implemented fairly and squarely so far as all persons who make such statements in Singapore are concerned. Is this a statement intended to apply only to the University of Malaya; or is it intended to apply to all educational institutions in Singapore; or is it intended to go beyond the University campuses in Singapore and take in everybody who is in Singapore and who happens to be an alien? I think Members will recollect several occasions on which statements had been made by aliens in Singapore after the advent of the P.A.P. Government which had a direct bearing on the politics and the policies of the Government. In those cases, Mr Speaker, Sir, I did not see a quick reply couched in strong, virile terms in the manner that the Government reacted on this occasion. This question can then be asked of the P.A.P. Government - why is it that on this particular occasion they reacted with such rapidity when on other occasions they had kept quiet? If the Prime Minister meant what he said, when he said that no alien would be allowed to comment on matters political, then that must equally well apply to anybody who says anything that might have any relation to the political situation in Singapore, be it good or bad. Or is the Government only saying that they shall slap down only those people who criticise the P.A.P. Government and who thereby indulge in politics? Or are the Government also saying that anybody who says anything about Singapore, be it good or bad, will be slapped down? If the Prime Minister says that no alien should interfere in politics, then he cannot restrict that statement by saying that the Government will only slap down those who dare to criticise them or who make slighting remarks about them; but all the others who have good things to say about them are passed unnoticed. And the first thing the Prime Minister will realise is that wherever there is power, there are always sycophants hanging around who will try to say nice things about the Government in order to get on here. But I do not think that is what the Prime Minister means. I agree with the Government, Mr Speaker, Sir, that there are in Singapore a number of aliens who make gratuitous statements about Singapore politics, and this policy of the Government will be supported by us if they slap down every foreigner in Singapore who dares to make a statement about Singapore politics. I think the time has now come when aliens must keep out of politics in Singapore, and if the Government mean what they say, then I think they should slap down everybody who dares to make such statements. 6.24 p.m.

Mr Speaker, Sir, the fact that the Member for Farrer Park has chosen to raise this motion about Government relations with the University of Malaya when the case has already been closed would appear as if he has taken on a brief without a client! He has stated that the Enright case appears to have raised three issues, one of which was the academic freedom and autonomy of the University, which he now concedes as having been satisfactorily settled, as Professor Enright himself has admitted that he had no right to comment on nor criticise Government policies, not being a citizen of the State of Singapore. That leaves two other issues. One is the nature and terms of the Government's letter which, in his opinion, was couched in very strong language. Mr Speaker, Sir, there are times when it is necessary to say things in rather strong language. It is just like using a ruler to rap the knuckles of a child who is persistently creating trouble. It should not be forgotten that the Government only took action when Enright made a second statement. The first occasion was the publication in the Malayan Undergrad of an interview which he gave when he arrived in Singapore. The second occasion was when he made his inaugural address. Unfortunately he did not stick to his subject and it was when he crossed the line that he got the rapping. Therefore, it was necessary for Enright to be told in no uncertain terms that there would be no third time. Coming to the third point, whether aliens have the right to comment on and criticise Government policy, the Member for Farrer Park has, in fact, agreed that it would be advisable that all aliens be told that they should not comment on nor take part in politics, nor to speak on controversial issues which are matters of importance to the citizens of the State. This is important, as the Member for Farrer Park has indicated that in the University of Malaya, which was established in 1949, there is a Senate which is largely an expatriate class. Mind you, this is a relic of the days when the University of Malaya was a colonial University. In the past, whenever we talked about expatriates, we meant to imply expatriates of European origin. In the University, however, an expatriate is one who is a non-Malayan, so we have expatriates of every hue and colour, from white to yellow to dark. In 1949, the Senate of the University of Malaya, which is composed largely of professors in the various departments of the University, numbered around 25 of which there were only four local members. Today, there is a possible membership of 38, but I think the average attendance is around 35, and only a third are local members. Therefore, we have a Senate in which two-thirds are expatriates. It is important that in a situation like this, when Singapore is doing its best to create a common culture and identity among its people, with all the difficulties of language and so forth, that the Senate which is largely controlled by expatriates should be fully conversant with the trends and tendencies of the country. If we do not call a halt to expatriate members of the University staff commenting on the policies of this country, then we shall have an impossible position in which expatriate members of the Senate will attempt to seek shelter in the University on the pretext that it is an autonomous institution, as if it were, shall we say, a foreign concession where they have extra-territorial rights, and from where they can snipe at the Government, and in which they can seek protection. So I think (fortunately the case has been satisfactorily settled) it was a timely move on the part of Government to silence once and for all expatriate members of the Senate of the University of Malaya. As explained by the Prime Minister in his speech to the students at their annual dinner, before the present Constitution came into force, every British national was a citizen of Singapore by virtue of the fact that he was a British national, but it is now necessary for one to prove one's loyalty to Singapore by becoming a Singapore citizen before he has the right to criticise and to comment on political issues in Singapore. So I do feel it is necessary at this stage to say clearly to all those who are here on teaching assignments that they have freedom, in the pursuit of knowledge, to express their views on the subject for which they are employed, but not to cross the line, but that if they do so, then they will get what they deserve. I therefore feel, Sir, that the Member for Farrer Park is only trying to stir up again the dust when it has already settled. 6.33 p.m.

Mr Speaker, Sir, I have a feeling that the Member for Farrer Park has to speak on this motion, which has probably gone out of date since it was first submitted to you, although the matter has been more or less amicably settled, and I quite understand the predicament of the Member for Farrer Park in having to flog a dead horse. But since he has indulged in flogging a dead horse, I feel I should comment on some of the points he has raised. His first objection, as far as I can see, is to the strong language used by the Government in its communication to Professor Enright. I am not quite sure, Sir, whether those words would have been permitted in this Assembly, but if anyone were to read the wartime speeches of Sir Winston Churchill, he would find that that hon, gentleman used robust language when he felt it was necessary to do so. In this particular case, in view of the Professor's remarks which were directed at certain policies that the Government is pursuing, which is to try and create a Malayan culture, we felt that, because the subject concerned was so vital to us and because we felt so strongly about it, it was necessary to make known our feelings on this matter in no uncertain terms; and I am quite sure the letter conveyed our feelings in no uncertain terms. Since that issue was raised, there has been a lot of talk about the sanctity of the University and the freedom of the University. But I remember, Sir, there was an occasion when the freedom of the University was involved, when a number of students said certain things which were not agreeable to the then colonial power. A number of students were brought to trial, but I cannot recollect at that time the Professors coming to their defence, because the students espoused a cause which has since then triumphed. But now an expatriate Professor made what we thought, on the basis of his lectures, were sneers at the Government's policy - not only the Government's policy but a policy accepted by everybody, including the Opposition - of trying to create a Malayan culture at all costs. There were two such occasions. On the first occasion, Professor Enright gave an interview to an undergraduate journal, and he must have known that a report of it would be published in the newspapers. It was in fact a challenge to an accepted Government policy which is vital to our political peace and stability, that is, the creation of a Malayan culture. The Professor then said that he did not think the Government should waste its time in trying to go out of its way to create a Malayan culture and a Malayan consciousness and Malayan unity among the people. It was couched in terms of a challenge. A few days later, the Professor gave a lecture on a very admirable subject - "Robert Graves and the Decline of Modernism". In fact, Sir, if I may say so, I was personally invited to attend this lecture. At first, I intended to attend it, but perhaps some second instinct made me decide that I should not do so. It was just as well, because not only would the Professor have had the satisfaction of attacking or criticising the Government publicly, but perhaps he would also have had the satisfaction of seeing a Minister of the Government sitting quietly listening. Because at an inaugural lecture, I am told, you cannot talk back to the lecturer - to the little snipes and sneers that he might have made. When a Professor who has been here for only seven months should suddenly say that not only is the Government wasting its time but that it is probably wrong in trying to go out of its way to weld the people into a nation, then it is necessary for the Government to make it quite clear that anyone who is not here to take the consequences of his gratuitous advice on an important matter should not give this gratuitous advice. Surely, Sir, if Professor Enright makes a suggestion, his suggestion is more an advocacy; because he is a Professor, he can naturally influence all the young students who sit at his feet if he tells them that this is all a waste of time, that the banning of jukeboxes really shocks him, and that the Government's attitude towards yellow culture is equally shocking to him. If a Professor of his standing should claim academic freedom to make what we felt to be asinine remarks such as yellow culture is something which is found everywhere and we should not do anything about it, and implying we should re-open the juke-box establishments which were recruiting grounds for fresh gangsters; if that was all the advice a Professor of his eminence - which he is, in his own right - could give, that the Government should stay out of this business of trying to weld the people into one nation through the process of creating a Malayan culture, that it should not try to interfere with jukebox operators, and that it should let yellow culture flourish, then we felt that obviously the Professor was speaking on a matter about which he was not fully informed. He was therefore called up - in fact, I was one of the Ministers present there - and told that, as a Professor in English, he had a perfect right to discourse on matters on which he was an expert, but that if he persisted in sneering and belittling the Government's policy on culture, then he was really trying to undo a work, which we know is an extremely difficult and a very delicate one. It appeared to us that he was trying to upset the Government's policy of creating a Malayan culture, and that it would therefore be necessary for us to lake action if he persisted in this. If the Professor had then and there accepted the position as stated by the Government, that as an alien he should not enter into political issues - not politics as such - but political issues of great moment to the country, then I am quite sure that the matter would not have become the controversy that it did become. So, Mr Speaker, Sir, when we say that aliens should not enter into political issues, it does not mean that a Professor of Political Science should not discuss politics. But when it is discussed in such a way as to embarrass the Government or the people who are trying to achieve something, and where the speaker is not a Singapore citizen who will take the consequences of his advice, then we say that he has no right to enter into political issues of great importance to this country. Mr Speaker, Sir, we therefore feel that the Government has said nothing which needs retracting, and it has certainly done nothing for which it feels it should apologise to the Professor concerned. In fact, the Member for Farrer Park was quite wrong when he said that Professor Enright needed a reply. No reply is needed from the Government. We published Professor Enright's assurance to the Government, and on the same day we issued Government's letter stating that it was gratified to note that the Professor concerned had given this assurance. If he had given it much earlier, he would have spared himself, a number of University students, and the Member for Farrer Park the trouble of moving a motion asking the Government to apologise for something which it feels it has no occasion to do.

Perhaps I ought to explain to hon. Members that there is no motion as such before the House. The motion is for the adjournment, and there is only a discussion on the adjournment. 6.45 p.m.

Mr Speaker, Sir, I had not thought of speaking on this particular motion for the adjournment. But in view of the replies of the Minister for Education and the Minister for Culture, I would like to submit here, Sir, that their replies are no replies at all to the issues which the Member for Farrer Park has brought up. The Member for Farrer Park did say that there were three issues involved. The first issue was the autonomy of the University. That issue has been happily resolved as a result of the exchange of letters between Professor Enright and the Minister for Labour and Law, and the speech given by the Prime Minister at the dinner of the Students' Union. The second issue was about the first letter sent by the Acting Minister for Labour and Law which the Member for Farrer Park said was couched in language most unbecoming of a Minister of the State of Singapore. Use as strong language as the Minister wants, use as robust language as he pleases, but for the dignity of the people of Singapore, never should he stoop to using unbecoming language. For the wrongs of Professor Enright, in the eyes of the Government, why should all Professors in the University of Malaya be classified as "mendicant professors"? What else do the words "mendicant professors" - those were the words used - mean if they were not meant to apply to expatriate Professors who come here to teach our children to become better citizens of Singapore, when they are being lumped into that term "mendicant professors"? They may earn their living elsewhere. They may be able to earn much more outside Singapore. They come here and try to do their part. For a Minister to use such unbecoming language, it is felt by the Member for Farrer Park, and I share that feeling with him, is not becoming of a Minister of a young State. The third issue brought up by the Member for Farrer Park was that if restriction about criticism of Government policies is to be placed on aliens, then the Government should see to it that the restriction is placed on all aliens. If the Minister for Culture were to ask his staff to go through the newspaper reports, he would be informed that there had been criticisms of the Government's policy on culture by some other visitors. What surprised the Member for Farrer Park was that it should be aimed at one, and that the others should be left free to say what they wanted.

Sir, I really do not wish to comment on what has occurred between the Government and Professor Enright. But I would like very much to reply to what the Member for Cairnhill has said about the Government using unbecoming language. Apparently he objects very much to the terms "mendicant" and "asinine". May I say, Mr Speaker, that the value of terms is relative? For example, if you call Tun Lim Yew Hock Professor Tun Lim Yew Hock in this country, it is an honour. He is treated with respect. But I am told that in the United States, when you call a man "professor", you mean he is a quack. I myself had the unhappy experience, in my ignorance, of calling a real professor who came from the United States "Professor", and I was very much rebuffed. I wish to point out, Mr Speaker, that a Professor of English in particular, and a poet too, would surely consider all this as either poetic licence or political licence, and I do not seriously believe that a man of literary merit would very much object to the term "mendicant", just as much as we have gathered quite lately that there is a four-letter word the use of which a jury in England have even admitted to be quite proper. On the other hand I would say that in other countries such a four-letter word would be very improper. This again bears out my point that the value of a phrase or a word is relative to values which exist in different countries. I would like to end on this note. We certainly do not wish to see aliens, non-Malayans, interfere in our political life. And as the Member for Farrer Park has said, while we are in the process of seeking a national identity, while we are trying to form a cohesive whole from out of a crucible that is molten, we should not allow outside forces to tamper with our efforts. And I would like to end with this note of warning. Aliens also should not permit themselves to be used as political tools or the political pawns of others who have an interest in local politics.

Question put, and agreed to. Resolved, That this Assembly do now adjourn. Adjourned accordingly at Six minutes to Seven o'clock to Thursday, 8th December,1960.