Hansard, 1970-03-17

asked the Minister for Finance whether the assessment rate of 23 per cent extended to Housing and Development Board flat-owners applies also to the owners of pre-war flats built by the former Singapore Improvement Trust, and, if not, whether consideration will be given to the extension of this concession.

Mr Speaker, Sir, the 23 per cent assessment rate will apply only to those flats sold by the Housing and Development Board under the Home Ownership Scheme. The concessionary rate will not apply to pre-war flats. The reason for fixing a concessionary rate of assessment for flats purchased under the Home Ownership Scheme is that the scheme was established to assist the lower income groups to purchase homes for their own occupation, and certain restrictions on assignment, sub-letting, renting, etc., are imposed in respect of such flats. The pre-war flats were sold under different conditions. They were straightforward sales at market values without due regard to the income levels of the purchasers, and no restrictions were imposed in respect of sale and sub-letting. There is, therefore, no reason to extend the concessionary rate to such flats, and it is not intended to do so.

asked the Minister for Finance what is the basis for a rise of as much as 250 per cent over the old annual value with the recent revaluation of owner-occupied property; and if he will give an assurance that concessions given by him to those affected house-owners will not be withdrawn.

Mr Speaker, Sir, the recent revaluation exercise covered about 7,000 owner-occupied properties in addition to other properties whose values had not been revised for years. The revised values reflect current rental values for similar properties, the annual values of owner-occupied properties range between 25 per cent and 75 per cent of the true annual values. The Property Tax Division collates and analyses information on rentals and values to derive the rental an unfurnished property would obtain on the market if rented. While for a majority of owner-occupied properties the annual values have been revised by 100 per cent to 150 per cent, there are instances where the annual values have been revised by 250 per cent. In such cases, it only goes to show the magnitude of under-assessment of annual values through failure to revise values over the years. The International Monetary Fund Team which studied our taxation and revenue machinery last year has commented that property tax is the weakest component of Singapore's tax structure and a complete reorganisation of the department with additional staff is now taking place. Although it is obvious that the status quo cannot be maintained for long, every consideration will be given to grant relief to owner-occupiers. For a start, it is proposed to bring relief to owner-occupiers by increasing the exempt net annual value from $3,000 to $6,000 for income tax purposes. This will ensure that a taxpayer living in his own house does not have to pay additional income tax, except for those who live in luxurious splendour in residences whose net annual value exceeds $6,000 per annum. A Bill will be introduced in Parliament to amend the income Tax Ordinance for increasing the exemption limit from $3,000 to $6,000 of the net annual value of owner-occupied houses. Further, the revision in annual values will not result in any additional property tax liability for owner-occupiers.

(In Mandarin): Mr Speaker, Sir, the Parliamentary Secretary has not answered the second part of my question. I would like him to assure the House that the concessionary rate will not be withdrawn by the Government.

Mr Speaker. Sir, I have said that the concessions will continue for as long as the economic situation warrants it. That is all the assurance I can give to this House. The Government's policy on taxation was given to this House by my Minister during his Budget Statement on the 9th March, 1970. I can do no better than to quote him. In column 50l of the Hansard, he said: 'The Government's policy in recent years has been to depend on fast economic expansion and improved tax administration to provide increased revenue rather than raise rates of taxation to higher levels or introduce new taxes.' It is therefore in the interest of everyone in this country, not less the property owners, to see that there is no let-up in the economic progress of our country.

asked the Minister for Finance (a) whether he will publish the report by Mr George M. Ferris Jr, of the International Executive Service Corps on his study of the securities market in Singapore; (b) whether and what useful recommendations aimed at providing greater protection for the public have been accepted by his Ministry; and (c) when the recommendations will be implemented.

Sir, the report of Mr George M. Ferris Jr, will be published in about ten days' time, after discussions which have been going on with Bank Negara Malaysia have been concluded. Mr Ferris arrived in Singapore on 20th October, 1969, in response to an application by my Ministry for an expert on Stock Exchange problems to the International Executive Service Corps on 13th June, 1969. He reported on 11th November, 1969. As will be apparent when the report is published, Mr Ferris has made a penetrating study of the Stock Exchange in Singapore and Malaysia, despite the shortness of his stay. He has made a large number of recommendations and has undoubtedly uncovered the weakness of trading practices in the local stock exchange. As a measure designed to dampen speculation, he has recommended the imposition of margins and a higher rate of commission on delayed dealings. In order to strengthen the financial position of brokerage firms, he has recommended the incorporation of partnerships as companies and the institution of a system of surprise audits by a special pool of auditors approved by the Exchange and agreed to by the Government, as well as regular inspections by a trained inspectorate employed by the Exchange. The report contains recommendations aimed at improving the educational standard and technical competence of brokers, remisers and dealers. The Ferris Report also proposes various measures aimed at disciplining the directors of listed companies and reducing the advantage that "insiders" might have over the investing public. I have distributed copies of the report to the Stock Exchange Committee and have held several discussions both with the Committee as well as members of the larger brokerage firms. While discussions were in progress, trouble broke out in the Stock Exchange over Federal Paper. This was the result of weaknesses which the Ferris Report had pin-pointed, in particular the practice of allowing delayed transactions to be conducted without requiring a cash deposit to cover a part of the value of contracts. This practice, known as "free-riding", undoubtedly contributed to the ease with which speculative attacks can be mounted in the Exchange. Mr Ferris recommended the abolition of free-riding, but members of the Exchange with whom I discussed this subject were then reluctant to agree to this particular recommendation. The approach of the Ferris Report in regard to Stock Exchange reforms was to give the Stock Exchange the option to improve its performance as a self-regulating body, as is the practice in several countries, and only fall hack on direct Government control through legislation if the Stock Exchange proved itself incapable or unwilling to carry out the necessary reforms effectively. In the event that direct Government control is necessary, my Ministry is carrying out studies of legislation in other countries. This is a large and complex matter, as Members will doubtless agree, and it will be some time before a final decision can be made one way or the other.

asked the Minister for Defence if he will consider not to call up all the children in a family for full-time national service, and if he will enlist the remaining children for part-time service if the first or second child has already been called up for full-time service.

Mr Speaker, Sir, in the implementation of the enlistment policy, the fact that in a particular family there may be more than one member eligible for enlistment will not be a consideration for deferment from full-time national service or the enlistment into part-time service of one or more members of such eligible group. However, Sir, application for deferment from full-time national service may be made on the grounds of hardship, if any, and if such application is approved, then deferment from full-time service of the other members of the family may be granted.

Is the Minister aware of the case where two younger members of a family have been conscripted one after the other? The elder one, who has graduated from the Teachers' Training College, has been called up for full-time service. Will the Minister consider cases of this nature?

The applicant may apply for deferment, Sir.

asked the Minister for Social Affairs whether it is planned to provide flood-lighting facilities for all games which will be accommodated in the new National Sports Complex in Kallang Park; and whether flood-lighting facilities will be provided for sports grounds elsewhere in the Republic to enable national recreation to take place in the late evenings without affecting productivity.

Mr Speaker, Sir, flood-lighting facilities will be provided in the National Stadium now being built at Kallang Park. Similarly, the covered stadium which forms the second phase of the National Sports Complex, together with the swimming pools and tennis courts, will be flood-lighted. As regards flood-lighting for sports grounds elsewhere in the Republic, Jalan Besar Stadium is already provided with flood lights. Three or four public swimming pools have also flood-lighting facilities. Installations of flood-lighting involve capital and running costs. Therefore, unless there is sufficient justification in usage and there are funds available, it is not intended to provide flood-lighting facilities for other public sports grounds.

asked the Minister for Law and National Development if he will ascertain from the Housing and Development Board (a) what will be the redevelopment scheme which is to take place on the site of four old blocks of flats along Old Airport Road now under clearance action; (b) whether the affected families will be rehoused in alternative accommodation according to their choice; and (c) whether there will be any further redevelopment schemes in the Old Kallang Airport Estate in the near future.

Mr Speaker, Sir, the four blocks of three-storey former S.I.T. flats comprising 72 units of three-room flats along Old Airport Road will be demolished for the development of a two-storey Hawkers' Emporium with 300 stores to relocate the hawkers on both sides of the road and around the market. A high-rise block of 288 units of three-room flats will be built above the emporium. It is proposed to offer these flats for sale. The 72 families affected by the demolition of these four blocks of flats are being offered alternative accommodation in accordance with, as far as is possible, their choice. So far, nine families have purchased flats from the Housing and Development Board and 27 families have been rehoused in alternative accommodation in Housing and Development Board flats. All the families affected will be given priority to purchase the three-room improved flats to be built on the site. There is at present no other proposal to redevelop Old Kallang Airport Estate.

asked the Minister for Law and National Development whether and when it is proposed to supply electricity to the area between 1 1/2 m.s. and 1 3/4 m.s. Jalan Ulu Sembawang in the Sembawang Constituency.

Mr Speaker. Sir, electricity supply to the area between 1 1/2 m.s, and 1 3/4 m.s. Jalan Ulu Sembawang is included in the Mandai-Tekong Village scheme which covers a large area in the three constituencies of Bukit Panjang, Nee Soon, and Sembawang. Construction work commenced early last month and the whole scheme is expected to be completed before the end of the year.

asked the Minister for Health how many hawkers were cleared and re-sited in 1969; which are the areas involved; whether any expenditure has been incurred by the Hawkers Branch; what and where are the areas, if any, at which his Ministry intends to re-site those hawkers; and whether any assistance will be given, and in what form.

Mr Speaker, Sir, a total of 1,689 hawkers from 22 different areas were re-sited in 1969. I have a list* showing the areas and the number of hawkers involved. As it is a rather long list, I propose, Sir, with your permission, to circulate copies of it among the Members of this House. [Copies of list handed in to the Clerk and distributed to Members.] (* See appendix, cols. 595-8.) Appendix to Question 8 (col. 565) (Cols 0595-0598) Mr Speaker, Sir, the expenditure incurred in preparing the various sites to re-site these 1,689 hawkers totalled $10,750. Most of the expenditure was in respect of wages for labourers and workmen of the Ministry of Health. Nearly all the material used, that is, cement slabs, etc, was obtained from Government stores. The only material purchased was cement. It has not been firmly decided what are the areas from which hawkers will be resited this year. In general, the areas will, however, be: (a) those under immediate urban renewal clearance; (b) those involving main traffic routes where there is serious obstruction; and (c) where and when suitable alternative accommodation is available. By "suitable alternative accommodation", I do not mean the nearest backlane or sidelane, for it has been decided that hawkers should henceforth be re-sited only in proper sites. Not every hawker will get direct Government assistance, but deserving hawkers will be considered for subsidised rental when they are re-sited into proper premises to enable them to cater just as cheaply as they did when they were conducting business on the street. For the information of the Member for Punggol, I would like to state that hawkers and stallholders inside and outside markets in 1969 cost the Government a total expenditure of $397,060.69 made up as follows: (a) $265,396.74 for tap water (b) 79,129.10 for electricity (c) 17,217.00 for installation of standpipes (d) 899.50 for maintenance of and repair of standpipes (e) 34,418.35 for Government tax on P.U.B. bills ----------- $397,060.69 =========== Mr Speaker, Sir, it must be appreciated that the assistance given to hawkers by Government is by no means small.

asked the Minister for Health (a) what is the cost of a licence for a stall in public markets with water and light supplies; (b) what is the fee for (i) a day licence; and (ii) a night licence for a pitched-hawker stall in the city area such as at Orchard Road or Albert Street; and what is the fee for corresponding licences in the rural areas; and (c) if the same rate of licence fee is charged for any pitched-hawker stall irrespective of its location, whether he will consider reducing licence fees for such stalls in rural areas where the average daily takings of hawkers are very much less than those of their counterparts in the city area.

Mr Speaker, Sir, the licence fees for stalls in public markets range from $10 to $60 in a Class A market, and from $10 to $40 in a Class B market, depending on the article of sale. The fees are detailed in the Third Schedule of the Environmental Public Health (Markets) Regulations, 1959, and the classification of markets into A and B classes are listed in the Second Schedule of the same Regulations. The licence fees for street pitch hawkers are uniform throughout the Republic, irrespective of whether the pitch is in the city or rural areas. All licences for day pitches cost $10, except for those for meat (that is, pork, beef and mutton) and poultry, which cost $30 and $20 respectively. A poultry hawker's licence permits the hawker to conduct business the whole day, while the sale of meat is restricted from 6.00 a.m, to 4.00 p.m. only All licences for night pitches are $20 per month, except meat and poultry in respect of which no night licences as such are issued. The fees are detailed in the Schedule to the Environmental Public Health (Hawkers) Regulations, 1969. All public markets are provided with water and electricity. Water is also available to all cooked food street pitch hawkers, who number more than ten and conduct business at specified hawker sites. Prior to the introduction of the new rates of fees for markets and hawkers, there existed a series of by-laws dating from 1909 onwards, some of which set out fees that were divided and subdivided into various categories. To begin with, there were hitherto five classes of markets, three in the city area (Classes A, B and C), and two in the rural area (Classes A and B). There were different rates of fees for each of the five classes of markets, and in each class there were up to 37 categories of articles of sale with each category being charged a different rate of fee. Further, even within each category, different rates were charged, depending upon the size of the stall or pitch in the particular market. In this respect there were no less than 20 different sizes of stalls and pitches in the various markets. Mr Speaker, Sir, all these worked out to something like 3,700 different rates of fees which had to be collected by the Hawkers Department. To further complicate matters, at least three markets of the same class in the city area charged different rates of fees. In addition, there were also different fees for: (a) street hawker pitches which varied from one rural area to another, the city having a standard rate; (b) hawkers' shelters which varied from site to site: (c) stallholders occupying vacant lands; (d) itinerant hawkers; (e) private markets; (f) pasar malam hawkers; and (g) wall showcase hawkers. This has led to considerable administrative and accounting difficulties and, at times, much confusion. The new regulations which came into force on the 1st January, 1970, reduced the five classes of markets to two, and revised and standardised licence fees for stall-holders in markets and for the various categories of hawkers which have remained unchanged for over 20 years. With the integration of the City Council into the Rural Board in 1963, it was necessary to standardise the various rates prevailing in the city and rural areas and also to reduce the numerous categories and classifications. In general, the fees for hawkers have not been raised, except for itinerant and wall-showcase hawkers whose fees have been brought into line with the rates payable by the street pitch hawkers. The increase of fees for market stallholders is marginal. In a small and compact city state such as ours, it is not unreasonable to have uniform rates of fees for hawkers within the city area or without. For the reasons I have mentioned and the fact that the new fees have only just been introduced, I am not inclined to consider reverting to the previous practice of having separate rates of fees for hawkers conducting business in different parts of the island. In any case, Mr Speaker, Sir, what is the yardstick to gauge the income of hawkers, short of standing beside them and keeping watch? If a foolproof method exists, I am sure the Comptroller of Income Tax will be most interested.

Mr Speaker, Sir, as we still have different classes of markets in Singapore, as outlined by the Minister just now, is it not possible also to have different types of hawker pitches, so that the rate for a hawker pitch in Orchard Road or Albert Street will have to be more than that for a hawker pitch in the rural areas where the hawkers do not earn as much?

Mr Speaker, Sir, if the Member for Telok Blangah could suggest a yardstick by which we could differentiate between hawkers plying in Albert Street and those plying in, say, Kampong Heap Guan San in Telok Blangah, then I shall be very interested. And perhaps the Comptroller of Income Tax will also be very interested. Unless we can find such a yardstick, I am afraid we have to stick to our present policy of adopting uniform rates.

Mr Speaker, Sir, in that case, I will be grateful if the Minister can enlighten the House on the yardstick used to differentiate between the various classes of markets.

Sir, as far as markets are concerned, formerly there were five classes and we have now reduced them to two. They have been classified on the basis of various factors, one of which is the type of building that houses the stallholders, and the other the facilities provided.

Sir, can the Minister not use the same yardstick for hawkers plying in the city area and those plying outside the city area? And can he also say whether a hawker in Orchard Road earns just as much as a hawker in the rural area?

Mr Speaker, Sir, as I said, what is the yardstick by which you assess how much a hawker earns? Has the Member for Telok Blangah some ideas and can he tell me how we can have a yardstick?

It is easy.

He suggested having a division of hawkers, with separate rates of licence fees for the rural areas and the city areas. Does he consider Bukit Panjang town a city area or a rural area, or Changi Village a city area or a rural area?

A rural area.

3.01 p.m.

"to amend the Income Tax Ordinance (Chapter 166 of the Revised Edition)" recommendation of President signified; presented by the Minister for Finance (Dr Goh Keng Swee); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Ngee Ann College Act, 1967 (No. 23 of 1967)", presented for the Minister for Education by his Parliamentary Secretary (Dr Lee Chiaw Meng); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.

3.03 p.m. Resolved, "That, notwithstanding the Standing Orders, the First Supplementary Estimates of Expenditure and the Second Supplementary Development Estimates of Expenditure for the financial year 1st January, 1969 to 31st March, 1970, be taken today." - [Dr Goh Keng Swee].

Resolved, "That under Standing Order 10 (2) item 2 on the Order Paper be taken before item 1." - [Mr Barker].

Order for Second Reading read. 3.04 p.m.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In June 1959, Singapore became a self-governing state. In September 1963, it became part of the Federation of Malaysia. In August 1965, it became a republic. The Constitution has undergone three fundamental changes in a space of six years. It has created confusion in several areas whether certain provisions continued to be law or were superseded and altered. The present Constitutional provisions relating to the Public Service Commission are a carry-over of those when we were a state in Malaysia. The Government could have left this Constitution (Amendment) Bill to be taken together with the draft Constitution. This draft is now being vetted by expert constitutional draftsmen before it is tabled in this House. But this may take some time. And since it is the intention of the Government to afford every institution and citizen an opportunity to make representations on the constitutional draft, it may be a few years before it is promulgated. It has, therefore, been decided that we should take the provisions relating to the Public Service Commission in a separate Bill. Changes have been made to the existing provisions in the Constitution which were thought too restrictive for the proper and efficient functioning of the Public Service Commission. The Bill seeks to re-enact and provide a comprehensive part in our Constitution dealing with the public service. The constitutional changes brought about since independence have necessitated these changes. The Public Service Commission have also recommended other changes as a result of their experiences, especially after August 1965. The Bill amends the Articles in the Constitution dealing with the qualifications and tenure of office of the Chairman and members of the Public Service Commission. There will now be a maximum of seven and a minimum of four members of the Public Service Commission, excluding the Chairman, instead of the present maximum of four and minimum of two members. The provisions relating to the qualifications for membership have been redrafted to widen the choice of suitable candidates for membership. Article 74 in clause 2 of the Bill now contains, in more specific language, those disqualifications from membership. Further, there have been doubts whether the present Article 80 would prevent the Public Service Commission from delegating any of its powers or functions, save to public officers. This may put in question the validity of certain decisions of the Public Service Commission and its delegates which were made in good faith. In several cases, the appointment of a delegate has been at the request, or with the express consent or approval, of the persons concerned with, or directly involved in, the exercise of the functions by the Public Service Commission. To avoid litigation on procedural and technical grounds, provisions validating them have been inserted in Article 80D in clause 2 of the Bill so that no proceedings may be instituted or maintained against the Commission as a whole or any of its members for any exercise of such powers and rights. But where the bona fides of the Commission i3 challenged, and not just legal technicalities, a suit can be taken and remedy sought. It is not the intention of the Government that those aggrieved by an excess of authority should be prevented from seeking legitimate redress as the law allows. But the Government has to, and is prepared to, take the responsibility, with the support of Members of this House, to move validation clauses in the new Bill, to negate frivolous or vexatious attempts at litigation. These changes, I hope, will enable the Public Service Commission the more efficiently to carry out their functions. Sir, I beg to move. Question proposed. 3.10 p.m.

(In Mandarin): Mr Speaker, Sir, I fully support this Bill. Its purpose is to strengthen the hands of the Public Service Commission so that it will be more effective in doing its work. We know that the P.S.C, is busy all the year round, because it has to deal with thousands of applications for appointments as public officers and other jobs. There are only a few members sitting on the Commission and, as such, they are tied down to their work, and consequently there are delays in dealing with applications. Therefore, the amendment Bill has been introduced at the most appropriate time. Sir, we know that the Public Service Commission is a very important institution of the state. Its membership comprises capable citizens who will ensure that the public service will have the best qualified people who can perform their duties well. They will also be able to serve their country well. With regard to the appointment of members to the Public Service Commission, there is a stipulation in the Bill that Members of Parliament can also be recommended to be members of the Public Service Commission. This will enable some Members of Parliament to be appointed as members of the P.S.C, and render their services to the country well. In view of all this, I support this Bill.

Does the Prime Minister wish to reply to the Member for Sembawang?

I have nothing to add.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [The Prime Minister]. Bill considered in Committee.

3.13 p.m. Clause 1 ordered to stand part of the Bill. Clause 2 -

Sir, I beg to move, In page 5, line 20, after "transfer", to insert ", dismiss". The amendment is being moved to make quite sure that, although by implication the validatory provisions include "dismiss", in fact, they do include the word "dismiss". Amendment agreed to. Clause 2, as amended, ordered to stand part of the Bill. Bill reported with an amendment; read a Third time and passed. MOTIONS:

3.15 p.m. Order read for consideration Committee of Supply [Allotted Day].

First Supplementary Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970, contained in Paper Cmd. 7 of 1970. The summary is at the foot of the page. There are two heads of expenditure and an amendment stands on the Order Paper Supplement in respect of Head 0402 - Pensions, Retirement Allowances, Gratuities, etc. Head 0402 -

Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 0402 be reduced by $10 in respect of subhead 2003. Sir, will the Minister provide this House with a breakdown of the number of retirements which were not anticipated? Has this big increase in retirements affected any particular Ministry? And were there any main causes for it?

Mr Speaker, Sir, the cost of living allowances on pensions are still worked out according to the old system. Most of the civil servants variable allowances are now consolidated into their basic salaries. Can the Minister say whether a pensioner's allowance can be consolidated into his pension? It this consolidation is agreed to, I hope pensioners do not get less than what they are getting now.

Sir, I do not think consolidation of cost of living allowances would make any difference to pensioners because, unlike serving officers, they have nothing to gain by such consolidation. In the case of serving officers, pension is calculated on basic salary so that when their variable allowances are consolidated into their basic salary, that will have the effect of increasing the amount of pension for which they are eligible. This does not apply to pensions, in Still I will bear in mind what the Member for Anson has said. I suspect a lot of these matters remain as they are through sheer bureaucratic inertia, it may well be that by the year 2000, unless somebody is energetic enough to inquire and question the basis of this allowance, we might still have pensioners drawing their cost of living allowances. As regards the questions raised by the Member for Kampong Kapor, there has not been any increase in the number of officers retiring. I will give the mid-year figures of the number of officers who retired in 1967, 1968 and 1969. In mid-1967, 467 officers retired. In mid-1968, 553 officers retired. And in mid-1969, 517 officers retired. The number of officers retiring in mid-1969 was less than that in mid-1968. However, because those who retired in 1969 apparently drew more pay, the net effect would be that the cost of living allowances went up by 13.4 per cent in 1969. Whereas in 1968, the cost of living allowances went up by seven per cent as compared with the previous year. Cost of living allowances are provided to pensioners drawing less than $320 per month if they have dependants and also to pensioners drawing less than $250 per month if they have no dependants. It so happened that last year, the number of pensioners eligible for these allowances was larger than had been expected.

Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $136,250 for Head 0402 ordered to stand part of the First Supplementary Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970. The sum of $1,412,000 for Head 0701 ordered to stand part of the First Supplementary Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970.

Question, "That the sum of $1,548,250 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st January, 1969, to 31St March, 1970, contained in Paper Cmd. 7 of 1970," put, and agreed to. Resolution to be reported.

Second Supplementary Development Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970, contained in Paper Cmd. 8 of 1970. The summary is on the last page of the Paper. There is only one head of expenditure, namely, Head 21 - Loans and General - and there are amendments in respect of all the three subheads under the head. Head 21 -

Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 21 be reduced by $10 in respect of subhead l01*. (* The same amendment also stood in the name of Madam Chan Choy Siong.) Sir, in moving this amendment, I am reminded of a report which appeared on the front page of the Straits Times on 14th February, 1970, carrying the caption "New multi-million project, `Little Japan' for Jurong". This apparently, I believe, referred to the ambitious projects now being undertaken by the Jurong Town Corporation. To meet the purpose of financing the projects, this House is now asked to approve a further loan of $5 million to be made available to the Jurong Town Corporation in addition to the $30 million already approved by the Committee of Supply in December 1968. Sir, Jurong has now become the "lifeline" of the economy of the Republic of Singapore. Further expansion of the Jurong Industrial Estate will certainly help to accelerate greater growth of the economy especially in the l970s. All of us, inside and outside this House, cannot feel unconcerned with the transformation that is taking place in Jurong. This being the case, may I ask the Minister for Finance to explain and enlighten us on the details of the development projects which involve millions of dollars? In his reply, will he also indicate to us when the projects will be completed, and, if in several phases, when the various phases will be completed? How many factory sites will be available and will these be adequate to meet the number of applications received to date? What types of industries, to be more specific, will be accommodated at the completed sites? Finally, will there be sites for relocation of warehouses which are in acute shortage at this moment as a result of urban renewal schemes.

Madam Chan is not present.

Mr Speaker, Sir, the area under development to which the Member for Mountbatten has drawn attention is that new stretch of Jurong west of the present Mobil Oil Refinery. An area of about 1,000 acres is now being levelled by cutting down hills and filling up swamps. At the same time, land is being dredged to produce two channels - one is being called Benoi channel, which is 4,000 feet long, 750 feet wide and 15 feet deep. The other is Tanjong Gul channel, which is 6,000 feet long, 1,500 feet wide and 20 feet deep. It is necessary to do these rather expensive dredging operations to provide suitable sites for the shipbuilding and ship-repairing industries as well as new industries which will fabricate oil-drilling rigs and produce other products required by the oil exploration industries in this part of the world. Thirty-eight sites have been prepared and I have been informed by the Jurong Town Corporation that 33 of these sites have already been taken up. There is a very serious shortage of land with good sea ,frontage, and this shortage will continue for some time as a result of the rapid growth of the ship-building, ship-repairing and servicing industries connected with off-shore oil exploration. It will take some time for the preparation of the sites to be completed. It is not merely a matter of levelling land. It is also necessary to bring in all the other services which modem industry requires such as power, supplies of industrial water, in some cases gas, as well as sewerage facilities and so on. At a guess, I would say that most of these sites will be ready for occupation in about a year's time, and possibly the whole lot should be ready two years from now. Warehouses are not the responsibility of the Jurong Town Corporation.

In view of the explanation given by the Minister for Finance, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. 3.30 p.m.

Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 21 be reduced by $10 in respect of subhead 103*. (* The same amendment also stood in the names of Mr J. F. Conceicao and Madam Chan Choy Siong.) Mr Speaker, Sir, it would not be an easy task to belittle the achievements of the Housing and Development Board. These are now world famous and we derive justifiable pride from them. In the process of breaking the back of, if not solving, the problems of physical housing, we have created problems of a different dimension involving human beings and their social habits. The progression from the environment of traditional slums to that of high-rise flats implies the need for a change in communal values, attitudes and standards of social cleanliness. It is insufficient for a human being to be impeccably clean within the confines of his flat, but to be careless of what he does in elevators, common stairways and corridors let alone common latrines and baths. Even elevators are mistaken for latrines. Many of our blocks of flats are becoming new slums, with an environment not conducive to the healthy growth of the next and subsequent generations of human beings. It is now necessary for human beings living in blocks of flats to be organised on a corporate basis with their own self-governing institutions, perhaps along the lines of management committees of community centres, with adequate powers to manage the social problems of flat-dwelling. The time has come, Mr Speaker, for the Housing and Development Board to direct part of its energies to solving these new problems which involve not construction but human materials.

Mr Speaker, Sir, the tenor of my remarks will follow very much the same lines as those of my colleague from Bukit Panjang. I agree with him that it will be very difficult for us to gainsay the achievements of the Housing and Development Board. The Minister for Finance himself has referred to the tremendous increase in the number of houses built in the last ten years. It has increased by about five times the original number in 1959. My own very slight reading on the subject of housing projects has given me an impression which, I hope, is not simply due to the fact that I have not read sufficiently, that our housing achievements are, perhaps, the best and most effective in the world. I have read that in America, for example, federal aid has been given to middle-income housing projects, whereas a relatively small programme is devoted to aid low income housing projects. In Singapore the emphasis has been on the building of homes for low income groups. In addition to that, we are also providing schemes for home ownership so that not only do we provide our people, especially those in the lower income group, with shelter at comparatively low rentals, but we offer them security by giving them the opportunity to buy their own homes on easy terms. This, therefore, demonstrates a relationship of responsibility between the blousing and Development Board and our people who live in flats and houses provided by the Housing and Development Board. However, I feel that this relationship is essentially a bureaucratic one. I would like to ask whether we should not take a greater interest in the people who live in these Housing Board flats, and whether we should not attempt to encourage them to consider the places in which they live as homes and not simply as housing units? We can already detect a growing interest among officers of the Board in this respect. For example, fountains are provided in order to beautify the precincts of a Housing and Development Board project. The important point is to educate the people to respect these social amenities. For example, shrubbery must not be destroyed, and fountains should not be defiled, and so on. How do we set about inculcating a sense of pride and affection in the community and a commitment to the neighbourhood? Perhaps we should take a greater interest in the sociological aspects of community development. In this connection, perhaps, we could ask the Minister for Law and National Development how interested is the Housing and Development Board in getting the services of sociologists to help them find out the problems that affect people who live in Housing and Development Board flats. There are many measures that one can just give as examples. Could we not provide premises for people who live in Housing and Development Board flats to meet and discuss the improvement of their neighbourhood? Could not these same premises also serve as centres where people could come together, view an educational T.V, programme and learn to improve their environment? They can also learn something about domestic economy, about beautifying their premises, and about subjects that will make life that much more worth living. This would give the people a greater sense of commitment to their environment. These same premises could also be used by the children who live in these crowded quarters to study and prepare for their school work. These are just a few examples of what could be done to augment the human qualities of life in Housing and Development Board flats. Perhaps one could comment on the polar attitudes that are taken by the community and by the estate officer in charge of a particular area. This is an unfortunate situation. Sometimes an M.P, is caught between the estate officer trying to implement the Board's rules and the community who seems to regard the estate officer as a natural antagonist. Perhaps something could be done to encourage better relationship between the Board's officers and the community. In this connection, one could ask what sort of training is given to officers of the Board in the understanding of human relationship.

Mr Speaker, Sir, first, may I thank both Members for their kind words and then attempt to meet their criticisms or perhaps suggestions. Sir, may I say that the Housing and Development Board has been very conscious of the social conditions which have come about through living in flats, some of which are high-rise. In 1966, a sample survey was taken in some estates and the net result was a report prepared by Mr Stephen H. K. Yeh and Mr Lee Yoke San in 1968 on housing conditions in Singapore. This report dealt with all the trends and implications, and I would commend it to both Members. Perhaps I could touch on some of its conclusions. Sir, I quote at page 28 of the report: `For the first time in Singapore, living in these high-rise fiats has created a new way of life for a significant proportion of the population. Social change, as reflected in people's lives, is the result of the inter-play of physical, social and individual factors and, therefore, both the quantitative and qualitative aspects of living have to he studied together, if comprehensive knowledge is to be gained. Second, at the present time, there are some 200,000 people living in the congested central area of 3 1/2- square miles, most of which is scheduled for slum clearance, and the population reallocated to public housing in the interest of sound land-use policy, better social welfare and general economic development. In addition, the social structure of slums deserves attention And they go on and on. The Housing and Development Board is acting in accordance with the recommendations made in this report and has made some plans to improve the living conditions of tenants in the Housing and Development Board estates. I would remind Members, firstly, of the sports complex at Queenstown, which is at the moment under construction. The Board is spending $2,000,000 on this complex. It will be completed by July this year and will have five swimming pools. Another particular item is the reservation of 40 acres of land at Toa Payoh for the construction of another sports complex. Work has not yet started, but it will be done so that the younger children will have more playgrounds, and the older ones will have basket-ball courts. The Board has been very conscious of the needs of the people living in flats, and in every housing estate places are reserved not only for shops but markets and stalls and even cinemas. Sometimes light and clean industries are provided in order to provide employment. Now we come to the little details about keeping common corridors and lifts clean. It would be very expensive, from the Board's point of view, to provide a liftman. I am sure Members will agree with me that this is a process of education, but one thing we have done, and which has resulted in cleaner homes and cleaner estates, is the sale of the estates. A man who owns his own home sees to it that it is clean. He sees to it that the common corridors are clean. He sees to it that the lifts are not dirty. Hence, one of the reasons for encouraging home ownership. To meet the specific suggestions of both the Members for Bukit Panjang and Katong, the Board will soon be creating committees of representatives in two or three blocks in each and every one of our eleven housing estates. 3.45 p.m. There will be one committee for one block. And the Board has suggested that the Member of Parliament for the constituency, a representative of the Board, and a member of the Citizens' Consultative Committee of the constituency, should sit as members of this committee. I hope that Members of this House, in whose constituency there are many housing estates, will give every assistance to the committee about to be formed.

Dr Goh, have you anything to add to that?

No, Sir.

Sir, I beg leave to withdraw. Amendment, by leave, withdrawn.

Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 21 he reduced by $10 in respect of subhead 104*. (* The same amendment also stood in the names of Mr Ng Yeow Chong, Mr J. F. Conceicao, Mr Lim Cheng Lock, and Madam Chan Choy Siong.) Sir, in view of the very substantial amount of money involved under this Head, I wonder whether the Minister can inform this House of the progress made to date by the Neptune Orient Lines Ltd, and the Chartered Industries of Singapore Ltd. And also what is the rate of return, if any, on the amount invested in each case. As regards Air Chartering Enterprises Pte. Ltd., can the Minister give full details of the management and operation of the company? Presumably more funds will be required very shortly to acquire the necessary aircraft and, if so, what is the amount involved for the purpose? Sir, bearing in mind the growing number of Government agencies now in operation and in the course of being set up, I feel that the question of accountability of these agencies to Parliament in practice should be given the closest examination at this stage. As things stand at the moment, there appears to be no arrangement in force to keep Parliament informed of the progress made on new ventures embarked upon by these agencies from time to time. While an ordinary shareholder in a public company is sent an annual report by his company, Members of Parliament are denied this courtesy by most, if not all, of these agencies. The Minister has fully explained in general the rationale behind the setting up of Government agencies, which is well appreciated and wholeheartedly supported by this House. However, there is, to my mind, the need for the performance and activities of these agencies to be kept under constant review by Parliament, so as to ensure that they will not veer from the objectives or purposes for which their setting up was intended, and that there is no unnecessary or unintended conflict of interests committed wittingly or unwittingly either with the public sector or with the private sector. I have no doubt that all these aspects have not escaped the attention of the Minister, but to ensure the long-term continued accountability of these agencies to Parliament, perhaps some arrangement ought to be made at this stage for Parliament to receive periodical progress reports from them. In saying so, it is not my intention to suggest that Parliament should interfere with the work of the professionals or to impose unnecessary restrictions or limitations upon the activities of these agencies, as such a course of action will only hamper the healthy growth of such agencies.

Sir, I would like to touch on the sum of $70 million to be voted as a Joan to the Neptune Orient Lines Ltd. Sir, it is indeed gratifying to note that since its operation last June, the Neptune Orient Lines has performed very well. However, the only setback is that it has not been accepted as a full member of the Far East Freight Conference. This being the case, its cargo ships are barred from conveying goods to and from Japan, whereas vessels of the other members of the Conference are allowed to enter Japanese ports to collect and discharge cargoes. With the advent of containerisation, it is vital for Singapore to venture into Japanese ports: otherwise she will not be able to make use of her future container ships for the Far East-Europe run. It is learnt that the reason for the refusal of Neptune Orient Lines' entry as a full member of the Conference is that its performance has not yet come up to expectations. I understand that the Neptune Orient Lines' case to extend its services to Japan has been presented to the F.E.F.C., and negotiations have taken place in London last month. Sir, it is our duty to safeguard the interests of the Neptune Orient Lines, as it involves the Government in a loan of $70 million. It is futile to possess a car without making full use of it. Likewise, having been accepted as a member of the F.E.F.C., it is considered unfair that the Neptune Orient Lines, as compared to other members, is not able to enjoy the full benefit of the rights. For instance, Japanese vessels have been permitted to carry Singapore cargoes to Europe; whereas the Neptune Orient Lines' vessels have been limited to transporting goods to and from Hong Kong only. Sir, will the Minister be kind enough to inform this House of the outcome of the negotiations held in London in respect of the rights of the Neptune Orient Lines, and what appropriate steps is he contemplating to take in order to extend the services of the Neptune Orient Lines in future?

Mr Speaker, Sir, I think it is good that enterprise in Singapore is so free that Government is also participating in it. The reasons for Government's participation cannot be sufficiently repeated. There have been expressions of some misgivings in certain quarters, but I hope I shall not be taken as being condescending in this case when I say that the Minister for Finance is to be congratulated on being absolutely sure that the people are under no misapprehensions regarding Government's attitude of fair treatment where Government's participation in private enterprise is concerned. It is good that we should be engaged in this sort of enterprise -~ I am speaking merely as a layman so that we can encourage our people to turn their attention towards modern methods of management where business is concerned, and to turn from trading towards industries. Certainly the experience that we get in running these enterprises will stand us in good stead where managerial development of expertise in respect of such enterprises is concerned. There are a whole host of reasons to justify our participation in commercial enterprises. But I would like to make this point, Mr Speaker, Sir,I hope I do not sound too priggish, or too much like the Chairman of the Public Accounts Committee, when I say that perhaps this matter could have been brought up here a little bit earlier.

Mr Speaker, Sir, we have read in the newspapers recently about the Jurong Bird Park. May I ask the Minister whether this is an economic proposition? And how is Jurong Bird Park Pte. Ltd, going to derive its revenue?

By selling bird seeds!

Mr Speaker, Sir, I have just a little doubt about the Neptune Orient Lines. Out of the $70 million loan asked for, $18.9 million will be "by way of purchase price and downpayment" for two Freedom-type vessels. I understand that the Neptune Orient Lines is negotiating with the Ishikawajima-Harima Heavy Industries in Japan and, at the same time, with the Jurong Shipyard. Sir, since we have a shipyard in the Republic ready to build ships, can the Minister tell us why we should not give the order to our own shipyard, instead of negotiating here and there?

Sir, I am very pleased with the amount of interest generated among Members in the commercial ventures of the Government. Happily, these are all going on fairly well, and with good luck they ought to succeed, the Jurong Bird Park included. As regards the Neptune Orient Lines, the position is as stated by the Member for Mountbatten in respect of our negotiations with the Far East Freight Conference. Sir, the big shipping lines are owned by very powerful financial interests in very large and powerful countries. So when a small country like Singapore gets involved in the big league, I think we are under certain disabilities. Let us not assume that, in terms of financial resources or political power, we are of the same stature as big countries like the United Kingdom, Japan, Germany, or the United States. Nevertheless, within our rather limited capabilities, we have obtained a certain amount of sailing rights from the F.E.F.C. At present we are allowed 12 sailings a year from June 1969 to July this year; one sailing a month from Hong Kong to Singapore, Port Swettenham, Penang, Britain and Western Europe. As from July this year till the end of next year, the number of sailings will increase from 12 to 18, which is one sailing every three weeks instead of one sailing every month, with the proviso that sailings from Hong Kong will remain at 12 per year. There are also some restrictions as regards cargo tonnage limitations, the types of cargoes, and so on, which Neptune Orient Lines can collect at various ports. These restrictions are covered by confidential agreement, and I am not at liberty to divulge them, In February this year, negotiations took place with the object of getting for Neptune Orient Lines sailing rights from Japan, as far as Thailand, and also rights to collect cargo from South Thailand and East Malaysia. No agreement could be reached in the course of these negotiations, and a mediator will be sent to Singapore in April to consider Neptune Orient Lines' request for improved sailing rights. 4.00 p.m. The company has now five freighters on the Far East run, one freighter on the Straits-Japan run, one tanker on world-wide charter, and one coaster carrying cargo in regional waters. The company also has a super tanker of 233,000 dead weight tons on order. This is in partnership with a Hong Kong company. So far the company has done reasonably well. It will be some time before the audited accounts for the first six months' operations are available, because in the nature of the business, accounts have to be collected, assembled and audited from the different ports of call. The final preparation and auditing of the company's accounts are more difficult and take longer time than would be the case of an ordinary commercial venture. However, because of the rather good trading conditions last year, the company has done much better than new shipping companies of this sort would normally do. As regards the Chartered Industries of Singapore Ltd., again, this company has been performing reasonably well, its first year's operation shows a return of 18 per cent of capital invested. Air Chartering Enterprises Pte. Ltd., a subject raised by the Member for Jalan Kayu, is a very small air cargo company. Its operation is limited to lifting cargo between Singapore and certain countries in the region. Whether it will expand beyond this modest operation is something I cannot say for certain. The revenue from Jurong Bird Park Pte. Ltd, will be from gate receipts. I do not know whether this will be sufficient to pay for the operation costs. plus interest on the loan and depreciation of properties. However, as compared with other enterprises of this kind, for example, a zoological garden or a marineland, the great advantage of an aviary is that it does not cost much to feed birds. Furthermore, birds do breed and, given luck, some side income may even be generated from the sale of birds to other aviaries of the world. Jurong Shipbuilders Ltd, will not be in production for some years. We have now under training in Japanese shipyards some 249 workers recruited by Jurong Shipbuilders Ltd., and the construction of the dock and quays will commence later this month. On the 21st of March, 1970, the directors expect to award tenders for the construction. This dockyard may be completed by April next year. But the company will be in full production only by the year 1975 when it is expected to build some six Freedom-type ships a year. Whether Neptune Orient Lines Ltd, will buy ships from Jurong Shipbuilders Ltd. I do not know. Presumably, if they need Freedom-type ships, which can carry both containers as well as general cargo, then they will give their business to Jurong Shipbuilders Ltd. But it is by no means obligatory on the company to buy ships from Jurong Shipbuilders Ltd., although one hopes they will do so. As regards the accountability of our enterprises to Parliament, I think we should have a clear idea what accountability means. If it is a matter of providing information to Members of Parliament, of course, this can be done regularly at Question Time. If it is a matter of answering questions on matters arising from these enterprises or indeed any enterprises, then Ministers, of course, are available to give such information. But accountability to Parliament as a constitutional principle, I think, goes beyond this. It means that the operation of Government departments is open to detailed parliamentary inquiry either in the House itself or at meetings of the Public Accounts Committee, And, of course, Government enterprises of this nature are not accountable to Parliament in this sense. As the Member for Jalan Kayu has rightly pointed out, as these enterprises are of a commercial, business nature, they would be completely hobbled if they have to be controlled in detail by Parliament. Subject to this, of course, if at any time Members would like to have information on the progress of these industries, I will be most happy to give it to them.

I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $105,750,000 for Head 21 ordered to stand part of the Second Supplementary Development Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970.

Question, "That the sum of $105,750,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the Second Supplementary Development Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970, contained in Paper Cmd. 8 of 1970", put, and agreed to. Resolution to be reported. Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. Resolution, reported "That the sum of $1,548,250 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970, contained in Paper Cmd. 7 of 1970." "That the sum of $105,750,000 shall be supplied to the Government under the heads of expenditure for the public services shown in the Second Supplementary Development Estimates of Expenditure for the financial year 1st January, 1969, to 31st March, 1970, contained in Paper Cmd, of 1970."

Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolutions.

Question put, and agreed to. Resolutions accordingly agreed to.

Order for Second Reading read. 4.10 p.m.

Mr Speaker, Sir I beg to move, "That the bill be read a Second time." This Bill is designed to enable the, Singapore Telephone Board, from time to time, with the approval of the Minister, to capitalise the whole or any part of the sum standing to the credit of the Board's General Reserve Account; such sum to be capitalised to the stockholder (which in this case is the Government of Singapore) as issued and fully paid-up capital. It is pertinent to draw the attention of this House that the Board's fixed assets and General Reserve increased substantially during the six-year period 1963 - 1968, as illustrated by the following figures: 1963 1968 ($ million) ($ million) Fixed assets at cost 76.6 110.7 Fixed assets after depreciation 43.7 70.4 General Reserve 7.0 40.0 Ordinary Stock 20.0 20.0 In view of the high level of the General Reserve at the end of 1968 and almost a two-fold growth in the fixed assets since 1963 due to the ploughing back of surpluses into capital development, the Board decided in July 1969 to transfer $20 million from the General Reserve Account to its equity Share capital, thus raising it from $20 million to $40 million. The capitalisation took effect on 1st September, 1969, and to regularise matters, it is necessary to bring the Singapore Telephone Board (Amendment) Act, 1970, into force retrospectively to 1st September, 1969, with the exception of clause 5 thereof. This is because clause 5 of the Bill makes it an offence for any subscriber to make unauthorised attachments or alterations, and it is both unconstitutional and undesirable that such provision should have retrospective effect. Opportunity has been taken to make the following minor amendments to the Singapore Telephone Board Ordinance: (a) The definition of "auditor" is amended to bring it up to date as the Companies Ordinance (Cap. 174) has since been superseded by the Companies Act, 1967. (b) The quorum for meetings of the Board has been raised from Two to four members present, in addition to the Chairman or Deputy Chairman, as the total membership of the Board is now nine. 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 House. The House immediately resolved itself into a Committee on the Bill- Bill considered in Committee: reported without amendment; read a Third time and passed.

Resolved, "That Parliament do now adjourn." -[Mr Barked. Adjourned accordingly at Sixteen minutes past Four o'clock p.m. Appnedix to Question 8 (col. 565) (Cols 0595-0598)