Hansard, 1992-11-16

Under the provisions of clause 2(d) of Article 46 of the Constitution of the Republic of Singapore, the following Members have been granted permission to be or to remain absent from sittings of Parliament (or any Committee of Parliament to which they have been appointed) for the periods stated:- Mr Teo Chong Tee - from 16th to 17th September and from 23rd to 24th October, 1992. Mr S. Chandra Das - on 16th September, from 28th September to 1st October, from 5th to 14th October and from 9th to 13th November, 1992. Mr Tong Kok Yeo - from 20th to 27th September, 1992. Encik Othman bin Haron Eusofe - from 21st to 23rd September and from 9th to 23rd November, 1992. Mr Choo Wee Khiang - from 21st to 25th September, from 13th to 17th October and from 11th to 13th November, 1992. Mr Chng Hee Kok - from 21st to 24th September, from 19th to 22nd October and on 6th November, 1992. Dr Ker Sin Tze - from 21st September to 3rd October, 1992. Dr Wang Kai Yuen - from 22nd to 27th September and from 20th October to 2nd November, 1992. Mr Charles Chong - from 22nd to 23rd September and from 17th November to 10th December, 1992. Dr Wong Kwei Cheong - from 23rd to 25th September, from 15th to 17th October and from 18th to 20th November, 1992. Mr Kenneth Chen Koon Lap - from 23rd to 26th September, 1992. Dr Lee Boon Yang - on 24th September, from 19th to 22nd October and from 25th to 28th November, 1992. Mr Lee Yock Suan - from 24th to 26th September, 1992. Mr Bernard Chen - from 24th to 26th September, from 19th to 23rd October and from 6th to 15th November, 1992. Mr Peter Sung - from 24th to 30th September, from 10th to 17th November, from 23rd to 27th November and from 1st to 31st December, 1992. Mr Wong Kan Seng - from 25th September to 5th October, on 10th October, from 14th to 17th October, from 19th to 21st October and from 28th to 31st October, 1992. Mr Peh Chin Hua - from 27th to 30th September, from 6th to 12th October, from 10th to 14th November and from 5th to 15th December, 1992. Mr Lim Boon Heng - from 28th September to 10th October, from 21st to 24th October and from 15th to 18th November, 1992. Mr R. Sinnakaruppan - on 29th September and from 11th to 22nd October, 1992. Mr Davinder Singh - on 1st October and on 16th November, 1992. Mr Zulkifli bin Mohammed - from 2nd to 23rd October, 1992. Mr Chua Teck Chew, Robert - from 3rd to 10th October, from 23rd to 27th October, from 30th to 31st October and from 3rd to 7th November, 1992. BG Lee Hsien Loong - from 4th to 6th October, from 21st to 24th October, from 3rd to 7th November, from 8th to 14th November and from 16th November, 1992 to 31st March, 1993. Mr Heng Chiang Meng - from 5th to 14th October, from 30th October to 1st November, from 23rd to 25th November, from 27th to 30th November and from 4th to 27th December, 1992. Encik Sidek bin Saniff - from 5th to 8th October, from 11th to 13th November and from 1st to 8th December, 1992. Dr Beng Kian Lam, Arthur - from 5th to 10th October, 1992. Mr Chew Heng Ching - from 5th to 22nd October, from 5th to 6th November and from 11th to 12th November, 1992 Mr Tan Soo Khoon - from 5th to 12th October and from 8th to 14th November, 1992. Mr Chia Shi Teck - from 5th to 7th October and from 27th to 30th October, 1992. Encik Yatiman Yusof - from 6th to 12th October and from 27th November to 15th December, 1992. Dr Ahmad Mattar - from 6th to 11th October, 1992. Mr Lim Hng Kiang - from 7th to 11th October, from 25th October to 9th November and from 30th November to 8th December,1992. Dr Tan Cheng Bock - from 9th to 11th October, 1992. Mr Lim Chee Onn - from 10th to 13th October, 1992. Mr Lew Syn Pau - from 17th to 26th October and from 30th to 31st October, 1992. Mrs Yu-Foo Yee Shoon - from 19th to 26th October, 1992. Mr Ling How Doong - from 23rd to 31st October, 1992. Dr John Chen Seow Phun - from 25th to 30th October, 1992. BG George Yong-Boon Yeo - from 25th October to 9th November and from 14th to 16th November, 1992. Dr Koh Lip Lin - from 26th October to 10th November and from 5th to 12th December, 1992. Dr Wan Soon Bee - from 30th October to 2nd November, from 10th to 11th November and from 16th to 24th November, 1992. Dr Aline K. Wong - from 30th October to 10th November, 1992. Dr Yeo Ning Hong - from 30th October to 1st November, from 11th to 17th November and from 5th to 14th December, 1992. Assoc. Prof. Low Seow Chay - from 2nd to 11th November, 1992. Mr Leong Horn Kee - from 2nd to 9th November and from 17th to 23rd November, 1992. Dr S. Vasoo - from 4th to 8th November, 1992. Mr Ch'ng Jit Koon - from 9th to 15th November, 1992. Dr Ho Tat Kin - from 11th to 17th November, 1992. Dr Lau Teik Soon - from 11th to 17th November, 1992. Mr Ong Teng Cheong - from 15th to 16th November, 1992. Dr Lim Chun Leng, Michael - from 16th November to 12th December, 1992. Mr K. Shanmugam - from 16th to 19th November, 1992. Mr Ho Peng Kee - from 23rd November to 7th December, 1992. Mr Loh Meng See - from 23rd November to 12th December, 1992. Mr Chiam See Tong - on 23rd November, 1992. Mr Goh Chee Wee - from 25th November to 10th December and from 15th to 23rd December, 1992. Mr Ho Kah Leong - from 26th November to 12th December, 1992. Mr Matthias Yao Chih - from 30th November to 12th December, 1992. Dr Ong Chit Chung - from 13th to 15th December, 1992. Mr Goh Chok Tong - on 16th November, 1992. TAN SOO KHOON Speaker Parliament of Singapore

The following Bills were assented to by the President of the Republic of Singapore on the dates stated: 21st September, 1992 (i) Income Tax (Amendment No. 2) Bill 1992. 17th October, 1992 (i) Drug Trafficking (Confiscation of Benefits) Bill 1992; (ii) Endangered Species (Import and Export) (Amendment) Bill 1992; (iii) Small Claims Tribunals (Amendment) Bill 1992; (iv) Environmental Public Health (Amendment) Bill 1992; and (v) Education Endowment Scheme Bill 1992. TAN SOO KHOON Speaker Parliament of Singapore

The following Question stood in the name of Encik Othman bin Haron Eusofe - 1. To ask the Minister-in-charge of Muslim Affairs whether he will ask the Majlis Ugama Islam Singapura, together with the Registry of Muslim Marriages, to urgently undertake a study on (i) the measures and programmes which can help to arrest the high number of Muslim divorces and (ii) the welfare and well-being of the children of the affected families.

Question No. 1, Sir.

Mr Speaker, Sir, there are a number of existing programmes in place to help Muslim couples intending to get married. These have been implemented by the Registry of Muslim Marriages (ROMM) and the Syariah Court with the help of MUIS and the Mosque Management Committees. For instance, all couples intending to marry are urged to attend Marriage Guidance Courses conducted at 19 mosques. The majority of them do so. The ROMM provides counselling services to all couples when they declare their intention to marry. However, those couples identified by the ROMM as lacking in religious knowledge are referred to the 19 mosques for religious counselling. They subsequently attend the Marriage Guidance Courses at these mosques. Sir, MUIS, Syariah Court and the ROMM are working out further measures to help bring down the number of divorces. One good example is the constant review of existing programmes to gauge their effectiveness. As far as the welfare and well-being of the children of affected families is concerned, it is being looked after by MUIS. Under its Financial Assistance Scheme, MUIS provides assistance to affected families in need. This takes the form of financial assistance, study grants for the children, and even payment of certain debts incurred by the families. MUIS also refers some of the cases needing counselling to Malay/Muslim organisations where such counselling is available. School-going children are referred to MENDAKI and other Malay/Muslim organisations for tuition.

Sir, could the Minister inform us how successful are the Marriage Guidance Courses? And would the Minister consider making it compulsory for all couples intending to marry to attend these Marriage Guidance Courses and also a course on Islamic Religious Knowledge?

Mr Speaker, Sir, I do not have the figures on the success rate. On the Member's suggestion to make attendance at Marriage Guidance Course and Islamic Religious Course compulsory, I will certainly ask the Registry of Muslim Marriages to consider the idea.

asked the Minister for National Development whether the Housing and Development Board will consider raising the present eligibility income ceiling of $6,000 so that more Singaporeans can purchase HDB flats.

Mr Speaker, Sir, the income ceilings for purchase of HDB flats were last revised to $6,000 for nuclear families and $9,500 for extended families on 1st October, 1991. The Ministry of National Development has since reviewed these income ceilings taking wage increases over the past year into account. I am happy to inform the Member for Ayer Rajah that with effect from 1st December 1992 the income ceilings for purchase of HDB flats will be raised to $7,000 per month for nuclear families, and $11,000 per month for extended families. With this revision, about 91% of households in Singapore will be eligible for public housing. The revision will be of particular benefit to about 12% of recently married couples in the 25-29 age group who have combined monthly incomes of between $6,000 and $7,000. This group is currently ineligible for public housing and could face difficulties buying private properties. With this change in the income ceiling, this group is now eligible for public housing.

Sir, would the Minister consider the proposal that the first priority should be given to people with income ceiling of $6,000 as HDB flats are subsidised housing? Only when this demand has been satisfied and there is no waiting list for this group of people, then only those with a higher income should be considered because the latter group can buy resale HDB flats or they can buy direct from HUDC.

Sir, this is a fairly new principle and the Member is proposing that we accord priority based on income levels. This is something very new. We will of course study it but I do not think it is something that we would like to introduce for the time being.

asked the Minister for National Development, in view of the fact that Housing and Development Board flat owners are allowed to invest in private properties as long as they reside in their HDB flats, whether the HDB will allow Singaporean owners of private properties to purchase HDB flats without residing in the flats.

Mr Speaker, Sir, in land-scarce Singapore, public housing has to be strictly for owner-occupation. Those who buy their flats direct from HDB are required to reside in the flats. They are allowed to own private residential properties for investment purposes only after they have completed the 5-year occupation period. Similarly, a private residential property owner who buys a resale HDB flat from the open market must thereafter reside in the HDB flat. We cannot allow private property owners to purchase HDB flats without residing in the flats. This will only encourage speculative demand for public housing, and deprive those who are in real need of public housing from owning HDB flats. It would defeat the very purpose of providing public housing in the first place. So we would like to maintain the principle of owner-occupation in HDB flats.

Sir, does the Minister not feel that a more equitable policy is to allow our people the choice of either residing in the HDB flat and renting out the private apartment or residing in the private property and renting out the HDB flat? Is there a difference between the two alternatives since the resale of HDB flats occurs only when the flats are no longer needed by their owners and resale prices are determined by market forces without Government subsidy?

Sir, I think there is a big difference. First, the principle is that the HDB flat is meant as public housing and it must be owner-occupied. If you allow HDB flats to be open for purely investment purposes, I think the demand will be very much greater than today. Today, we must build flats for Singaporeans who want to reside in HDB flats.

asked the Minister for National Development whether he will consider the sale of Housing and Development Board shop premises to doctors for use as medical clinics at a preferential rate, subject to restrictions, as a measure to contain cost of healthcare.

Mr Speaker, Sir, HDB cannot give preferential terms to doctors who wish to buy HDB shop premises for use as clinics. Those who require HDB shop premises can bid when HDB offers new shops for sale by public tender. The cost of premises is not a major component of the operating costs of medical clinics. Thus, selling shops at preferential rates to doctors will not necessarily reduce or limit healthcare costs. More importantly, if HDB were to sell shops to doctors at preferential rates, then it would be hard put not to give similar concessions to others who could also claim that it will help bring down the general cost of living. If all such requests were to be acceded to, the end result would be a gross distortion of the forces of demand and supply in the market for HDB shops, without residents benefiting in any way from lower healthcare or other costs. The present system of selling HDB shops by public tender ensures that sale prices are determined by market forces. Competitive tendering also makes it likely that services most needed by residents, such as medical services, are provided efficiently and at affordable prices. As such services would be viable, those intending to provide them will be able to pay the market rate for such premises. Any concern that the tendering system will result in residents of HDB estates having inadequate access to medical services is misplaced. There are a total of 643 clinics in HDB estates. This gives an average of one clinic to every 1,000 dwelling units. Their distribution reflects the population catchment of Singaporeans in HDB estates. Even Lim Chu Kang, the smallest HDB estate, with 93 dwelling units and a population of about 400, has a clinic. Apart from these private clinics, there is at least one Government polyclinic in each HDB new town. Residents in HDB estates thus enjoy convenient access to inexpensive medical care.

Sir, contrary to popular perception, I think the rentals which the doctors have to pay for their shop premises do play a major part in the costing of the medical bills for the patients. I have here a report of an economic survey on the medical health services -

Dr Toh, are you making a speech?

No, I am going to ask a supplementary question.

Ask your supplementary question.

Would the Minister please reconsider my proposal because I have found that recent prices in the open tender system have resulted in bids which have gone beyond $1 million for a mere 100 square metres of shop space in an HDB estate?

I think it is very difficult to convince the public that doctors are less able to tender for shops than a barber shop or a provision shop. The services that the doctors provide to the estates are viable services and they should be able to tender competitively for their premises.

Sir, will the Minister assure the public that there will be sufficient doctors in the estates should this tender system reach a price that doctors cannot afford them?

Sir, together with the Ministry of Health, we will always monitor the level of provision of medical services to Singaporeans and if it comes a time when medical services are not provided adequately at the HDB estate level, then we will consider other measures to ensure that this service is provided.

asked the Minister for National Development what is the total area (i) of public parks and (ii) of land utilised for golf courses.

Mr Speaker, Sir, today, public parks occupy about 2,080 hectares or 3.3% of the total land area of Singapore. Another 4,170 hectares or 6.7% of Singapore's land area are nature areas, such as Bukit Timah Nature Reserve, which are accessible to the members of the public. Together, public parks and nature areas amount to some 6,250 hectares or 10% of Singapore's land area. Existing golf courses occupy about 920 hectares or 1.5% of the total land area of Singapore.

Sir, what is the total membership of these golf clubs?

Around 21,000.

Sir, in land-scarce Singapore, why are we allotting more and more land to less and less people for their enjoyment and benefit?

Sir, I do not think you can allocate land in proportion to usage because usage varies tremendously. Most of the golf courses are in fact in areas where alternative uses are limited. They are either in the flight path zone near the airport or they are in the catchment areas. I would also like to point out another fact. In addition to the actual membership of these golf clubs, they also cater to large numbers of foreign tourists and charge significant fees.

Sir, presently we have 14 golf courses. Under the Concept Plan, we are going to have another 15 golf courses. I would like to know how this projection was arrived at when the population reaches four million.

This is merely a projection of land protected for possible use as golf courses. It does not mean that 15 golf courses are going to be built.

asked the Minister for Education whether he will consider reducing the Bachelor of Arts/Science Degree with Diploma in Education to a 3-year specialist course instead of 4 years, while maintaining standards, so as to attract more undergraduates to the teaching profession and to expedite the increase of graduate teachers in our schools.

Mr Speaker, Sir, the National Institute of Education (NIE) offers a 4-year course leading to the Bachelor of Arts or Science Degree with Diploma in Education. It is not feasible to reduce the course duration to three years without lowering standards. The course comprises pedagogical studies (taught mainly in the first two years) and academic studies (taught mainly in the last two years). It is designed to meet the requirements of school teachers. The academic studies component is comparable in rigour and standard to the BA/BSc course offered at the NUS. This is as it should be. Our future supply of graduate teachers will come from both our universities. Traditionally, trainee teachers with suitable NUS degrees do a 1-year Post-Graduate Diploma in Education course at the NIE before they are qualified to teach. Thus, a BA/BSc pass degree holder from the NUS will have spent a total of four years to master the academic and pedagogical content of teaching. This is comparable to the NIE's 4-year course for the BA/BSc with Diploma in Education. In structuring the 4-year course at the NIE, my Ministry has been careful to avoid the unhappy experiences of some countries which went into 3-year Bachelor of Education degree programmes. Reducing the course duration means lowering of course content if the course is not to become too crammed and could result in a sub-standard degree programme. Much as we want to attract more university graduates into the teaching profession, we should not do so by lowering standards. Good teachers are essential in our effort to develop our children to their full potential. To achieve an effective teaching force, we need to control both the quality of trainee teachers and the quality of their training. We also need to enhance the image and status of teachers in our society.

Sir, some years ago, the Faculty of Science and the Faculty of Arts in NUS conducted a "sandwich" honours programme for bright students, which was such that, instead of the usual four years, it was a 3-year programme. Can something similar be considered for the teaching profession, perhaps for the top students initially, so that this will shorten the time that they have to do the university course, ie, three years instead of four years?

Mr Speaker, Sir, I am not aware of the course that he was speaking about, but I will look into it. But the basic consideration is that, as I have explained, we must maintain standards. And it is difficult for us to cram the programme into three years.

asked the Minister for Education how are polytechnic diploma holders performing in the Singapore universities.

The polytechnic diploma holders admitted to courses in NUS and NTU have generally performed well. One of the reasons for this is that these students have some working experience prior to entering the university. Their work experience has stood them in good stead to better understand and assimilate what they are taught in the undergraduate courses. The attrition rate of polytechic diploma holders is low. Over the last three to four years, no polytechic diploma holder had to leave NUS for failing the examinations, and only three in NTU did not complete their course of study within the minimum period.

Sir, will the Minister consider increasing the intake of polytechnic graduates into our universities because there are a large number of them going overseas for further studies?

Sir, in the last three years, 1990-92 admissions, the universities took in a total of 1,100 polytechnic graduates. The universities are planning to take in more over the next few years as the universities themselves expand to provide more places.

The Minister said that the students have prior working experience. Does it mean that he will rule out those without working experience but with Polytechnic diploma qualifications?

Sir, the experience of the universities with polytechnic graduates is that they do well when they have practical working experience in addition to the diploma course that they have done. So the intention is that, in admissions, not only will they take into account the grades of these students at the polytechnics, they will also take into account their working experience.

Why is it that polytechnic students require working experience before they are admitted to the university, whereas 'A' level students do not need that particular requirement?

As I said, based on the experience of the intakes, they found that when they have working experience behind them, they will have the maturity to get on with the course that they have enroled at the university.

Sir, in addition to what the Member for Chua Chu Kang has said, would the Ministry consider admitting the Merit Scholars or diploma holders to the universities straightaway instead of waiving the three-year working experience requirement for the Merit Scholars?

I think this is something which we can ask the universities to look into.

Does the Ministry have statistics to show that graduates who went overseas do have industrial experience before they get into the university? If there are statistics, how does that substantiate the fact that NUS or NTU need students to have industrial experience before they get into the engineering programmes?

The polytechnic graduates who go overseas are quite a mixed group of people. Many of them do have working experience. In fact, they save the income from their working experience before they go overseas. So many do have working experience before they go overseas.

asked the Minister for Education, with the decision to close pre-school classes run by his Ministry, whether he will regulate the operation of private organisations running pre-school classes so that every Singaporean child in every constituency will have a place in these classes.

Mr Speaker, Sir, the Government has decided that it will concentrate on improving the formal education system and leave the provision of kindergarten education to the private sector. It is therefore up to the private kindergartens to decide where to locate and how many places to offer. It is not within the purview of my Ministry to ensure that there will be enough kindergarten places in every locality. Parents must seek out the kindergartens which best suit their needs and in some cases the kindergartens may not be so conveniently situated as some parents may like them to be. Similarly, my Ministry does not regulate other private schools in terms of their location and capacity.

asked the Minister for Health whether he will consider extending senior citizen medical benefits to Singaporeans and permanent residents at the age of 60 instead of 65, as in the case of public transport concessions.

The Government's philosophy is to ensure that basic medical care is accessible to all citizens. This is achieved by making sure that its medical services remain efficient so that fees can be kept low and affordable, and also through a system of Government subsidies, together with other health financing schemes like Medisave. However, as Government funds are not infinite, we need to focus the highest subsidy on those in the lower-income groups who require help most. Notwithstanding this philosophy, the Government is providing subsidised primary health care services to all Singaporeans and permanent residents who attend the Government Outpatient Clinics. Senior citizens aged 65 and above are given a further concession of 50% on consultation and prescription charges. The current concession scheme for senior citizens, together with our system of fee remission for the poor and the indigents, is adequate to ensure that all citizens have access to basic medical treatment. There is therefore no plan to lower the eligibility age from 65 to 60 years.

Can the Minister explain how this subsidy is worked out? Does it include also the capital costs of hospitals and other buildings?

The 50% concession is based on the current charge of $6 per consultation and the charge for medicine of $1 per item up to $4 per week, i.e. senior citizens are given a 50% discount on top of this. The subsidy policy for the polyclinics includes the development and depreciation costs of polyclinics. These buildings, equipment, etc, are all Government-owned and they are fully covered by Government subventions.

I would like the Minister to explain clearly what these subsidies actually represent. Is the Government out-of-pocket in respect of only recurrent cost, in other words, in respect of salaries, medicine, and not that of land, buildings and financing in regard to the structure of medical facilities, including buildings of hospitals?

As I explained just now, the subsidies include the land, building, equipment, salaries of the medical staff and also the cost of medicine. As far as hospitals are concerned, it also applies.

In regard to subsidy on capital cost, what is the number of years for amortisation?

Mr Speaker, Sir, I do not have the data on the specific years for amortisation on hospitals or polyclinics. If the Member would like to have the information, could he please submit a question for the next sitting.

Sir, in my interactions with the senior citizens during my Meet-the-people sessions, I find that many of the senior citizens feel that they are a neglected lot and these senior citizens have contributed significantly to the growth of Singapore. By extending the concession from 65 to 60, it will only apply to a very small group. I would like to ask the Ministry whether it would reconsider this position in the light of the Senior Citizens' Week held presently. Mr Chiam See Tong rose ---

Mr Chiam, could you please allow the question to be answered first.

In my answer just now, I have stated that Government's subsidy should be reserved to those people who need financial help most. With our present system of subsidised medicine as well as our system of remission, we find that the present policy is adequate to meet the needs of the senior citizens. But we would not be averse to considering the Member's suggestion and we will look into the policy.

Sir, I am not satisfied with the Minister's answer. Since the subsidy is a very big issue, and the Government has been playing up on this issue, I am surprised that the Minister does not know how the subsidy is arrived at. I am asking for the number of years for amortisation.

Mr Speaker, Sir, if the Member likes to ask for more detailed information on the subsidy policy, he is free to file another question. The Minister of State has already clearly told him that the subsidies include things like the capital cost incurred in the building of hospitals and manpower costs, ie, the recurrent costs incurred in the operation of hospitals. If he wants to have more specific details, please file a question and we would -- An hon. Member: He can take part in the Cost Review Committee.

Yes, correct. He is also free to take part in the Cost Review Committee and ask for further information.

Mr Speaker, Sir, I think it should be within the Minister's knowledge that he should know the number of years a building is written off where subsidy is concerned. He should know that.

Mr Chiam, if you insist in asking this question, I suggest you file a question.

asked the Minister for Labour what is the progress of the implementation of the flexible wage system recommended by the National Wages Council in 1986.

Mr Speaker, Sir, Members may recall that the Economic Committee formed in 1985 had recommended that our wage systems should be made more flexible to cope with both good and bad years. In response to this, the National Wages Council (NWC) had, in 1986, recommended that companies should implement flexible wage systems. It also recommended that for Singapore to remain competitive, wage increase must always lag behind productivity growth and that it should be closely linked to company and individual performance. Implementation of flexible wage systems began in 1987. Since then, Sir, we have made significant progress in implementing flexible wage systems. The unionised sector, in particular, has taken the lead with more than 80% of companies having implemented some form of flexible wage systems. In the non-unionised sector, the extent of implementation has also reached 70%. The NWC envisaged a phasing-in period of five years for companies to develop their flexible wage systems. We are at the end of the 5-year phasing-in period. It would be timely to carry out a review to study whether the objectives of the flexible wage system have been achieved, and to recommend improvements to the system. For this purpose, my Ministry will be requesting the NWC to set up a tripartite Review Committee when the NWC is convened early next year.

Sir, does the Ministry of Labour take into account wages given in terms of bonuses?

Bonus forms part of the wages.

All right, bonus forms part of the wages. Does the Ministry object if a firm gives as much as six months' bonus?

Mr Speaker, Sir, I just said in my answer that NWC has recommended that wage increase must be linked to company and individual performance. Therefore, if a company performs exceptionally well and chooses to give its workers a big bonus, I think the Ministry will not object to it.

Sir, my first question is: will the Minister confirm that the Ministry has no objection to legal firms paying more than six months' bonus to their employees? My second question is: has the implementation of the flexible wage system been affected by the recent ruling of the Industrial Arbitration Court on SIA and its unions, and whether there are any adverse effects on the further implementation of the flexible wage system?

Mr Speaker, Sir, the recent Industrial Arbitration Court's (IAC) decision on the SIA case has given rise to some concern that the IAC might have delinked wage increase from productivity gains. In giving its award, the IAC had reiterated "parties adopting a flexible wage system should bear in mind the NWC's recommendation that built-in wage increases must lag behind productivity growth." This shows that the IAC did not abandon the principle of flexible wage system. In the SIA case, the court was of the view that the annual increment of SIA employees should not be linked to a minimum productivity increase to be achieved by the company because of "exceptional circumstances". Sir, the IAC ruling should be accepted as a specific decision on the appropriate quantum of annual increment for certain employees of SIA. The IAC ruled that the quantum which SIA had already decided on earlier was fair and should not be reduced by subjecting it to a minimum productivity growth. The IAC decision in the SIA case, therefore, cannot be viewed as a deviation from the principle of linking overall wage increase to productivity growth and to the profitability of the company. In my view, the IAC ruling will not impede the implementation of flexible wage system. If it were to do so, the Government will have to re-establish the principle in a more formal and legally binding manner.

asked the Minister for Labour, in view of the importance of the Industrial Arbitration Court as an institution for the maintenance of labour-management relations and industrial peace in Singapore, if he will take steps to ensure that the rulings of the IAC are respected by all parties involved including unions, employers and the government.

Mr Speaker, Sir, the Industrial Arbitration Court is an important component of our industrial relations system. The decisions of the IAC are binding on the parties concerned. This is provided for in section 39 of the Industrial Relations Act. Since the setting up of the IAC in 1960, employers, unions and the Government have always complied with the Court's decisions. Sir, given the high level of tripartite cooperation and the over-riding importance of maintaining industrial harmony, I am confident that the IAC will continue to command respect and that all employers and unions will comply with its rulings.

Sir, before asking my questions, I would like to declare my special interest as Vice President of the SIA Staff Union and as a panel member of the IAC. Sir, would the Minister not agree that recent criticism of an IAC ruling by the Singapore National Employers Federation creates a dangerous precedent whereby unions in future may also be encouraged to criticise IAC rulings should these rulings go against them, and this leads to a long-term erosion of respect for the IAC?

Mr Speaker, Sir, the Singapore National Employers Federation (SNEF) had made a comment on the IAC's decision. I do not see the SNEF's comment as having set a dangerous precedent for employers or unions in responding to future IAC's decisions. Sir, as I see it, SNEF has not urged SIA to disregard the decision or the award made by the IAC. It reiterated that the NWC's recommendation to link wage increase to productivity gain should be supported and that employers and unions should continue to pay attention to this particular recommendation. This recommendation to link wage increase to productivity growth also has the full support of the unions. Sir, the SIA case has demonstrated that our good industrial relations are quite a fragile thing. We have enjoyed harmonious industrial relations for many years and we should take care not to cause any stress or strain. The cooperation and trust which exist now between unions and employers should not be treated lightly. Although I disagree with the view that SNEF had set a dangerous precedent by commenting on the Industrial Arbitration Court's decision, I would urge all employers and unions to abide by the spirit of the Industrial Relations Act and to refrain from unnecessary comments which may result in an atmosphere of mistrust or, worse still, cause damage to the climate of industrial harmony.

Sir, does the Minister not agree that the SNEF's statement went beyond expressing a concern or merely criticising the appropriateness of the IAC award, but tantamount to a disrespect and rebuke of the Court, and would the Minister censure SNEF for making such remarks?

Mr Speaker, Sir, let me reiterate that despite its public comment, despite its unhappiness or concern with the decision of the IAC, SNEF has not at any point challenged the decision of the IAC. It had merely urged employers and unions to view the decisions as "decisions specific to the complex issue in the dispute between two parties, namely, SIA and its unions." And it urged all parties not to quote this award as a precedent. Sir, under the circumstances, SNEF's comment cannot be said to be disrespectful to the IAC, nor can it be said to be in contempt of the IAC. The Attorney-General has also advised my Ministry that the statement issued by SNEF does not amount to contempt of the IAC, nor did it violate the Industrial Relations Act. Therefore, the Member's call to censure SNEF is unnecessary and uncalled for.

Sir, is there any formal Court of Appeal for any party which is dissatisfied with a ruling of the IAC besides making public statements in the press?

Mr Speaker, Sir, as I understand it, the Industrial Arbitration Court is the highest authority on matters of industrial disputes. And unless there are points of law that need to be raised, there is no other higher Court of Appeal.

asked the Minister for Labour if he will consider reducing the Central Provident Fund contribution rates for part-time workers, particularly students who are not yet ready for full-time employment, so that take-home pay of part-time workers will be more attractive.

Mr Speaker, Sir, my Ministry is against reducing CPF contribution rates for part-time workers. Under the CPF system, the employee's contribution to his CPF savings is proportional to his earnings. Currently, workers earning less than $200 per month are exempted from contributing to CPF. Only their employers are required to contribute 18% on their behalf. For those earning between $200 and $363, they contribute from 7% to 22% over and above their employer's 18% contribution. Only those earning more than $363 are required to contribute a flat rate of 22%. Whether a worker earns the amount working full-time or part-time does not affect how much he should put aside. The CPF is thus neutral in its treatment of both full-time and part-time workers. This is the right policy. Part-time workers need to save for retirement and Medisave as much as full-time workers need to do. The CPF scheme, as presently structured, helps them to do so. Sir, to lower the CPF rate for part-timers would create anomalies. A person working part-time but earning more may end up paying less CPF than another person working full-time but earning less. This could encourage employers to break up full-time jobs into part-time jobs and may even give rise to collusion between employers and employees to declare full-time workers as part-timers. Sir, there is also no need for a special lower CPF rate for students who are not yet ready for full-time employment. The graduated scale of CPF contribution already ensures that part-time workers with low incomes take home a larger portion of their salaries. About 3,000 students work part-time, small compared to the 46,000 part-timers in Singapore. Requiring students to contribute to CPF also helps to inculcate the habit of saving from young. Nevertheless, I would like to add that the CPF Board does exempt students working during school vacations from having to contribute to CPF.

Sir, will the Minister consider revising upwards the $200 limit since it was set a long time ago?

Mr Speaker, Sir, the main reason to revise the floor wage requiring CPF contribution by the employee is that such workers are experiencing difficulties in making ends meet and you want to increase their take-home pay by setting aside less money in the CPF. The situation may not be as bad as it appears, because employees in this lower income group, those earning $200 and below, are mainly young people and the majority of them are still single. Such low wages in many cases are transitionary. It has been estimated that only about 2,000-3,000, ie, about 8% of those earning between $200 and $400, are sole breadwinners of their families. Therefore, if you raise this minimum wage, you are not going to benefit a great number of people. On the other hand, even those who are earning a low income need to be encouraged to save some of their income for their future retirement needs. I think it would be contrary to this basic and important principle of CPF to exempt even a small number of people from having to contribute to their old age requirement.

Is the Minister happy with the number of part-timers presently? And does the Minister want to encourage more people to take up part-time jobs, in addition to their present jobs?

Mr Speaker, Sir, during this year's debate in the Committee of Supply, I did explain that my Ministry is in favour of encouraging more part-time employment in Singapore. But this must be done in a proper manner without jeopardising the principle of CPF, which is that all working Singaporeans should set aside a certain portion of their income to meet their old age retirement needs.

Sir, the Minister has been explaining that the lower income earners would not benefit, but we are talking about encouraging more to take up second jobs, like doing week-end jobs or night work for several nights a week. Because of the high CPF, the take-home pay is low, and that prevents many from stepping forward. It is granted that they must have enough CPF for old age. If they do have enough contribution, could we not encourage them with a lower CPF contribution?

Mr Speaker, Sir, the Member says he is concerned with those who are taking on a second job as a part-time work. But he has to bear in mind that if they are taking on part-time employment to supplement their income, then this necessity to lower CPF to increase their take-home pay becomes even less relevant because they already have a principal source of income.

Sir, will the Minister say that there is a general perception in the Singapore public that CPF contributions form part of the wages of employees and most employees are in fact quite comfortable with having more money in the CPF?

Mr Speaker, Sir, it is correct that Singaporeans do consider their CPF contribution as part of their wages, including the employer's contribution to the CPF. The fact that most CPF members are using their CPF saving to meet their housing cost, I think, gives concrete expression to this acceptance that CPF is part of their income.

Sir, in addition to those who want second jobs, we have a big pool of housewives. And with the foreign maid levy so high, it is not enough for them if you deduct such a big amount into the CPF. So it is the take-home pay that we are talking about, not just the people who are not earning enough. They would not come out to work because they are not taking home an attractive sum. So we are not encouraging people to take up part-time work.

What is your question, Mr Chia?

My question is: why do we not reduce the CPF rate for this group of people so as to attract them to work?

Sir, the ability to attract more people to join the part-time work force is not just the CPF contribution rate alone. There are many other factors such as the terms and condition of employment for part-time workers, the kind of benefits offered by the employers to part-time workers, and also the scheduling of the part-time work for the convenience, in particular, of the housewives. So I disagree with the Member in his viewpoint that lowering the CPF contribution rate for part-time workers will make a significant difference.

asked the Minister for Finance if he will consider giving equal medical benefits to the spouses and families of all female civil servants as presently accorded to male civil servants.

Mr Speaker, Sir, the question of extending medical benefits to dependants of women officers has been raised in this House since 1976. I would like to reiterate the principle that medical benefits are granted to dependants of main breadwinners. Traditionally, these are men. However, women officers who are divorced, widowed or granted a decree of judicial separation are granted dependant benefits also. Similarly, such benefits are also granted to dependants of women whose husbands are too ill to work. As I have said earlier this year in response to a similar question from the MP for Yuhua, medical benefits is one aspect which will be considered when we review the whole remuneration package of the civil service.

Sir, I have the following suggestions for the Minister to reconsider his decision: (1) The principle of equal pay for equal work has been in force in the civil service since 1962, and the pay consists of salary or wage and non-wage benefits, which include medical benefits. (2) Better medical benefits, ie, Class A or B1, are granted to civil servants in Divisions I and II as compared to Divisions III and IV. In 1991, females formed 52.3% of the civil service as compared to males who comprised 47.7%. Also, on the whole, the female civil servant is more highly qualified than the male civil servant as the following statistics will show.

Order. Dr Soin, are you making a speech?

No, Sir. I am pointing out that in Divisions I and II, 13.8% are females, and 21.6% are males.

Dr Soin, could you ask your supplementary questions?

Yes, Sir. In the civil service, family welfarism will be promoted if the medical benefits are hitched on to the women's salary rather than the men's salary. One more point why the Minister should re-consider his decision is that women are encouraged to ---

Order. Question time is not the time to make points and speeches. Could you ask your questions?

All right. Since women are being encouraged to marry down, then what the Minister has said about men being the main breadwinner is not necessarily true.

Mr Speaker, Sir, I am not disputing much of what Dr Soin has said. I am merely stating that the existing package of civil service remuneration contains this particular requirement. I have also said that the issue of civil service remuneration is under review, and the question of medical benefits is one of the factors under consideration.

asked the Minister for Finance whether he will introduce an owner-occupation preferential rate for property tax for commercial and industrial properties.

Mr Speaker, Sir, there is no economic justification to have a concessionary property tax rate for owner-occupied industrial and commercial properties. To do so would be to discriminate against businesses that operate from rented premises. It would distort the businessmen's choice towards buying as against renting properties. In the case of residential properties, the concessionary tax rate for owner-occupation is given to encourage home ownership.

Sir, does the Minister also want to encourage property ownership with its HDB shop sales scheme?

I have said that the concessionary rate for home- ownership is introduced because widespread home-ownership is clearly desirable for social purposes, and a concessionary rate for other than private home-ownership will have very little economic justification.

Sir, will the Minister consider a lower property tax rate for industrial properties in view of the high rental or high land cost here in Singapore which is eroding the competitiveness for manufacturers?

During the recession in 1985/86, we did reduce the property tax rate from 23% to 12%. Subsequently, with the recovery of the economy, it has been raised back, not to 23%, but to 16%. So a reduced rate of property tax has in fact been implicitly introduced. I do not think that at this stage we want to make further concessions unless there is substantial justification.

Does the Minister know that the annual value has increased manifold since 1986?

Yes, I do, because annual values are revised periodically and they of course cover a wide range of properties. Those which have been rising quite substantially are those which have not been revised for a long time. So some of the quantum jumps may look big, but they are being merely brought up to current market levels.

The Minister mentioned about the recession, but he is fully aware that the recent economic survey showed that the manufacturing sector did badly this year and it is hardly recovering. It is expecting a 1% growth this year. So will the Minister consider giving manufacturers a relief at this time with a lower property tax rate for industrial properties?

I am prepared to consider anything. However, I think the third-quarter results are beginning to look somewhat better. The prognosis is that it should be better in the final quarter and, hopefully, even better next year. Of course, if the situation should deteriorate substantially, anything is possible.

Sir, whilst the Government is encouraging individuals to own properties for social good, does not the Government also want to encourage Singaporeans to own their own commercial properties?

Of course, we do, but not necessarily with incentives. Each person should consider how he should deploy his capital. He may decide that it is more profitable for him to own shares. Why should we dictate or try to influence him in his decision-making?

asked the Minister for Finance what was the total amount of duty/tax collected on petrol and petroleum products in 1990, 1991 and up to the latest convenient month in 1992.

Mr Speaker, Sir, the total amount of duty collected on petrol and petroleum products was $499.5 million in 1990, $531.3 million in 1991, and $417.7 million from January to September 1992.

asked the Minister for Finance whether he will consider reviewing the quantum of the allowance for pensioners.

Mr Speaker, Sir, the issue has been raised by other Members in the past. I have explained that the Singapore Allowance was revised in 1980, 1982 and 1986. The Ministry of Finance reviews the Singapore Allowance periodically and if there is justification, a revision will indeed be made.

asked the Minister for Community Development what plans his Ministry has to upgrade some of the existing sports facilities.

Sir, under the Singapore Sports Council's third Five-Year Cyclical Maintenance/Upgrading Plan which stretches from 1989 to 1993, $15.2 million has been budgeted for the maintenance and upgrading of sports facilities. This programme includes the upgrading of running tracks in seven stadia from bitumen to synthetic material, upgrading of 10 swimming complexes and the replacement of flooring of three sports halls. We have upgraded the grandstand pavilion of two stadia, and improvement works will begin on the Jalan Besar Stadium early next year. On top of this regular maintenance and upgrading programme, the Singapore Sports Council will also be upgrading the National Stadium and six existing sports facilities in preparation for the SEA Games in June 1993.

asked the Minister for Community Development if he will consider setting up a crisis centre for the aged to help those who are abandoned by their children or who find it difficult to live with their children.

Sir, there is no need to set up a special crisis centre for the aged to help those who are abandoned by their children or who find it difficult to live with their children. Besides my Ministry, there are a number of Voluntary Welfare Organisations (VWOs) which provide advice, assistance and counselling for the family and the elderly. Individuals and families who face problems and social difficulties can contact my Ministry. We have an Information and Referral Service which provides direct assistance or referral to specialised agencies which can provide help. In addition, the VWOs manage four hotlines and 18 social service and counselling centres. They act as focal points for those in crisis or in need of immediate assistance. Two of the four hotlines are specifically designed for the elderly. These are the hotlines managed by the Singapore Action Group of Elders (SAGE) and the Bukit Ho Swee Social Service Centre. The overwhelming majority of Singaporeans still value and do take care of their elderly parents and grandparents. There have not been many cases of ill-treatment, abandonment of or conflict with elderly members within the family. Over the last three years, my Ministry received about 45 reports per year of elderly persons having difficulties with their families. The Government has always emphasised the important role of the family in caring for the elderly. We have held public education and awareness programmes over the years. These programmes, among other things, help to foster respect and care for the elderly. My Ministry, together with the National Council of Social Service, community and civic organisations, will continue its efforts to strengthen and sustain its public education and awareness programmes. 1.30 pm

Order. End of Question Time. [Pursuant to Standing Order No. 21(3), Questions Nos. 19, 21-26, and 28 & 29 have been postponed to the next available sitting of Parliament. Written answers to Questions Nos. 20 and 27 on the Order Paper are reproduced in the section, 'Oral Answers to Questions Not Reached' (Cols. 337 - 338).]

"to repeal and re-enact with amendments the Land Titles Act (Chapter 157 of the 1985 Revised Edition) which makes provision for the registration of titles to land and to make consequential amendments to the Conveyancing and Law of Property Act (Chapter 61 of the 1985 Revised Edition), the State Lands Act (Chapter 314 of the 1985 Revised Edition) and the Registration of Deeds Act (Chapter 269 of the 1989 Revised Edition)", presented by the Minister for Law (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Road Traffic Act (Chapter 276 of the 1985 Revised Edition)", presented by the Minister for Home Affairs (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the People's Association Act (Chapter 227 of the 1985 Revised Edition)", presented by the Minister for Foreign Affairs (Mr Wong Kan Seng); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to establish a medical endowment scheme and for matters connected therewith", presented by the Minister for Health (Mr Yeo Cheow Tong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to repeal and re-enact with amendments the Children and Young Persons Act (Chapter 38 of the 1985 Revised Edition)", presented by the Minister for Community Development (Mr Yeo Cheow Tong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Hindu Endowments Act (Chapter 364 of the 1985 Revised Edition)", presented by Mr Yeo Cheow Tong; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

Order for Second Reading read.

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill seeks to amend the Bills of Exchange Act to give legal status to the words "account payee" or "a/c payee" written on the face of a crossed cheque. This proposal arose from a recent Court ruling that an "account payee only" crossing on a cheque does not, in law, prevent transferability of that cheque. The Court also ruled that a "not negotiable" crossing would not preclude such a crossed cheque from being transferred. As a result, there was a surge in the number of cheques being crossed "non-transferable", as cheque issuers were concerned that their cheques would otherwise not be paid to the named payee. Under the present law, a "non-transferable" cheque requires that the paying bank to ascertain from the collecting bank that the proceeds of the cheque have been credited to the account of the named payee. To minimise the risk to the paying bank for wrongful payment, the collecting bank is required to manually indicate on each non-transferable cheque that the funds have been credited to the named payee's account before the cheque is presented for clearing with the paying bank. As manual clearing is time-consuming and labour-intensive, the Association of Banks in Singapore decided to impose a handling fee for clearing such cheques. The public, however, misunderstood the rationale and expressed dissatisfaction with the surcharge. To resolve the issue, amendments are proposed to the Bills of Exchange Act to give legal status to the words "account payee" or "a/c payee" written on the face of a crossed cheque. Such a cheque will be non-transferable and can only be paid into the account of the named payee regardless of any purported endorsement. A collecting bank will be protected from liability for crediting the proceeds of such a cheque to the wrong account, if it can demonstrate that it has acted in good faith and without negligence. These amendments are contained in clauses 4, 5 and 6 of the Bill. They are similar to amendments in the UK Cheques Act 1992 which were first proposed in a UK White Paper on Banking Services issued in March 1990. I now move on to the other amendments of the Bill. Clauses 2 and 3 seek to amend sections 57(b) and 72(d) of the Act to enable the Court to award judgments in foreign currencies in respect of bills of exchange dishonoured abroad. These amendments are of a law reform nature to bring the Bills of Exchange Act, which has not been amended since 1970, up-to-date with developments in the United Kingdom. They are also consistent with our standing as an international financial centre that our courts be allowed to award, where appropriate, judgments in foreign currencies on dishonour of bills. Clauses 7 and 8 of the Bill seek to make related amendments of a similar nature to the Arbitration (International Investment Disputes) Act and the Reciprocal Enforcement of Foreign Judgments Act to enable various awards and judgments given in a foreign currency, and registrable for enforcement in Singapore, to be registered in the foreign currency instead of Singapore dollars. 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. - [Dr Richard Hu Tsu Tau]. Bill considered in Committee; reported without amendment; read a Third time and passed.

Resolved, "That Parliament do now adjourn to a date to be fixed." -[Mr Wong Kan Seng]. Adjourned accordingly at Twenty Minutes to Two o'clock pm to a date to be fixed. Appendix I

asked the Minister for National Development if he will provide details of the Housing and Development Board's programme to develop new sale flats in the Marine Parade GRC.

Over the next five years, HDB plans to complete construction of 326 flats for sale in Marine Parade GRC. Work has started on 50 4-room Model A flats, and 76 5-room Improved flats, at Circuit Road. These flats were put up for booking in the second quarter of 1992, and will be completed by end 1994. Work on another 200 flats at Pipit Road is expected to commence in early 1995, and be completed in late 1997.

asked the Minister for Labour whether he will reduce the foreign worker levy in view of the weak economic condition currently prevailing in Singapore.

The foreign worker levy is a pricing mechanism to regulate the demand for foreign workers. In the past 12 months, the demand for foreign workers is still strong. The number has increased by about 10% despite slower economic growth. There is therefore no plan to reduce the foreign worker levy.

asked the Minister for Trade and Industry whether the Public Utilities Board will allow payment of its bills through the post offices.

PUB has been studying ways to improve its service to customers. In this respect, PUB is actively promoting payment of bills by GIRO which is cashless, safe and convenient. Customers on GIRO do not have to worry about forgetting to pay their bills. They also enjoy a lower deposit - one month's bill, as against 1 1/2 months' bill if they use other modes of payment. PUB recognises that a small percentage of customers are unable to join GIRO for various reasons and will have to continue making payments over the counter. These customers are presently making payments at the PUB and 19 bank collection centres. From 1st February 1993, PUB bills can be paid at the 66 post offices which are located island-wide. This will make it very convenient for customers who are paying their bills over the counter.

asked the Minister for Home Affairs if he will give the number of children below the age of eight years who were killed in 1991 while travelling in (i) public buses and (ii) private motor cars.

In 1991, there were no children below 8 years of age who were killed in such situations. However, 52 children in this age group were injured, 42 while travelling in cars and 10 in buses.