Hansard, 2008-01-22

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: Name From (2008) To (2008) Mr Arthur Fong 22 Jan 24 Jan Ms Eunice Elizabeth Olsen 22 Jan 22 Jan

ABDULLAH TARMUGI Speaker Parliament of Singapore

Order. On behalf of hon. Members, I welcome the delegation from the Indian Parliament led by the Hon. Shri Bijoy Krishna Handique, Minister of State, Ministry of Chemicals and Fertilisers and

Ministry of Parliamentary Affairs, who are present in our Gallery today. [Applause.]

1. Mdm Halimah Yacob asked the Minister for Community Development, Youth and Sports whether his Ministry will review the current stringent eligibility criteria for public assistance so that more needy Singaporeans who need long-term financial assistance will benefit from the Public Assistance Scheme.

2. Mr Seah Kian Peng asked the Minister for Community Development, Youth and Sports in light of the rising food prices amongst other things (a) what is the Government doing to help those on the Public Assistance (PA) Scheme cope; (b) whether the PA Scheme takes into consideration the rising Consumer Price Index which is expected to escalate in the coming year and taking last year's inflation into account, the $290 payout should go up to at least $313; and (c) whether the Government has done any study on the spending habits of this group to determine how much they spend on food as a proportion of the PA received.

Mr Speaker, Sir, with your permission, I will take Question Nos. 1 and 2 together as they both relate to public assistance.

Yes.

In early December last year, I stated publicly that the Government is monitoring the impact of price rises, especially on those

Yesterday, the Minister for Finance reaffirmed both what we are doing and also our commitment to do more for those who need most help and we also emphasised that we would do so in a targeted and efficient manner. I am not yet ready to make any substantive announcements today. So I want to set the expectations right. Nevertheless, I think it would be useful for us to review what we are currently doing, the thinking and the philosophy behind it. I do not expect to have a full debate today, but I am sure we can have a robust and useful discussion in the weeks that follow and especially during the Budget debate.

The Public Assistance (PA) allowance is just one component of the overall safety net for persons who are unable to work, and for those who do not have family support.

Apart from the cash component, PA recipients also receive free medical care through Medifund as well as the Primary Care Partnership Scheme, which allows them to see private practitioners in the neighbourhood. They stay in subsidised rental flats. They benefit from rental, service and conservancy and utilities rebates. And Members would also remember that they received disproportionately more of the growth dividends under the Progress Package as well as the GST credits from the GST Offset Package.

PA recipients also receive extensive community support. For example, Dr Lily Neo, after our most interesting and robust discussion at last year's COS debate, now runs a Meals and Groceries Programme in her constituency which provides an additional $30 a month through meal and groceries vouchers for needy PA recipients in the Kim Seng-Kreta Ayer division. In addition, community

Let me now touch on the impact of rising prices. My Ministry closely monitors the impact of the changes in the cost of living on our PA recipients, but we do not peg the PA allowance to the CPI per se. Instead, we monitor the cost of items which the typical PA recipient will need. A review is currently on-going and is likely to be completed this year.

At the same time, we also recognise that some PA recipients may have additional needs. Since 2005, MCYS has empowered the Citizens Consultative Committees (CCCs) to play a larger role in helping the PA recipients through the CCC ComCare Funds. From January to September last year, the CCCs helped a total of 6,514 cases through this Fund, and spent slightly more than $1.1 million doing so. On average, each case that comes for help received about $150 per month. Adequate resources have been set aside for the CCCs to provide such assistance, and I can add that most grassroots organisations have not fully utilised the ComCare budget that has been set aside for them.

We also recognise that it is important to be flexible in applying help to the needy. The CDCs, who are our local implementors of the PA scheme, have the flexibility to extend help to needy families that may not strictly meet the PA criteria due to special and individual circumstances. The CDCs can act on a case-by-case basis. And they would take into consideration the family's circumstances,

Members may also recall that my Ministry has recently launched the ComCare Call on 9th January 2008. This is a 24/7 telephone call service to refer needy Singaporeans to the agencies that can help them. The People's Association is also stepping up its efforts to improve the capacity of the grassroots network to identify and help needy families. Through the ComCare Local Networks, the CDCs will be working with the grassroots and the voluntary welfare organisations in the area in order to improve awareness and enhance cooperation on the ground.

In summary, the Public Assistance scheme is part of a broader system and is one that depends upon the community's many-helping-hands to ensure that no Singaporean goes hungry.

Singaporeans who are most needy, and that we would provide more assistance. organisations such as the Bo Tien Welfare Services and the Thye Hua Kwan provide free meals and food rations to PA recipients. The Shaw Foundation, the Hong Leong Foundation and the Singapore Buddhist Lodge, for example, also give out annual hongbaos to PA recipients regardless of race or religion. PA recipients may also receive home help or befriending services provided by the voluntary welfare organisations. such as the size of the family or the special issues confronting the family. And to ensure that deserving cases do not slip through the net, my Ministry has also set up a Review Committee for Financial Assistance which would look into appeals. The Committee will be chaired by my Minister of State, Mrs Yu-Foo Yee Shoon, and it will include the five Mayors. Mdm Halimah, Mr Sin Boon Ann and Mr K Shanmugam are also on this Review Committee. Financial assistance cases can be complex, and this Committee will enhance our system's flexibility in order to help those who are genuinely needy even though they may not qualify on strict criteria. While we exercise flexibility in the evaluation process, I would also tell Members that we do regularly review the qualifying criteria to make sure that they remain appropriate and relevant.

I would like to thank the Minister for the explanation. Indeed, I think there are many schemes that are good such as the HOPE scheme which has helped 500 families so far. I would like to ask the Minister a follow-up question - whether the Ministry would look at reviewing existing guidelines in the provision of help

scheme in two areas. The first area is whether the review could be done with regard to the salary capping which currently most of the financial schemes are pegged at $1,500. There are a lot of families now earning $1,600 or $1,700 who need help but they are not getting help because of this income limit. The second area I would like to ask the Minister is whether the Ministry will also provide greater flexibility because the current PA assistance is very stringent - it is long term. The other schemes are short term. But there are people who need something in between. Will the Ministry consider reviewing guidelines with regard to helping people who need in-between assistance, ie, medium-term assistance, and not short term or very long term?

Her first supplementary question is really the question of the next parliamentary question. Maybe with your permission, I can address that question*, then we can take any other supplementary that may arise. This is with respect to the $1,500 household income which is used as our threshold.

*Question No. 3 reads as follows:- Mr Liang Eng Hwa: To ask the Minister for Community Development, Youth and Sports in view of the rising prices which have impacted the purchasing power of Singaporeans especially the lower income group, whether the Ministry will consider raising the $1,500 monthly household income criterion for the various financial assistance schemes offered by the Government.

As I said earlier, the Government seeks to mitigate the impact of rising prices on low-income families by providing healthcare, housing and education subsidies. In addition, there are also rebates for utilities, service and conservancy charges. We also subsidise many services for the elderly and the disabled. And many of these subsidies are available to those households whose incomes exceed $1,500. So the point I am trying to make is that not all assistance schemes are pegged to that $1,500 threshold. In addition, the Workfare Income Supplement is also available to all workers aged 35 years and above, and whose individual monthly income does not exceed $1,500. So, obviously, if there is more than one wage earner in the household, this

The ComCare Fund programmes are available to low-income needy families who are facing financial difficulties. It is no secret that we target the bottom 20% of households to ensure that, in the words of the Minister for Finance, "it is targeted and efficient assistance that is being provided." The latest available statistics as at the end of 2006 show that the household income of the bottom 20th percent was still about $1,500 per month. But a review of the income criterion is currently on-going and will be supplemented by the latest figures once that is available, and once that is available, I can then make a decision on whether to shift that threshold.

But I should also add that we do not just look at the household income when helping needy families. The CDC case officers would consider the specific circumstances confronting that recipient or that needy family before deciding on how best to help them. So this really relates to her second question on flexibility. I think she will understand from my earlier answer that I have provided for flexibility at multiple points of the delivery chain, at the point of evaluation on the part of the CDC, at the level of the Citizens Consultative Committee and the grassroots, because they can provide additional funds and also with the establishment of the Review Committee chaired by MOS Yu-Foo Yee Shoon.

She is referring to another category of people who may be at the borderline who may not yet strictly qualify for longer term public assistance but, at the same time, need more than short-term interim assistance. I have taken this suggestion seriously and we are currently considering whether we may need to have a slightly longer term interim assistance scheme to help families tide over these situations

household will still qualify for assistance through Workfare. where they may actually be unable to work or be bereft of support for several months at a time. As I said earlier, however, I have not yet arrived at the final formulation and will announce that in due time.

Two supplementary questions. Given that the PA recipients are those that for various reasons are unable to work or cannot work, I would like to ask the Minister whether this review of the PA allowances can be completed earlier. He mentioned that this is due by end of the year. Eleven months from now is rather long, given that some estimates of the CPI for this year could be as high as 6%. My second question is whether the Minister is prepared to consider, going forward, to institute a systemic review of the PA allowances on a regular basis, perhaps devise a formula that takes into account the CPI which I think is

a good proxy, and peg the changes to the PA allowances to it accordingly.

I thank the Member for his exhortation for me to complete this review more quickly, and I will do so as quickly as practical. As to his second request, that we conduct regular reviews, we do conduct regular reviews. In fact, Members will recall that we just changed the public assistance rate last year. Now, we have not even reached the Budget debate and we are again talking about whether we need to adjust it. I said just now, and I think it may bear some reiteration, that I am not pegging the public assistance allowance strictly to the CPI. But let me tell Members what I actually do. I told my staff to first go and consult the nutrition department of the Ministry of Health and work out what people need in order to have a healthy meal, not just a subsistence meal but what they need in order to stay healthy. I then made my

At the end of the day, there are four things which we want to deliver: food on the table, a roof over our heads, healthcare when we need it, and education for our children - four essential pillars. I think we can argue at the edges about what other things we want to add in the package, but consider these four essential pillars.

The next question then is: how are these four essential pillars being provided?

Food will be provided for by a combination of the allowance which we provide, and I can tell you that, as of the middle of December last year, that basket of uncooked ingredients bought from NTUC Fairprice which they put in front of me, costs $95 a month. So, any sum of money, cash which you give in excess of $95, is enough to buy the raw ingredients. Obviously, that is just the raw ingredients.

You then need somewhere to live, cook and the cost of the energy needed to do so. Members would be familiar with the rental rates in a subsidised HDB flat which these recipients would obviously be staying in, plus the cost of utilities, which of course, we know, has gone up because of oil prices. Nevertheless, that sum which we currently provide in terms of the cash allowance is enough for food and a roof over their heads. There are obviously other needs, eg, clothes, they need to move around, and so on and so

For healthcare, the equation is even simpler, because we will cover all their costs, including their transport cost to get to a clinic or hospital.

So, there is food, roof and there is healthcare.

For education, we have a slew of schemes which will subsidise and provide additional subsidies for transport, school textbooks, examination fees and all the other needs which their children need. In fact, for those on public assistance, the net investment that they personally need to put in for the educational needs of their children is zero because it is not just what MCYS does but what MOE does. And you know that MOE has a very generous financial assistance package.

So, the point I am making now is that, yes, we can have an intellectual debate on the numbers. Every year, whoever stands in my place, will have to go through this exercise. But the more

So I stand here saying that if anybody needs help and if you notice any person or any family which needs help, please raise your hand, call or email or bring them to our attention, because there is no lack of resources in Singapore. It is a matter of getting the resources to the people and yet doing it in such a way that we do not undermine the fundamental basis of our society, that in Singapore there is no free lunch, that we are all primarily responsible for ourselves and our families. But, if through bad luck or bad decisions, we hit hard times, the rest of the community will help us out, but without losing our commitment to self-responsibility and the necessity for hard work.

staff go to the market - actually, they spent most of their time, I think, in NTUC Fairprice - and buy those items which the Ministry of Health has advised are necessary for healthy nutrition. They literally filled that basket and I made them put it in front of me on my desk so that I could see that this is the real thing. That is what I am really pegging at - real food, food needed to keep body and soul together and, more importantly, to maintain health. forth. The cash component is not a generous amount. It leaves very little margin for mismanagement or waste. I would also say that I am not expecting all our public assistance recipients to live purely on their cash allowance. That is why I went to some lengths just now to explain what the additional sources of funds are. And the reality on the ground, if you actually visit your public assistance recipients in your own constituencies, is that you will see that almost all of them are living on more than what the Government gives in the cash component - a combination of ang pows, additional food, hampers and help from the generosity of the local community and Singaporeans. This means that I can honestly stand here and say there is no reason for any Singaporean to go hungry no matter how needy, poor or unfortunate his circumstances are. important thing is to look at the lived experience. And I feel very confident to say that if, by bad luck, you are going to be poor or your family is going to face unfortunate circumstances, I think Singapore is actually a good place to be in because we will provide you with a good roof over your head, we will make sure you do not starve, look after you when you are sick, and your children will be able to escape the potential poverty trap which, unfortunately, captures so many people in other parts of the world.

Sir, I would like to ask the Minister, given that our economy is now a lot more globally orientated and that external shocks impact us beyond our control, will the Ministry now adopt a more pre-emptive as well as a benefit-of-the-doubt approach in granting short-term social or bridging assistance so that Singaporeans faced with immediate or unforeseen difficulties financially will not sink even deeper into a financial crisis and, therefore, create other sorts of problems, such as having to sell their flats and so on?

I have a very short and simple answer to that question - yes.

4. Mr Siew Kum Hong asked the Minister for Finance (a) what was the actual amount of additional GST revenues collected from July to December 2007, resulting from the increase in GST rate from 5% to 7% from 1st July 2007; and (b) what was the total amount of GST credits paid out in 2007.

Mr Speaker, Sir, the amount of additional GST revenue collected from July to December 2007 resulting from the increase in GST rate from 5% to 7% was about $990 million, of which roughly $540 million can be attributed to expenditure by local consumers. The remainder was attributable to spending by foreigners. The additional GST revenue was higher than expected, as consumer spending itself exceeded expectations.

The Government paid out about $630 million to Singaporeans in GST credits over the same period, including the bonus credits that were given to senior citizens.

These figures do not include the various other components of the GST offset package. Overall, besides the overall GST credits, the Government has budgeted to hand out $1.17 billion in total over FY2007 to assist Singaporeans in adjusting to the GST increase.

Sir, I have two supplementary questions. It seems that over 97% of Singaporeans living in one- to three-room HDB flats received GST credits or Senior Citizens' Bonus. I would like to ask the Minister what were the reasons for 2% to 3% of these Singaporeans not receiving these credits and what more could have been done to help them to sign up for them. My second question, Sir, is what will happen to the budgeted GST credits

that were not paid out? Will they be applied towards other purposes to mitigate the impact of the GST increase?

Mr Siew Kum Hong is quite right that about 3% or so of Singaporeans living in one- to three-room flats did not sign up for their credits. Just to put it in perspective - in terms of the total number of people who did not sign up for their credits, which is about almost 80,000 Singaporeans, over half of them were Singaporeans living in private properties. Of those who were not living in private property, we also notice that the non-sign up rate is higher amongst those who are of higher incomes. But there was a certain number in the one to three-room flats who did not sign up. Have we tried hard to reach out to them? Yes, we have. From day one, all the way till December, we had repeated publicity as well as outreach efforts on the ground to reach out to these individuals. This has meant not just the publicity through the media, but posters on lift lobbies, customised flyers that went out to each and every household - customised to that household given their housing type and the profile of people whom we think are in the household - a repeat of the flyers in November last year and, finally, grassroots leaders walking the ground, going to each and every house where they were not signing up. Grassroots leaders tried to reach out to 30,000 individuals in the latter months of last year. So not just the regular mechanisms through the media, websites, etc, but customised posters and, finally, human outreach. We spared no efforts in reaching out to Singaporeans to encourage them to sign up. Some were not contactable, not living at the place where their address is officially recorded. But we tried out best.

On Mr Siew's second question, these are revenues that come back into the Government Budget and are spent on

everything else we are spending on, including the very substantial amount of monies being spent on Workfare, on increased healthcare needs and the other areas which Minister Vivian Balakrishnan has just talked about, other areas of targeted assistance for the poor.

5. Ms Denise Phua Lay Peng asked the Minister for Finance in light of the recent massive data security breach in Britain, what specific steps is the Government taking to protect the confidentiality of client data in each Ministry.

Sir, I would like to assure Ms Denise Phua that the Government takes the protection of personal data very seriously, and has put in place policies and systems to safeguard the confidentiality of personal data.

The Government has a robust Public Sector Data Protection Policy, which was adapted from the National Internet Advisory Committee's Private Sector Model Data Protection Code. Apart from the usual need to seek the express consent of the individuals before disclosing any personal data to a third party, the handling of personal data is subject to stringent protection.

In the recent case in the UK that Ms Denise Phua referred to, a large amount of personal data was sent from one Government department to another in the form of two non-encrypted discs. Our Government agencies transfer most data electronically through secured and encrypted electronic networks. In the few situations where data cannot be transferred electronically, we have

Government agencies also hold regular IT security awareness programmes to remind public officers that IT security is a personal responsibility of every officer. Further, the Government conducts audit checks to ensure agencies comply with the prescribed security policies and have robust systems in place. We will continue to review our security policies and procedures to keep pace with technological advances.

required our public sector agencies to put in place systems and technological and physical measures to safeguard and protect the data. For example, only registered personnel are authorised to collect and deliver the media and they are locked in secured bags during deliveries. Personal data contained in media must also be electronically encrypted such that, should the media fall into the wrong hands, the contents would not be disclosed.

I thank the MOS for the assurance. I just want to ask MOS: when were the last audits conducted on the IT best practices she mentioned, and what do they reveal?

Sir, these audits are conducted on a frequent and regular basis, so it is not one distinct exercise. Both the systems as well as the platforms are all reviewed on an on-going basis. The results are actually in a way reflected in the Auditor-General's Report each year as well.

6. Mdm Cynthia Phua asked the Minister for National Development (a) how long does it take for newly married couples to get their new flats; (b)

what is the waiting time for these newly married couples to apply for flats in the new estates in Punggol and Sengkang; (c) what is the waiting time if they were to apply for a three-room interim rental flat; and (d) what are the other alternatives for these couples.

Under HDB's current Build-To-Order (BTO) system, new housing projects will proceed for construction once a good majority of the units have been sold. Interested buyers can book a new HDB flat when a project is launched, say, in the new estates in Punggol and Sengkang, and collect the keys when the flats are ready about three years later. This is an improvement over the previous queue-based system (Registration for Flats System) where the length of the queue meant that time between application and collection of keys was as long as 7-8 years at the peak.

Alternatively, flat buyers today can also book a new flat under HDB's Balloting Exercises or Combined Balloting and Walk-in Sales Exercises for unsold flats. The exercises offer new flats that are already under construction or ready for immediate occupation.

First time flat buyers buying a new HDB flat are given priority under HDB's BTO and Balloting exercises. This is in recognition of their more pressing need to set up home and start a family. Their priority was further enhanced in August 2007 to ensure that at least 90% of the flat supply for public applicants is allocated to them. First-Timers and applicants buying a new flat to stay near their parents or married children, what we call the Married Child Priority Scheme (MCPS), are also given higher chances in the ballot vis-a-vis other public applicants. In addition, First-Timers who are unsuccessful for four or more times previously will be given additional chances in the ballot for new flats.

HDB no longer leases out three-room flats for interim rental since the suspension of the Transitional Rental Housing Scheme (TRHS) in January 2002. With the abolition of the previous queue system and reduction in the waiting time for new flats to about three years, there is no longer a need for HDB to provide interim rental flats to young couples. HDB's subletting rules have also been progressively relaxed to make it easier for those who need interim rental housing, to rent a flat or a room from other HDB lessees.

Eligible First-Timers who need housing on a more immediate basis can also buy a resale HDB flat that meets their needs and affordability, with a housing subsidy provided by the Government in the form of a $30,000 or $40,000 CPF Housing Grant. First-Timer households in continuous employment for the last 24 months with an average monthly household income of $4,000 or less, can also apply for the Additional CPF Housing Grant of up to $30,000, when they buy a new or resale HDB flat.

Would the Minister not agree that there is still a need to review the planning parameters by HDB? HDB seems to end up in excesses either way in the property cycle - 10,000 excess flats three years ago and now, 27,000 applicants for 4,764 flats available currently in HDB website. That is 5.6 times over-subscribed.

My second question: will the Minister also consider providing three-year data on the potential supply of flats and its location so that young people who are going to get married are able to plan and be assured of the potential supply of flats? This is similar to private developments because once they apply for planning approval, the data is available in the URA website.

Mr Speaker, I would like to clarify what Mdm Cynthia

With regard to under-supplying, as Mdm Cynthia Phua has suggested by way of referring to the subscription rate, I would just like to clarify that what Mdm Cynthia Phua could have referred to is really a very macro number, 5.6 times. Any one going to the HDB website can actually look at the subscription rate by project. I would like to highlight some of them for the information of the House.

For example, one particular project that is often highlighted by applicants on the slim chances that they get is Telok Blangah Towers, a very popular area in a good location, probably a stone's throw away from Sentosa Cove. For that particular project, where 400 flats are offered for sale, 7,800 applicants applied for it. Very roughly, that is one in 20 chances. If you look at over-subscription

If you look at other projects offered at the same time in October, in Punggol Lodge, a BTO project, for 516 flats, we received 1,600 applications. The chances are one in three. For First-Timers, they almost have a one in two chance of getting a project like this. Similarly, in September, in Sengkang, also a BTO, for 698 flats, 1,300 applications were put in. Again, the chance is one in two. So the chances vary with location. And because we have published such information on the website, I think, for First-Timers who are buying their flat, making their decision, we suggest that they look carefully - looking at the chances, considering their budget, considering the time that they are prepared to spend waiting and make a decision that is appropriate for them.

Having said that, coming back to the point about showing planned numbers. It is really not possible for us to predict demand accurately three years down the road. Let me explain that HDB and the Ministry have actually adjusted our building plans according to what we see as demand. I will just give an example. In 2006, our sales programme has actually sold 5,700 flats for the entire year. For 2007, the sales programme offered 13,000 flats, more than two times of what we have offered in 2006. And in 2008, for this first half, we expect to

Phua has brought up. On the first point about planning parameters, HDB would look at the long-term demand for HDB flats when it comes to planning, building and supply of HDB flats. But I think Members of the House would know that it is difficult to predict with precision what is the actual demand in a three-year timeframe. Mdm Cynthia Phua has rightly pointed out that three years ago, we had excess flats. And now, in some cases, there is over-subscription of our projects. It is not because there are more couples getting married. I think our rate of marriage has not increased dramatically. But I think that there are certain market forces that affect supply and demand of public housing vis-a-vis private housing, for example, that it is not possible to predict with accuracy. It is for this reason that we have also moved into a scheme like a Build-To-Order Scheme where we will construct the flats only after a good proportion of the flats have been confirmed for booking. And that, in a way, avoid situations where we end up with excess flats.rate, that is a huge number - 2,000%. For First-Timers, in that project, we received 5,000 applications. And of that 5,000 applications, 1,000 applications come under the MCPS, in other words, they have parents living in that vicinity. So even if we were to have a project that is totally exclusively allocated to First-Timers with parents in the neighbourhood, we will still have a balloting system because there is just not enough supply for such a unique project in a central location to meet the demand. Does that mean that this is the situation in other projects? The answer is no. offer about 6,000 flats on sale, pegging it at about the same level as 2007. So if we have used 2006 as the planning norm, which was the average that we have seen in the last few years, we would not have adjusted the numbers. So the actual numbers have shown that our building plans have flexibility and where we see there is high subscription rate in certain areas, we would increase the supply of HDB flats.

7. Mdm Cynthia Phua asked the Minister for National Development in light of the recent international concerns over China's food safety standards and AVA's recent rejection of some food products imported from China, whether (i) the food products that we import from China are safe; and (ii) there is a rising trend of rejection rate of food imports from China over the last three years.

Mr Speaker, Sir, AVA has put in place a comprehensive and integrated food safety system to ensure that food imported into Singapore, regardless of its source, is safe for consumption.

Food items that carry a higher risk of contamination are inspected more frequently. For example, all consignments of meat and meat products are subjected to physical inspection. Those from new or problematic sources are systematically sampled to test for foodborne pathogens, residues and contaminants.

Based on AVA's statistics from 2005 to 2007, the average rejection rate of each of the key food items imported from China, such as meat, seafood, vegetables,

In the case of vegetables, fruits and processed foods, the rejection rates had declined over the years. There was, however, an increase in the rejection of meat, seafood and egg products from China in 2007. In particular, there was a sharp spike in the rejection of egg products. This was due to the detection of unapproved Sudan colours in salted and preserved eggs. Consequently, AVA introduced in July 2007, new certification and pre-export testing requirements for the import of salted and preserved eggs. This has effectively brought the problem under control.

Over the years, AVA has been engaging and working closely with counterpart agencies in China to improve the safety of China food imports. This has yielded positive results. For example, AVA's regular feedback to the Chinese authorities has led to improvements in the safety of vegetables imported from China.

Mr Speaker, Sir, as Singapore imports almost all of the food it consumes, ensuring the safety of imported food is of paramount importance. AVA will continue to remain vigilant and will intensify checks and controls where necessary.

fruits and processed food, over the last three years was low. For some items such as seafood, the rejection rate of imports from China in 2007 was several times higher than that of other countries, although it was still within acceptable levels.

Sir, in view of the rising trend of this contaminated food from China, has AVA increased the percentage and range of products for sample audit?

Sir, as mentioned earlier, whenever we have information that there are risks involved, certainly AVA will step up its efforts at

investigating as well as monitoring the sources, especially sources that are identified as higher risk. I assure the Member and Members of the House that AVA is on top of the situation in ensuring that all food supplies to Singapore are safe.

8. Ms Irene Ng Phek Hoong asked the Minister for Transport for an update of the taxi crunch situation, especially in the Central Business District and Orchard Road areas after surcharges and flagdown fares were increased and whether (i) there has been an improvement in the waiting time for commuters to board a taxi in these areas; and (ii) commuters still have to resort to taxi phone booking while waiting in taxi queues.

9. Mr Baey Yam Keng asked the Minister for Transport in view of the recent reports on taxi fare revisions affecting both taxi drivers and passengers (a) how long a transition period is necessary before the Ministry deems it necessary to step in to address the situation; and (b) whether the Ministry will review the policy of deregulated taxi fares.

Sir, with your permission, I would like to take Question Nos. 8 and 9 together as they are related.

Yes.

Let me start by thanking Ms Ng and Mr Baey for asking these questions. It gives us an opportunity to update the House on the impact of the recent taxi fare revision on commuters and on the taxi drivers.

Our preliminary findings show that the new taxi fare structure has been effective in ensuring that demand for taxi services is met. It is now much easier to get a taxi in the city during peak periods. In the four weeks after the fare revision, the waiting times at taxi stands in the evening have improved substantially in the city area, from 5 to 22 minutes on average before the fare revision to 2 to 6 minutes currently. For example, the waiting time at Suntec City, which was among the worst-performing taxi stands, now averages 4 minutes compared to 22 minutes previously. ComfortDelgro's phone-booking cater rate (ie, the success rate for getting a taxi) is now 98% during peak hours, up from 91% previously.

Taxi drivers' earnings have also increased. ComfortDelgro's data from a sample of 5,000 taxis showed that the average daily fare collected by taxi drivers had increased from $307 to $318 in the four weeks after the fare revision. However, we should allow time for demand and supply to stabilise further in the months ahead. The LTA will continue to monitor the situation as both taxi drivers and passengers adjust to the new fares.

Sir, can I ask the Minister whether there has been a spillover in the problem to neighbourhood centres, because taxis are now preferring to go into the city because of the surcharge and they are avoiding far flung areas like the old Choa Chu Kang Road or areas in Tampines which are harder to get to? Can I ask the Minister to monitor this?

Actually, the indications are not so. In fact, the suburbs have no problems. After the fare revision, if we were to take a taxi from the suburbs to the city or the other way round during the peak period, there is now a 35% surcharge on top of the fare. So it

actually balances out quite well. But as I said, these are all preliminary findings. This is just four weeks. Let us give it some time for it to settle down. Let us give three or four months, and we will get a clearer picture going forward.

Sir, I would like to ask the Minister: compared to the previous adjustment of taxi fares, are we seeing a longer period of transition time that passengers and taxi drivers are adjusting to the new fares before the situation stabilises?

My second question: in the review of the national transport policy, would taxi fares be included in this review?

The last time when the taxi companies adjusted the fare, it was not a lot, it was 10 cents. Even then, it took about three to four months, because I asked them this question. I met both the major operators - Comfort is the largest, and SMRT, the second. I asked them how long typically it takes to adjust. They told me that it would take about three to four months. This is about the typical period.

On the second question whether this is part of the land transport review, the answer is yes. This taxi fare revision is part of the whole process of the land transport review. LTA actually works very closely with taxi drivers and taxi associations. Members may recall that only a few months back, there was a litany of complaints about the taxi service. We had complaints that taxi drivers were hiding - the phenomenon of vanishing taxi drivers during certain periods of time. Commuters could not get a cab when they needed it most. Even when they called, they said they could not get through. And when they got through, they were put on hold. We had all sorts of complaints. LTA has been working very closely with the taxi companies and taxi associations to address this. So, this

is actually part of the land transport review process.

10. Ms Denise Phua Lay Peng asked the Minister for Education (a) what are the registration criteria for private schools and special needs education centres; and (b) what can be done by the Ministry to clarify to consumers that registration does not equate to endorsement or recommendation.

Mr Speaker, Sir, private schools in general must be registered with MOE before they are allowed to operate. To do so, they must meet certain basic requirements including building and fire safety standards, and have appropriate facilities and qualified teachers.

As pointed out by Ms Denise Phua, registration by MOE is not tantamount to endorsement, accreditation or recommendation of the school or its programmes by the Ministry. MOE has stated this clearly on its website. MOE's website further advises prospective students to find out more about the private school, the quality of its courses and the terms of the programme before they make a decision.

Special education schools run by voluntary welfare organisations (VWOs) are subject to additional oversight to ensure accountability for the use of public funds as they receive funding from MOE and the National Council of Social Service (NCSS). MOE also provides support to these schools in areas such as curriculum development and teacher training. There are 21 such schools and they are all listed on MOE's website. They publish brochures which provide details of their programmes and fees.

All other private schools offering special education programmes, except these 21 listed on MOE's website, are only subject to the normal basic registration requirements and MOE registration does not equate to nor imply endorsement or recommendation by the Ministry.

Sir, when MOE registers private schools and special needs education centres, the requirements are very basic. But when these centres start to advertise that they are MOE registered centres, then it gives the public the perception that they are endorsed by MOE and the quality is assured, because of the positive MOE branding. My question to the Minister of State is: if MOE is not willing to do more due diligence on these centres, may I ask MOE to consider not permitting these centres to use the term "MOE registered centre" in the publicity materials to the public, especially to the parents?

My second question: may I also request MOE for the sake of the children and the students to publish a set of education practice guidelines, very much like the clinical practice guidelines in the health sector? I believe the Government has the moral authority to enhance the quality of these centres for the sake of the children.

Mr Speaker, Sir, I thank Ms Denise Phua for bringing up this issue. In fact, MOE is currently looking at ways to enhance the regulation as well as the supervision of the private education sector. The study will be completed soon and we will announce the details in due course.

11. Assoc. Prof. Kalyani K Mehta asked the Minister for Education whether

his Ministry has any new strategies or educational programmes planned to address the tripling of sexually transmitted infections among youths in the age group of 10-19 years in the last five years and, if so, whether he will elaborate on them.

MOE adopts a multi-pronged approach to tackle the issue of sexually transmitted infections (STI) among youths. It involves the home, school and community. This is because the issue of STI is a complex one, involving family factors such as lack of family support and cohesion, personal factors such as low self-esteem, as well as broader shifts in societal mores, to name a few.

In our sexuality education programme in schools, we seek to help students appreciate the value of healthy relationships, understand the consequences of sexual behaviour and equip them with the knowledge that they must have in order to make responsible decisions. The basics of the sexuality education programme are sound, but we have sought to refine and improve how schools deliver the programme over the last two years.

The effectiveness of sexuality education depends as much as on the content of the programme as on the confidence and innovativeness of the teacher. We have seen significant improvement in teachers' skills in delivering the programme, and have been ramping up teacher training to help them engage and communicate better with students on the issues. Schools have also been conducting action research, to develop more effective strategies for delivery of sexuality education lessons.

We have also recently introduced a tiered approach to sexuality education, which recognises that different approaches are necessary for the different

For the general student population, schools have been trying out new ways to engage their students, get them to face the issues squarely, and to express themselves and discuss the issues honestly. For example, senior personnel in some co-educational schools organise gender-specific closed-door discussion sessions to provide students with opportunities to ask questions pertaining to sexual matters.

For students who are at risk of sexual behaviour or are already engaging in unsafe sexual practices, we have strengthened the messages we send on contraception and protective behaviour through one-on-one counselling sessions with their full-time school counsellors.

MOE has also collaborated closely with the Health Promotion Board (HPB) in the Breaking Down Barriers (BDB) programme to address the concern of rising STIs/HIV infection among students. The BDB programme, which started in 2007, has helped to raise greater awareness among students about the high risk of contracting STIs/HIV through casual and unprotected sex and provided them with the necessary skills to negotiate, make responsible decisions and be assertive so as to delay their sexual debut. MOE and HPB have been working closely to achieve the target of 100% implementation of this programme by June 2008 in our secondary schools.

Parents, however, play a vital role in influencing their children in sexuality matters. MOE has therefore stepped up its efforts to engage parents and raise their awareness, in collaboration with

While the teenage STI issue is challenging, we believe that with strong and effective collaboration among schools, parents and the community, especially the mass media, we are likely to succeed in imbuing our students with the necessary life skills and giving them the power to make decisions responsibly.

target groups of students. What may be a sensible approach for most students may be less relevant to students who are already at risk. The approaches also have to vary across schools, depending on the profile of their students. both HPB and MCYS. This has resulted in the development of the parents' education package entitled "Love Them. Talk About Sex". This package can be delivered via two tracks - through school-based workshops, or at the workplace in the form of lunch-time talks. One of the aims of the programme is to provide parents with tips on how to talk to their children about sex.

Sir, supplementary questions. Could the MOE consider starting sexuality education at a much earlier age, with puberty occurring earlier in Singapore, especially among females. It is even more crucial that such education start early, perhaps even as early as primary 1 or primary 2.

My second question: would MOE consider reducing the teacher-student ratio in upper primary and secondary schools, so that teachers are freed up with some time so that they could interact more with the students and talk about non-academic subjects? Because from my interaction with teachers, they say that they really have very little time for anything else.

Mr Speaker, Sir, we do start sexuality education as early as possible, although the form and the implicitness of the subject may not be as direct as we want it to be at a higher level. At primary school, for example, we start by making pupils understand the importance of family values, the importance of

As they move on to secondary school or a higher level, we retune them to promote abstinence or to emphasise the need for responsible decision-making.

The implementation of smaller pupil-teacher ratio is a bigger issue beyond just sexuality education. But there is a lot of contact time available between teachers and pupils in the innovative ways that schools are implementing, in different ways also across different schools. For example, some schools implement compulsory contact time with their students in small groups, at least one hour a week, to discuss issues, including sexuality issues, that they like to bring up with their teachers.

relationships and helping them to develop healthy relationships with one another.

Sir, can I ask the Senior Parliamentary Secretary to review the curriculum and also update us on the role models that are being used? Because, presently, our teenagers look to the western pop stars, like Britney Spears, to set the standard in terms of how well to behave. Can I ask the Senior Parliamentary Secretary whether they can look at role models that we can promote in Singapore, so that they would not be under peer pressure to conform to what they see as the latest hip trend?

Sir, certainly, as I mentioned just now, the media plays a very deep role in transmitting values. However, we should not be controlling the media. If we cannot control the media, I think we can at least build some resilience or resistance in the way our students view the media and also the kinds of models or icons that the media try to sell for commercial purposes or otherwise.

At our secondary school, I think the outcome that we are looking at is

basically to make them understand the importance of strong and healthy relationships and not just sexual relationship as an end.

12. Mr Siew Kum Hong asked the Minister for Manpower in view of the first Workfare Income Supplement payment on 1st January 2008 (a) how many persons received this payment; (b) what was the aggregate amount paid under this first payment; and (c) what was the average amount received by each person.

Sir, the first payment of Workfare Income Supplement (WIS) was made on 1st January 2008 for work done in the first half of 2007. 287,000 workers received a total of $146 million. On average, each recipient received $510. The WIS for work done in the whole of 2007, less the first payment, will be paid in April for employees, and in May for self-employed persons.

Sir, I have two supplementary questions. My first question is:

what is the Ministry's preliminary assessment of Workfare to date?

My second question is: what are the ongoing efforts to encourage more persons, especially casual workers, to sign up for Workfare? Because when I went back to the 2007 Budget Statement, it seems that the estimate was that there were 438,000 persons who could potentially benefit, and only 287,000 workers had received Workfare.

Sir, our assessment is that workers are quite aware of WIS and the benefits of it. People are gainfully employed and we want to encourage

The public can also look up the website. If they want to find out how much they need to contribute as casual workers or part-time workers to their Medisave account, they can look up www.wis.sg. It is very simple. Even if they do not have a computer and do not have access to Internet, they can go to a community club and find out for themselves.

employment of Singaporeans, and this has worked. As to how to encourage more casual workers to sign, I think we have done some work. MOM has worked with grassroots organisations, reaching out to hawkers and other casual workers and self-employed persons to inform them about WIS. We have published a booklet on Workfare Income Supplement Scheme distributed at grassroots outlets, including the community clubs. So, people can look up this information.

Mr Siew, last question.

Sir, given all these outreach attempts, it seems that there are still a number of workers who are not signing up for Workfare. What is the Ministry's assessment as to the reasons why they are not signing up?

We have not found out the reasons. But it is true that quite a large number of casual workers and self-employed have not signed up for WIS. Only 54,000 such workers received WIS, as compared to 160,000 workers who received Workfare Bonus the year before. Some informal workers may not be aware of this. So, we want to step up efforts and reach out to them through various organisations. Already in the past year, quite a number of activities were organised - briefing grassroots leaders and voluntary welfare organisations, including residents, hawkers and hawker assistants.

Secondly, unlike the Workfare Bonus Scheme, self-employed and informal

workers need to fulfil their Medisave liabilities before they can receive WIS. Many such workers did not receive WIS because they have not yet contributed to their CPF. Nevertheless, if they contribute before 31st March 2008, they will get the full sum of WIS on 1st May this year.

Sir, just one question. I would like to inform SPS that during the recent walkabout, the residents complained that they did not -

Mdm Phua, are you asking a question or informing the SPS?

The question is this. A lot of them do not know that they need to apply every year. Can the SPS do a little bit more publicity?

Sir, the suggestion is taken.

13. Mdm Halimah Yacob asked the Minister for Manpower whether the Ministry will consider raising the $1,600 salary ceiling for non-manual workers to enjoy overtime and other benefits stipulated under the Employment Act as the median wage has increased and a review is long overdue.

Sir, the Ministry is reviewing the Employment Act. This includes reviewing whether the salary ceiling for non-manual workers is appropriately placed. At the same time, we are also reviewing aspects based on employers' feedback which includes the definition of workmen and their entitlement to overtime and other benefits. MOM will consult both the unions and employers in the review process.

I would like to ask the MOS: has the review started and when will it be completed?

Mr Speaker, the review process has started and we will complete it as soon as we possibly can. But we need to adopt a balanced approach and we will consult both the unions as well as employer groups so that we can take into account the interests of all stakeholders.

14. Ms Sylvia Lim asked the Deputy Prime Minister and Minister for Home Affairs whether his Ministry will review or refine the classification of voluntarily causing hurt as a non-seizable crime, especially in cases where the victim has suffered injuries requiring medical treatment.

Sir, it is not necessary to review the classification of the offence of voluntarily causing hurt (VCH) as a non-seizable offence at this time. Last year, 8,288 cases of alleged voluntarily causing hurt were reported to Police. Making the offence a seizable one will tie down Police's resources considerably and hamper its delivery of service in more critical areas. But more than just the numbers, these are cases where the facts may not be easily established.

However, it does not mean that an aggrieved party has no recourse. He has. Let me explain. The offence of VCH covers a wide range of behaviour, involving differing severity of hurt and encompassing entirely different factual matrices: some involve disputes between neighbours, family members and even

Even though a non-seizable offence is one where Police may not ordinarily arrest without warrant, this does not, however, mean that Police does not take any action in relation to such cases. This is because when a VCH case is reported, Police will respond to the scene to gather preliminary evidence. Based on this, they will make an assessment as to the proper course of action to take. Cases where the hurt is not serious are best resolved without extensive Police involvement. For example, in the common scenario involving a dispute between neighbours or friends in the heat of the moment, Police will usually try to persuade the parties to reach an amicable resolution without escalating the matter.

When the dispute is not amicably settled and the aggrieved party wishes to pursue the case, Police will advise him to make a Magistrate's complaint in the Subordinate Courts as provided for under the law, and furnish him with the requisite form to do so. There have been instances where, once the heat of the moment has passed, the aggrieved party calms down and decides not to pursue the matter further. If a complaint is lodged, the Magistrate may decide to send the disputing parties for mediation, for example, under the auspices of the Community Mediation Centre. It is appropriate that other stakeholders, such as Justices of the Peace and community mediators, be involved in these relational disputes. The Magistrate may also direct Police to further investigate the case, which was done for about 10% of the reported VCH cases last year.

Over the past three years, for about 10% of the reported cases, as there was

friends; others involve domestic workers or public transport employees. Currently, Police takes a calibrated approach which gives it the latitude to deal with each case on its particular circumstances to derive a positive outcome.clear harm to the public interest and safety, particularly in a situation where the perpetrator takes advantage of someone weak or vulnerable or someone performing a public service, Police initiated action on behalf of the victim and applied for an order from the Public Prosecutor to investigate the matter. In some other cases, the victim may suffer injuries which, though falling short of being grievous as defined by the law, may still require hospitalisation for medical treatment. In such instances, Police will consider initiating action.

Mr Speaker, Sir, I have four supplementary questions for the Senior Minister of State.

The first is regarding the rising trend in the number of reported VCH cases. In a written answer to me in October last year, I was told that in 2005, there were about 5,500 cases; in 2006, it jumped about 900 cases to 6,400; and now in 2007, we were just told that it has come to 8,800 cases, which is a jump of more than 2,000 cases. So, my first question is: does this significant increase in the number of cases not suggest that tougher actions need to be taken in respect of VCH as a crime?

Secondly, Sir, there have been indications that the public does not quite agree with the Ministry's stand on this matter as, apart from the cases of familiarity, there have also been quite violent stranger transactions. For example, most recently in December, a businessman had his head smashed against a car in Wheelock Place and it was classified as VCH, even though he needed four stitches in that instance. Does maintaining the status quo not undermine the public's sense of safety, since VCH has such a wide coverage in terms of the scenarios envisaged?

Thirdly, Sir, there may be a need for us to recalibrate how we classify seizable and non-seizable cases. Just to take an example - if I were to scratch Prof. Ho's car, it will be vandalism and it will be seizable; but if I punched him in a private capacity and his nose bled, then it is not seizable. I think the public finds this rather non-sensible, and there may be a need for us to re-look at VCH.

Last of all, I have a suggestion. If the Ministry is not minded to be persuaded that at least when it comes to classification of grievous hurt, perhaps we could re-look at what amounts to grievous hurt. Under the Penal Code, currently, you need to be emasculated, to have bone fractures or to be out of action for about 20 days before grievous hurt is made out. Is this bar not too high? Are we setting too high a tolerance for violence?

On the first point about the rising number of incidents of people disputing and causing hurt to each other, I think that is a situation where, as a society, we should take note. As a society, different parties can play different roles. That is why, for example, the CMCs have been formed, so that people who are in dispute, even before they hurt each other, at an early stage, they themselves or the grassroots leaders can persuade them to settle their dispute. We have recognised this long ago as a function of living in an urbanised society, fairly high pressured, where people live in close proximity in some instances and, therefore, the numbers of relational disputes have risen.

But, having said this, it has not therefore changed the fact that the nature of the dispute is still essentially one where two parties hurt each other, sometimes in circumstances where it is difficult for the Police to establish fault or liability because

In the other cases where it does not constitute grievous hurt, third parties are interposed so that the aggrieved party who is a complainant is given an opportunity to ventilate his complaint. In fact, over the last few years, Police has made it easier for him to lodge a complaint with the Magistrate, helping him furnish a form and, in fact, letting him know who to contact at the Police station if he or she needs help. Then, he decides for himself whether he wants to initiate that process. Because he may calm down and, in some cases, after calming down, the parties decide they will not want to go ahead. And if he lodges a complaint, the Magistrate then assesses what is the best course of action to take. The Magistrate, in many instances, will direct the Police to investigate, because the Magistrate feels that, given the nature of the hurt, the circumstances in which the hurt has taken place, yes, there should be further investigation. So, he decides after due deliberation. Or the Magistrate may think that this is a case that he should send for mediation. So, mediation involves the community mediators, Justices of the Peace. In many of these cases that are sent for mediation, the parties actually make up, which is better. Because, otherwise, if it goes to Court, some of these cases where hurt takes place, in

So, interposition of the third party is important. Causing hurt - I would agree with Ms Sylvia Lim - is serious. But that does not naturally therefore mean that we should classify it as voluntarily causing grievous hurt. We have signalled the fact that we do view causing hurt as serious because we amended the Penal Code and we raised the punishment from one year to two years (maximum punishment), fine of $1,000 to $5,000, if I am not wrong. I stand corrected. But I think that is the enhanced punishment.

they are not there. They were not there to see how it started or who provoked who and what happened. Therefore, these are disputes where it is good to interpose third parties. I think that is the nub of this process where, unless grievous hurt is caused or in instances where public safety is involved, ie, road-bully cases, or where the victims are vulnerable (like young children, infirm or mentally-challenged people), the Police has initiated action. Or, like I said, when somebody from a public service (eg, bus captain, car park attendant) has been hurt. fact, this is a situation where it is better for the parties to make up.

But still, in terms of the process, the process must remain like that because do not forget, if we make cases where the hurt is not discernible, visible and clear, what it means is that we are empowering the Police under the Penal Code to have special powers, if it is classified as voluntarily causing grievous hurt, ie, powers of arrest or powers to summon witnesses. In some of these altercations between neighbours, for example, or between family members, in fact, it may be difficult for the Police to ascertain who is at fault and therefore who to arrest. Just because the complainant lodges the complaint does not mean that the other party should be the party who is arrested because he or she is at fault.

We have thought very deeply about this situation. We know that there are Singaporeans out there who feel that the Police should do more. But I think I should paint this context, that the Police is not deaf to these calls and, therefore, in the appropriate case, the Police will indeed investigate and they have done so in many of these cases.

Ms Sylvia Lim, last question.

Sir, last two questions. Yes, I acknowledge that in the last Penal Code review, the punishment for VCH has

gone up but the classification as a non-seizable case still remains. In fact, in letters written by the public to the press recently, they were basically asking, "If they witness such an incident and is non-seizable, should they even bother to call the Police?" Because they are basically setting themselves up for disappointment and it jeopardises their sense of safety. So I think the classification of whether it is seizable or not is still relevant. And if the Ministry has concerns about what kind of relationship should be in or out, we can discuss that further.

Ms Sylvia Lim, please ask your question.

Yes. Sir, the last point is that there has also been public sentiment that somehow hurt caused to public officials is taken much more seriously than hurt caused to the ordinary citizens, and there is an indication that they feel that, somehow, they are treated as less valuable. What is the Minister's comment to that?

I think, clearly, the case must be that if a person is performing a public service and he is hurt in the process, like a bus captain or carpark attendant, the Police has every reason to initiate action. Otherwise, it will undermine their ability to perform the public service. I think that is very clear. But on the other side, I would say the Police is prepared to be more flexible in cases where, like I said, it may not constitute grievous hurt, in terms of the hurt that is caused. But in terms of the situation that arises, if the offence, for example, takes place in a public place where there are other witnesses involved and where if the hurt is not as high or as grievous but it is serious enough, in those situations, I would expect the Police to at least seriously consider initiating action.

15. Mr Siew Kum Hong asked the Prime Minister whether the GDP Bonus for

Ministers is awarded based on real GDP growth or nominal GDP growth.

Mr Speaker, Sir, the GDP Bonus is awarded based on the real GDP growth rate. The bonus is paid out in March every year, based on the real GDP growth rate of the preceding year.

Sir, I have two supplementary questions. My first question is to ask the Minister whether the GDP growth rate, even the real GDP growth rate, is the most appropriate metric because the bonus really should be tied to the benefits to Singaporeans arising from economic growth, whereas GDP growth, as a measure, includes the wages paid to foreigners. So my question is, would the Government consider a metric that strips out components of GDP growth that do not benefit Singaporeans directly so as to more accurately measure the benefits to Singaporeans from the economic growth?

Sir, my second question is this. The Public Service Division recently disclosed that the pay for the Ministers at the MR4 Grade, which is 77% of the benchmark, and I quote, "includes all bonuses such as the 13th month bonus, the average performance bonus and the GDP bonus". The reference to an "average performance bonus" suggests that some would be paid an above average performance bonus. Does it then mean that the better performing Ministers will be paid more than 77% of the benchmark?

Sir, the issue of finding the best approach to try to measure and pay according to performance for public servants, including Ministers, was debated extensively in this House in April last year. And it is not easy to find a very good measure, a precise measure, and I have explained

Mr Siew should understand what benchmarks are. Benchmark is a typical salary for a typical grade. If you take an employee in a company and you say, this is his salary grade, there will be some variations within that. Some will get more, some will get less. And this is indeed what we do want to achieve because, if we want to link performance to pay or pay to performance, then there must be some variability within that. So the benchmark rate is in fact the typical rate which an average Minister or employee in that grade will be paid. Some may get less, some may get more.

that the GDP Bonus is a good proxy for most things in the economy. I do not know of any measure which strips out the components in the way that Mr Siew has suggested, which is reliable and well understood by Singaporeans as a whole. So I would still suggest that for ease and simplicity of understanding and implementation, as a broad measure of how the economy has been doing, the real GDP growth rate is a good proxy.

16. Mdm Halimah Yacob asked the Minister for Health as one out of six Singaporeans are reported to suffer from some form of mental illness, whether the Ministry will consider reviewing the current exclusion of mental illness from MediShield's list of treatments and medical expenses.

Mr Speaker, Sir, currently, MediShield does not cover the treatment of mental illness and accordingly its premiums do not price in such a liability.

The financial burden of treating the mentally ill has therefore fallen largely on

We are not closed to the idea of using insurance to help fund the treatment of mental illness. We will study how this is being done in some countries and whether there is general support for such an idea.

the Government and psychiatric treatment is heavily subsidised. More than 90% of patients treated in the Institute of Mental Health belong to Class B2 or C where the average bill per day was about $30. This is largely affordable for most families, through the use of Medisave. For those who cannot afford the treatment because of prolonged hospitalisation, Medifund will come in to assist the patients. Last year, Medifund disbursed $10.5 million to assist them.

17. Mdm Cynthia Phua asked the Minister for the Environment and Water Resources (a) how many Stop Work Orders were issued to building contractors for pest infestation over the last 12 months; (b) what is the average period that contractors had to stop work in such cases and the average cost to the contractor for each day work is stopped; (c) what is the average amount of time taken to book and obtain a re-inspection of the worksite to lift the Stop Work Order; and (d) whether the Ministry has considered the potential conflict of interest if the team that handles the issuance of the Stop Work Order is also responsible for carrying out the re-inspection.

In dealing with lapses in complying with environmental regulations, NEA takes a tiered approach, starting first with advice and warnings, and later progressing to fines. Stop Work

In 2007, NEA issued Stop Work Orders for 39 sites, which is about 3.7% of the total number of construction sites, for mosquito breeding and unsanitary conditions.

How soon a Stop Work Order may be lifted is entirely dependent on how fast the contractor takes remedial action on the lapses. The contractor may contact NEA for a re-inspection as soon as he has spruced up his site. NEA will lift the Stop Work Order once the site has been reinstated to a satisfactory state.

In 2007, it took a contractor an average of 10 days to spruce up the site so that the Stop Work Order could be lifted. There were a few instances when the contractors took only one day to reinstate the site to a satisfactory state. The average cost to the contractor for each day of work stopped depends on the size and type of the project. NEA does not have nor does it compile such information. Regardless of the scale and type of their projects, all contractors should ensure that their construction sites are always satisfactorily maintained, without a need for NEA to serve Stop Work Orders on them.

A Stop Work Order is issued so that corrective work can be undertaken immediately to clean up the construction site to avert a potential disease outbreak. The inspection team's role is to ensure that environmental conditions at the site are reinstated to a satisfactory level before the site is re-opened. Therefore, the same team that issued the Stop Work Order must undertake the re-inspection to ascertain that the contractors have undertaken the appropriate measures to comply with environmental regulations

Orders are only issued when NEA assesses that immediate corrective actions are required to clean up the site to prevent conditions which would pose a danger to public health. they had previously failed to meet. I would like to assure Mdm Cynthia Phua that NEA officers carry out their duties professionally and there is no conflict of interest even though the same inspection team handles both the issuance of Stop Work Order and the re-inspection.

18. Mr Chiam See Tong asked the Senior Minister whether the Government has any plans to promote greater confidence in our market by introducing greater internal controls in public listed companies to check the powers of financial officers to single-handedly make big payments over a period of years, causing huge losses to their companies.

Mr Speaker, Sir, Mr Chiam has asked if the Government intends to introduce more rules governing internal controls in public listed companies.

The Companies Act sets out the minimum standards required of all companies registered in Singapore. Section 199 of the Act specifically requires a public company, whether listed or unlisted, to maintain internal accounting controls which provide reasonable assurance that assets are safeguarded against loss resulting from unauthorised use or disposition, and that transactions are properly authorised and recorded as necessary to maintain accountability of assets. In addition to the Companies Act, the SGX Listing Manual requires listed companies in Singapore to comply with the Code of Corporate Governance, or disclose and explain any deviations. The Code places responsibility on the Board of a company to ensure that the Management maintains a sound system of

This approach allows a listed company and its Board the flexibility to take into account the specific circumstances of its business operations when designing its system of internal controls.

Together, this combination of the Companies Act requirements and the best practice guidelines in the Code for listed companies set an appropriate framework for proper internal controls by companies in Singapore. The Monetary Authority of Singapore (MAS), the Singapore Exchange (SGX) and the Accounting and Corporate Regulatory Authority (ACRA) will continue to keep the legislation and best practice codes up-to-date through regular refinement, so that they stay relevant in a changing environment. But imposing additional or more detailed rules on companies will not prevent corporate mishaps.

We also have to go beyond compliance with minimum regulatory standards. The boards and managements of companies should look for practical ways to improve their risk management and governance practices, especially because their companies operate in an increasingly complex environment.

The Government will support industry efforts to improve corporate governance and explore practical initiatives to help companies improve their internal controls and practices. For instance, MAS, ACRA and SGX recently, in fact just a week ago,

internal controls to safeguard shareholders' investments and the company's assets. Further, the Code recommends that the audit committee - the majority of which, including the Chairman, should be independent - review the adequacy of the company's internal controls and that the Board comment on the adequacy of the internal controls in the company's annual reports. established an industry-led Audit Committee Guidance Committee. This Committee has been tasked with developing practical guidance to assist audit committees of listed companies to better understand their roles and responsibilities, and to enhance their effectiveness.

Mr Chiam, you have one minute left.

Sir, despite what the Minister said and the provisions in the Companies Act, in recent months, large sums of money have been lost by public companies. Should the Ministry not do something about it?

Sir, I think the basic framework, as I mentioned, is appropriate - you have minimum regulatory requirements set out in the law which are mandatory to all companies and you have best practice standards which are from time to time refined in consultation with industry. But what matters, quite apart from the minimum regulations set out in law and best practice guidelines, is a culture of the corporate sector - to want to improve risk management practices, because they have the interest of shareholders in mind, to want to improve internal controls because it secures sustained good performance. That culture is something which is work-in-progress in Singapore as it is in other jurisdictions, and I am sure we can do better.

3.00 pm

Order. End of Question Time.

[Pursuant to Standing Order No. 22(3), Written Answer to Question No. 20 on the Order Paper is reproduced in the Appendix*. Question Nos. 19 and 21 have been postponed to the next available sitting of Parliament.]

*Cols. 303-304.

Order for Second Reading read.

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

The Customs (Amendment) Bill comprises three main categories of changes. The first provides for the simplification and updating of various Customs rules and requirements to make them more business- and public-friendly. The second category covers amendments to the Customs Act to simplify penalty provisions and streamline the enforcement regime. The third enables Customs to better facilitate trade.

Let me now highlight the key changes.

Simplification and updating Customs' rules and requirements

Exempting any person or goods from any provision of the Customs Act

Currently, the Act already provides the Minister for Finance with the power to grant exemption (by Order) from any customs duties, excise duties, taxes, fees or other charges. However, the Act does not provide for the flexibility to grant exemption from Customs rules and requirements. This amendment will enable the Minister to exempt any person or goods from any provision of the Act. Clause 3 will provide the Minister this flexibility to grant exemptions from certain Customs rules, including licensing requirements, when warranted.

Waiving the permit requirement to import dutiable goods

The second change relates to the authority to waive the requirement on

Empowering the Director-General of Customs to grant a licence for the manufacture of dutiable goods

The next change likewise relates to the authority to grant a manufacturing licence to manufacture dutiable goods. Providing Director-General instead of the Minister the power to directly approve such licences simplifies the administration of licence application and is consistent with the issuance of other Customs licences. Clause 8 of the Bill provides for this change.

Issuing a composite licence

A major change relates to the streamlining of the number of licences for eligible companies. Currently, a company applies for a separate licence for each physical premise to carry out a specified activity, such as manufacturing, warehousing or sale of dutiable goods. For example, a company which carries out two activities at two premises may need to apply for four licences. The proposed amendment allows Singapore Customs the flexibility to grant companies with good risk management control a composite licence for its various activities at the different premises. This reduces the regulatory compliance costs for companies. Clauses 10 and 15 of the Bill provide for the introduction of composite licence.

Simplification of penalty provisions and streamlining the enforcement regime

Sir, I shall now move on to the second category of amendments that simplify and streamline the current penalty provisions and the enforcement regime under the Customs Act.

Allowing analyst certificates from other laboratories to be tendered as prima facie evidence

The first change relates to the evidence presented in court. Currently, only an analyst certificate from Health Sciences Authority may be used as prima facie evidence in court. The proposed amendment allows analyst certificates from other laboratories specified by the Director-General of Customs to be tendered as evidence in court. This change is covered by clause 11 of the Bill.

Re-classifying customs offences

The next change relates to the re-classification of customs offences by mode of commission of the offences. This serves to streamline the various offences for better comprehension. There are no changes to the penalties levied on the offences. There are also no substantive changes in the scope of customs offences other than the consequential change to cater for the introduction of the composite licence. Clauses 12 and 13 of the Bill provide for this change.

Facilitation of trade

Sir, the last category of change seeks to improve the existing Customs process to facilitate trade. The proposed amendments will enable the issuance of Customs Rulings, which are determinations on tariff classification, country of origin and duty treatment. This will

Miscellaneous amendment on special diesel tax

Finally, Sir, in addition, there is one miscellaneous amendment. The amendment relates to the increase in special diesel tax on taxis from $4,700 to $5,100 that had been collected since July 2004, and the special diesel tax collected from one private hire car since October 2002. The tax increase had been announced and implemented, and the proposed amendment will regularise the tax collection. This is covered by clause 4 of the Bill.

Consequential changes to the Goods and Services Tax (GST) Act

The Bill will also cover one consequential amendment to the GST Act. Clause 16 of the Bill makes an amendment to the GST Act to take account of the abolished licensed factory warehouse scheme in the Bill.

Conclusion

To conclude, Sir, the Customs Act will be updated to be more business-friendly, to streamline the enforcement regime, and to better facilitate trade.

Sir, I beg to move.

Question proposed.

import permit for dutiable goods into Singapore. The proposed amendment allows the Director-General of Customs the flexibility to waive permit requirement on a case-by-case basis. For example, currently, air travellers require a permit to bring in more than 10 litres of liquor, even if the limit is exceeded just slightly. With this amendment, the Director-General may waive the import permit for a bona fide air traveller. Clause 6 of the Bill provides for this change.give traders greater certainty on the customs rules and duties applicable to the goods. Clauses 5 and 14 of the Bill provide for this change.

3.05 pm

Mr Speaker, Sir, thank you for giving me an opportunity to speak on the Customs Amendment Bill, which I support.

Many countries look to Singapore for leadership when it comes to market

Sir, I have a question on the new section 13, which entitles the Minister to exempt persons not just from tax obligations but from any provisions of the Act. Why is it deemed necessary and when is this entitlement likely to be called upon? The concern from both the domestic and international trade community is that this opens the door to unfair competition, unless the circumstances under which the entitlement can be used is more tightly controlled. I believe this section gives quite wide discretionary powers to the Minister and perhaps could be tightened so that waiver is given only for specific circumstances.

Sir, I also have a couple of questions on the rulings process in Singapore. Why do the procedures for the making of customs rulings not set any time limits within which such a ruling should be issued, other than if so required under the terms of an FTA? Separately, are the restrictions on the validity of a ruling, eg, under article 9(b), too restrictive to make the rulings useful for the business community? Private sector players typically will be interested in obtaining a Government ruling if this provides increased certainty and predictability for doing business. The lack of a specific timeframe, the risk of not obtaining a ruling even after much information has been furnished to the authorities, and the potential for easy modification or withdrawal, all diminish the usefulness of the ruling for the business community. We can certainly improve upon the "rulings process" by looking at the European Union, Australia, the US and

Sir, I would also like to comment on some areas not proposed for amendment but of interest to the business community.

I would like to start by asking whether section 19 could allow for interest to be paid when overpaid or erroneously paid duties are refunded. This would level the playing field and is the practice in the European Union.

Secondly, could section 21 allow for application of valuation and duty at the time when goods are entered into a warehouse, rather than when they are withdrawn from it? Many countries allow the trader to choose which valuation and duty rate to apply, albeit this usually has to be chosen upfront and cannot then be changed. This helps protect the importer from exchange rate fluctuations and allows for a more consistent treatment of domestic charges, such as storage and handling, for duty purposes.

Another area worth a review is whether the implementation of transfer pricing adjustments for customs declaration purposes can be improved through the Customs Act. Increasingly, multinational companies have global transfer pricing agreements underlying the pricing of their products. Most of such agreements allow for retrospective price changes at the end of a certain period. In Singapore, like in many other countries, the mechanism for making retrospective adjustments can be very onerous.

Finally, I would like to ask whether there is any intention to align the import valuation mechanism for dutiable and non-dutiable goods. The import customs valuation for dutiable goods is determined under the Customs Act. However, the import value for non-dutiable goods is determined under the GST Act which, in

economics and free trade policies, so we must continue to set a good example for others to follow. Also, given Singapore's important position as a trading and business hub, it is important that we continually review and, if necessary, tweak our laws to retain our competitive edge and remain business-friendly. Clarity and certainty of rules and regulations always go down well with businesses. Canada, all of whom either have more "tightly framed rulings processes" or tight administrative service standards to the same effect. theory, uses a different mechanism but, in practice, appears to follow the customs valuation methods agreed under the WTO Valuation Agreement. The difference can cause confusion and more onerous administration for importers.

3.10 pm

Mr Speaker, Sir, first of all, I would like to thank Mr Banerjee for his very well articulated views as well as his support for the Bill. Let me now try to address his points in turn.

Firstly, I would like to say that we completely agree with him that we should continually review and tweak the laws when necessary so as to remain competitive. I would like to assure him that the amendments would continue to ensure that the Customs rules would remain business-friendly and competitive while at the same time achieving the social and revenue objectives of the Customs Act and our own customs administration.

Mr Banerjee referred to section 13 which is covered by clause 3. The Member's reservations are well put. Let me assure him that this amendment is really to provide for the flexibility to grant exemptions from the licensing requirements should the need arise, and I would like to describe further how the Minister would proceed with this exercise. The exemption will be applied judiciously when it is clear that there is no or minimal social or revenue risk and where it does not detract from market competition. Let me illustrate with a simple example as to why we have moved this amendment.

For example, there is the home brewing scheme. With this change, we will now exempt individuals who home-brew small quantities of beer and stout

Next, on clause 5, on the issuance of Customs Rulings; this issuance is really to facilitate trade so as to provide more certainty and predictability for the trade operators. The service standard for issuance of rulings will be published on the Customs website and the Member's suggestions as well as suggestions from the trading community will be taken into consideration. Having said that, we are conscious that we have to avoid being too rigid in terms of stipulating the service standard for the rulings in the Act as Customs will review and improve the process on a continual basis.

On the related point in clause 14, whereby the Director-General will be allowed to modify or withdraw the ruling, this is not intended to restrict the usefulness of the ruling for the business community but rather to cater to situations whereby the ruling has to be modified or withdrawn due to a change in circumstances. Let me illustrate with an example. A change in the duty status of a product, eg, from dutiable to non-dutiable, may render the previous ruling irrelevant or inappropriate and, therefore, it would have to be modified or withdrawn. The Member's points are certainly well taken and Customs will continue to strike a balance.

Moving on to his other points about the areas that have not been proposed for amendments, on the issue of refunds, as a matter of principle, the Government pays or will pay interest for refunds to the public due to wrongful deductions. This instruction is captured in the Government

On the Member's comment on section 21, the current regime provides certainty and consistency by generally valuing the good and applying the appropriate duty rate at the time of importation. This is a common practice adopted by most customs administrations. If the trader chooses to bond the good into a licensed warehouse so that the duty is suspended until the point of consumption, then the application of valuation and duty rate will be at the time when the good is actually released. If I may also clarify, calculation of duty does not include domestic charges, such as storage and handling.

As for the comments on transfer pricing adjustments, the Member is accurate in his observation. This is a challenge and an issue faced by customs administrations worldwide, and Singapore Customs would like to encourage companies to come forward with such issues so that solutions can be worked out for proper customs declarations to be made. In this matter, we would certainly welcome feedback and suggestions as well.

for personal use from the licensing requirement. After having implemented the scheme for four years, we note that hobbyists behave responsibly and thus there is no need to subject them to licensing. In addition, we would also seek to exempt by category or activity so as to avoid uneven treatment within a particular category or activity. Instruction Manuals issued by the MOF and applies to all public agencies. The sole aim is to encourage revenue collections to be more accurate and for refunds to be made on a more prompt basis. However, refunds with no interest will be made for overpayments or erroneous payments made by the public on their own accord.

On the import valuation mechanism, due to the different nature of customs or excise duties and GST, there is no intention to align the import valuation mechanisms for dutiable and non-dutiable goods under the two different Acts, the Customs and the GST Acts respectively. If I may just quickly explain. Under the WTO Valuation Agreement, the transaction price, which is normally the cost, insurance and freight value, is used as the basis for valuation for dutiable goods on

If I may just summarise, we will continue to review the issues raised by the Member and update the Customs Act as and when business changes so dictate.

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. - [Mrs Lim Hwee Hua].

Bill considered in Committee.

importation as part of the customs and excise duties regime. For the GST, valuation of non-dutiable goods for GST purposes will take its reference from the last selling price if there is a supply. This is because the GST is a value-added tax levied on both the import and supply stages. So, when there is no supply, the valuation basis is actually the same, and the numbers would be the same. So, the two mechanisms are actually not inconsistent.

The citation year "2007" will be changed to "2008", as indicated in the Order Paper Supplement.

Clauses 1 to 16 inclusive ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.

Order for Second Reading read.

3.18 pm

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

The Statutes (Miscellaneous Amendments) Bill 2008 seeks to expressly empower the collection of late payment charges and interest for the late payment of regulated fees, charges and taxes payable under several different legislation. These amendments will regularise the collection of charges and interest.

Let me first explain the background and rationale for these amendments.

Rationale

As a matter of policy, the Government imposes late payment charges and interest for all late payments of fees, charges and taxes. The reason is two-fold.

First, late payments of fees, charges and taxes result in additional costs to Government. Besides the opportunity cost of money due to late collections, the Government also incurs administrative costs in chasing arrears. These additional costs should rightly be borne by the late payers, rather than by the public through general taxation.

Second, without late payment charges and interest, there would be no incentive for people to pay their fees, charges and taxes on time.

For these reasons, it is common in both the private sector and government administrations in other countries to levy late payment charges and interest.

Specific legal provisions in the relevant legislation are required to expressly empower relevant Government agencies to collect late payment charges and interest. For completeness, these amendments will expressly provide for such collections under the 14 Acts listed in clauses 2 to 5, and clauses 7 to 16 of the Bill.

Clauses 2 to 5, and clauses 7 to 16 of the Bill will amend the 14 Acts to specifically enable the agencies that are responsible for the fees to collect late payment charges and interest on these fees.

In addition to these 14 Acts, clause 6 of the Bill will amend the Interpretation Act such that the authority to provide for fees and charges in subsidiary legislation will also be able to impose and prescribe the interest, charges and penalties for late payment of the fees and charges. This will apply to all current and future cases where fees and charges are provided for and collected.

Retrospective provisions

The collection of late payment charges and interest had been the right thing to do; hence, the Bill provides for the validation of all past collections of late payment charges and interest that fall under the 14 Acts.

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. - [Mrs Lim Hwee Hua].

Bill considered in Committee.

The deletion of "No. 2" and the change of citation year from "2007" to "2008", as indicated in the Order Paper Supplement, will be made.

Clauses 1 to 16 inclusive ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.

Order for Second Reading read.

3.23 pm

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

Purpose of workmen's compensation

Sir, under the common law, an injured worker has to initiate legal actions to claim damages from his employer. To succeed, the claimant has to prove that the employer had been negligent and therefore held liable. He will need to gather sufficient evidence to prove his case.

The Workmen's Compensation Act or WCA provides a simpler and quicker way to settle compensation claims by avoiding protracted legal proceedings. An employee claiming under the Act is not required to prove that his employer is at fault. He only needs to show that his injury was sustained in the course of work. There is also a fixed formula in the Act on the amount of compensation to be awarded, and capped so that the financial liability on the employer is limited. The no-fault claims and prescribed amounts of compensation serve to facilitate and expedite claims under the WCA. However, employees can still choose not to claim under the WCA, but instead to pursue damages through the civil courts under the common law.

The workmen's compensation system has been effective and efficient. Many employees have benefited under the system. In 2007, about 17,000 claims were filed with MOM and more than $71 million in compensation payouts were awarded to the claimants.

However, the employment landscape has changed since the WCA was enacted some 30 years ago. We need to review and refresh the system to ensure that it continues to be relevant and effective.

Hence, over the past year, MOM has conducted extensive consultation with the public, the unions and the businesses on the need to amend the Workmen's Compensation Act. More than 200 comments have been received. I would like to take this opportunity to thank all who have contributed, in particular, the Singapore National Employers Federation, the National Trades Union Congress, the General Insurance Association of Singapore and many other industry associations.

This Bill proposes changes to the WCA in three key areas. First, the coverage of the Act has been expanded. Second, compensation norms are updated to keep pace with wage increases and changing circumstances. Third, changes are made to streamline the process. In proposing the changes, MOM has been mindful of the need to maintain a balanced approach so that the amended Act would remain acceptable to both employees and employers.

Sir, let me elaborate.

Coverage

First, the coverage under the Act will be extended. Currently, all manual workers, and non-manual workers earning $1,600 or less per month, are eligible for compensation under the Act. We will now include non-manual workers earning more than $1,600 a month so that they too can be compensated under the Act rather than have to go through the legal process under common law. We are not the only country to have done this. In other jurisdictions such as Australia,

The Fourth Schedule lists two groups of employees who will be excluded from the Act.

Police officers are currently excluded. Under the amended Act, members of the Singapore Police Force as well as members of the Singapore Civil Defence Force, Central Narcotics Bureau, the Singapore Prisons Service and Singapore Armed Forces will be excluded due to the unique nature of their work environment. These personnel can face inherent risks in the normal course of their duties at work. They would already have specific work injury compensation provisions in the relevant legislation, comparable to what this Act provides.

The second group are domestic workers who were and remain excluded as they are employed by households and typically work and live in the same premises. As a result, it will be difficult to determine whether any injury sustained in the premises was due to work-related activities or otherwise. While excluded, foreign domestic workers are still protected under the personal accident insurance which their employers must purchase. The personal accident insurance in effect has a wider scope than the WCA and provides compensation to foreign domestic workers in the event of permanent disablement or death,

The current Act requires employers to purchase insurance for all workers covered by the Act, unless otherwise exempted. However, for the non-manual employees earning above $1,600 a month who are previously not covered under the Act, we will not require compulsory insurance coverage. Our data shows that generally, non-manual employees face lower workplace risks and incur fewer injuries. Hence, we can leave it to the employers to decide whether to buy insurance for them. This will help businesses manage their costs. Nevertheless, the employer is still liable to pay compensation to the employee in the event of a work injury. MOM would also review our data periodically and may require specific sectors to purchase insurance if the risks warrant added protection.

Compensation norms

Second, this Bill updates compensation norms. This is laid out in the Third Schedule of the Act. As before, the compensation takes into account the employee's loss of future earnings due to his injury which are determined by the worker's monthly wage and his age. As the younger worker would have had more potential years to earn, the compensation is a higher multiple of his wages.

Canada, Hong Kong and the United Kingdom, the compensation framework does not make a distinction between manual and non-manual work. We will therefore amend sections 1 and 2 of the Act to include all employees, except those specified in the Fourth Schedule. This will increase the coverage of the Act by more than 850,000 employees, or 70%, to 2.1 million employees. Consequently, we will remove the term "workmen" and amend the short title to the Work Injury Compensation Act. regardless of whether or not the accident was work-related. In tandem with the updating of the compensation limits under the Act, MOM will increase the insurance coverage requirement, from $10,000 to $40,000. This will apply to all new applications for foreign domestic workers submitted from 1st July 2008 onwards. For existing foreign domestic workers, the new requirement will apply to work permits that expire on or after 1st July 2008.

And as before, the computed amount of compensation is subject to maximum and minimum limits specified in the Third

These limits will be adjusted to take into account the increase in wages since the limits were set in 1995. With this change, the minimum compensation for death and total permanent incapacity will be increased to $47,000 and $60,000 respectively. The maximum compensation will also be raised to $140,000 and $180,000 respectively.

Let me just illustrate. With the amendments to compensation norms, the family of a deceased 25-year old who earned $1,500 a month would receive $140,000, an increase of $29,000 or 26% more than current. If the worker were 55 years old, his family would be compensated $129,000, which is an increase of $18,000 or 16% more than under the current system.

Next, existing compensation rules allow for an additional 25% compensation to employees who suffer total and permanent incapacity, in order to reflect the higher cost of care. However, it requires the employee to prove that he would need the constant care of another person for the essential actions of life. About half the employees who were totally and permanently incapacitated in the last few years did not qualify for the additional award as the injured employee may find it difficult to prove that he fulfils the condition. Under the new Act, this additional condition will be removed, while the additional 25% compensation is retained for all employees who suffer total and permanent incapacity.

We have also amended section 18 to allow the employers to seek indemnity in the civil courts against a third party who was responsible for causing the injury, even if the employer was partially at fault. Currently, the employers can only do so if they were completely not at fault for the injury. The distinction between no and partial fault may be too fine to determine and the removal of this pre-condition will not affect the payment of compensation to the injured employees who choose to claim under the WCA.

Next, medical expenses. Under the current Act, only medical expenses that are incurred in Singapore are compensable. As more employees are required to travel outside Singapore for work, the amended section 14 allows medical expenses incurred outside Singapore to be compensated if the accident happened when the employee was working overseas and immediate medical treatment was needed.

In addition, an employer's liability for hospital expenses is subject to numerous sub-limits for different expense items, such as ward charges, operation fees, and physiotherapy fees, etc.

We will simplify how medical expenses are compensated. The Bill removes the existing sub-limits for hospital charges and instead introduces an overall cap on an employer's total liability for medical expenses. The proposed cap of $25,000 per accident per employee will fully cover the medical expenses incurred in more than 95% of claims where hospitalisation was required. This cap will be revised regularly, to keep pace with changes in healthcare costs.

We recognise that there may be that remaining 5% where hospitalisation expenses are very high. As the WCA is predicated on no-fault, limited liability as an acceptable alternative to both employers and employees, we will have to

Finally, section 8(2) of the Act, which deals with situations where the injured employee holds more than one job, will be amended. At present, an employee with multiple jobs can claim compensation for his multiple earnings only for jobs in the same occupation. In comparison, if a claim was brought in the civil courts, his total loss of earnings would be claimable. The number of workers with such a scenario is small. In the last five years, there were only a handful of such cases in which the injured employee was employed by multiple employers. Nevertheless, it would be more equitable to amend the Act such that an employee will be compensated for his total earnings with different employers, except for earnings that are from contracts of service that the employer does not know about. This exclusion is necessary and fair so that employers are made aware of their potential financial liability under the Act and can insure themselves accordingly.

Overall, these changes ensure that the workmen's compensation system continues to be relevant and serves as a sensible alternative to the common law process.

Efficiency and effectiveness

Thirdly, we will improve the efficiency and effectiveness of the compensation process.

Preferred route of compensation

Under the present Act, workers can only claim for injuries from the common law or the workmen's compensation system. They cannot do so from both. This makes sense because the WCA was

At present, an injured employee has up to one year from the date of the accident to decide whether he wishes to file a claim under the Act. The one-year period to claim under the WCA remains unchanged, and if he decides to seek compensation under the Act, his claim will be processed, and the Commissioner will notify him of the assessment of his compensation amount.

Upon receiving the notification, the amended section 33 allows him up to 28 days to decide if he wishes to pursue his claim under the Act, or withdraw his claim. If he decides to pursue his claim under the Act, he will generally no longer be able to withdraw his claim and institute fresh proceedings in the civil courts.

Flexibility in paying and distributing compensation

Next, the existing Act also contains restrictive rules that require compensation

Hence, section 9(1A) of the Act will be amended, to allow for all work injury compensation to be paid in three different ways: to any employee who is 18 years or older, to the employee's estate or his dependants, or to a committee and estate of the employee appointed under the Mental Disorders and Treatment Act.

These amendments will enable us to keep the workmen's compensation process efficient.

Enhancing penalties and offences

We are also enhancing the penalties and offences under the Act so that the system will continue to work effectively. The penalties in the Act were last revised in 1990. A new section 35 will be introduced to increase the penalties for selected offences. For example, an employer who illegally deducts his employee's salary to defray the cost of work injury compensation insurance may be fined up to $5,000 instead of $2,000, while the maximum jail term has been kept at six months. The new section 35 also makes it an offence if any person fails to comply with an order to pay compensation. A new section 40 allows the Commissioner to apply to the court to order the convicted person to pay up the amount owed to the employee, over and above the penalty for the offence. This amendment will provide the employee an additional option for recourse. Currently, if an employer does not pay compensation after being ordered to do so by the Commissioner, the employee's only recourse is to enforce the order on his own in the civil courts. This may not be practical as the injured worker may not have the means to do so. With this amendment, MOM would be able to

As we tighten the rules against errant employers, we also need to ensure that workers do not abuse the workmen's compensation system. There have been instances of abuse and fraudulent claims. The existing Act contains limited remedies against such behaviour, as it is currently not an offence under the Act to make a fraudulent claim for compensation. MOM can only proceed against them on a lesser offence of providing false answers. In 2007, nine workers were convicted for fraud on this basis.

With the increase in compensation quantum as proposed in this amendment Bill, we must also ensure that the Act can effectively deter fraudulent claims by a small number of workers.

Hence, the new section 35 makes it an offence for any person to knowingly make a fraudulent claim under the Act for compensation. The maximum penalty is a fine of $15,000 and a jail term of 12 months.

Streamlining accident reporting requirements

Finally, we have streamlined the accident reporting requirements under the Act with those under the Workplace Safety and Health Act. This will simplify the reporting requirement for employers, thus reducing overall compliance costs. Instead of having to report all accidents, including minor ones, section 12 and related regulations will be amended such that an employer is required to report an accident only if it results in a death, or it results in the injured employee being unfit for work for more than three consecutive days or being hospitalised for at least 24 hours, or if the employee contracts an occupational disease. For minor injuries, the current statutory reporting requirement will be removed, but the obligation to compensate the employee

Reaching out to employees

MOM will continue to reach out to employees on their rights under the Act through its publications and mandatory safety training courses. Nevertheless, to further increase worker awareness of the available avenues for compensation, all stakeholders - the community, union leaders, employers - have a proactive role to play. MOM will work with them to create greater awareness among our employers and workers.

Sir, in conclusion, the extension of coverage of the Act will make available basic work injury compensation to over two million employees and bring our compensation framework in line with international practices. Updating the compensation norms and enhancing the efficiency and effectiveness of the system will encourage employees to use the system. This also benefits employers as their liabilities will be capped. With these changes, MOM, together with the industry-led Workplace Safety and Health Council, and the cooperation of employers and workers, will be well-placed to achieve the goals spelt out in its safety and health vision for 2015.

Sir, I beg to move.

Schedule. This is to ensure that eligible workers will receive a minimum amount of compensation while the maximum limit caps the liability of employers. At present, the minimum limits are $37,000 and $49,000 respectively for death and total permanent incapacity, while the maximum limits are $111,000 and $147,000 respectively. set a limit to compensation for medical expenses. Affected employees who wish to recover the full medical expenses can exercise their option to do so under common law.indeed created to serve as an alternate and more expeditious route to avoid protracted legal proceedings. However, some claimants abuse the system by filing claims for both but withdrawing the WCA claims at the last minute to switch to a civil suit. This imposes significant commitment of resources, as time and effort would have been invested to investigate and prepare the case. Involved parties such as witnesses would also have committed their time to the adjudication process. Employers will have to repeat part of the process in the courts. Processing time for each case becomes unnecessarily prolonged and as a result, compensation is delayed. We will streamline the process, so that claimants through the WCA can have speedy compensation. Nevertheless, even after our amendments, we still allow adequate time for claimants to decide on either route whether to claim damages or compensation for their injuries through WCA or through the civil courts. in death and total permanent incapacity to be paid to the Commissioner, rather than directly to the employee, or his dependants. This can delay the payment of compensation to the employee.enforce the payment of compensation on the worker's behalf. remains. This will benefit the employees, as the employers can directly compensate their employees. However, in cases where employees face difficulty in obtaining compensation, they can still report to MOM, which will enforce the employer's obligation.

Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 4.05 pm.

Sitting accordingly suspended at

3.45 pm until 4.05 pm.

Sitting resumed at 4.05 pm

Debate resumed.

Mr Speaker, Sir, many changes have taken place in the local and regional employment scene over the last decade. In recent years, the economy in Singapore has taken an upswing, wages are on the rise and inflation is causing the cost of living to increase. Many industries in Singapore such as construction are growing. Singapore is attracting more skilled and manual workers from the region and abroad. It is, therefore, timely for revisions to be made to the Workmen's Compensation Act, especially when the last amendments were conducted in 1995, more than a decade ago.

I, therefore, rise in support of this Bill.

At this point, Sir, I would like to declare my interest as an employer. From the perspective of an employer, I am happy to note that many of the revisions are more worker-friendly. One example is the extension of the Act to cover all workers, regardless of salary. This would potentially benefit almost an additional one million workers, including white collar ones. While this change will hopefully incentivise employers to enhance safety at the workplace, I am concerned about the non-compulsory insurance for workers newly covered under this Act, ie, non-manual employees with monthly earnings above $1,600. I wonder what the implication of this change will be because employers remain liable for payment of compensation regardless of whether or not they purchase insurance for this group of people.

Sir, while not having compulsory insurance for these non-manual workers may seem to present savings for employers, I worry if a workplace related accident were to happen, companies have to bear high compensation costs in the absence of an insurance policy for workers. I would like to ask the Minister of State to reconsider the rationale behind in not making insurance coverage mandatory across the board.

In line with this change, I am glad that the Ministry is amending the term "workmen" and in its place will use the term "employees" which is more gender neutral and more inclusive.

Sir, I note that the coverage of the Act is not extended to people working for uniform groups and domestic workers. Domestic workers may not work in hazardous surroundings such as worksites, but they may still be prone to accidents and injuries at their workplace, such as fall from high-rise buildings. Currently, employers are required to obtain insurance for their domestic workers. Errant employers who intentionally put their domestic workers' lives in danger can also be punished but the coverage does not accord the workers the ability to claim full compensation benefits as provided under the Act.

I would like to urge the Minister of State to consider including domestic workers in the Act. No one can put a price on an individual's life or on the ability of the person to function well both physically and mentally. Hence, I feel that entering into a debate on what is the correct amount of compensation to be given to workers in the event of death or permanent disability due to accidents at the workplace can be a futile one.

However, I do note that inflation has contributed to increased costs and I

I would like to ask the Minister of State on the duration WCA cases are settled and if there are any other ways that can lead to speedier claims which can be a factor for families involved to consider rather than choosing to go to court. Whatever it is, at the end of the day, employers have to be wary that employees will always have the recourse to revert to common law should they feel that the provision of this Act is insufficient in meeting their needs.

I would also like to ask the Minister of State to clarify whether employees who are covered under insurance, such as Group Term Life and Personal Accident, need to be covered additionally for the Workmen's Compensation as well. Would double recovery be allowed in such cases?

Likewise, Sir, the amendment and compensation for employees with multiple jobs seem more favourable to the employee. This could mean higher compensation costs for the affected employer as he would then have to compensate the employee for his total earnings, including earnings from another employer. I am also concerned that some of the employers may, as a result, terminate employees who hold multiple jobs. Would they have the right to do so?

One change which favours the employers is regarding the clause which discharges employer's liability if an injury is attributable to the influence of alcohol or a drug not prescribed by a doctor. I believe it is only fair that the employer assumes responsibility for injuries caused in such situations and I therefore support this change.

Sir, these changes mean quite a significant increase in costs for employers as it involves enhanced compensation for almost all staffing levels, including also executive directors. I feel that it is important for the Ministry to engage employers and keep them apprised of these legislative changes so that they will not be caught off guard when these changes come into effect.

I also like to urge the Ministry to continue taking a tough stance on bogus claims by employees and ignorant and irresponsible employers who do not play their part in ensuring a safe workplace for their employees. In terms of statistics, the slight dip in the number of workplace fatalities in 2007 is encouraging. However, only three weeks into the new year, we have seen one fatality in the Integrated Resort site in Marina on 16th January.

I believe that the best and most reasonable approach towards these issues

therefore welcome the enhancement of compensation for such workers and their families. Previously, Sir, some workers and their families chose to sue errant and negligent employers in court as costs awarded can be higher than what are claimable under the Act. An example is the family of the late Mr Heng Yeow Peow, a foreman who perished in the Nicoll Highway tragedy a few years ago. They reached settlement with three companies involved which agreed to pay $380,000 plus an additional $30,000 in legal costs. If the family had sought to make a claim under the Act, they would have been compensated with just a maximum amount of $111,000. Although not every case would have the same result, it clearly shows that there could be great differences between sums. Choosing to receive compensation under the Workmen's Compensation Act or WCA could be less complicated than suing parties in court, but it is clear that the increase in minimum and maximum compensation payouts in the WCA may be of no match for some parties who choose to sue. would be to continue to enhance the level of safety at the workplaces so that accidents can be substantially minimised or, better still, prevented. A safe workplace is beneficial to both parties. The employees are happy and motivated when they feel that their bosses place workplace safety as a priority and care for their well-being and employers benefit from higher productivity and a more motivated workforce.

Mr Speaker, Sir, I rise in support of the Workmen's Compensation (Amendment) Bill.

This Bill has made comprehensive and significant changes which will further strengthen protection for workers who die or are injured due to accidents at work, or because of occupational diseases contracted at work. One of the benchmarks of a progressive society is certainly the extent to which we are able to provide a safe working environment and adequate compensation for those who are injured or die at work. Workers deserve to be adequately compensated if they are injured or die at work so that they are able to provide for themselves during the period of their injury or, in the event of their death, their families will not face great hardship. If an adequate compensation system is not in place, there will be very few workers who will be prepared to work in risky places. As no matter how much precaution we take and despite the stricter regime under the Workplace Safety and Health Act, there will always be accidents and, therefore, adequate compensation is critical. It is important that this Act keeps pace with the latest developments and changes in the workplace. Workers welcome these changes and we feel that, perhaps, some of them are long overdue.

One major area of change is in the scope of coverage. The most significant improvement is the removal of the distinction between manual and non-

manual workers that existed in the existing Act under section 2 which defines the meaning of "workman". Under the old definition, there is no limit in the protection given to manual workers but non-manual workers have limited coverage, as only those earning $1,600 and below are protected under the Act. This distinction sometimes gives rise to problems as to what kind of jobs can be described as manual or non-manual, particularly in today's context when the component of knowledge and skills in a job has increased. Also, since the purpose of this Act is to provide for a simple and fast process for injured employees or their dependants to claim, it does not make sense to continue to exclude a significant proportion of our workforce from the protection of this Act, and to leave them to make claims only through common law which is expensive, takes longer and where negligence or fault of the employer has to be proven before a worker will get any compensation.

Such a route is also not in the employers' interest, as experience in other countries shows that expensive and protracted legal suits exact a toll not only on workers but also on employers whose business will also suffer. For non-manual workers earning more than $1,600, it is particularly painful because most of them do not earn enough to be able to maintain expensive legal suits for negligence against their employers, when there is no certainty even that they will succeed. Moreover, throughout the period of the suit, they may not have any income to support themselves and provide for their own medical care. So extending this scope is indeed a necessary change that will provide tangible protection to a wider group of people injured at the workplace, and this would certainly help to improve workplace harmony, productivity and efficiency.

Sir, I understand that some employers are concerned that the new

In my view, this is not the ideal arrangement as it would create two classes of employees, one covered under compulsory insurance and the other by self-insurance which is less impactful as the entire regime of this legislation is premised on compulsory insurance. Nevertheless, half a loaf or three quarters of a loaf, in this case, is still better than none as far as this issue is concerned. And if this will make it more palatable for employers from the cost perspective, then we are prepared to live with it. So, I hope that employers and the insurers will understand this trade-off and compromise that have been agreed upon and fully embrace the change. In fact, even without compulsory insurance, it will be in the employers' interest to insure their liability under this Act, as some are already doing, to minimise the cost to them in the event of an accident, as their liability under this Act remains even though they are not required to take up compulsory insurance.

Sir, this Bill also provides better safeguards for low-income workers. First, our workers are no longer excluded from the ambit of the Act which is more realistic as people now work outside an employer's premises due to outsourcings. Secondly, workers who do multiple jobs can claim for the total earnings from different employers, regardless of the kind of jobs they perform, whereas the existing law limits claims for multiple earnings only if a worker is employed in the same

Sir, our Seafarers' unions are also happy that section 2(4A) explicitly covers seamen, who will be covered for accidents occurring on board any Singapore ship, whether the ship is within or outside Singapore at the time of the accident, as the existing provision which covers accidents involving residents who work abroad lacks clarity as far as seamen are concerned.

Mr Speaker, Sir, the second major area of change is in the quantum of compensation. I applaud the increase in the compensation quantum for death and permanent incapacity, another significant change in the new Bill. Workers will now be paid a minimum quantum of $47,000 for death, compared to $37,000 before and a maximum of $140,000, compared to $111,000 before. For permanent incapacity, workers will be paid a minimum of $60,000, compared to $47,000 before and a maximum of $180,000, compared to $147,000 before. Perhaps, I think, for greater clarity, it would be useful if the Minister of State could also explain what are the criteria and basis for setting the minimum and maximum benchmarks. For instance, why should the minimum amount be $47,000 for the death of a worker and not much more than that, or why should the maximum amount be $140,000? I believe there is a basis and criterion for that. I think it is important that this is also explained so that the public and the workers understand.

The other area which I think is important, when it comes to this issue about quantum, is also to ensure that there is regularity in reviewing this quantum. The quantum was last reviewed in 1995, 13 years ago, which is a very long time. Workers should not be expected to wait for another 13 years before another review is done. Ministries should put in place a mechanism to automatically review the minimum/maximum quantums of compensation for death and permanent disability regularly, whether on an annual basis or at other reasonable, regular intervals. This is necessary to ensure that the quantums prescribed a realistic, relevant and fair to the needs of injured workers and their families.

Sir, another problem which is frequently a cause of concern for workers is the computation of earnings. The amount of compensation that a worker receives depends on his salary. This poses a problem when employers under declare salaries in order to pay lower CPF contributions. In such a case, the compensation that the worker will get will be very low because his declared salary is low and it is difficult for the worker to prove otherwise. This is one area in the implementation of the Act that I believe has to be addressed so as not to undermine the protection accorded to our workers by this law, and I do hope that the MOM will pay attention to this.

Another practical implementation problem is the contract workers because of the sub-contracting system. They do not know who their actual employers are. Often, workers of the principal employer are sub-contracted to many contractors who further sub-contract them. In many cases, the worker's primary contact point may be with the middleman who handles payment and assigns work. I observe that there are some changes in this Act to address this situation, and I hope that such changes would minimise the

Mr Speaker, Sir, I note that the new law provides for employers' liability for medical expenses to be limited up to a one-year time cap or a prescribed dollar per accident per employee of $25,000, whichever is reached earlier. This is an improvement over the existing provision, which is very restrictive, as it provides limits to claims under specific items, but, again, I would like to urge the Minister to review this quantum periodically as some occupational injuries may take a longer time to treat and follow-up treatments may continue for a long time. Also, with rising healthcare costs, there is a need for the MOM to regularly review this $25,000 cap so that it is fair and continues to be relevant to the needs of workers.

Sir, I welcome the changes under section 14A as the present provision can cause hardship to workers, as it provides for payment only after a worker has filed his claim or only after his claim for compensation has been assessed. The new provision allows him to be paid according to the usual salary periods under his contract of employment. I also support the various measures instituted to ensure greater efficiency in making applications and processing of claims and to enhance the various penalties to act as a deterrent to errant employers and to ensure greater compliance.

Sir, to give us greater clarity on what would be the impact of this Bill, I would also like to request the Minister of State for the following information. Firstly, the number of employers who were prosecuted for failure to insure their workers under the Act in 2007 and the number of workers who were affected. Secondly, in such situations, where employers failed to insure and had no money to pay their injured workers or the

Sir, in conclusion, I strongly support these changes because the new framework will provide better protection and greater adequacy in compensation for our workers. However, there is a need to do more education and outreach programmes to make sure that our workers understand their rights, particularly, older and less educated workers. Having a good law is a progressive step but, for the implementation to be effective, workers need to be aware of their rights and where to get help. I urge the MOM to step up their education and awareness efforts and to reach out to more workers.

On this note, Sir, I applaud the MOM for undertaking this comprehensive review. Workers now have better protection. Loopholes that plagued the old law resulting in abuses by employers and workers are addressed and cost increase remains manageable for employers.

On this note, Sir, I support the Bill.

comprehensive coverage would result in an increase in cost. However, I think that the concern is probably overstated. Although the Act now covers everyone, in practical terms, most of the claims will come from the manual workers who are currently already covered, regardless of the amount of salary that they earn. Also, under the proposed Bill, employers are given the flexibility not to take up compulsory insurance for employees who are newly covered under the Act.occupation. This will indeed be a booster particularly for our low-income workers who perform multiple jobs and are clearly a move in the right direction. The new definition of "workplace" is also comprehensive and would cover situations where workers are deployed to work in other premises outside the employer's factory or office and avoid the kind of ambiguities that existed in the existing law.difficulty faced by some contract workers in holding someone accountable for the purpose of claiming compensation.dependants of the injured workers, how were the workers or their families being assisted? Thirdly, how many of the workers or their dependants who claimed for compensation due to injuries or death were Singaporeans and how many were foreigners? And, fourthly, Sir, how were injured foreign workers helped to proceed with their claims once they had returned to their own countries upon the expiry of their Work Permits?

4.26 pm

Mr Speaker, Sir, I welcome and support the proposed amendments to the Workmen's Compensation Act.

For years, the labour movement has been pushing for changes to the Workmen's Compensation Act to better safeguard the interests of the employees

Sir, from time to time, the union leaders have given feedback that there were instances where injured workers in hardship had approached them for assistance. These workers have not received their wages while on medical leave and were unable to pay for their medical expenses, owing to the ambiguities in the current Act. There were different practices on the ground among the employers with regard to the payment of medical leave, wages and medical expenses. Many employers will wait for the reimbursement from the insurer before paying their workers. By then, the injured workers will actually be facing financial difficulties.

Based on the feedback that I have received from the union leaders, they are particularly glad that the amendments have been made, especially the timeframe

Sir, I will say a few words in Mandarin.

injured at work. It is heartening to note that the coverage will be extended to all employees in general, regardless of salary level and job nature. As the proposed change to the name suggests, it is no longer necessary to differentiate between manual and non-manual workers under the Act. This points to the effect that, with technology advancement and changing job scopes, the risks faced by manual or some non-manual workers in the workplace are actually similar. Since the last revision to the WCA in 1995, the median wage of the resident employees has increased significantly. It is indeed timely to raise the compensation levels to keep pace with the increase in wages. Besides enhancing the maximum and minimum compensation limits for all age groups, it is noted that the compensation for employees aged 40 and below and those holding multiple jobs will be adjusted. This enhancement will better reflect the true earning potential and thus providing workers injured with fairer compensation. in which the payment of medical leave, wages and medical expenses is due. This would ensure a fair and prompt compensation to the workers that will alleviate difficulties faced by workers. The union leaders are also particularly pleased with clause 35 of the Amendment Bill. It creates a new offence for non-payment of compensation by employers and also allows MOM to enforce payment of compensation. This new amendment is necessary as injured workers may not have the means to take the errant employers to court. With the number of employees benefiting from the extended coverage doubling to more than $2 million, there is no doubt that the employers will say that the business cost will go up with the added costs of accident insurance for the extended coverage. However, all employers should look at this amendment positively. The amendment should be seen as an added incentive for employers to work more closely with the Government agencies and unions to make their workplaces even safer beyond legislative requirements, to provide a safer workplace for all so that there will be fewer or no accidents at the workplace and thus lesser and, best still, no need for any compensation.

(In Mandarin): [For vernacular speech, please refer to Appendix A *.] This amendment is just in time. The coverage of the safety net has been widened, and more than two million people will benefit from the amendment. More importantly, the changes will see the compensation levels and timeframe made fairer to workers. And I will quote one verse of the Tang poetry to summarise my views on the Amendment Bill: "After numerous calls, at long last, the beauty appeared, but she is still holding the musical instrument covering half her face."

The union leaders have long waited for this Amendment Bill. For a long time, they

For the employers, I would like to say in specific terms that not only the employers must understand clearly but they must also look at it thoroughly so that they see the inner beauty of the amendment. The inner beauty refers to the inner meaning of the legislation. For example, the employers cannot say that, because of extended coverage, the compensation is higher, cost of insurance increases and so business costs will go up, but rather I want to remind the employers that they must recognise that if there is no accident, there is no need for compensation. It is a basic truth.

Therefore, the employers should enlarge and strengthen the safety measures in the work environment so that every employee, regardless of whether he is a blue collar, white collar or no collar, no matter what his income, will be able to work in a safe and secure environment every day so that not a strand of hair of these workers will be lost. This is what the employers and the Government must provide to our workers.

The arrangement of compensation - no matter how well we change the laws or how large is the compensation - is not useful because, whatever the amount is, it cannot replace the person who has passed away. So I would like to urge the employers and the workers that, in amending this legislation, we must continue to increase the safety of our work environment so as to minimise the risk of industrial accidents.

Sir, I fully support this amendment.

have been trying to make the situation at the lower levels known to the higher levels, and at long last, MOM has approved the proposed amendments to the Workmen's Compensation Act. The workers are particularly pleased and are looking forward to the implementation of the proposed amendments. But why do I say "The beauty is still holding the musical instrument covering half her face?" This is because the contents of this legislation are not easily understood. It is like the beauty's face being half hidden by the musical instrument, pipa. So it is necessary for MOM to explain and organise a series of briefings for all employees to fully understand the changes made to the Act. I would like to ensure that members of the public can understand the naked truth from the top to the bottom so that everyone can appreciate the true nature and beauty of this legislation. *Cols. 307-308.

4.33 pm

Mr Speaker, Sir, thank you for allowing me to speak on the Workmen's Compensation Amendment Bill.

People are an important asset to Singapore's progress and our economy. I rise in support of the amendments to the Workmen's Compensation Act as the intended principles are to safeguard the interests of both injured employees and the employers, and to ease the administrative process without compromising the integrity of the system and the Act. Let me just touch on the point about enhancing the compensation levels and amounts.

The enhancement is timely to keep up with the changes in wages as the last revision was done in 1995. I applaud the fact that, apart from the revision to the minimum and maximum compensation amount limits for both death and permanent incapacity, there is an increase of the age multiplier factors in the calculation of the compensation amount. This is effective in giving increased recognition to the earning capacity, especially of those 40 and below. Apart from enhancing the efficiency and effectiveness of the process, I am glad to see that the amendments also look to

There are a few areas that I would like to highlight for attention and I hope the Ministry of Manpower will be able to address them.

With the proposed changes in the new section 8, the intent is to provide compensation for the employee's total earning caused by an accident arising out of or during the course of his employment. What it means is that, where an employee is employed under contract of service with two or more employers, his monthly earnings can be computed as if his earnings under all such contracts were earnings in the employment of the employer for whom he was working at the time of the accident, but excluding earnings from contract of service that the last mentioned employer does not know. The proposed amendment relaxes the compensation criteria for employees with multiple jobs in either the same or different industries.

This is a good change as we see the increased trending of contract workers who are holding multiple jobs for either financial reasons or the need for flexibility of time due to family or personal circumstances. MOS did share that the number of employees holding dual jobs is small currently. I would ask the Ministry if there is knowledge of what proportion of this group is from the lower income and who hold dual jobs to supplement their income. Currently, how many actually do declare to the employers that they hold dual jobs? This change may or

With the amendments, I am sure employers will also welcome the changes that support the efficiency and effectiveness of the process and, hence, reduce the administrative burden on them, eg, the streamlining of accident reporting requirements requiring the employee to decide earlier in the claim's process the preferred route of recourse he or she wishes to take. However, given the expanded coverage of the Act to allow all employees, except those excluded classes of employees as specified in the Fourth Schedule, and the relaxation of the compensation criteria, employers may be concerned with the potential increase in the fraudulent claims by employees. While there may not be a high number of fraudulent cases today, the extended coverage could mean a larger number of fraudulent cases for employers, given that the coverage now is all employees. This is about an increase of 70% from the current coverage. This could also imply an increase in the cost of burden on the employers and administrators to manage the cases. As one of the principles of the amendments to the Bill is to deter fraudulent cases, can the Ministry share the measures and the process that are in place to minimise the potential fraudulent claims by employees, apart from the

I understand and am glad to see that the Ministry has allowed for flexibility for employers to decide on the risk with the cost of insurance and has not required compulsory insurance for employees who are newly covered under the Act, ie, those with the monthly earnings of above $1,600, as these non-manual employees are subjected to lower workplace risks. While continuing to provide for the flexibility, I would however encourage that the Ministry initiate and support efforts for affordable insurance products for small companies to take the necessary coverage for their employees.

Employers are still liable for payment of compensation to the employees regardless of whether or not they have purchased insurance. With affordable insurance products, this would encourage employers to insure their employees and this will not only help them plan and manage their business cost and liability but also ensure that employees actually receive timely payouts. Should there be an insurance scheme for smaller companies? I guess that is the question I am begging to ask here. And if this can be taken as a group, it will help to drive economies of scale and, hence, more affordable insurance products can be offered to smaller companies. I think many of us know that, for the larger companies today, many already have put their employees under insurance schemes. Therefore, the benefits, as you will know, are actually wider than what is covered under the Workmen's Compensation. So the cost increase will not be on them, but the actual cost increase will really be on the smaller companies. More importantly, it will also affect the effectiveness of whether employees actually get compensated.

Sir, I support the amendments to the Workmen's Compensation Act.

safeguarding the interests of the employers. For example, with the amendments, employers will be discharged of liability for injury directly attributable to the influence of alcohol or a drug not prescribed by a doctor. Currently, employers are held liable if such an injury results in death or permanent incapacity of 50% or more.may not benefit them if they continue not to disclose their other employment contracts to their employers for fear that their employers may not approve. If this is the case, then the amendment will not serve the purpose it was intended to. This would also mean that conscientious employers who do make it a point to know the employment contracts of their employees would actually have greater liability with this change. How would the Ministry ensure that employees are not adversely impacted from this amendment in the scenarios that I have just mentioned? And will there be measures for the Ministry to recognise and reward diligent employers who do the right things for their employees? proposed creation of a new offence for making a fraudulent case and the proposed penalty?

4.40 pm

Mr Speaker, Sir, like my esteemed colleagues before me, I support the amendments to the Workmen's Compensation Act. I shall not repeat the reasons for supporting this amendment Bill but suffice to say that they are pro-worker and that the labour movement thanks the Ministry for this Bill. I have two suggestions for the Ministry which I hope the Minister of State would consider for the future.

The first has to do with compensation limits. In deciding how much to adjust the maximum and minimum compensation limits, I notice that the Ministry has used the median income of Singaporean employees as $2,040. According to the Labour Force Survey of Singapore, $2,040 is the median income of all employees in 2006, and the definition of "all employees" include those working on part-time basis as well. If we look only at full-time employees and exclude those who work on a part-time basis, the median income of Singaporean employees in 2006 is about 6% higher, at $2,170. In fact, in 1996, the median income of all employees was the same as those of full-time employees, at $1,630. But the difference has opened up over the last 10 years. What this means is that the minimum and maximum levels would have been slightly higher if MOM had used the $2,170 as the median income.

Let me give an example. The maximum limit for permanent incapacity is now set at $147,000 after the amendment. This is 90 times the 1996 median employment income, or seven-and-a-half years' worth. If we maintain the 90 times compensation maximum but use instead the median income of $2,170 for full-time employees instead of the $2,040 median income of all employees,

This $15,000 difference is quite a substantial amount for a family in need. And this is the reason for me raising this point so that, in future, as we introduce re-employment legislation and as we encourage more women to re-enter the workforce, I believe it is reasonable to expect that there will be many more employees in part-time work arrangements. Since the compensation is already based on a person's monthly income, the minimum and maximum limits need not be set in such a way as to disadvantage full-time employees. So this is something that I would like the Minister of State to perhaps take a look at. Arguably, the contributions of full-time employees are even more important to their families and, hence, any loss of income, more severe.

I note that, in the amended Act, the Minister is empowered to update all Schedules in the Act by Gazette. This is good news. As Madam Halimah has mentioned earlier, the Act was last amended more than 10 years ago in 1995. So I would like to suggest that the Ministry review the Schedule much more regularly in light of the new empowerment that the Minister is vested with, and I would like to suggest specifically that the Schedule be reviewed at no more than three-year intervals, and it is in the workers' interest that the Schedule is updated on a regular basis. I would specifically also like to suggest that, by the next review, the Ministry could consider using the median income of full-time employees instead of all employees.

My second point has to do with timely processing. The Act has been amended to be clearer on how and by what deadline a worker can withdraw his claim under the Act to commence civil action

including part-time workers, the maximum limit would be $195,000 instead of the $180,000 that is now in the amendment. against his employer. It also spells out the circumstances under which a worker who failed in a claim under the Act can commence action in court. These amendments that help to ensure more timely processing are most welcome. I understand that in Denmark, a 1993 legislation known as the Act on Insurance Against Consequences of Industrial Injuries also laid down time limits for case processing by the National Board of Industrial Injuries which is probably the equivalent of Singapore's Workmen's Compensation Medical Board.

In other words, in the case of Denmark, not only the worker and the employer must take action within certain stipulated times so as not to cause unnecessary delays, the government body that processes the claim must also act in a timely manner. May I ask the Minister of State if there is similar provision under the Act for the Workmen's Compensation Medical Board to complete its processing within a certain timeframe. I think this will help to fulfil the goal of fair and prompt compensation.

Sir, in conclusion, I would like to say that the Bill is welcomed as the amendments to the Act better safeguard the interests of our workers. I would also like to take the opportunity to remind this House that there are, on average, 15,000 cases of workmen's compensation each year of varying severity. I think, in the more serious cases, there is often loss of life and limb, leading to potentially severe hardships for the families involved. It is indeed a sober reminder that while it is good that we have well-defined measures for compensation, prevention is indeed better than cure. So it is far better to have fewer injuries in the first place. And this can only come from better awareness and a relentless effort to improve workplace safety which I would like to urge the Ministry to continue to step up efforts on.

Sir, on this note, I would like to thank the Ministry for the amendments and I support the Bill.

4.46 pm

Mr Speaker, Sir, on the whole, the amendments are improvements on the existing Act. The category of employees covered has widened and the compensation limits have gone up.

However, Sir, I would like to seek clarifications on two aspects of the Bill. The first aspect concerns death cases, specifically, who is to claim the compensation when the worker has died? Under the existing Act, compensation is to be paid to the worker's dependants, defined as his immediate family and other relatives. Under clauses 9 and 11 of this Bill, the Commissioner for Labour is to be empowered to decide not to pay dependants but instead to make payments to the estate of a worker, ie, if the worker has left a will, the compensation can be paid to the beneficiaries named in the will.

Sir, I can see why this change could be useful in some situations. For example, there may be a worker who has been estranged from his family from young and has willed away his property to someone else dear to him, for example, a foster parent. In such a situation, it may be fair that the estranged family should not get a windfall from his death. However, what if the worker is supporting his family and yet has willed away his possessions to a non-family member? In such a situation of competing claims, what is the Commissioner supposed to do? The amendment says that he cannot give compensation to both dependants and the estate, but must choose between the two. Is the Commissioner supposed to make a value judgment based on who needs the payment more, or who is more deserving, from a moral standpoint? This amendment introduces a possible contentious angle to the Act and is of some concern.

Sir, the second aspect relates to the compensation for the cost of medical

As the Minister of State mentioned in his Second Reading speech, there are cases where a worker requires prolonged treatment and multiple operations exceeding $25,000. We are also not sure how possible means testing for hospitalisation in the future will affect the amounts payable. Sir, while caps on compensation may be understandable, we are talking here about reimbursement for expenses which have to be paid out. I am told by some lawyers who practise in this area that the current legislation is fair and works well. Could the Minister of State further elaborate on why there is a need to change this?

Finally, Sir, I have a comment on the drafting of a provision concerning occupational disease. This is clause 8(b) of the Bill. Clause 8(b) amends section 4(3) of the Act which provides for a situation where a worker contracts an occupational disease sometime after leaving employment. Though one can make out the intention of the paragraph, I believe the wording of the section can be reordered for better clarity.

treatment which has been raised by some Members already. Under the existing subsidiary legislation, the worker can claim expenses related to hospital treatment subject to caps per item, for example, ward charges of $9,000, operations may be claimed at $4,800 per admission and x-rays at $1,500 per examination. There is no limit to the number of operations, x-rays or other treatments. Implants and artificial limbs are paid in full. Clause 37 of the Bill amends the Third Schedule to now set absolute limits for the cost of medical treatment, being the cost of one year's treatment or $25,000 per accident, whichever is lower.

4.50 pm

Mr Speaker, Sir, let me thank the Members for supporting the

The proposed amendments will ensure that the work injury compensation framework continues to offer a fair, simple and quick way to settle compensation claims which will benefit both workers and employers. I shall now address the specific points raised by Members.

First, on the broader perspective of the implications of this amendment. Dr Ahmad Magad asked about the exclusion of foreign domestic workers. I have explained in my speech that due to the unique nature of their work, it makes it difficult to determine whether the injury is sustained as part of their work or otherwise. So it is therefore better for foreign domestic workers to rely on personal accident insurance that is provided for them. Or, if they wish, they can also pursue civil claims under the common law.

Dr Ahmad Magad was also concerned that employers are not required to purchase insurance for non-manual employees earning above $1,600 a month. As I explained earlier, I think we need to adopt a balanced approach. We want to enhance the benefits and protection for workers. But, at the same time, we want to ensure employers' liabilities are not unduly onerous. The amendment has expanded the coverage of the Act quite considerably. An additional 850,000 workers will now be included - 70% more than before. This is a significant move. To require employers to also purchase insurance cover for this new group could be too onerous. And our experience has shown that, generally,

Dr Magad also asked whether employees who are covered under insurance, such as group term life and personal accident insurance, need to be additionally covered for work injury compensation as well. He also asked if double recovery from these various policies was possible. Sir, there is no change to the current approach. Employers are allowed to buy one or more insurance policies to cover all their liabilities under the Work Injury Compensation Act. In assessing the amount of compensation payable under the Act, the Commissioner may take into account other payments made by the employer to the employee for their injury.

On compensation norms, Mdm Halimah Yacob and Mrs Josephine Teo suggested that we should review the compensation levels and the cap on medical expenses regularly. I fully agree with Mdm Halimah and Mrs Josephine Teo that the compensation levels should be updated regularly. Since the last increase in 1995, MOM had been cautious about revising the compensation levels during the volatile periods after the Asian financial crisis in 1997 and the economic downturn in 2002.

It is important that we strike a balance between updating the compensation levels frequently and providing certainty to employers of their liability under the Act. The three-year timeframe suggested by Mrs Josephine Teo is a reasonable

Mrs Josephine Teo also suggested using the median income of full-time employees and not all resident employees as a basis for future review. Since the revised Act will cover almost all employees, including part-time workers, pegging the compensation limits to the wages of all resident employees is, in principle, more appropriate than using the wages of only full-time resident employees.

On medical expenses, some Members asked whether we could have some flexibility for injuries that need longer healing time or need longer-term treatment. Ms Sylvia Lim also asked what is the rationale for imposing an overall cap, rather than continuing with itemised limits. In this review, we have been mindful of the need to maintain a balanced approach so that the amended Act will remain acceptable to employees and employers, as the WCA is predicated on a no-fault limited liability basis. We will have to set a clear limit to the compensation for medical expenses in order to provide certainty to employers.

Nonetheless, Mdm Halimah and Ms Sylvia Lim can be assured that the $25,000 cap will fully cover the medical expenses incurred in more than 95% of cases where hospitalisation was required. By imposing a global cap instead of individual limits will also allow greater flexibility because certain limit on certain treatment, once it is breached, the employee will no longer be able to claim compensation for that specific item. Whereas, by imposing an overall cap, the employee will have the flexibility to decide on how to utilise the cap within the various treatments recommended by the doctor.

The one-year cap is also quite adequate as most injuries will typically

On employees holding multiple jobs, Dr Ahmad Magad asked if this favours the employees. On the other hand, Ms Jessica Tan was not sure if this benefits the employee. So, I think, there is a fine balance. Sir, this amendment really enhances employees' access to the WCA by relaxing some of the criteria for multiple jobs that are undertaken by the employee.

Under common law today, all employees are entitled to claim compensation for all the earnings from all the jobs that he undertakes. Under this Act, employer will only be liable if he is aware of the income from the multiple jobs that his employees are undertaking. So there is a certain limit to the liability of the employers.

Next, let me talk about enhancing efficiency and effectiveness. Mrs Josephine Teo asked if MOM would set a time limit to process the claim so that employees can receive the compensation promptly. MOM has always been very mindful of the need to expedite the compensation process. Where the claims involved minor injuries, the Ministry, upon being notified of the accident, will direct the employer to pay to the injured worker his medical leave, wages and medical expenses. Where an injury was more serious, the Ministry took about four months to assess the compensation amount. This includes the time for the injury to be sufficiently stabilised as well as for a medical practitioner to determine the extent of the permanent incapacity. It is important to understand that we need

Let me assure Members that MOM will continue to look for ways to raise the efficiency of the system and the proposed changes to the Act will enable us to do so.

Let me now clarify some of the remaining issues that were raised by Members. Dr Ahmad Magad, Mdm Halimah and several Members emphasised the need to reach out to employers and employees on the changes to the Act, and I fully agree with them. In the coming weeks and months, MOM will partner various organisations, such as the Singapore Business Federation, National Trades Union Congress, Law Society of Singapore and the General Insurance Association of Singapore to conduct public seminars on the changes to the Act. MOM will also continue to create greater awareness amongst all stakeholders of the rights and responsibilities under the Work Injury Compensation Act.

Mr Yeo Guat Kwang commented just now that this Act is like the Chinese poem, "qian hu wan huan shi chu lai, you bao pi pa ban zhe lian". I would like to respond by saying that we all hope that, one day, we will see "lu shan zhen mian mu". But for us to see "lu shan zhen mian mu", we have to work together collectively amongst all the tripartite partners so as to achieve the objective of reaching out to all our workers.

Bill - Dr Ahmad Magad, Mdm Halimah Yacob, Mr Yeo Guat Kwang, Ms Jessica Tan, Mrs Josephine Teo and Ms Sylvia Lim. They have all spoken on the Bill and I am glad that there is general support for the Amendment Bill. non-manual workers face lower workplace risks and incur fewer injuries. So, it is therefore better to leave it to employers to decide and to discuss with their workers on how to cover the risks. I should also stress that employers are still liable to pay compensation even if he is not insured. I agree with Mdm Halimah that it would be prudent for employers to insure themselves anyway. MOM will review this periodically and may require a specific sector to be insured if the risks warrant it.one. Going forward, MOM will review the compensation levels and caps on medical expenses every three years. stabilise within a year from the accident. Employees who wish to claim the full medical expenses beyond the $25,000 cap can choose to do so under common law. Genuinely, needy cases can also apply through the hospital's medical social workers for further assistance on a case-by-case basis. to ensure that each case is thoroughly investigated and the compensation awarded is fair to both employees and employers.

Ms Sylvia Lim suggested rephrasing clause 8(b) of the Bill. I would like to thank her for the suggestion. The current text together with the explanatory statement accurately reflects the intent of the clause. This clause provides flexibility in prescribing a limitation period for

Ms Sylvia Lim also asked if an incident of death happens, how does the Commissioner decide who is entitled to the claim. The Commissioner will take into account various factors involved surrounding the death of the employee, the claims that were presented to him and will make a decision on who will be receiving the claim according to the Act.

Mdm Halimah has asked for a whole series of information. I will try my best to address and to respond with some of the statistics that Mdm Halimah has asked for. She has asked for the breakdown between local and foreign workers who have claimed compensation in 2007. About 58% of the claims in 2007 were filed by foreign workers.

She also asked how many employers have been prosecuted for failure to insure their workers under the WCA. In 2007, six employers were convicted for failing to purchase valid workmen compensation insurance for their workers.

Mdm Halimah also asked what happens to workers whose companies failed to insure and cannot pay, and she asked what can we do to help these workers. Currently, if an employer does not pay compensation after being ordered to do so by the Commissioner, the employee can enforce the order in the civil courts. I have also mentioned that the new section 40 will provide an additional avenue for recovery, as the Commissioner may apply to the court to order the convicted person to pay up the amount owed to the employee. For claimants who fail to secure workmen's compensation and are in financial

Mdm Halimah also asked how are injured foreign workers helped to make their claims once they have returned home upon the expiry of their work permit. Sir, generally, injured foreign workers prefer to remain in Singapore to facilitate their recovery and processing of claims. However, if the worker wishes to return home, MOM will continue to liaise with him through the overseas contact information he has provided us or through his legal representative or the relevant Embassy.

Ms Jessica Tan asked what we can do to deter fraudulent claims by employees. I mentioned earlier that nine workers were convicted in 2007 for providing false information. This is a small number but, given that the compensation limits and the stakes have been raised, we need to do more to educate our workers so that they are aware of the penalties, and we will also be more vigilant in processing the claims to prevent fraudulent claims.

Sir, the proposed amendments to the Workmen's Compensation Act are timely. The enhanced system will contribute to the overall workplace safety and health framework. With Members' support and in collaboration with employers, unions and workers, we will be well placed to achieve the goals spelt out in our safety and health vision for 2015. This will be a win-win outcome for all.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Gan Kim Yong].

Bill considered in Committee.

specific occupational diseases. If the incapacity or death happens beyond the limitation period after an employee ceases his employment, he would not be eligible to claim compensation under the Act. As the intent of the clause is quite clear, I do not intend to change the wordings. difficulties, they can apply for financial aid from either the Workers' Fund administered by MOM or the Singapore Labour Foundation Special Relief Fund administered by NTUC. Over the last three years, MOM granted four workers financial aid amounting to about $93,000 from the Workers' Fund.

The citation year "2007" will be changed to "2008" as indicated in the Order Paper Supplement.

Clauses 1 to 41 inclusive ordered to stand part of the Bill.

The Schedule ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.

5.08 pm

Mr Speaker, Sir, I beg to move,

That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44), resolves that the Schedule to that Act be varied by deleting the figures "$2,661,700", "$132,000", "$3,600", "$2,724,400", "$1,301,500" and "$64,500" in the second column and substituting for them the figures "$3,913,600", "$177,000", "$4,700", "$3,547,700", "$1,282,400" and "$74,400" respectively.

Sir, for FY2007, I propose a revised provision for Class I expenditure of $4,095,300, which is $1,298,000 higher than budgeted, and for Class II expenditure of $3,547,700, or $823,300 higher than budgeted, due mainly to the salary increments, salary adjustments and higher bonuses for the Privy Purse and staff.

For Class III expenditure, I propose a revised provision of $1,282,400 or $19,100 lower than budgeted, and for Class IV expenditure, of $74,400 which is $9,900 higher than budgeted, to better reflect the expenditure related to the expenses and services of the Household.

It is therefore necessary to vary the provisions in the Schedule to the Civil List and Pension Act (Chapter 44) as indicated in the Motion before the House.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44),

resolves that the Schedule to that Act be varied by deleting the figures "$2,661,700", "$132,000", "$3,600", "$2,724,400", "$1,301,500" and "$64,500" in the second column and substituting for them the figures "$3,913,600", "$177,000", "$4,700", "$3,547,700", "$1,282,400" and "$74,400" respectively.

Resolved,

"That Parliament do now adjourn to a date to be fixed." - [Mr Mah Bow Tan].

Adjourned accordingly at Twelve Minutes

past Five o'clock pm to a

date to be fixed.

WRITTEN ANSWER TO QUESTION FOR ORAL ANSWER NOT ANSWERED BY 3.00 PM

asked the Minister for Community Development, Youth and Sports (a) what is the breakdown on the total number of clients counselled for problem gambling by the Family Service Centres by age group, gender, marital status and income over the past 2 years as well as the success rate; and (b) whether foreign workers are eligible for counselling if they have gambling problems.

MCYS has set up two pilot specialist centres operated by Thye Hua Kwan Moral Society and Care Corner Counselling Centre to provide intervention services for problem gamblers and their families. The pilot centres started operations in September 2006.

They form the second tier of a three tier system. The first tier consists of detection and referrals from 'ground' organisations like the family service centres (FSCs) and CDCs. The third tier covers medical and psychiatric treatment at the Institute of Mental Health under the Community Addictions and Management Programme (or CAMP for short) for those with multiple addictions or severe gambling addictions.

As the two specialist centres have been set up, we do not track problem gambling cases at FSCs. We are tracking the two pilot centres instead. Over a one year period from September 2006 to September 2007, the two centres saw a total of 190 problem gamblers. The majority of the cases, or 93%, were male. Of the 190 cases, 58% of them were married. Also, 42% were between 30 and 39 years old, and the next largest age group are those between 40 and 49 years old, at 18%. In terms of income profile, 35% of the cases earned a monthly income of $2,000 to $2,999 and another 20% earned between $1,000 and $1,999.

Out of the cases that have ended their treatment, the centres reported that about one-third successfully completed treatment. The remaining cases did not return to the centres to receive further help, or felt that they no longer needed counselling. This indeed is a challenge faced in addiction intervention work. The National Council on Problem Gambling and the Institute of Mental Health are working with the recently appointed International Advisory Panel of gambling addiction experts to enhance counselling and treatment for problem gamblers and their families.

Foreigners living and working here may also approach the pilot specialist centres for help if they have a gambling problem.

asked the Minister for Community Development, Youth and Sports (a) how many persons are currently required by a warrant issued by the Director of Social Welfare to reside in a welfare home under the terms of the Destitute Persons Act; (b) what steps are taken, if any, to help them become productive members of society; and (c) whether it is the norm for persons to be discharged from welfare homes after a period of residence and, if so, under what conditions.

Each year, about 180 persons are committed to the welfare homes under warrants issued by the Director of Social Welfare. This is done after social investigations have found them to be destitute.

When beggars or vagrants are picked up by or referred to MCYS, our first priority would be to investigate into their family background, and where possible help them to re-unite with their family. Only in situations where the person has no family, or where his family relations are severely estranged, will the person be deemed a destitute and committed to a welfare home.

The Welfare Homes provide shelter, meals, social activities, training and job assignments matched to the residents' capabilities. The Homes also assist residents lead independent lives and re-integrate into society, and where possible, help them to reunite with their families. Residents who can do simple chores will participate in work programmes where they will receive an allowance. The more able residents are given opportunities to go out and work during the day, to prepare them for eventual discharge from the Homes. Residents will be considered for discharge if they have caregivers who are able to take them or if they are able to find jobs and live independently. The social workers at the homes will provide the necessary assistance with housing or employment arrangements.

There are currently about 1,750 residents in the 10 welfare homes. About 85% of the residents are above 50 years old with psychiatric illnesses, disabilities, chronic medical problems, or are mentally unfit for work. Such conditions make it a challenge for them to be discharged. However, on average, 70 residents per year are discharged to live in the community. Those who are not discharged would remain in the welfare homes for long-term care or be transferred to nursing homes if their medical conditions deteriorate.