GOVERNMENT REVENUE ATTRIBUTABLE TO INTEGRATED RESORTS

GOVERNMENT REVENUE ATTRIBUTABLE TO INTEGRATED RESORTS:

(Breakdown and utilisation): 8.

Ms Denise Phua Lay Peng asked the Minister for Finance (a) how much additional revenue will the Government be receiving as a result of the good financial performance of the two Integrated Resorts; (b) what is the breakdown of the revenue attributable to the casinos and other operational units; and (c) what are the likely ways in which this additional revenue will be utilised.

The Second Minister for Finance (Mrs Lim Hwee Hua) (for the Minister for Finance): Sir, the two Integrated Resorts (IRs) collect casino entry levies on behalf of the Totalisator Board. They also pay betting taxes and GST on their business receipts to the Government. However, the entry of the IRs has also led to a restructuring of the gaming industry as a whole. Hence, while the IRs have brought in new revenues, collections from other gaming activities such as lotteries, horse and sports betting, and fruit machines operated by clubs have fallen.

Taken together, the net increase in collections by the Totalisator Board with the entry of the IRs was about $130 million in the eight months between April and November 2010. Likewise, the net increase in revenues to the Government with the entry of the IRs was about $420 million over the same period.

The Totalisator Board will pool collections from the casino entry levies with their recurrent surpluses, which go towards funding activities benefiting the community. Just to recap, these range

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from educational and health programmes to sports and arts and culture. Some of Tote Board’s ongoing commitments include the Tote Board Social Service Fund, the Tote Board Community Healthcare Fund, the Yellow Ribbon Project and the Community Chest.

The revenues collected by the Government from the IRs, like those from the rest of the gaming industry, flow into the Consolidated Fund. They are not earmarked for specific purposes, but go towards funding of the Government budget as a whole. This allows Government the flexibility to channel funds to areas with the greatest needs and strategic priority.

Ms Denise Phua Lay Peng (Jalan Besar): Thank you, Minister, for the response. In the report released by PricewaterhouseCoopers in December, it was reported that Singapore's slice of the global gaming industry will be about US$8 billion by 2014. Singapore is also anticipated to overtake Australia and South Korea to become the second largest gaming player in Asia Pacific, just after Macau. I wish to ask the Minister a few supplementary questions. Firstly, if this is indeed the intended strategy for economic development for Singapore? Is the Government happy with this "achievement"? Secondly, what is the total cost to the country as a result of this development? Lastly, what steps might be taken to protect Singapore from the ill effects of such an impact before it is too late? Is there any intent to reduce the casinos to one or none in the future, when the time is appropriate?

Mrs Lim Hwee Hua: Mr Speaker, Sir, the supplementary questions raised by Ms Denise Phua have actually been debated to some detail under the different heads, in terms of the intended strategy – why we are having Integrated Resorts and casinos in the first place. This has been

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debated quite extensively by the Ministry of Trade and Industry. As for the safeguards, the House has just heard earlier about how we have in place the exclusion orders as well as the entry levies and so on. These are the different measures that we have in place to ensure that the industry will progress as intended. At the same time, the extra revenue collected by the Government will go towards funding the Government's programmes. As for those collected by the Tote Board, they will be added to the surplus for the benefit of the community at large.

Ms Denise Phua Lay Peng: Thank you, Mr Speaker. I appreciate the fact that the discussion of casinos has been going on for very long time. The recent development that we have done so well in the gaming industry, gives a lot of concern to a lot of Singaporeans, including discomfort in this House. That is why I raised the question on whether this was intended and what can be done, especially if the casinos are doing so well and the surplus is now channelled to even fund our social services and other important areas like sports and arts.

Mrs Lim Hwee Hua: Mr Speaker, Sir, I would encourage the Member to file a question for MCYS, if she would like to discuss safeguards further. What I would comment here is that at the outset when we conceived the whole Integrated Resorts idea, there were many business risks: whether it is country risk or the timing of the business cycle and so on. Many things could have gone very wrong too. But having taken the decision, we then planned for the best possible model. At the same time, we ensured that all the adequate safeguards are in place. We stand ready to move with additional safeguards should there be clear evidence that there is an increase in gambling addiction.