MAID LEVY

MAID LEVY:

(Review): 10.

Mr Chiam See Tong asked the Minister for Manpower if he will review the lowered maid levy issue and implement a new set of maid levies to reflect the economic status of employers and take into account the needs of their children and the elderly so that those who can afford to do so will pay more and those who are less well-off will pay less or are even exempted from paying the levy.

The Senior Parliamentary Secretary to the Minister for Manpower (Mr Hawazi Daipi) (for the Minister for Manpower): Sir, the foreign domestic worker levy has been reduced over the past few years from $345 in 2003 to $295 in 2005. In addition, a concessionary levy of $200 is already in place for employers who have young children or elderly members, and

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later this year, for those who have disabled in their family. As previously announced, both the normal and concessionary levy will also be further reduced by $30, with effect from 1st July 2007, to $265 and $170 respectively.

Mr Chiam See Tong: Sir, our present system of allocation of maids favours the rich. Some rich people have as many as five maids. But some Singaporeans who are poor and who are really in need of maids cannot qualify even for one maid. So maybe the Government would like to change the system where it is more equitable to give those who are really in need of the maids a chance to have a maid.

Mr Hawazi Daipi: Sir, we should not look at employing a foreign domestic worker as an entitlement. If Mr Chiam's concern is that this household who cannot afford a foreign domestic worker because of the levy should be assisted, then I think we have to be very prudent in our approach. It would not be desirable for foreign domestic workers to be hired by low-level families who have problems making ends meet. We have to be careful in managing the number and, at the same time, the welfare of foreign domestic workers because, when they are here, we want them to be well taken care of and well protected, and they should not be exposed unduly to the possibility of not being paid by the low-income family. I think we have to be very prudent in our approach in employing foreign domestic workers.

Secondly, hiring foreign domestic workers should not be the only solution for our households. There are already assistance schemes administered by the Ministry of Community Development, Youth and Sports. There are schemes and programmes run by voluntary welfare organisations, in conjunction with the

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Ministry of Community Development, Youth and Sports, to help children and the elderly, or the households who need assistance and who may not be able to afford hiring a maid.

Mr Chiam See Tong: Sir, surely the Government can build a more equitable system. For those who can afford, I think it is fair to make them pay, even two or three times. They can afford it. While those who are really in need, I think they should be given a maid, especially the husband and wife who are earning a living and they have children at home, and also there are elderly people to be taken care of sometimes. So can the Government not think of a system which is equitable - take from the rich and give it to the poor?

Mr Hawazi Daipi: Sir, we have to be fair to the foreign domestic workers too and we must make sure that they are well taken care of while working in Singapore and they are paid on time while working in the household. I do not think it is an issue of being equitable. For the different households and some of whom may need extra assistance, they are already paying concessionary levy and, as I have mentioned earlier, the amount of concessionary levy has been reduced over the years. This should be able to help those who may need some extra assistance from the Ministry of Manpower.

Mr Speaker: One final question, Mr Chiam.

Mr Chiam See Tong: I think we are not talking about the payment to the maid. We are talking about the maid levy. So those people who can pay the maid levy should be made to pay. And those poor people who cannot afford, I think they should be given some concession because they have to make a living for themselves, their family and their elderly parents. That is the point of my question. Is it not possible whereby the wealthy should be made to pay for the less wealthy?

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Mr Hawazi Daipi: Sir, the levy is not a tax system. The levy is meant to regulate the number of foreign domestic workers in Singapore. And we have to have a levy system to ensure that only those who can afford it would be able to employ a foreign domestic worker. For those who may need some assistance but cannot afford to pay the salary of the foreign domestic worker and/or the levy, then they should find other assistance schemes which are already made available by our Government agencies. We should not treat employing a foreign domestic worker as the only solution to all the problems in the household.