INCREASED TELEPHONE CHARGES AND NATIONALISATION OF TELEPHONE UNDERTAKING

Mr Lee Choon Eng asked the Minister for Communications and Works whether, in view of the announcement made by the Singapore Telephone Board of the steep and sudden increases in telephone charges from 1st July, 1958, and the effect on the cost of living in Singapore consequent on such increases:-

(a) the Government will take steps, by amending legislation or otherwise, to prevent the increase taking effect; and

(b) the Government will consider nationalising the telephone undertaking now under the control of the Singapore Telephone Board.

Mr Francis Thomas: As I informed the hon. Member for Queenstown in answer to his question in this House on 24th April, 1957, the Telephone Board is a statutory corporation. The Board has full responsibility for prescribing the rate of charges to be made in respect of the telephone services, and Government has no intention of introducing amending legislation.

The increase in the telephone charges are the first in Singapore for 35 years and have been rendered necessary by the rise in the cost of equipment, of labour and, above all, of the finance necessary to meet the increasing demand for new lines. In the last two years, the Board has provided an additional 7,500 exchange lines, that is a 33 per cent increase, and current expansion is running at the rate of 450 lines a month. The hon. Member will appreciate what this rate of expansion involves in terms of interest at current market rates.

The increased charges only brings Singapore rates up to a level slightly below that the Federation Government has already found necessary. I am satisfied that any general rise in the cost of living will be extremely small as the main burden will fall almost entirely on persons well able to bear it, but I have, however, represented to the Board that the increase in the charge for public call boxes may be onerous to the poor, and I am awaiting the Board's reply whether they can reconsider this part of their proposed increase.

The telephone services have been nationalised since 1955 and the question of nationalisation does not arise.

Mr Lee Choon Eng: Mr Speaker, Sir, will these increased rates result in giving better services to subscribers, and is it not a fact that current capital expenditure will result in a return in due course?

Mr Francis Thomas: The capital expenditure is related primarily to expansion of the services. The system is at present very heavily overloaded and the reason why there have been deficiencies - such as wrong numbers and the crossed lines occur - is that to meet the demand for lines, the load on the network has been increased above that appropriate for full efficiency.

Mr Lee Choon Eng: Mr Speaker, Sir, is it not fair for the Singapore Telephone Board to withdraw such increases until such time when it can provide a better service?

Mr Francis Thomas: No, Sir.