UNEMPLOYMENT INSURANCE SCHEME (Statement by the Minister for Finance)

3.08 p.m.

Dr Goh Keng Swee: Mr Speaker, Sir, in answer to the questions asked by the Member for Anson, I spent some time in explaining the background of our relations with the pro-Communist trade union leaders. Although we had discussions with them - we spent a lot of time working out the details of this unemployment insurance scheme - I harboured the doubt at that time, a doubt which subsequently turned out to be completely justified, that these persons were not honest nor sincere in their dealings with us.

I went on to say that the main consideration of Communist leaders in a trade union movement is to maintain a hold on the union leadership. From this point of view, they will stop at nothing to achieve their objective. They have tried to hot up the situation, create an atmosphere of tension and uncertainty, because it is under such conditions approaching a revolutionary situation that a combat Marxist-Leninist Party can deploy its cadres to the most effective purpose. Therefore, in their policy towards unions, the benefits that the workers would obtain are, of course, important. These are important matters because, without getting benefits, the workers will soon drift away from them. But they will never try to seek a permanent settlement with the employers on the best terms possible for the workers, because, by so doing, they will reduce discontent among workers, cause them to be satisfied, and in this manner become complacent and apathetic towards union matters. Now, Mr Devan Nair told me of the advice which Mr Lim Ching Siong had given him when they were colleagues in the T.U.C. - that Mr Lim Ching Siong advised Mr Devan Nair against fighting for salary scales. He said that with salary scales, workers would be satisfied with the conditions, lose their revolutionary fervour and thereby weaken the hold of the union upon members. Because once you have a salary scale, everyone would know that an increase in wages comes automatically year by year, and therefore there would be less and less occasion for the union to rally round its members to fight for improved conditions. Mr Lim recommended that it was better to fight for periodic salary increases and prevent the members from being fully satisfied at any time.

Sir, with such a background of the policy and tactics of the trade union leaders, it would be clearly foolish to introduce a contributory unemployment insurance in the teeth of opposition by a substantial number of trade unionists. What we must do now is to tell the workers how they are being used by their leaders as so many pawns in the major political game for the benefit of the Malayan Communist Party.

When workers cease to be manipulated by the pro-Communist groups as they realise the truth, then and only then can we proceed to introduce progressive social security measures for their benefit. It is a sorry state of affairs in Singapore when so-called champions of workers resist the introduction of a progressive measure such as a contributory unemployment insurance scheme.

Mr David Marshall: Mr Speaker, I have a supplementary question. I do not know if it is now open to debate, Sir.

Mr Speaker: Order. If the Opposition indicate they wish to have a debate on the statement, I am sure the Minister will move a motion for the Adjournment. If they do not, and they will be satisfied merely by asking questions, then we do not need to have a debate.

Mr David Marshall: I would suggest. Sir, in view of what I consider to be a cynical and somewhat pathetic statement of policy made by the Minister, that a debate be allowed. And I call for a debate.

Mr Speaker: Will the Minister then move the motion for Adjournment?